Tag: Fake

Ep. 541 – These Markets Are A Joke
The Kapital News
The Kapital News
Ep. 541 - These Markets Are A Joke
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Large intraday trading swings may likely become the new normal as we continue through this asinine economic experiment. Or perhaps these are the foreshocks to something much larger awaiting us over the horizon. Such volatility of course is not new, as this is something that has been witnessed from time to time over the last few years. But today was clearly a case in point. The Nasdaq Composite was down nearly 4 percent earlier in the day’s trading session, only to close down 0.5 percent. Much of the bounce-back came off of the statements made this morning by Jay Powell, Chairman of the Federal Reserve, as he was giving testimony before the Senate Banking Committee.

Continuing with the same narrative of remaining accommodative for as long as it takes, evidently is what the markets wanted to hear to cause a frenzy of late-day buying. The question is of course, how much longer can this go on before the system reaches exhaustion? If bond yields are any indicator, then we may not be too far from that point. Powell remains committed to the Fed’s policy of purchasing $120 billion per month in Treasuries and mortgage-backed-securities through the remainder of the year. This will take their balance sheet to levels around $8.5 trillion. Questions and comments were made about inflation as well, and the Fed Chair nonchalantly swept them under the rug as not of major concern and that if inflation does occur that there will be plenty of time to contend with it and that the Fed has the requisite tools to manage it properly. Talk about a bunch of hogwash. Inflation is here, it has been here, and it is only going to get worse as we make our way through this decade. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Inflation #USA #EndTheFed #Revolution #Liberty #bananarepublic #FireCongress #Recession #Depression #Fraud #Leadership

Ep. 540 – Yield Curve Control Coming?
The Kapital News
The Kapital News
Ep. 540 - Yield Curve Control Coming?
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With yields moving noticeably higher on the US 10 year note and 30 year bond, we can be certain that this is gaining the attention of central bankers, the Treasury Department, and investors. While some will and do argue that this increase in yields is a sign of future growth expectations, The Kapital News believes that the bulk of the increase is due to inflationary expectations. Utilizing the printing press as the cure for everything will only get an economy so far. You can print money, but you cannot print jobs, and you cannot print production. Given these yield increases and the volume of speeches, interviews, and conferences of Federal Reserve and Treasury Department officials, signals to us that they know they are running out of ammunition and runway. This is why we continue to hear the aggressive lobbying to pass the $1.9 trillion in additional spending. Such fiscal policy, financed via monetary policy will buy some more time – at least that is the hope. If yields continue their ascent, this may very well be the point of no-return and where the markets are saying enough is enough. All systems have a breaking point. There is only so much a person can drink and eat, or how far he can run before exhaustion. The same holds true for an economy or any system – there are limits. The global economic experiment of QE has been going on for over a decade and is likely nearing its limits, if it has not already hit such constraints. And understand that it will likely take a smaller yield to prick the markets’ bubble due to the fragility of the system.

What is left, is for policymakers to continue onward with their narrative. And this story can and will change with the wind if that is what is needed to calm the markets. So as yields continue their climb, it would not be surprising to hear a lot more Fed officials and others discussing the possibility of yield curve control. The yield curve is simply the graphical plot of Treasuries of differing maturities and connecting those dots, thus drawing a curve. The attempt to control it, is already something that the Fed and other central banks do. However, they do not openly say that is what they are doing. So if they come out and announce such a policy, then this allows for their narrative to stay alive for a little longer until it is on to something else. Despite how powerful central banks and governments are, they are not bigger nor more powerful than the markets. When the markets no longer buy these narratives, then it is look out below because there will be no policy measure to combat the coming correction. Policymakers are running out of time and they know it. It is now all about the narrative and keeping hope alive and hope is not a good strategy. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Fraud #Debt #Inflation #Gold #Silver #Commodities #USA #Liberty #Recession #Depression #Bailouts #FireCongress #EndTheFed #bananarepublic #Leadership

Ep. 538 – Robinhood, Reddit, and Roaring Kitty, Oh My!
The Kapital News
The Kapital News
Ep. 538 - Robinhood, Reddit, and Roaring Kitty, Oh My!
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The House Financial Services Committee will be holding a hearing Thursday afternoon that is centered around the recent stock market frenzy with respect to GameStop and other stocks. The witnesses testifying will be the CEO of Robinhood, the co-founder of Reddit, the trader who allegedly started the frenzy on social media, whose online handle is “Roaring Kitty,” and the CEO of Citadel, a hedge fund at the center of the controversy.

The hearings will focus on Robinhood’s trading platform and how they monetize their business. Questions will also be asked about the marketing practices that Robinhood engages in and how these mimic those of casinos and other online gaming apps. Further still, politicians will likely grandstand and pretend to all of a sudden be concerned for the average investor and the integrity of markets. The Kapital News highlights the market manipulation that occurs regularly and how the firms engaged in such behaviors are slapped with fines and deferred prosecution agreements; only to engage in said behaviors again. While the topic at hand is very important, it will amount to more of a dog and pony show. It is an important topic because we are witnessing the merger of online trading platforms, social media platforms, and financial markets. This is a perfect storm for market manipulation to take root, and in the process, for millions of people, potentially, to be harmed financially due to the predatory practices that may easily spread across social media platforms. People with little to no investing and/or trading experience will be preyed upon by more sophisticated players, in the hopes of getting rich quick. This is a real concern and is the bastardization of capital markets. It is a casino. It is the wild west. Every man for himself. This will not end well. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Reddit #Robinhood #Fraud #Markets #Liberty #USA #bananarepublic #EndTheFed #Inflation #Gold #Silver #Leadership

Ep. 537 – Inflation Announced
The Kapital News
The Kapital News
Ep. 537 - Inflation Announced
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The Kapital News has been discussing and demonstrating how inflation has been here for years via the increase to money supply, and just importantly, the effects of inflation, known as price increases. Countries around the world in 2018 and 2019 (prior to the pandemic), were protesting and rioting in the streets. This was not because the cost of living was so affordable. Quite the contrary, where people could not afford to live and any minor price or tax increase unleashed the population to take to the streets. In more advanced economies, prices have been rising for basic necessities, such as food, energy, utilities, and medical costs. However, these rates in price growth were likely lower than is less developed nations. Yet, with respect to financial asset prices in developed economies, the world has seen and continues to witness record or near record prices in stocks, bonds, and real estate. This may be a temporary high where people believe that stocks can only go up. But in all likelihood, this is setting up to be one of the biggest bubbles ever created and thus its popping and subsequent decline will be one of the largest.

In low and mid-income countries around the globe, food prices are increasing at double-digit rates. Some countries are beginning to curb exports, thus putting further upward pressure on prices for agricultural goods. Today, Kraft-Heinz and ConAgra, announced that due to commodity price increases, that their customers are likely going to be paying higher prices for their goods at some point later this year. These statements are likely going to continue throughout the year and will be echoed by many companies across various sectors of the economy. The damage by federal governments and central banks has already been done. Now, the globe awaits its true effects and destruction of inflation. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Inflation #Gold #Silver #bananarepublic #EndTheFed #USA #Liberty #Leadership #Recession #Protests #Depression #Debt #Spending #FireCongress #Jobs

Ep. 536 – Impeached President’s Day
The Kapital News
The Kapital News
Ep. 536 - Impeached President's Day
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Over the weekend the former President, Donald J. Trump, was acquitted for the second time by the Senate. In a vote of 57-43, it was the most bipartisan impeachment. However, a 2/3 majority is required to convict and remove and to bar an official from holding federal office again. Even the speech made by minority leader, Mitch McConnell, laid the groundwork for a convincing vote of conviction. McConnell of course decided to vote against conviction, seemingly hiding behind some form of constitutional technicality, and more realistically, he is eyeing the 2022 mid-term elections and is hoping to once again become the Senate majority leader. His vote to acquit is to serve as cover so as to not upset members within his caucus. Despite this, McConnell still makes the argument that Trump is not out of the woods, as criminal and civil charges may be brought against him. And for historical reference, McConnell, along with several other Republican Senators who were around for the Clinton impeachment, voted to convict Clinton, but voted to acquit Trump. What a circus! Stay diversified, stay vigilant, and stay with The Kapital News. #Economy Impeachment #FireCongress #Fraud #Fake #Markets #Inflation #Gold #Silver #Commodities #Liberty #USA #bananarepublic #EndTheFed #Recession #Depression

Ep. 535 – Weekly Wrap Up
The Kapital News
The Kapital News
Ep. 535 - Weekly Wrap Up
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A busy week with the second impeachment trial of former President, Donald J. Trump, announcements made by the Treasury Department and Federal Reserve in support of further fiscal measures that amount to trillions in additional spending, initial jobless claims that remain stubbornly high even as we near the one year anniversary of lockdowns and restrictions, and monetary measures hitting or nearing all-time highs. Also learned from the Congressional Budget Office that this fiscal year will incur a budget deficit of $2.3 trillion, and this is without any additional spending measures. The CBO also projected that 1.4 million jobs will be lost if the minimum wage is increased to $15 per hour. And lastly, another $14 billion may be making its way to the airline industry if the $1.9 trillion spending bill is passed. This will serve as yet another bailout to the airline industry that has already received tens of billions of dollars throughout 2020. Happy Valentine’s Day! Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Markets #Debt #Inflation #USA #Gold #Silver #Liberty #Bailouts #EndTheFed #Recession #Depression #bananarepublic #Protests

Ep. 534 – Economic Match Made In Hell
The Kapital News
The Kapital News
Ep. 534 - Economic Match Made In Hell
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It is highly evident that the sunlight between the Treasury Department and the Federal Reserve no longer exists. The merger has been underway for years and is nearing its completion. Talk about the United States turning into a banana republic, well here it is. If you thought last year was a wild ride with respect to fiscal and monetary support, buckle up, because you ain’t seen anything yet. We know that Congress (Democrats), the Treasury Secretary, and Fed Chairman, are all hand-in-hand when it comes to the $1.9 trillion spending bill proposed by the Democrats and Biden administration. The argument is all about returning to full employment and how the passage of this bill will help to secure that goal. Furthermore, the Fed is completely behind it and willing to finance the deal (because we do not have the money), also arguing that full employment is their goal as well and how the Fed will remain accommodative until that end is met. Recall that one of the mandates of the Fed is to achieve and maintain full employment. The other is to achieve and maintain price stability.

This is just the opening salvo for what is going to be fiscal and monetary authorities gone wild. The $1.9 trillion is more about transfer payments, unemployment benefits, assistance to state finances, Covid-19 programs, and perhaps increasing the minimum wage to $15 per hour than anything else. This means that the Democrats will likely continue onward with the spending spree and attempt to tackle healthcare, the environment, and infrastructure. Some of these measures will likely pass and the cost is unknown, but it will be in the hundreds of billions, if not trillions in aggregate by the time the dust settles. The Congressional Budget Office is already predicting a national deficit north of $2 trillion for this fiscal year alone and this figure does not take into consideration any of the above spending measures.

Speaking of jobs, for the week ending 6 February, 793,000 Americans filed an initial jobless claim, which was above market expectations. The prior week’s figure was revised upward by 33,000 to rest at 812,000. For all programs, for the week ending 23 January, 20.4 million Americans continue to receive some form of unemployment insurance. This is a week-over-week increase of nearly 2.6 million. This would give us an unemployment rate closer to 14.3 percent as opposed to the official rate of 6.3 percent. We are nearly one year into the lockdowns and restrictions, and we continue to witness this type of carnage in the jobs market. This is after several trillions of dollars were flushed into the system. So what makes $1.9 trillion so magical if several trillion dollars could not stop the damage?

The Federal Reserve’s balance sheet hit a new all-time high at $7.44 trillion dollars. Some $30 billion above its previous high. With respect to M1 and M2 money stock, both of these measures are near their respective all-time highs, which were hit within the last few weeks. These numbers will continue higher as fiscal and monetary policies continue their expansion. This is by definition inflation and will prove utterly destructive to the financial system, and more importantly to the real economy. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Markets #Fraud #Fake #FireCongress #Liberty #USA #Inflation #Gold #Silver #Jobs #Bailouts #Spending #Recession #Depression #Protests #bananarepublic #EndTheFed

Ep. 533 – Fake Unemployment!
The Kapital News
The Kapital News
Ep. 533 - Fake Unemployment!
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Jerome Powell, the Chairman of the Federal Reserve, made some comments this afternoon, and one in particular pertained to stating that the “real” unemployment rate is closer to 10 percent. The BLS just released the jobs report last Friday and informed us that the official unemployment rate is 6.3 percent. This is quite the discrepancy. So what gives? The Kapital News believes this is the first of many one-two punches to be thrown by Treasury Secretary, Janet “Dingbat” Yellen, and Jay Powell. Recall that Yellen was the former Chair of the Fed. This past weekend, Yellen made comments supporting the $1.9 trillion spending package being proposed by the Biden administration, arguing that its passage will help return the US economy to full employment. This is hogwash. Nevertheless, we now have Mr. Powell arguing with official government statistics, which is highly uncommon, and also arguing that monetary policy will remain accommodative until we once again reach full employment. Clearly, something is afoot. Especially when one considers how important the “independence” of the Fed is in the eyes of Fed officials. They always note how important it is for the government to stay out of the business of the Fed. So why is the Fed so concerned with the policies of the government? Wouldn’t this invite political interference into their decision-making?

The Kapital News believes that the Federal Reserve along with the Treasury Secretary, know that they are trapped. They know that their fiscal and monetary policies have run their course and are at their end. But they also do not want to take any responsibility for their actions since the GFC and so they would simply rather continue with the same policies as opposed to admit their mistakes and change course. This pride or perhaps complete ignorance and incompetence has proven to be and will continue to be extremely expensive and destructive to the economy. The inflation that has thus been generated will continue to make its way throughout the global economy. The first to be affected has been and remains financial assets, but inflation has also been hitting healthcare costs, commodities, and food. It is in these latter groups where the most destruction will occur. Most people do not own financial assets, but everyone needs food and energy. Even with respect to financial assets, as prices go higher for equities and housing, it prices much of the population out of these markets because they cannot afford them. It is one thing to be in a position where one cannot afford equities and/or housing. It is a completely different situation when they cannot afford their utilities, transportation, medical care, and food. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Fraud #FakeMarkets #Fake #Bailouts #FireCongress #bananarepublic #EndTheFed #Recession #Depression #Inflation #Gold #Silver #USA #Liberty