Just a follow up today of this week’s events from the UK elections to the impeachment process, to the Phase 1 US/China trade deal, and to some general market news. As a lot of these hot button issues come to some semblance of a conclusion, the markets will now have to start looking elsewhere to gain some positive momentum. Where exactly is it going to find such positivity? Perhaps talks of Phase 2 will commence immediately, please, NO! Or perhaps the mega liquidity injections by the Federal Reserve from now until early January will be enough to cause a Santa Claus rally? Only time will tell, but the headwinds still outweigh the tailwinds as far as The Kapital News is concerned. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Impeachment #Recession #EndTheFed #Trade #USA #China #Trump #Xi #HongKong #Truth #Justice #Peace #Congress #Republic
We could simply copy and paste the headlines that pertain to the US/China trade deal or lack thereof. This is like living in the Twilight Zone with this constant and continual occurrence of yes there is a deal, to no, we have to increase tariffs, and rinse and repeat. Well it appears today that President Trump is ready to roll back 50% of the tariffs and cancel the upcoming tariffs that were scheduled for 15 December. What does the US get in return? We really have no idea. Possibly the Chinese will buy more ag products like soybeans and pork bellies. But that really just takes us back to where we were when this whole thing started. So what really has been accomplished? We also have early reporting that a Phase 2 deal will not commence until after the 2020 elections. So is this the end of trade headline optimism? Meaning, what are the markets going to look to so that they can “justify” climbing higher? Perhaps the Federal Reserve will come to the rescue and just flush the markets with liquidity like they’ve already been doing – just in a larger order. Time will tell, but if there really is a deal, early reporting is also stating that it will not be released for public review and President Xi will not be signing it. So there’s that.
UK elections look to keep PM Boris Johnson and his Conservative party in power and by a wide margin. Labour leader Jeremy Corbyn is expected to step down as the leader following the election results. What does this mean for Brexit? Will it finally happen? It appears by the voice and vote of the British people that Brexit must occur. After all, it’s only been 3 1/2 years and counting.
Here in the US, the House Judiciary Committee is expected to vote on impeachment tomorrow morning following a marathon day of amendment issues, debates, and committee procedural votes. The vote in the affirmative for impeachment is likely, thus setting the stage for a full House vote on impeachment for next week. This will then move the trial to the US Senate where Senate majority leader, Mitch McConnell, is already working closely with the White House on how to proceed. Does this make sense? A juror is working closely with the defendant. What could possibly go wrong? Stay diversified, stay vigilant, and stay with The Kapital News. #Trade #Economy #Impeachment #EndTheFed #Recession #Politics #Congress #Republic #Truth #Justice #Peace
We’ve been discussing global events at a rapid pace as of late with financial and economic news and geopolitical unrest that takes us to nearly all corners of the world. In today’s podcast we provide some updates and insights on what has transpired and what we’re likely to see in the future.
We discuss the testimony of Boeing’s CEO before a Senate panel, updates to Brexit, protests in Lebanon and Chile, the Federal Reserve’s two-day FOMC meeting, US/China trade talks, and further news surrounding the impeachment inquiry. Somewhere in all of this is the truth, but it’s sadly becoming harder and harder to find. We also caution to be very mindful of these global protests – this is not transitory – this is historic. These are the cracks in the foundation making their way throughout the rest of the world. Remember that revolutions are fought on empty stomachs and people around the globe are upset with rising costs of food, living, medical expenses, and corrupt governments and politicians. The world is in the midst of a sea change – and it’s just getting started. Stay diversified, stay vigilant, and stay with The Kapital News. #Protests #Recession #Impeachment #Brexit #Boeing #Economy #Politics #Lebanon #Chile #USA #China #UK #HongKong #Truth #Peace #Justice #Congress
Another day and another vote (or two) in the House of Commons. While UK PM Boris Johnson gets his first major victory during the first vote in today’s session – approving the Withdrawal Agreement, he was not so lucky on the second vote. The second vote pertained to an expedited schedule to get the Brexit deal through the legislative process and Parliament said no. MPs want more time to go through the agreement’s entirety and to have a thorough economic analysis conducted prior to giving their full blessing. Recall, the referendum was in June of 2016. Over three years and there is still bickering and much uncertainty around what a Brexit will actually look like. Now, given the outcome of today’s votes, it appears that the proverbial can is likely to get kicked further down the road. Despite the appearance of further dither and delay by Parliament, PM Johnson is still steadfast in his rhetoric that Brexit will take place on 31 October – only a handful of days away. Given other recent votes, this is now less and less likely and attention will now be paid to EU officials to see if they grant the UK yet another extension. There remains many moving parts when it comes to Brexit and should we be surprised that such high drama or dark comedy is unfolding in the land of Shakespeare? The only question is, in what act do we find ourselves?
In other news we discuss Q3 earning’s season, further news from Boeing, and the deal agreed to by President Erdogan and President Putin surrounding Syria. Stay diversified, stay vigilant, and stay with The Kapital News. #Brexit #UK #Democracy #USA #Turkey #Russia #Syria #Justice #Peace #Truth #Boeing #Economy #Politics
A handful of breaking news stories crossed the wires today, but the one that caught a good deal of attention pertained to the alleged cease-fire between Turkey and Syria. This was a deal that was brokered by VP Mike Pence and Secretary of State Mike Pompeo with their counterparts in Turkey. Shortly after the US claims that a 120 hour cease-fire has been agreed, Turkish officials come out and state that this is not a cease-fire, but rather a pause in the action. What we do know is that the US is supposed to move the Kurdish forces further south into Syria and further away from the Turkish border – exactly what Turkey wants. In essence, this is a quasi-deal to surrender the position of the Kurds – an American ally. The Kapital News is for peace and prosperity and wants to see an end to the endless wars. However, this cannot be done by shooting from the hip. This needs to be done in a prudent and well thought out manner in order to prevent the kind of scenario in which we find ourselves. Following the “cease-fire” announcement, President Donald Trump made claims that he was the only one who could get this done and that this cease-fire will prevent millions of lives from being lost. This is a ridiculous notion on a few fronts, but primarily because this was not a problem until President Trump made his quick decision to remove US forces from Syria. This then led to the immediate advance of the Turkish military into Syria. This is akin to breaking something and then claiming how great you are when you fix it or attempt to fix it. In addition to this, within the next five days, President Erdogan of Turkey will be visiting with President Putin in Russia – just a coincidence we imagine. Other stories discussed pertain to a “miscommunication” from Mick Mulvaney, acting Chief of Staff to the President, and Director of the Office of Management and Budget, regarding the “quid pro quo” on the President’s phone call with his Ukrainian counterpart. We briefly discuss the Brexit deal, but we’re not holding our breath that this deal will be passed by Parliament in the coming days. Also, an article in Vanity Fair calls into question some irregular trading activity that may have proven quite profitable surrounding trades in the US futures markets that may have paid-off big by timing correctly President Trump’s tweets surrounding the US/China trade talks. Finally, someone in the mainstream in calling this into question. This is an abuse of power and in the very least, it needs to be investigated by the proper authorities. Stay diversified, stay vigilant, and stay with The Kapital News. #Truth #Justice #Peace #War #USA #Syria #Turkey #Russia #Politics #Economy #Recession #Impeachment +
This week is surely setting up to be one for the front pages. There will undoubtedly be further remarks and tweets from President Trump regarding an interim “Phase 1” trade deal with China. Short on specifics and reminiscent of this summer’s trade truce, we here at The Kapital News are highly skeptical of any deal of worth. Even if there is substance, this would simply take us back to where we were prior to the trade war in regards to the amount of agricultural products being purchased by the Chinese. Nevertheless, The White House will continue its jawboning and market manipulation tactics. Other market rallying headlines were the rumors of a Brexit deal in the works only to have conflicting stories come out this weekend claiming that there is still much work to do. The Queen’s Speech is also set to take place on Monday and if Parliament shoots down the vote on the Queen’s Speech then there is going to be much pressure on PM Boris Johnson to resign. This would only serve to throw another curveball in the Brexit saga. The Federal Reserve has started another round of QE. Welcome to QE4, but don’t you dare call it that – at least the Fed doesn’t want you calling it QE. Why? Because the Fed also claims that the US economy is strong and is in a good place, so then why would they need to engage in an emergency monetary policy? A rose by any other name is still as beautiful. #EndTheFed The Fed is also expanding their involvement in the overnight repo market. Recall it was initially just a one-off, then extended to 10 October, then extended to 4 November, now it’s going to last until at least January of 2020 (and it’s not likely going to be enough). There is also continuing escalation between Syria and the Turks. It is likely that if the Turkish military continues deeper into Syria that Syria will declare war against Turkey. Also, since President Trump has ordered the removal of US forces from Syria, the Kurds have now formed an alliance with the Syrian government in order to fight-off the Turkish military. This story has drawn the ire of Republicans and Democrats alike and are pressuring the President to hit Turkey with harsh sanctions to crumble their economy. It is unknown at this time as to what sanctions if any the White House will impose. President Trump is calling an end to these endless wars by withdrawing US forces from Syria, only to deploy thousands more to Saudi Arabia and surrounding countries to fend off Iranian aggression. Does this make any sense? Stay diversified, stay vigilant, and stay with The Kapital News. #Brexit #War #Peace #Economy #TradeWar #Politics #Impeachment #Whistleblower #Justice #Truth #Recession #Stocks
Ep. 125A - The Fed: Out of Ammo, but Firing Anyway
/
RSS Feed
Share
Link
Embed
Chairman Jerome Powell of the Federal Reserve made remarks this afternoon informing us of what we here at The Kapital News already knew. And that is the Fed is expanding their balance sheet, again. However, as we have been noting for months, while this is QE, the Fed would not call this QE, and guess what? – they’re not calling it QE. The reason why they’re not admitting that this is another round of QE is the fact that this monetary experiment was supposed to be temporary. Well it’s been 10 years and it looks like they’re going to begin another round. Should the Fed actually call this QE4, the markets might have a flash of genius, scratch their heads, and say, wait a minute – if everything is so great, then why is the Fed utilizing a monetary tool reserved for emergencies? Good question. The Fed, along with other central banks have boxed themselves in and are now trapped. Exactly as we noted back in July with our Kapital Economics presentation. With a “complete” US/China trade deal seeming less and less likely, the only hope for the markets is that the Fed can pull a rabbit out of its hat. However, this trick has been seen before. The magician has been doing the same trick for 10 years and the audience is on to how the trick is performed and wants something new. It’s unlikely that the Fed can deliver the goods with a new trick of substance. However, also remember that markets can remain irrational longer than we can remain solvent. This is a flawed and fraudulent monetary experiment that has reached its limits, and with fundamental economic conditions deteriorating both domestically and abroad – look out below. Stay diversified, stay vigilant, and stay with The Kapital News. #EndTheFed #Recession #Economy #Invest #Money #Debt #Politics #Truth #Peace
It matters not the direction, North, South, East, or West, all regions of the globe are undergoing some major shift. Whether it’s Brexit in the UK, escalation with Israel, Lebanon, and Iran, India and Pakistan, Hong Kong protests, the US-China trade war, or others, the conclusion to these stories will affect the future of the geo-political landscape for generations. The Kapital News is a strong advocate of peace and prosperity, and let us pray this is the outcome. Yet with all the “strong-man” tactics and antics being played out by nearly all countries, the probability of a civil resolution to all areas, is unfortunately very low. Things on tap throughout September will be low-level US-China trade talks, global economics figures will be published, major central banks will be making monetary policy decisions, and then there’s always the wild-card. Stay diversified, stay vigilant, and stay with The Kapital News. #Economics #Brexit #USChina #TradeWar #Politics #Recesion #Investing #Peace
So many headlines and so little time. The deadline for Brexit is now only a couple of months away and UK Parliament is no closer to striking a deal with the EU or amongst themselves to leave with a deal. PM Boris Johnson was shot down a few times already as the new PM – with Parliament voting to strike down the possibility of leaving the EU without a deal. This led the PM to call for a snap election for 15 October, which was also struck down by Parliament – at least for now. Given the many back and forth tactics and antics, we imagine there will be more calls for a general election. In Hong Kong, the Chief Executive, Carrie Lam, has formally removed the highly contentious extradition bill from consideration. This bill is a main cause to the 13 weeks of protests, which have shut down several parts of Hong Kong. While this was a big issue for the protesters, the question becomes, will this be enough to end the protests and riots? On the US-China trade front, despite escalation from both sides, there has been a formal announcement that high-level talks will resume in Washington DC in October. All and any outcome is pure speculation, so we shall wait for the results. We lastly discuss the divergence between the main US equity indices against the bond market, the internals of the US stock market, precious metals, and commodities, given their movements, they cannot all be right. One group points to growth and the other, a slowdown. Well, which will it be? Stay diversified, stay vigilant, and stay with The Kapital News. #Brexit #HongKong #USChinaTrade #TradeWar #Economy #Recession #Politics
So there’s more drama surrounding British politics and the saga that is Brexit. The PM, Boris Johnson has decided to suspend Parliament, thereby calling for the Queen’s speech. This is a common practice for a new PM and is a highly ceremonial process, which of course is comprised of a speech by the Queen. However, what makes this time slightly different is the fact that this suspension will be longer and comes during a time when the 31 October Brexit deadline is drawing near. This means that there will be fewer days available for members of Parliament, MPs, to debate Brexit. They have had three years and there is still no deal that has been agreed by the British government and the Parliament. What do these politicians think they can actually achieve with another few weeks of discussions? Of course the actions taken by the PM have further divided an already polarized Parliament and country and it can be expected that protesters will take to the streets and there may even be a vote of no confidence of the PM. The people voiced their opinion back in June of 2016, it is now time for the British government to make good on that referendum – deal or no deal.
