Tag: fascism

Ep. 547 – Jobless Up + Yields Up
The Kapital News
The Kapital News
Ep. 547 - Jobless Up + Yields Up
Loading
/

Initial jobless claims continue to remain stubbornly high, as 745,000 initial claims were filed for the week ending 27 February. Last week’s figure saw an upward revision of 6,000 filers, to now stand at 736,000. Since restrictions have been in place, claims have been well above those witnessed during the depths of the GFC, which were around 650,000 for a couple of weeks. We are now at the one year anniversary of lockdowns and this is the type of economic carnage that still exists. For all Americans that continue to claim some form of unemployment insurance, now rests at 18 million. Giving us a de facto unemployment rate of around 12.7 percent. This is double the official rate that stands at 6.3 percent. The official jobs report for February will be released tomorrow morning by the Bureau of Labor Statistics.

Other items discussed today were the Federal Reserve’s balance sheet and M1 and M2 money stock. All monetary measures are at or near all-time highs. This is expected to remain the trend on a weekly basis as the Fed remains committed to purchasing $120 billion worth of US Treasuries and mortgage-backed-securities on a monthly basis. This alone should elevate their balance sheet to north of $8.5 trillion, which is 10x higher than where it was prior to the GFC! The Kapital News projects that the balance sheet will be closer to, if not above, $10 trillion by the end of the year, as Congress continues to pass large-scale spending measures.

Earlier today the Chairman of the Fed, Jay Powell, made some remarks that apparently spooked the markets and caused a sell-off on the major indexes. The Chairman apparently believes that inflation will run hot for a short period of time, but will only be transitory, and that the Fed is monitoring closely, and has the tools to contain inflation. This led to yields on Treasuries moving higher, which was cause for concern last week and earlier this week, and has been placing downward pressure on global equities. The same upward effect was seen in the dollar index, as it now trades near levels not seen since last Nov/Dec. Commodities, however, is more of a mixed bag for the time being, with oil prices climbing higher, while precious metals continued their downward trend. In short, the markets are broken and heavily manipulated. All that is left are the narratives that central bankers can tell. The major question is, will markets continue to buy it? If yes, then equity and bond prices may continue higher. If no, then this may be the beginning of the end of central bank control over markets. If this is the case, then it could be a scenario of, look out below. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Inflation #Debt #Spending #Gold #Silver #USA #Liberty #Commodities #EndTheFed #bananarepublic #FireCongress #Markets #Leadership

Ep. 545 – Market Bubble Blame Game
The Kapital News
The Kapital News
Ep. 545 - Market Bubble Blame Game
Loading
/

Top Chinese financial regulators are sounding the alarm bells with financial bubbles that exist globally. The focus of the statement was on the disconnect between the underlying economies in the USA and throughout Europe and their respective financial markets. This is of course true, as we are observing equity prices at or near all-time highs on a price basis and across virtually all valuation metrics. The only comparable points would take us to 1929, 1937, 2000, and 2007/8 – and things did not end well. The Chinese regulators nonetheless did look internally to their real estate markets and mentioned the frothiness is of concern. Noting how many people are buying real estate and homes not for the purpose of living, but rather as a form of speculation. Has the global economy not learned anything from the housing crisis that is only a decade old?

What further makes these statements interesting, is how the regulators warned of potential spillover effects from the US and European bubbles impacting the Chinese economy. The Kapital News believes this is the first shot across the bow and the start of a narrative that the Chinese want to begin building so that they can blame others for their own missteps and failures, if and when their economy and financial markets turn downward. There is no question that many financial markets are greatly disconnected from their respective economies, and China is guilty of this as well. Now, it will be interesting to see how other regulators and central bankers in the US and Europe respond to these statements. True to form, no policymaker wants to be held responsible for their actions and policies, and it is always easier to play the blame game and say it is the irresponsibility of another country.

These policymakers know that time is running out and they are low on ammunition. And there is no question that due to the interconnectedness of the global economy that there will be spillover effects from one country to the next. This is already being experienced in weaker economies around the world. It is always the weakest links that break first. And a couple or few countries experiencing difficulty may not be of significant concern for the rest of the world, but as these weaknesses persist and travel to other countries, then momentum starts to build. It is this momentum and its size and scope that can begin to negatively impact larger economies. When this takes root, coupled with market forces moving global debt yields higher, is when we will know that we are in the final chapters of this massive central bank economic money printing experiment. We are there. And it will not end well. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #USA #China #Debt #Liberty #EndTheFed #Infrstaructure #Inflation #Gold #Silver #Bonds #Markets #bananarepublic #Leadership

Ep. 544 – Insanity x A Trillion
The Kapital News
The Kapital News
Ep. 544 - Insanity x A Trillion
Loading
/

With the $1.9 trillion monstrosity set to be passed by Congress, just in time as the benefits are about to expire from the Nobody CARES Act 2.0 passed last December, we continue to witness the insanity of our politicians and the weakness of our economy. With several hundred thousand Americans continuing to file weekly initial jobless claims to the rising prices across commodities, one thing is certain – we are far from a real economic recovery. So in order to mask this reality, politicians are attempting to do what politicians do best, and that is spend money that we do not have and to kick the can down the road. These policies have proven and will continue to prove destructive. We are in the land of trillions and there is no end in sight as to how much more spending will be coming down the pike. This measure continues to pertain to the pandemic (or so we are told). What is next on the block is likely infrastructure spending, and measures dealing with the environment and healthcare. We are just getting started. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Inflation #Gold #Silver #Jobs #Bailouts #USA #Liberty #Spending #EndTheFed #bananarepublic #Markets #Leadership

Ep. 543 – Fragile Markets
The Kapital News
The Kapital News
Ep. 543 - Fragile Markets
Loading
/

A large sell-off today occurred across the major stock indexes as global bond yields continue to rise. The US 10 year note hit 1.6 percent earlier in the trading session and is now around 1.5 percent. Some are arguing that this is a sign of growth, which is causing the rise in yields. Well if this was attributed to growth, then why would stocks sell-off some 2-4 percent today? Stocks are supposed to be vehicles of growth, no? The more realistic answer is because it is not growth expectations, but rather inflation expectations, as well as the inflation that already exists. The effects of inflation will prove destructive over the coming years.

Earlier this week in testimony before Senate and House committees, Jay Powell, Chair of the Federal Reserve, declared that there is robust demand for US debt. The Treasury auction that occurred today saw poor performance and demand to say the least. That is to say, not much of a bid, so prices dropped and yields rose. This is a phenomenon that will be witnessed more and more around the globe as the only buyer (or major buyer) of government debt is going to be that country’s respective central bank. Rising yields are causing much concern in central banks around the world. After all, their entire plan was to get interest rates and yields to record lows in the hopes of stimulating the global economy. US mortgage rates hit a six month high, while prices are at record highs and continue their climb. So what can they do now? In order to push these yields back down, central banks will have to go back into the markets and purchase this debt, bid up the price and push down the yields. Of course, this is all inflationary by its very definition, as central banks will have to expand their money supply in order to do so. In effect, this is monetary authorities, fighting inflation with inflation. They are trapped and they know it.

The Kapital News has been saying for the last two years since we have been online that one day the markets will say enough is enough to these radical fiscal and monetary policies. And that this would be witnessed with rising yields. We are not saying that the end of the road is right here, but we are getting closer, and this is what one would expect to see. When the markets call out these central authorities, and they attempt to utilize the same policies, but no longer get the expected return, such as rising stock markets, then this will be the time when we know that the clock has run out of time. Look out below. What is also a near certainty is that it will take a lower yield on bonds, and lower market interest rates to pop these bubbles. This is because the economy and various markets are extremely fragile. Recall in Q4 of 2018 that the stock market dropped nearly 20 percent because the Fed dared to taper their balance sheet and increase interest rates. The Fed Funds Rate was around 2.25-2.5 percent and the US 10 year note was around 3.25 percent. Those levels could not be sustained within the US economy nor the stock market in 2018. With even greater levels of debt and millions of Americans out of work, and countless numbers of businesses closed, it will take even lower rates to bring the economy and markets to its knees. The markets know this. Central authorities know this. They are scared. And they are trapped.

Initial jobless claims for the week ending 20 February came in at 730,000 on a seasonally adjusted basis. The prior week’s figures were revised downward by 20,000 to now sit at 841,000. The number released today is the lowest figure since last November. However, this is still some 80,000 higher that what was experienced during the depths of the GFC. For all unemployment insurance programs, some 19 million Americans are still claiming benefits. This gives us a de facto unemployment rate of 13.4 percent, which is double the official rate at 6.7 percent. The Federal Reserve’s balance sheet hit a new all-time high at $7.59 trillion. Weekly all-time highs are likely the norm throughout the remainder of this year as the Fed remains committed to purchasing $120 billion worth of Treasuries and mortgage-backed securities. This will take the balance sheet to at least $8.5 trillion and The Kapital News projects a figure closer to $10 trillion. M1 and M2 money stock figures are also around all-time highs and both measures have been updated, definitionally speaking, by the Fed. New data sets have been created and the older sets have been discontinued. Always moving the goal posts. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Inflation #Markets #Bonds #Gold #Silver #USA #Liberty #EndTheFed #bananarepublic #Commodities #FireCongress #Fraud #Bubbles #Leadership

Ep. 542 – Game Stop The System
The Kapital News
The Kapital News
Ep. 542 - Game Stop The System
Loading
/

Just when you thought the GameStop stock frenzy was over, the markets today give us a gain of nearly 104 percent in shares of the company. After hours trading is up another 83 percent to trade at $168/share. The concern of course is that this will most certainly lead to more retail and speculative traders coming into the stock in order to chase the price action. Have people not learned their lessons from last time? It was only a month ago. Many novice traders thought the stock price could only go up and wanted their hands on the shares at any price, even as the stock traded in the 300s, then 400s, per share. Then in short order, the price collapsed back to $40/share. A year ago, shares of the company were trading in the single digits.

These markets are broken and this type of action should serve as solid evidence that something is very much amiss. These types of events lend themselves for some people to attempt to take advantage of the situation by preying on the ignorance and lack of experience of others. Markets in their best and true form are supposed to be a win-win. Markets are here to provide people and businesses with the goods and services they need and want, thus benefiting the end-users that consume them, and the businesses that produce such goods or offer such services. But now, due to the asinine and reckless fiscal and monetary policies that have been implemented, people believe that money grows on trees and that stocks can only go up. This is extremely dangerous and the day of reckoning will be devastating when prices reflect the true underlying economy. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Inflation #GameStop #Bubbles #Markets #Liberty #USA #EndTheFed #bananarepublic #FireCongress #Gold #Silver #Commodities #Fraud

Ep. 541 – These Markets Are A Joke
The Kapital News
The Kapital News
Ep. 541 - These Markets Are A Joke
Loading
/

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?
Loading
/

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. 539 – Jobless Claims Keep Rising
The Kapital News
The Kapital News
Ep. 539 - Jobless Claims Keep Rising
Loading
/

The markets were expecting initial jobless claims to come in around 773,000 for the week ending 13 February. However, reality bites as the Department of Labor reported a figure of 861,000 on a seasonally adjusted basis. To add insult to injury, last week’s figure was revised upward by 55,000 taking the total from 793,000 to 848,000. We are nearing the one year anniversary of pandemic lockdowns and restrictions and these figures remain well above the claims that were recorded during the depths of the GFC. This is a travesty. With respect to all unemployment insurance programs, some 18.3 million Americans continue to claim some form of benefit. This gives us a de facto unemployment rate near 13 percent. The official unemployment rate is at 6.3 percent. As we near the mid-point of Q1, we should be mindful that benefit and moratorium extensions are set to expire at the end of March. If Congress does not pass further measures, then serious ramifications will transpire. If further spending is passed, then serious ramifications will transpire. The Kapital News does not want Congress and/or the Federal Reserve to spend, borrow, or print more money and throw it into the system. There is no easy solution. But continuing with the same policies that brought us to this current environment is only asking for trouble.

The Federal Reserve’s balance sheet expanded by more than $100 billion week-over-week and now sits at an all-time high at $7.55 trillion. The Fed has stated on numerous occasions that they remain ready to continue to support the economy and markets for as long as necessary. The Fed remains committed to their quantitative easing (QE), program whereby they will expand their balance sheet by $120 billion per month. They will do so by purchasing US Treasuries and mortgage-backed securities. This alone will take the balance sheet to around $8.5 trillion. If Congress should pass more spending measures, then this figure could very well surpass $10 trillion by the end of 2021. For context, this will be about 50 percent of US GDP! Can you say banana republic? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Inflation #Jobs #Gold #Silver #Commodities #USA #Liberty #Recession #Depression #Leadership #bananarepublic #EndTheFed #Revolution #Bailouts #Fraud #Pandemic #FireCongress

Ep. 538 – Robinhood, Reddit, and Roaring Kitty, Oh My!
The Kapital News
The Kapital News
Ep. 538 - Robinhood, Reddit, and Roaring Kitty, Oh My!
Loading
/

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
Loading
/

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