Tag: COVID19

Ep. 516 – Make Peace, Not War
The Kapital News
The Kapital News
Ep. 516 - Make Peace, Not War
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There is dry kindling all around the globe, and it will only take the smallest of sparks to ignite an inferno. Several governments have already collapsed and others are on the brink; with some of them being major economies and world players. The global economic chain can maintain its structural integrity when a few of the weaker links breakdown, think Venezuela and Lebanon. However, should larger links in the chain join their ranks, such as Italy, then the ripple effects will be tremendous and will likely put the whole system into a tailspin. Momentum and inertia are powerful forces that may start off small and slow, but can quickly gain speed and power, which can have the effect of catching many people off guard; which can turn into a problem in and of itself.

Governments the world over have overstayed their welcomes and this has been evident for some time and most recently seen over the last two years in mass protests. These will continue, assuming they are “allowed” to. Should governments get carried away and use force to put down peaceful protests, then the only option that many will resort to will be violence. This can happen. It can happen quickly and it can easily spiral out of control. Look at the United States of America for example – this week is the inauguration in what is supposed to be a peaceful transfer of power. This is a hallmark of our republic. But no, not in 2021. On 20 January, we are going to witness nearly 30,000 national guardsmen and federal agents patrolling Washington, DC. In addition, there are nine foot high barbed-wire fences, checkpoints, and other restrictions. We also have an outgoing President who will not be attending the inauguration, which is tradition. This is a tragic scene and will forever be a stain on the country’s history.

Despite all of this and so much more, this does not mean that war is inevitable. Let us pray that it does not happen. However, from a realistic standpoint, rooted in human behavior, psychology, and history, would lead one to put the odds in the favor of conflict as opposed to peace, at least initially. The solutions exist and we have the blueprints. It is called the US constitution and free-market capitalism. It is called equal justice under the law. And it is called humanity and civility. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Liberty #Revolution #FireCongress #Debt #Jobs #Inflation #Gold #Silver #Vote #USA #EndTheFed #bananarepublic #Recession #Depression #Peace

Ep. 515 – Weekly Wrap Up
The Kapital News
The Kapital News
Ep. 515 - Weekly Wrap Up
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President Trump is impeached for the second time in four years, the Department of Labor informs us that 965,000 Americans filed an initial jobless claim last week, US retail sales fell in December for the third consecutive month, and Washington, DC is on lockdown as the entire city is basically fenced-in with barbed-wire fences and patrolled by thousands of National Guardsmen. Can you say banana republic? An eventful week to say the least and next week will likely shape up the same as 20 January is the day of the inauguration.

The United States is supposed to lead by example and serve as a beacon of democracy – free and fair elections, and a peaceful transfer of power. The images that are and will come out of Washington, DC will scar this nation’s history. This is a direct result of flawed and failed policies that having been plaguing this country for decades. A deteriorating economy leads to political and social decay and decline. From this, further and deeper divisions occur between the people. All of what is happening now is and has been highly predictable. The Kapital News has been discussing this very environment since we have been online in early 2019. And unfortunately, a change in the date on the calendar is not a remedy. As bad as 2020 was, 2021 and beyond are likely to be even worse. All of these issues need to be resolved. They are structural. They are deep-rooted. And it will take years to construct a new foundation from which to grow. Yet, this can and must be done, if our future is to be better and better than our past. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Bailouts #Vote #USA #Liberty #Revolution #Inflation #Gold #Silver #EndTheFed #bananarepublic #FireCongress

Ep. 513 – Impeached Again + Savings Stolen
The Kapital News
The Kapital News
Ep. 513 - Impeached Again + Savings Stolen
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The House of Representatives voted today to impeach President Donald J. Trump for the second time. The vote was 232-197. This makes President Trump the first and only President to have been impeached twice, and this occurred within one term in office. This speaks volumes with respect to the President’s actions and behaviors and to the animus that exists within the Democratic party towards the President. This is a reflection of the country. We the people vote these characters into office, so we cannot be surprised that our government is as divided as the people of this country. Next steps in the process is for there to be a trial in the Senate and then a vote to acquit or convict. With the upcoming inauguration only one week away, there is really no plausible way that the Senate can manage a full trial within this timeframe. Therefore, it is very likely that the trial will take place after Trump is out of office. This will be another first, as there has never been an impeachment trial of a President after he has left office. This, plus the fact that the President has been impeached, is likely to increase the volume, frustration, and anger of many Trump’s supporters, and perhaps others who are tired of all the politics. All 50 states and Washington, DC are on high alert against the possibility of violent riots. The US Capitol is currently surrounded by fences. This is such a tragic sight to see and is more akin to a third world banana republic as opposed to the nation that is supposed to be the beacon of democracy and self-governance.

News came across the wires this evening that the incoming Biden administration is looking to send to Congress a $2T spending bill. Take the $900 billion bill that was just passed, in conjunction with the $1.4 trillion spending bill, and we are already looking at $4.3T in spending! This is just getting started. This first bill is likely focused on more “stimulus” checks and other Covid-19 relief. Other bills will come that address environmental and healthcare concerns, amongst others. This is ridiculous and it is robbery. The government does not have the money and so more deficits, debt, borrowing, and printing must ensue. This is all serves to destroy savings and one’s purchasing power. As highlighted by usdebtclock.org, average savings per family currently stands around $28,500. Fast-forward four years from now and this figures falls to $1,500! And this is the average, meaning that this figure is highly skewed by those in the upper income brackets that actually hold most of the savings. Many Americans actually have a negative savings rate, meaning that they are in debt on a net-net basis. This scenario is 100 percent predictable, yet this is what is likely to unfold. It does not have to, but then again, we have the same people in Congress. So how can anyone truly be surprised by these outcomes? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Savings #Jobs #Bailouts #USA #Vote #Impeachment #Liberty #Revolution #EndTheFed #BananaRepublic #Inflation #Gold #Silver

Ep. 505 – 2021, And So It Begins…
The Kapital News
The Kapital News
Ep. 505 - 2021, And So It Begins...
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It’s Sunday evening, but as we watch the overnight futures markets, we are seeing some nice moves to the upside in the commodity space. This decade is likely to be a bull-market for precious metals and commodities. It’s back to the basics. It’s back to real tangible items that are needed for an economy to function and hedges against fiat currencies and weakening governments. All of the funny-money printing is going to end up somewhere, and precious metals and commodities is a place to pay close attention to.

During today’s podcast we discuss initial jobless claims for the week ending 26 December, which came in at 787,000; we also cover the Fed’s balance sheet, M1 and M2 money stock, and a few other data points of interest. We have been stating this for weeks, if not months, that economically speaking, 2021 is likely to be worse than 2020. Tomorrow begins the first trading day of the year, and while one day does not make a trend, it’ll be interesting to see how the markets navigate the oncoming turmoil, chaos, certainties, and uncertainties. Stay diversified, stay vigilant, and stay with The Kapital News. Happy Birthday Papou! #Economy #Debt #Gold #Silver #Inflation #Liberty #USA #Bailout #BananaRepublic #EndTheFed #Recession #Depression #Jobs

Ep. 502 – More Cash In Your Stocking
The Kapital News
The Kapital News
Ep. 502 - More Cash In Your Stocking
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It looks like the gift-giving season isn’t over yet, as President Trump signs the $900B “stimulus” bill. This package contains the $600 checks, which may very well turn into $2,000 or at least more than the $600 figure. The House has already passed a new bill that increases the amount to $2,000. It now goes to a vote in the GOP led Senate. All of these Republican Senators voted for the Nobody CARES Act earlier this year, but now all of a sudden they’re seemingly concerned with spending levels, deficits, and the national debt. The Kapital News is of course against all bailouts, but at least we’re consistent and not hypocrites like so many politicians. This is still the early innings, as there will be more spending measures to come throughout 2021.

We also cover initial jobless claims, the Fed’s balance sheet, and M1 and M2 money stock. The monetary measures all hitting new highs as we print our way into oblivion. And jobless claims are still north of 800k, which is heart-breaking and very much in the wrong direction. However, it is in alignment with our analysis – and economically speaking, 2021 is likely to be worse than 2020. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Inflation #Gold #Silver #Liberty #Revolution #USA #EndTheFed #BananaRepublic

Ep. 501 – A Nation of Debt
The Kapital News
The Kapital News
Ep. 501 - A Nation of Debt
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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

Ep. 500 – More Spending Is Never Enough
The Kapital News
The Kapital News
Ep. 500 - More Spending Is Never Enough
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More drama in Washington, DC as the President condemns the Covid-19 “stimulus” bill and says the $600 checks are not enough. Instead, the President wants Congress to authorize checks in the amount of $2,000. The President also criticized the amount of wasteful and overseas spending. The Speaker of the House, Nancy Pelosi, has already stated that she and her fellow Democrats will be happy to take up the bill again and include the $2,000 figure. The question will now be put to the Republicans to see if they can stomach that amount. There was already pushback from some Republicans when it was $600 – so will they be able to tolerate $2,000 or will this bill now get shutdown?

Of course, should this bill in conjunction with the $1.4 trillion spending bill get passed and signed into law, where will all of this money come from to finance these monstrosities? Well the printing press certainly. The latter half of today’s discussion is centered around the Federal Reserve’s balance sheet. As we noted yesterday, the Fed’s balance sheet hit an all-time high last week at nearly $7.4 trillion. With all of this additional spending coming down the pike, it stands to reason that the balance sheet will hit and/or exceed $10 trillion by the end of 2021. This is ridiculous and would be a near 10x fold increase to the balance sheet just since the Great Financial Crisis and would be about 50 percent of US GDP. These numbers are unsustainable and go against everything this country is supposed to stand for. Where are the free-markets, and where are the checks and balances? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Bailouts #Inflation #Gold #Silver #Liberty #Revolution #EndTheFed #BananaRepublic

Ep. 499 – Nobody CARES Act 2.0
The Kapital News
The Kapital News
Ep. 499 - Nobody CARES Act 2.0
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So after months and months of political infighting and election posturing, it appears that Congress will pass another major “stimulus” bill. With a price tag of $900 billion this will be one of the largest bills ever passed and it is even tied to another spending bill that comes in around $1.4 trillion. Congress has clearly taken out the country’s credit card during the holiday season. The $1.4 T will only keep the lights on in the country for a few months and then they’ll be right back to the drawing board.

Nonetheless, the $900 billion is already drawing some harsh criticisms as there are billions that are going to foreign countries. And while the bill is securing another round of “stimulus” checks, this time the amount will come to $600 as opposed to the $1,200 issued earlier in the year. Further extensions have also been put into place with respect to unemployment programs and eviction moratoriums. These are merely temporary adjustments to structural issues and as such, will not solve anything. 2021 is likely to prove even worse than 2020 with respect to the economy and these measures passed by Congress are further indication that this will likely prove correct. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Bailouts #USA #Liberty #Revolution #EndTheFed #BananaRepublic #Inflation #Gold #Silver

Ep. 494 – Biden’s Economic Dream Team Is Really A Nightmare
The Kapital News
The Kapital News
Ep. 494 - Biden's Economic Dream Team Is Really A Nightmare
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President-elect Joe Biden released more names today to fill positions within his economic team. These characters are all familiar names as many have held posts within the Obama Administration. As The Kapital News likes to say, “it’s a revolving door down there in Washington, DC.” It is quite remarkable, yet also not surprising, that such people will be filling these positions. Remarkable in the sense that no one seems to have any basic common sense for what is going on in this country. Evidently, the same people who are responsible for past and current economic calamity are now back in the fold – apparently so they can be responsible for the future economic calamity. This makes zero sense. However, what can be deduced is that the incoming Biden Administration must be fine with how things were managed in the past and thinks that’s how things should be managed going forward. This becomes the definition of insanity. And of course, it will continue to be the American people who are responsible for the bill. This will be paid through taxation, inflation, a stagnant economy, higher costs of living, lower living standards, few opportunities, and more debt. Just when you thought 2020 was nearing its close – we have all of 2021 to contend with in the aftermath of all of these flawed policies. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Bailouts #EndTheFed #BananaRepublic #Inflation #Gold #Silver #Liberty #Revolution #USA

Ep. 491 – Yellen: No Checks, No Balances
The Kapital News
The Kapital News
Ep. 491 - Yellen: No Checks, No Balances
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Today’s title has a couple of meanings. First, since we’re a first world banana republic, we have no checks to write because there is no balance in the Treasury to cover them. Further, the only way we really show a balance in the general fund is because we print the money like it’s going out of style – because it is. Then of course, the United States government is supposed to be a system of checks and balances. But how can our system truly function as such a system, if there exists a central bank, the Federal Reserve, that is accountable to no one? Presidents, Representatives, and Senators can be voted in and voted out by the people. The President can override Congress with a veto. Congress can override the veto should enough votes exist. Congress can impeach and remove a President. The Supreme Court can rule actions and legislation to be unconstitutional. Yet, if and when central bankers set interest rates and embark upon other policies, there is no one who can overturn their decision. These “officials” are not elected, and thus cannot be voted out by the people. So where is the check and balance to their power? This is exactly the problem.

Now, with President-elect, Joe Biden, beginning his transition into the White House, he is starting to pick his cabinet. Continuing with yesterday’s discussion, we highlight his pick of Treasury Secretary of Janet Yellen. Yellen was the former Vice Chair and Chairman of the Federal Reserve. She was very a much a part of implementing and overseeing quantitative easing. She is also an advocate for granting the Fed the ability and authority to purchase equities outright. While she makes such a claim in a veiled way – make no mistake that she believes this is something Congress should consider doing – granting the Fed such powers. She, like many of her predecessors and successors, are destructive to the United States of America. Their policies are the root of our economic malaise in conjunction with actions taken by our government. It has been and remains to be a great concern that these policies are going to become even more extreme, and thus worsen and add to the damage. It’s a revolving door in Washington, DC and this is further evidence that our elected officials care not about the health of our country. The people need to wake up before it is too late. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Markets #Jobs #Debt #USA #Inflation #Recession #Depression #Gold #Silver #EndTheFed #BananaRepublic #Liberty #Revolution