We continue our discussion and analysis of the Federal Reserve’s balance sheet and the national debt of the USA. We provide an historical perspective with respect to these two variables so that the audience can gain a better picture of the current state of monetary and fiscal policy. It also serves the purpose to highlight the rapid decline of the United States and how this is the management of the bankruptcy of the United States of America. With each passing administration, there is exponential growth with our levels of debt, but unfortunately, not with our levels of growth. And this makes intuitive sense because debt is not growth. In fact, debt, especially at these levels, retards and stunts growth. Debt is the theft of future prosperity. This is clearly evident, yet the political will to stop this type of debt expansion is non-existent. It is non-existent because the truth is too hard to stomach for these politicians and the coward’s way out is to add to the debt and to inflate our currency. Truth, prudence, and principle are not words that are used or understood in Washington, DC. And as such, it is the people and the country at large that has to pay for and suffer the consequences of such poor and absent leadership. Because of this, we are not a free nation, but rather a nation of debt. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Bailouts #Revolution #EndTheFed #BananaRepublic #Inflation #Leadership #Gold #Silver #USA
According to the BLS, 245,000 jobs were created in the month of November. This was well below market expectations and where jobs gains had been over the last several months. Perhaps portending of a loss of momentum within the jobs market. Such a situation, would however, be consistent with other data that we have been witnessing with respect to initial jobless claims remaining stubbornly high at over 700,000 per week. Such a small monthly gain is also consistent with recent small business surveys that indicate that nearly half of these businesses remain at risk of closing for good. Those industries hardest hit are continuing to feel the brunt of the economic contraction and the narrative is showing consistency across various reports and surveys. Thus, indicating to The Kapital News, that there is still a long way to go with respect to the recovery of employment. It should also be noted that elements within the Nobody CARES Act are expiring at the end of the month. Therefore, those who may be losing their jobs for the first time, will likely qualify for state benefits. However, those that typically do not qualify for state benefits, such as small business owners, contractors, gig workers etc, have been relying on the PUA and/or PEUC programs created in the Nobody CARES Act, will run into a problem as these programs are set to expire. These two programs were also available as an extension if and once, state benefits expired. Lastly, the headline U-3 unemployment rate was 6.7 percent for the month of November. However, per the BLS, if calculated “more accurately,” the rate would have been 7.1 percent. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Unemployment #Bailouts #Debt #Recession #Depression #Inflation #Gold #Silver #EndTheFed #BananaRepublic #Liberty #Revolution
The state of our union is in disarray and decay. It’s a decline that has been in the works for years and it’s a combination of economic, social, political, and moral decay. What this election is showing us is how divided the country is and that net-net, this will prove to be a repudiation election of both major political parties. The problem of course is, millions of Americans across the country are looking for another option, but they can’t find one because of the death-grip that the two-party system has on this country. This simply means that Americans only have one of two choices – so take your pick. Structural issues are not and have not been addressed, let alone even discussed. But what is mentioned are the topics that send Americans into their respective silos and further apart from rational debate and discussion. Meanwhile, the system that feeds on itself is robbing our treasury to the total(s) of billions and trillions of dollars – and this is done right in front of the people – but they don’t see it because they’re too busy arguing about “partisan” issues. It appears that the old strategy of divide and conquer is alive and well. In short, the state of our union is a disgrace and an embarrassment, and we the people better wake up before this country and what she stands for is completely gone. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Liberty #Revolution #USA #Gold #Silver
A recap of this week’s events pertaining to initial jobless claims, Presidential debates, market performance, negative rates, the broader election landscape with down ticket races, and debt and deficit figures. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Elections #Inflation #Gold #Silver #Liberty #Revolution #Debates #Bailouts #USA
The bulk of today’s discussion is a continuation of Monday’s podcast where we were focusing on the FinCEN investigation. This is a branch of the Treasury Department that is responsible for collecting, maintaining, and investigating suspicious activity reports, (SARs). These SARs are filed by banks when they identify unusual and suspicious transactions. The main goal is to detect money laundering and then stop it. However, as we gather through the BuzzFeed News investigation – this process is not so straight forward. In fact, many banks know and/or have a good idea that they are transacting with a money launderer, such as drug trafficker, but they continue to do business. The fees that are made from these transactions are apparently too good to give up; and furthermore, even if federal prosecutors should take action against the bank(s), the common punishment is a fine. This fine is of course paid by the shareholders and not the executives who are aware of these business dealings, nor the board directors who have a fiduciary duty to look out for the shareholders. Since this is the reality – crime does pay for these banks and other actors.
The BuzzFeed article that we continue to make our way through, highlights several of the world’s largest banks and the activities they have been involved with. These actions can range from working with Russian organized crime figures, to drug and human traffickers, to being the bank for convicted Ponzi scheme felon, Bernie Madoff. The amount of money involved is nothing short of astonishing and along with it the banking fees that are derived and the trading desk profits that are made with these funds. So long as this kind of money can be made and the corresponding punishment(s) so limited, then it can be logically concluded that these actions will continue, because crime, unfortunately, for these figures, does pay. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Banks #Fraud #Bailouts #USA #Gold #Inflation #Debt #Liberty #Revolution
More vaccine headlines because, well, it’s a day that ends in “d-a-y.” More “stimulus” on it’s way because, well, that’s what an out of control Congress and White House do – they beg, borrow, and spend money we do not have. Former Chairs of the Fed, Ben Bernanke and Janet Yellen testified before Congress last week on how to weather the COVID-19 storm and suggested to do, “whatever it takes” – because, well, that’s what central bankers operating in banana republic do – they print money like it’s going out of style – because it is. And lastly, the weakest links in the global economic chain are beginning to completely collapse.
We highlight the devastating economic and social destruction of Lebanon. Wrought with years of political corruption, fraud, abuse, and nepotism, coupled with flawed economic policies have brought the Middle Eastern state to its knees. Unfortunately, the policies and actions that have caused this collapse are all too familiar to billions of people around the world – whether 3rd world or highly industrialized. This is what ultimately led to the global protests prior to the pandemic, and given the economic, health, and social fallout due to the pandemic, the protests will become even larger and likely violent. Any chain is only as strong as its weakest link and if recent history is any guide, do not be surprised if over the course of the next 1-2 years, we see the collapse of not only smaller countries, such as Lebanon, but of larger economies around the globe. A global economy built upon and maintained by debt cannot stand the test of time nor forever defy the laws of economic gravity. A day of reckoning is upon us and the Greatest Depression is now well underway. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Bailouts #BananaRepublic #USA #EndTheFed #Gold #Silver #Protests #Depression #Recession #Inflation #Peace
As Q2 earnings season gets underway, major banks reported today. With the likes of JP Morgan Chase, Wells Fargo, and Citigroup, there were a couple common threads throughout. First, all banks expect that the worst of the economic fallout is yet to come as they amend their forecasts from the prior quarter to a more bleak outlook for the months ahead.
As such, their collective loan loss provisions take us back to levels not seen since the GFC. Despite this negative bit of news, however, with respect to JP Morgan and Citigroup, their trading desks did phenomenally well. Gee, we wonder why that could be? Oh, that’s right – thank you Federal Reserve and all your banana republic funny money. The industries hardest hit when it comes to the banks are retail, real estate, and oil and gas. The very industries that we have been discussing here for months. It was also quite interesting to hear from the banks that all of the “stimulus” spending and other policies that have been implemented has simply delayed the inevitable – protracted economic growth. The problem of course with this is that there is no free lunch. So all we get are a few extra months at the expense of trillions of dollars that we do not have, only to end up where we would’ve ended up anyways, but now with a higher debt load. Only the arrogance and fraudulent behavior of bureaucrats, politicians, and central bankers could have come up with such a scheme. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Debt #Depression #USA #Recession #EndTheFed #Gold #Liberty #Silver
Despite all of the begging, borrowing, spending, and printing, by governments and central banks the world over, the next step of this process will be a wave of insolvencies.
The Kapital News has been saying for over a year and well before the onset of COVID-19 that another real estate downfall was in the works. We noted that it would likely be in the form of a top-down, bottom-up squeeze. Well it appears that this scenario may well be under way. The top-down takes the form of commercial and high-end residential real estate. We don’t have to look much further than the tragic number(s) of retail stores that are closing their doors for good to grasp this concept. We can also look at college towns that may suffer as well if students do not go back during the fall semester. How many businesses and homes/apartments are dependent on these students for income? These establishments have loans and mortgages that do not go away simply because the students don’t show up. So how are these loans to be repaid? And what if there is a rush out of big cities to the suburbs – same story. Starting to get the picture?
Now take this in aggregate and it starts to paint a very bleak picture. And unfortunately, this is the necessary process that has to unfold. There are too many zombie companies in existence being propped up by easy money and fiscal spending. These businesses need to restructure or liquidate and allow for new and better management to take the helm. In the end, this process is better for the economy and why it’s called a “correction.” So, whether it’s retail, food service, hotels and travel, construction, manufacturing, and so much more, downsizing in one form or another is coming – the question is when and to what degree? Stay diversified, stay vigilant, and stay with The Kapital News. #BananaRepublic #EndTheFed #Bailouts #Depression #Recession #USA #Gold #Silver #Liberty
A power play in DC appears to be taking shape regarding the economic response from the Fed and the government in relation to COVID-19. Over the last couple of weeks, the argument between a liquidity crisis and a solvency crisis has been and continues to be discussed. This is likely to be at the crux of this particular DC power play. Because after all, no politician or policymaker wants to be the one holding the bag when all of this comes crumbling down – so, they’re setting the stage for the blame game.
On the one hand, we have the Federal Reserve, where Jay Powell accurately notes that there is a difference between a liquidity and solvency crisis. It is on the liquidity side of the ledger where the Fed can be most “effective.” They can print money and expand the money supply at-will. They can flood the financial system by utilizing a number of lending facilities – and they have. However, this does not solve the solvency crisis that surely awaits us. Here, the Fed Chairman has been stating that he believes Congress and the Administration should take a bigger role through fiscal measures as opposed to relying solely on monetary ones. Here is where the power play or blame game starts to form. The Fed can show via various statistics, such as their balance, that they have thrown trillions of dollars into the system to keep the financial plumbing moving along – in conjunction with other measures. Now, while they claim they still have ammunition, it would be prudent for the government to step in even further, is their argument – the Fed is passing the baton of responsibility. “Hey, we here at the Fed have done our part, look at exhibit, A, B, C, etc… now it’s your turn Uncle Sam.” So now the ball is in the hands of Congress and the Administration – a huge and slow moving political machine – what could possibly go wrong? So, if the solvency crisis does unfold, meaning a considerable amount of businesses, (of all sizes), file bankruptcy and/or liquidate, then a lot of this blame will fall squarely on the shoulders of the government – at least this is what the Fed is trying to position for. Will the Congress and/or Administration allow this to happen?
No one wants to step up and be the leader. No one wants to step up and admit to our many faults as a country, as a society, as individuals. No one wants to speak the harsh truths of the matter with respect to so many subjects. No, no. But what we can do without hesitation, is burden future generations who have nothing to do with this, and have them pay for it with lower living standards, higher costs, and lack of opportunities. All for the purpose of returning things back to “normal.” Normal by the way is insanity personified, and completely unsustainable, but as our podcast highlighted yesterday, Nobody CARES. It will thus be interesting to see how the government handles the solvency crisis and who they seek to blame. It’s a power struggle, it’s a money struggle, it’s a reputation struggle, and it’s a legacy struggle. And on top of it all, it’s a Presidential election year. We told you 2020 was going to be interesting and it’s only May! Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #Debt #Bailouts #USA #EndTheFed #Congress #Liberty #Revolution #Gold #Depression
Ep. 9B - Retail Sales Decline: More Bad News to Come?
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Markets dropped on the back of a weaker than expected retail sales report. One in which declines were last seen during the Great Recession. This follows a record of 90+ days past due on auto loans. How strong is the US consumer truly? We discuss…
