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 And for historical reference, McConnell, along with several other Republican Senators who were around for the Clinton impeachment, voted to convict Clinton, but voted to acquit Trump.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
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
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
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
The financial situation for many Americans and their families were in dire straits even prior to Covid-19 and all of the subsequent ill-effects. However, we must note that the broader economy was weakening before the pandemic arrived. So, with the reality of restrictions and lockdowns, this has placed further strains on household finances. Although, it must also be noted that in a typical recession or economic downturn, it is common for incomes to decline. Yet, due to the passage of the Nobody CARES Act and other fiscal and monetary measures, incomes in aggregate actually increased. It must be stressed that this was not the result of productive economic measures, but rather due to inflationary policies – printing money and throwing it into the system in various ways. This is not free and it will prove to be extremely expensive. It will come at the cost of suffering the affects of inflation and with it the loss of savings and purchasing power.
In today’s podcast we highlight a survey that was conducted in the late summer of 2020 that focused on savings in the US. This survey can serve as a timely benchmark as it was conducted during the ongoing pandemic restrictions, but also overlaps some of the fiscal and monetary policies that were implemented. We refer you to the link above to read the article that discusses the findings, yet we will mention a few key points. The median savings balance is $3,500 and the average is $26,619 according to the 2,000 survey respondents. The article also notes that 39 percent of Americans do not have enough money saved to cover a $400 emergency. Further, with respect to retirement, nearly 50 percent of families do not have anything saved for retirement. In what is supposed to be the wealthiest and most prosperous nation on Earth, it sure looks more like a tale of two cities.
It is such inequality that has driven us to economic, political, and social decay and decline. This reality exists due to the flawed and fraudulent fiscal and monetary policies that have been enacted for decades and continue to be implemented on an even larger scale. No proactive measures have been taken nor proper reactive measures. Therefore, the net result will be that the system continues onward on its faulty path until exhaustion. This will end in blood and tears around the globe. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Savings #Markets #Liberty #USA #Gold #Silver #Inflation #Recession #Depression #Recession #Depression #EndTheFed #bananarepublic #FireCongress
Elon Musk, CEO of Tesla, announced today that the company purchased $1.5 billion worth of Bitcoin in attempts to diversify their cash position. It was also noted that the company would be open to purchasing gold bullion and gold ETFs. This may be all fine and well as the company is at liberty to invest and diversify as they see fit, however, it is kind of ironic because in the view of The Kapital News, both Tesla and Bitcoin will be known as the posterchildren of this bubble era when the music stops playing. What is concerning, is the fact that Elon Musk announced such measures over social media as well, that caused a frenzy of buying for Bitcoin, which hit an all-time high today above $46,000 per coin. Mr. Musk knows very well that when he says something on any media platform that it will have an impact on markets, especially with respect to this topic. Knowing he has this power has him straddling a very thin line that neighbors market manipulation. The SEC may be well served in looking further into this matter. If the layman had this type of ability to sway markets, the SEC would probably already have him in handcuffs. Talk about little guys versus the big guy…
The Congressional Budget Office, (CBO), came out today with their analysis on the proposed minimum wage hike to $15 per hour, and concluded that while 900k may be lifted out of poverty, 1.4 million job losses will occur. At a time of chronic and structural unemployment and underemployment, the Biden administration and Democrats believe now is the time for such a policy. Are they trying to be stupid? There should not even be a minimum wage. This is to be negotiated between employee and employer based off of experience and responsibilities of the role, and the supply and demand of labor thereof. The government has no business in this transaction, just like they have no business in most other areas across the economy and society. The unfortunate thing in all of this is that the very people who think they will benefit the most from such an increase in the minimum wage, will be the ones most adversely impacted. They will be replaced by touchscreen monitors, robots, and other technologies. They will have their hours reduced so that employers’ operational costs do not balloon. This could have the impact of going from full-time to part-time, which may impact health insurance and/or retirement benefits. Of course, none of this is mentioned by the proponents of such a policy. In their view, it must be better to let the people find out the hard-way, even though the Democrats pretend to be the party that cares for the little guy.
Other items discussed during today’s podcast pertain to the potential executive action to forgive student debt. This may be as high as $50,000 per student. This is a travesty and the President does not have the authority to legislate via fiat, a.k.a Executive Order. Such an act, whether at the executive or legislative level is wrong. It is immoral, unethical, and un-American. What of those people who sacrificed to pay their loans off? What of those people who never went to college, never wanted to attend, and never will? Why should all of these people now bear the costs of paying off these debts of others? The argument is that if such debt is “forgiven,” then the money used for debt payments can now be used to spend into the economy. If this argument were true, then why stop at student debt? What about mortgages, auto loans, credit cards, personal loans, and others? Such forgiveness would add nearly $1.7 trillion to our national debt instantly, which is already nearing the $28 trillion level. Letting everyone else pay for the debts and/or mistakes of others is no way to run a government or society. The moral hazard that this creates will last generations. And who does the government pick and choose as the “winners” of such a policy? Only for those with outstanding debts or also those who will be entering college this year, next year, for how many years forward or otherwise?
And lastly, the second impeachment trial of former President, Donald J. Trump commences tomorrow. This is a constitutional act, period. Whether or not you believe this issue is an impeachable offense is another matter entirely, but the Congress has the authority to do so. Otherwise, there would be a loophole within the constitution that would allow for a President on his last day(s) in office to commit an impeachable offense and suffer no consequence for such action(s). Nonetheless, the trial will resemble another circus – a circus that never seems to leave town. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Tesla #Bitcoin #Markets #Fraud #Jobs #USA #Liberty #Bailouts #Bubbles #Recession #Depression #EndTheFed #Debt #Spending #bananarepublic #Inflation #Gold #Silver #FireCongress
President Trump gave his farewell address to the nation this afternoon, via a videotaped speech. It was more or less a Trump campaign speech, with a much better tone and delivery. He highlighted what he believed to be the achievements of his administration, thanking his staff, and wishing well the incoming administration. As The Kapital News has stated for months, had President Trump carried himself as he did today, and maintained such composure over the last four years, he very well would be the one being sworn into office tomorrow, and not Joe Biden.
In today’s discussion, we note how the Trump administration did not embark upon a policy pathway much different than any other Republican president. He and his team attempted and/or did the following: tax cuts, regulation cuts, trade deals, build up of the military, international agreements, various social reforms, saber rattling with various countries, and undoing what Democrats had previously implemented. Now while people will disagree with certain policies, this is more about politics than anything else. There was not anything major and structurally reformed. There was no draining of the swamp. It was a continuation of the status quo. A military-industrial complex that received more money than ever before; an out of control Federal Reserve, trillion dollar deficits, and several trillion added to the national debt; a national security state that is still alive and well; no structural reforms to Medicare/Medicaid and Social Security; continuation of the two-tiered justice system; and no major investment to the nation’s infrastructure. And yes, the President’s rhetoric, style, and behavior were often unorthodox and proved to be counterproductive, and served to further divide the country. But it must be understood and understood well that people tolerated these actions because of their distrust and frustrations with the status quo. And that says something as to where we are as a people and as a nation…
The incoming Biden-Harris administration are not going to fix or solve any of these structural issues and failures. In fact, they are all but guaranteed to make them worse. The same people who were a part of previous governments and administrations are now prominent members of this team. A classic case of, “meet the new boss, same as the old boss.” The Kapital News highly suggests that the people leave the two-party system and change your voter registration to Libertarian, Independent, unaffiliated, et cetera. The point is to send a message that the people no longer support the status quo – and this is a peaceful step in that direction. Farewell President Trump and Godspeed to you and yours. Stay diversified, stay vigilant, and stay with The Kapital News. #Trump #Biden #USA #Vote #Liberty #Revolution #EndTheFed #bananarepublic #Inflation #Gold #Silver #Economy #Peace #Recession #Depression #Protests #FireCongress
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
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
Initial jobless claims filed for the week ending 9 January came in at 965,000! This is another in a long line of devastating and heart-breaking figures. Such a number has not been seen since last August. Now while the major stock averages closed slightly lower today, they nonetheless traded higher during the day session, following this news release. This is just further evidence as to how Wall Street has grown numb to and decoupled from Main Street. Perhaps it is the promise of another $2T that we do not have that is being promised by the incoming Biden team. This will increase the $600 checks to $1,400, thus making the total $2,000. Extensions will also be given to unemployment benefits as well as increases to those benefits. Currently these extensions were scheduled to last until the end of the first quarter, but now, if the new bill passes, will extend the extension to September. Eviction moratoriums are also a part of the deal and will receive further extensions as well. When will this all end? This is hundreds of billion of dollars in back rent and mortgage payments. How is this all going to be paid back?
And also in the bill is the increase in the minimum wage to $15 per hour. They really have to be trying to be this stupid and irresponsible. We are in the midst of the largest economic and job loss crises perhaps ever seen, where the hardest hit industries are those with low wages and they want to increase the minimum wage? If these employers cannot afford to keep their employees on payroll at lower wages, then what makes one think that they will be able to afford the $15 minimum? This is only going to serve the purpose of prolonging the structural unemployment and underemployment situation. All of this spending in totality is doing nothing more than robbing us and future generations of future growth and prosperity. There is no free-lunch and printing presses do not print jobs or productivity. The remainder of today’s discussion briefly mentions the Federal Reserve’s balance sheet and M1 and M2 money stock. Stay diversified, stay vigilant, and stay wit The Kapital News. #Economy #Jobs #FireCongress #Debt #Inflation #Gold #Silver #Liberty #Revolution #EndTheFed #BananaRepublic #USA
