Tag: Iran

Ep. 582 – Low Rates Fuel Housing, Zombies, + Chaos
The Kapital News
The Kapital News
Ep. 582 - Low Rates Fuel Housing, Zombies, + Chaos
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Low interest rates are fueling much more than just housing and zombie corporations, but earlier today housing data came across the wires. The Case-Shiller 20-city composite home price index saw an 11.9 percent year-over-year increase in the month of February. This reading is the highest since 2014. With respect to the national home price index, the year-over-year increase was also at 12 percent. This is the highest reading since 2006. It is interesting to note that the time period of reference is just prior to the GFC when the housing market peaked.

The Kapital News has been mentioning how the current environment is likely going to have to contend with a triple whammy or trifecta of serious economic and financial issues. For one, the trade wars, supply disruptions, and fiscal policy measures are highly reminiscent of the causes of the Great Depression of the 1930s. Secondly, there is a fascination and outright obsession with big tech names, SPACS, and cryptocurrencies, where the crowd claims that these assets can only experience price appreciation. Thus mirroring the Dot-com era. And lastly, with residential real estate prices moving as they have been over the prior year and likely to continue in this manner for at least the remainder of this year, will generate data points not seen since the peak of the housing bubble in 2006, which led to the GFC. So, it should be highly evident that risks abound and that such price appreciation across the spectrum of asset classes is due in large part because of low interest rates, fiscal policies, and monetary policies. All of which cannot last forever, so it begs the question, when will it let up, and when it does, what will the fallout look like?

Not only are low interest rates fueling asset prices higher, they are also creating new zombie corporations, as well as continuing to prop up existing zombies. If market forces were allowed to prevail, as opposed to distortionary interventions via the government and central bank, then these firms would have gone out of business and/or restructured. This would have been a net-positive for the long-term health of the economy. Yet due to such monetary and fiscal policies, these poorly managed companies were given a life-line, and it came in the form of easy money and cheap credit via low interest rates. The existence of these firms will stunt future growth and prosperity because these firms will have to allocate a disproportionate amount of their cash flows to servicing debt as opposed to capital expenditures, investments, and hiring. This is at complete odds with one of the dual mandates of the Federal Reserve and that is achieving full employment. Well how can full employment be achieved if a significant portion of US firms are classified as zombies? This figure is now nearing 25 percent! This is a question that needs to be asked and answered.

Lastly, because the worlds of economics, politics, and social issues are always intertwined, there exists risks and opportunities within any environment. However, given the current climate, it is reasonable to assume, and recent geopolitical events would indicate that there are more risks than there are opportunities. It is simply not logical to believe that a global debt crisis can be managed or solved by increasing the amount of debt into the system. This faulty logic along with the subsequent policies that are implemented, give rise to a lot of social movements, and increase the likelihood of global conflict. This conflict can be internal to countries or it can be between and amongst nations that can turn into war. Revolutions are fought on empty stomachs. And when one accounts for increasing food prices, commodities, and security threats, coupled with pandemic lockdowns, lack of future opportunities, and many people being priced out of various markets, then it is rather easy to connect the dots. The global system is extremely fragile right now on many fronts, and thus it will only take the slightest of internal or external shock(s) to bring it all down. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Inflation #FoodPrices #Protests #Revolution #USA #Liberty #EndTheFed #Leadership #bananarepublic #FireCongress #Gold #Silver #Commodities #Peace

Ep. 578 – A World In Chaos
The Kapital News
The Kapital News
Ep. 578 - A World In Chaos
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In today’s podcast we continue to discuss the Derek Chauvin trial, the conviction, and the political fallout. We then continue with various articles pertaining to geopolitical risks. The focus of these news stories are centered around US and Turkish relations, rising tensions between Russia and Ukraine, and tensions among Israel, Syria, and Iran. To put it simply, the world is in chaos. Stay diversified, stay vigilant, and stay with The Kapital News. #DerekChauvinTrial #Geopolitics #War #Peace #USA #Israel #Russia #Ukraine #Turkey #China #Iran #Syria #Liberty #Leadership #Justice

Ep. 469 – Election Interference
The Kapital News
The Kapital News
Ep. 469 - Election Interference
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No one holds a candle to the type of election interference that the US engages in, but nevertheless, we heard from the Director of National Intelligence (DNI), and Director of the FBI this evening about interference campaigns being run by Iran and Russia. Apparently, Iran is sending out emails to Americans with threatening statements to vote for a certain candidate. The Kapital News is sure that there are many other attacks and attempts underway, but this is what we are being informed of as of this evening – with only two weeks to go until election day.

We have discussed in previous podcasts the dangers of social media platforms and their effectiveness with respect to spreading misinformation and disinformation. With some deep pockets and/or a very creative mind, individuals, teams, campaigns, political groups, and yes, foreign actors, can shape political opinions, and with it, potentially drive election outcomes. This social media Pandora’s box has been opened, and the contents are not going back in anytime soon – if ever. And don’t forget, this is all going on while President Trump claims that it’s a rigged election if he should lose, but evidently everything is fine if should he win – this is outrageous and only goes to further divide, confuse, and frustrate the American people.

In other news, President Obama was on the campaign trail this evening in Philadelphia, Pennsylvania – a battleground state. Attempting to be the “closer” for the Biden-Harris campaign. The Democrats are looking to regain Pennsylvania, Michigan, and Wisconsin, the “blue wall.” If this should happen, then odds have it that Joe Biden will become the next President. Current polling would indicate that Biden has a lead in all three states, but so did Clinton in 2016 – this race is far from over. We shall see if President Obama’s message was enough to turn PA blue once again for the Democrats. Early vote counts are currently north of 44 million, representing about 32 percent of 2016 total voter turnout. It’s nearly 3-to-1 in the breakdown between mail ballots and in-person votes at this juncture. With more votes taking place in these early rounds, it increases the likelihood that we’ll know the winner within a day or two of the election. However, should there be some tight races in key battleground states, then it could take weeks or months to determine the winner of the White House. And buckle up – tomorrow evening is the second and final debate between President Trump and VP Joe Biden – anything can happen. Stay diversified, stay vigilant, and stay with The Kapital News. #Elections2020 #Debates2020 #Economy #USA #Russia #Iran #China #Vote #Gold #Silver #Inflation #Debt #Bailouts #Jobs #Liberty #Revolution

Ep. 443 – The Social Disorder
The Kapital News
The Kapital News
Ep. 443 - The Social Disorder
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This weekend we witnessed more protests with the return of the Yellow Vests in France and a large march in Belarus, amongst others. As The Kapital News has been arguing extensively since last year, these protests and riots will continue and get worse before they get better. The global financial and political system is coming to an end and it will not be a pretty decline. In other, but related news, as The Kapital News has also been reporting and warning of, the world’s weakest links are cracking and will continue to do so. We have covered Venezuela and Lebanon’s economic, social, and political turmoil for months and have been warning about the next links in the chain of Turkey and Iran. Over the weekend, we are witnessing significant declines in these countries’ currencies. A direct symptom of a system in decline. This type of weakness in one’s respective currency is already the result of inflationary actions, and if these declines continue, and The Kapital News believes that they will, then these countries and others should be bracing for hyperinflation as well.

The main discussion for today’s podcast centers around a recent documentary that was watched by podcast host, Alex Karidis, titled, “The Social Dilemma,” on Netflix. This documentary focuses on current and former tech executives and engineers responsible for building and monetizing some of the world’s largest social media platforms. The consensus among the group is that the negative side effects are outweighing the positive. They don’t see this ending anytime soon either, as there is simply too much money to be made. The film highlights the mental health issues that are being experienced by many, but with particular emphasis on children and teenagers. They also explore the political ramifications and election meddling that can and likely will take place – and not by “hacking” these platforms, but rather by simply utilizing the tools that these platforms already readily provide. These platforms play a major role in moving people further and deeper into their respective political silos, which creates a vicious downward cycle of division within this country and others. This is destructive and incredibly dangerous should this trend continue and it appears that it will for the foreseeable future. The Kapital News recommends that you watch this documentary with your friends and family or at least inform them of this most important and timely discussion for both political reasons, and more importantly, the mental health of your children and family. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Protests #SocialMedia #USA #BananaRepublic #Protests #Riots #Inflation #Depression #Recession #Gold #Silver #Liberty #Revolution

Ep. 388 – The Looting of America
The Kapital News
The Kapital News
Ep. 388 - The Looting of America
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Coast to coast protests and riots continue across the country as people make their voices known in response to the tragic death of George Floyd at the hands of police, one week ago. Peaceful protests are needed in such times, however, violent riots, doing harm to others and property, and theft are not to be tolerated.

After a week of protests that turned quite violent over the weekend, the President finally came out and made a formal address to the nation from the Rose Garden. His statement was more about being a “law and order” President and using the US military if need be to put down the riots, if cities and states are unable or unwilling to do so. There is no question, that those who do harm to others and/or property need to be held to account for their actions. And while watching on TV, and seeing many police across the country, simply standing idly by while this type of carnage occurs – is shocking to say the least and should not happen. The police are to police and uphold the rule of law and keep their communities safe. Peaceful protests are a right – violence is not. So while there will be many who welcome the President’s message of “law and order,” it must also be noted what was missing. And that’s a true call for unity and for peace. One that transcends the politics and relates to the issue(s) at hand. One that strikes the chords of empathy, sympathy, frustration, and optimism. These unfortunately, are not the strengths of the President and so he resorted to playing the “tough guy” role with threatening military force on the streets of the United States.

We have been saying here for months that the global protests will be coming to a theater near you – well here they are! We’ve also been saying that the only global leaders during these historic times are the people protesting around the world – finally standing up for themselves and against these corrupt and abusive governments. The message from the President tonight was not a message of unity nor a show of strong leadership that this moment demands – not just for the protests but for a whole host of issues that we discuss here daily. A house divided cannot stand.

The looting of America is now on display, but one more than the other – at least from a TV point-of-view. This weekend we witnessed many rioters running into various stores and stealing an untold amount of merchandise. While this is criminal and should not be tolerated – where also is the outrage over the looting of America from the White House, Congress, Wall Street, Corporate America, and the Federal Reserve? Most items stolen over this weekend consist of a lot of cheaper items “made in China.” Well what about the billions and trillions of dollars being printed out of thin air and thrown at Wall Street, Corporate America, and the government to do as they please – with little to no oversight? Where’s the outrage?! People will eventually wake up to this and they’ll pay dearly for it in inflation, stagflation, and possibly hyperinflation in the months and years ahead – there is no free lunch. And to boot, despite Great Depression like numbers, a global pandemic, and now protests and riots across the country and the world, and a breakdown in the US-China Phase I trade deal, the markets are nearing all-time highs. Just wait until Main Street figures out what Washington DC and Wall Street have been doing – these protests and riots are just getting started. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Protests #USA #Bailouts #Depression #Recession #Debt #Gold #Peace

Ep. 387 – Rome Is Burning!
The Kapital News
The Kapital News
Ep. 387 - Rome Is Burning!
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Protests coming to a theater near you is something that we have been saying here for months. They have unfortunately, finally arrived. While we thought the catalyst would be more from the economic side of the ledger as opposed to the social side of the ledger, it appears that the recent tragic death of George Floyd, in Minneapolis, at the hands of police officers, is the trigger. Nevertheless, given the combination of COVID-19 lock-downs, economic hardships, social inequities (perceived or real), political divisiveness, and this event in Minneapolis, the stage was set for massive riots and protests to take center stage. Let us pray for a peaceful solution and resolution, but we imagine there will be more storm before their is the calm. We also expect global protests to pick up as well.

The Federal Reserve Chairman, Jay Powell, today during an interview admitted that the Fed has crossed some red lines – but he used the pandemic to justify their recent, continuing, and future actions. It is no longer behind the scenes. It is no longer, “pay no attention to the man behind the curtain.” No! It is in your face! And nobody seems to notice and nobody seems to care. The Fed is buying up everything. The federal government sanctions such actions and bails out major industries as well. Meanwhile, 40 million Americans have been laid-off over the past 10 weeks, a countless number of businesses have closed for good or are on their way there, and yet the stock market is near all-time highs once again. These actions by the Fed and the government are all but guaranteeing a prolonged economic contraction that is likely going to push us into the Greatest Depression.

President Trump this afternoon made comments in the Rose Garden in response to a number of issues. However, the main focus was on China and their recent legislation that encroaches on the autonomy of Hong Kong. Of course, as reported earlier this week, the US no longer recognizes the autonomy of Hong Kong. This point was reiterated by the President, with very little else thrown into the mix. The President informed the world publicly that should China pass this bill, that it would be met with a strong response from the United States. This does not appear to be a strong response. And to no surprise, the markets rallied on this news because they were selling off earlier in the day expecting a “strong” response – but they got a weak one instead. Yes, the President added a few other items, such as withdrawing from the World Health Organization (WHO), and mentioning some restrictions of Chinese students to US universities, amongst a couple other minor points. Yet, given this weaker response now begs the question, how will China and other major global players react to the President’s remarks? Will they feel empowered and emboldened to do more? One can only bluff so many times at the table before the other players start picking up on it, especially once they know you’re bluffing. So either play the “strong-man” role and follow through, or don’t. Because the outcomes and the stakes are too great. Peoples’ lives and livelihoods are not a game. The President also did not make comments on the protests during his remarks, nor did he take questions from the press, as was expected. There is simply a lack or leadership and this is a global problem. This weekend is going to be quite interesting to say the least as are the coming months. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Protests #USA #Riots #Depression #Recession #Debt #Bailouts #Gold #Silver #Peace

Ep. 374 – American Dream or Ponzi Scheme?
The Kapital News
The Kapital News
Ep. 374 - American Dream or Ponzi Scheme?
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A very fitting title for today’s podcast as we digest further the national debt, national deficit, State and local debt, and household debt. With over $25T and growing, will this national debt ever be paid back and if so, how? Will it take the form of inflation, stagflation, hyperinflation, default, and/or some combination thereof? These are serious questions that have serious consequences. The American people need to wake up to the fact that the US economy is a Ponzi scheme – especially at the government level. Broken promises, whether that being Social Security, government and/or corporate pensions, Medicare, etc… These are huge price tags and it places an ever-increasing burden on younger and future generations and taxpayers – making this by default a Ponzi scheme. Why? Because the scheme relies upon new entrants/taxpayers/investors to come into the system to support earlier contributors. The Kapital News is of the mindset that the government in conjunction with the Federal Reserve are well aware of this and thus explains their insane response to printing and spending. These institutions know the fragility of the system. They know it is a Ponzi scheme and thus they are implementing such policies to the tune of several trillion dollars because they have to keep this fraudulent system alive. Otherwise the masses will awaken to such fraud and demand real change. So that old American dream of getting an education, a solid job with a pension and/or retirement plan, buying a house, starting a family, and hoping your kids have it better than you did – well, that dream is getting awfully expensive and is looking more and more like a nightmare. And the price tag just keeps going up!

The global protests that we witnessed well before COVID19, are starting back up and we imagine they’ll be even more intense. Be on the lookout for civil war(s), government overthrows, and war(s) amongst nations. We stated for months that these protests were not transitory, but rather history in the making. And we ain’t seen nothing yet! Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Bailouts #Recession #USA #Depression #Protests #Oil #Gold

Ep. 371 – The Blame Game
The Kapital News
The Kapital News
Ep. 371 - The Blame Game
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As we continue to navigate this new world during a global pandemic, coupled with a Presidential election in the United States, one thing is certain – the blame game. With all of the fallout surrounding the genesis of COVID19, who knew what when, who knows what now, and all of the societal and economic shifts – somebody is going to be blamed. Never ones to take responsibility, politicians the world over have been slowly starting to point the finger at each other, with most of the blame being hoisted on China. In turn, China has also started a media campaign that is blaming the West, and in particular, that of the United States. Despite the recent signing of the Phase 1 trade deal between the US and China, relations between the two nations may be in for some rough waters ahead. Expect the blame game to heat up.

As we enter the spring and summer months of 2020, there is much hope and anticipation that the US economy, among others, will begin “opening” back up and with it a strong economic recovery. We are very skeptical of a strong economic bounce-back. Nevertheless, this is also a Presidential election year and there is no question that the major candidates, President Trump, and most likely, former Vice President, Joe Biden, will step up their rhetoric against China. This rhetoric will likely lead to further distance between the US and China and may cause both sides to engage in economic and cyber warfare to greater degrees than which is already being conducted. In addition, there is the possibility of stepped up aggression by China in the South China Sea and perhaps responses by the US and regional allies. Other physical disputes could take the form of proxy wars, and we believe Venezuela and Iran to be probable candidates. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #USA #China #Peace #War #Trade #Recession

Ep. 370 – War Propaganda Beginning?
The Kapital News
The Kapital News
Ep. 370 - War Propaganda Beginning?
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A modern day Bay of Pigs on our hands in Venezuela? Criss-crossing messages from the DoD and State Department with their “intelligence” assessments surrounding the genesis of COVID19. And Israel vowing to continue to bomb targets in Syria until Iran leaves. These are just a few of the items on the agenda during today’s podcast. After all, never let a good crisis go to waste.

In Venezuela, two former US special forces operators have been arrested by the Maduro regime during what they are referring to as a plot to overthrow the Venezuelan government. The US government denies any and all involvement with the matter. However, a private security firm in the US has taken responsibility and the company’s founder has claimed those arrested are “his men.” Venezuela has been a hot spot for US saber rattling over the last couple of years. Recall, just a few months ago during the President’s State of the Union Address, that Juan Guiado, was an honored guest of the President’s. Guiado is the opposition leader in Venezuela, who is also recognized by the US, UK, and several South American countries as the “real” President of Venezuela. Questions remain as to how this matter will be treated with respect to an American response to get these men back into the United States. Questions also remain as to how the Maduro regime will handle the situation. It’s these “little” skirmishes that can turn into something much larger – let us pray this does not happen.

A case of good cop-bad cop? When it comes to intelligence assessments and talking points around the genesis of COVID19, it would appear that the US government is working two different messages. On one hand, we have the broader intelligence community in addition to the Defense Department stating that the US does not know where the COVID19 pandemic actually started – meaning in a wet market in China, a lab, what have you. Yet according to General Mark Milley, Chairman of the Joint Chiefs of Staff, the virus appears to not have been man-made. This is in stark contrast to the recent comments made by Secretary of State, Mike Pompeo, where he insists that there is strong intelligence that the virus was made in a lab in China. Regardless of which may prove to be the case, it appears that the US government continues to plays its games of misinforming and dis-informing the American public. Reminiscent of so many other instances – such as the lead up to the invasion of Iraq.

We conclude the podcast with a discussion of Israel’s defense forces regarding their Syrian operations, African locusts updates, and the German Supreme Court’s ruling on actions undertaken by the European Central Bank (ECB), and what this may mean for the European Union. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #War #Peace #USA #Venezuela #Debt #EU #Recession #Gold #COVID19

Ep. 367 – Gold, Oil, + War
The Kapital News
The Kapital News
Ep. 367 - Gold, Oil, + War
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Remember the golden rule – those with the gold makes the rules. This of course is not the moral version of the true golden rule, but nevertheless, it’s one that the world has operated from for quite some time.

In today’s podcast we highlight the economic and financial news with initial jobless claims hitting 3.8 million in the prior week – taking the six week total to over 30 million Americans having filed for unemployment insurance. The Fed also updated their balance sheet and it’s week over week change was an additional $82B. This figure is well below that of the last several weeks as the Fed has added over $2T to its balance sheet over the past month.

The crux of today’s discussion is centered around the political blame game that is both coming and underway, especially as it relates to COVID19. We mention how this heated rhetoric may lead to conflict that may likely take the form of proxy war(s). A couple of strong candidates would be that of Iran and Venezuela. Over the last couple of days, news agencies have been noting how Venezuela has sent about $500 million worth of gold to Iran in exchange for Iran’s assistance with one of their refineries. Also, Venezuela has been asking the Bank of England, which stores some of Venezuela’s gold reserves, to sell some of their gold and give the proceeds to the United Nations. This would be to serve the purpose of assisting the UN so that in turn the UN may assist Venezuela combat COVID19 as well as their many economic woes. The Bank of England is refusing to comply with Venezuela’s request because the UK does not recognize the Maduro regime as the legitimate government. So now as a result, even more people will become refugees and/or suffer from starvation, energy shortages, and a myriad of economic problems.

So in short, when gold starts getting moved around (or is prohibited) and when it also pertains to a couple of countries that are both under harsh US sanctions, while at the same time both of these countries are heavily reliant on oil and gas – it makes us wonder here at The Kapital News as to what is truly going on and where me may be headed. In addition, US naval and military forces are around both countries. We do not want war, but if history is any indicator, we’re likely headed in that direction. Stay diversified, stay vigilant, and stay with The Kapital News. #Gold #Oil #War #Economy #Recession #Debt #Bailouts #USA #Venezuela #Iran #Peace