Tag: Depression

Ep. 505 – 2021, And So It Begins…

The Kapital News

Ep. 505 - 2021, And So It Begins...

00:00 / 00:30:44

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. 504 – Here Comes 2021

The Kapital News

Ep. 504 - Here Comes 2021

00:00 / 00:24:13

As an historic year comes to an end, should we be excited about 2021 or cautious? Now there are many reasons to be excited – it is a new year, and it is no longer 2020. That alone can be enough reason for a celebration. However, at least economically speaking, it may be premature to throw a party. Structural issues that have been around for years have not and are not being resolved. And in fact, many of the policies that led to the structural decline are continuing to be implemented. There are many risks that remain for 2021 and beyond and we will be sure to cover them as they arise and unfold. Have a very Happy and Blessed New Year! Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Liberty #Revolution #Inflation #Gold #Silver #Bailouts #EndTheFed #BananaRepublic

Ep. 503 – Junk Debt, Junk Economics

The Kapital News

Ep. 503 - Junk Debt, Junk Economics

00:00 / 00:31:57

Trillions of dollars in negative yielding debt, zombie corporations, modern monetary theory (MMT), universal basic income (UBI), out of control central banks, and a seemingly never-ending government spending spree. These are just some of the items that can be classified as junk economics. The economy is suffering and is need of a major correction. This correction will undoubtedly be painful and widespread, yet current policies have led us to this current environment that is also painful and widespread. Yet, our policymakers believe it’s right and prudent to continue with the very same policies that led us to this ruin and to do even more of it! What is needed is free-market capitalism. Markets need to correct. This means bankruptcies, restructurings, insolvencies, liquidations, and the cleansing of malinvestments. When governments and central banks intervene and interfere with the proper functioning of a market economy, they can only serve to make the problem(s) worse. They end up picking winners and losers; they prop up businesses that otherwise would be out of business, such as our zombies corporations; and all of this goes to hurt those well-functioning businesses, as they would have picked up the market share, where others have failed. In essence, it’s all about maintaining the status quo and prioritizing the short-term at the expense of the long-term. Problem-being is that it’s just a matter of time before the long-term catches up with us. We are nearing this moment. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Bailouts #Revolution #USA #Liberty #EndTheFed #BananaRepublic #Inflation #Gold #Silver

Ep. 502 – More Cash In Your Stocking

The Kapital News

Ep. 502 - More Cash In Your Stocking

00:00 / 00:30:08

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

Ep. 501 - A Nation of Debt

00:00 / 00:36:16

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

Ep. 500 - More Spending Is Never Enough

00:00 / 00:37:11

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. 498 – 2020, The Year That Will Live In Infamy

The Kapital News

Ep. 498 - 2020, The Year That Will Live In Infamy

00:00 / 00:29:23

Since it is the anniversary of the Pearl Harbor attacks, 7 December, 1941, we thought it prudent to title today’s podcast as such. Of course, this is a play on words to those spoken by President FDR, following this attack. We think it’s more than fair and reasonable to make such a statement.

During today’s show we discuss a number of items of which we were able to recall as happening throughout this year. Surely, topics were missed, but we ask the audience to share any items not mentioned. The events throughout this year are nothing short of Biblical – various natural disasters (fires, hurricanes, locusts, etc); trade wars, impeachment hearings and trial, negative oil prices, economic and/or country and government collapse, Presidential primaries and elections, Brexit, wars and conflicts, Covid-19, significant inflation and debt expansion, massive job loss and business closures, protests and riots, banking and financial market fraud, and what lies ahead for much of the world, may very well be a combination of civil wars, revolutions, and world war. We pray that we are wrong due to the destruction and devastation that will follow. However, this is an honest assessment given the moral, political, social, and economic decay and decline that has been experienced for generations and is picking up momentum. So while 2020 is a year for the record books – prepare yourselves, as 2021 and beyond are likely to be even worse. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #War #Recession #Debt #Bailouts #Inflation #Depression #Gold #Silver #EndTheFed #BananaRepublic #Liberty #Revolution

Ep. 497 – November Jobs Report

The Kapital News

Ep. 497 - November Jobs Report

00:00 / 00:24:00

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

Ep. 496 – More Jobless Claims

The Kapital News

Ep. 496 - More Jobless Claims

00:00 / 00:21:22

Our typical Thursday discussion revolves around initial jobless claims, the Federal Reserve’s balance sheet, and M2 money stock. With respect to initial jobless claims, 712,000 Americans filed for the week ending 28 November. While this is below market expectations and a reversal from the prior two weeks’ upward trend, this number is still over 3x the weekly claims witnessed prior to the lockdowns and restrictions. It also remains higher that the numbers experienced during the depths of the GFC. And if The Kapital News is correct in forecasting a serious number of bankruptcies and insolvencies over the next two years, then these numbers will likely remain stubbornly high. The total of all persons claiming some form of unemployment insurance came in at 20.2 million for the week ending 14 November. While this is a decrease from the prior week of some 350,000, this still provides us with a 13.7 percent unemployment rate. This would be nearly twice the headline rate at 6.9 percent. Tomorrow, 4 December, is the first Friday of the month, and as such, the official jobs report will be released.

The Fed’s balance sheet increased from the prior week, but is slightly below its all-time high experienced a few short weeks ago. The current figure is $7.222 trillion. With respect to M2 money stock, another all-time high was also reached, now standing at $19.12 trillion. This is monetary destruction in our face. This is destroying savings, capital formation, and prudent investments. It is increasing the cost of living, decreasing living standards, fueling our debt binge, and creating malinvestments across the spectrum. It is breaking and distorting markets – this will not end well. These actions are not free. Quite the contrary, as they are proving to be very expensive and destructive. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Recession #Depression #Gold #Silver #Iniflation #EndTheFed #BananaRepublic #USA #Liberty #Revolution

Ep. 495 – Small Biz Pulse Check

The Kapital News

Ep. 495 - Small Biz Pulse Check

00:00 / 00:29:54

During today’s podcast we highlight a few new surveys and data releases with respect to small businesses, the PPP loans, unemployment, and delinquencies and foreclosures within the housing market. What is clear is that we are far from being “back to normal,” and quite startling, the economy is likely to get worse before it gets better. Of the small businesses that still remain, nearly 50 percent are at risk of closing for good. This spans all industries, yet those hardest hit early on in this crisis, remain those with the greatest concern for going out of business. The data does not get much better with respect to the PPP loan data that came out from the Small Business Administration. Suffice to say that The Kapital News calling it the Nobody CARES Act remains spot on. And lastly, the news does not get much better when analyzing the housing market with respect to delinquencies and foreclosures. What is also disconcerting is that at the same time of rising delinquencies and foreclosures, we are witnessing rising housing prices. In fact, housing prices have just hit all-time highs. What this suggests, is that when the bottom drops out of the housing market, new and first-time home buyers will be immediately underwater in their mortgages. And if the small business surveys come to fruition, then business closures will bring job losses, which will bring delinquencies and foreclosures. Such economic stress will also continue to weigh on local and state government coffers and services. A downward spiral will ensue and continue until the economy hits bottom. We are in the midst of the greatest depression. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #SmallBusiness #Jobs #USA #EndTheFed #BananaRepublic #Debt #Inflation #Gold #Silver #Liberty #Revolution

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