Tag: Joe Biden

Ep. 583 – Powell + Biden Speak, Trillion Dollar Giveaways
The Kapital News
Ep. 583 - Powell + Biden Speak, Trillion Dollar Giveaways
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Just when you thought multi-trillion dollar deficits for the past couple of years was bad enough, wait…there is more! The one-two punch from monetary and fiscal authorities keeps coming with no end in sight. The government, especially the Democrat party wants to continue with the massive spending spree and the Federal Reserve is more than happy to continue to finance such profligacy. Of course nothing is free and the results will be higher direct taxes at every level, federal, state, and local, higher inflation, lower living standards, and fewer opportunities. One cannot fix a global debt crisis with even more debt. Yet no policy maker regardless of political party or monetary institution wants to take responsibility or accountability for their years of reckless and criminal behavior. We do not have the right to steal from future generations, yet that is exactly what it means when we run these types of annual deficits and accumulate a national debt of over $28 trillion and growing!

Today was the conclusion of the FOMC meeting and as expected the Fed left the Federal Funds Rate unchanged at 0.00-0.25 percent. They also maintained their stance with respect to their QE program whereby they will continue to purchase at least $120 billion per month of US Treasuries and mortgage-backed securities. Last week their balance sheet hit a record high of over $7.8 trillion. Fed Chair, Jay Powell, continues to reiterate that inflation expectations will be transitory and will be a result of base effects, due to the low levels seen last year due to the lockdowns. In effect, he is stating that the Fed is just going to wait and see what happens next year, because the base effects will be in play through the remainder of this year. So a large print on inflation may very well occur and the Fed will just presumably shrug it off and say it is only due to base effects. We wonder if the people who have to pay higher prices will be so nonchalant about their currency being devalued?

Finally some tougher questions were asked of Jay Powell, but most likely simply due to the obvious absurdity of their policies and rhetoric. For instance, questions were asked with respect to the real estate market, which is currently hitting all-time highs with prices and other metrics. It was then asked with this as a backdrop, why then does the Fed continue to purchase $40 billion per month of MBS? It may be understood and even accepted that during the GFC, housing prices were collapsing and MBS were toxic assets and the Fed was attempting to inject liquidity into the system via these purchases. That was then and this is now. The GFC was an emergency and thus they justified their actions because of the falling house prices. Now, we have prices at all-time highs and the Fed also states that the economy is recovering – so where is the emergency to justify these purchases? A fair and basic question that received a terrible answer or better yet a non-answer, but at least the question was asked. On the other side, however, giving credit where credit is due, Jay Powell did admit that rising housing prices are pricing people out of the market, especially younger people, and that this is problematic. This is true. Yet does he not understand that much of this is a direct result of monetary policies that he is responsible for and fiscal policies of which his institution finances? This summarizes who and what we are dealing with.

This evening President Joe Biden gave an address to a joint-session of Congress. In his hour long speech he promised trillions of dollars in new spending on top of the trillions of dollars already passed to be spent during his short-time in office. There is completely no understanding of basic mathematics that exists within Congress, especially within the Democrat party. For instance, the Biden administration wants to increase taxes on the wealthiest of individuals and corporations. And presumably, with this extra tax revenue all of these new and old programs will be funded. Well not so fast. We are on track to spend nearly $8 trillion this year alone! This will give us an annual budget deficit of over $4 trillion. Our deficit will be larger than the entire amount of tax revenue that is brought in, which is around $3.5 trillion. Further, if you take $8 trillion and divide by 52 weeks in the year, you get around $154 billion of spending per week! And this is just the federal government. So, you can confiscate 100 percent of Jeff Bezos’ net worth, not just income, but everything the man owns, and it will only finance the US federal government for one full week! Yeah it does not add up and look who is in control of the education system – yep the government. These programs are outrageous, un-American, and unconstitutional. Yet none of that is going to stop them from trying to pass more legislation and spend trillions of dollars that we do not have – thus stealing it from future generations and robbing them of their prosperity and opportunities. This is all only going to get worse. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Fraud #Inflation #Spending #Debt #Gold #Silver #EndTheFed #bananarepublic #FireCongress #Liberty #USA #Leadership #Revolution #Protests #Peace

Ep. 536 – Impeached President’s Day
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
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
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
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

Ep. 531 – The Bubble Buys A Bubble
The Kapital News
Ep. 531 - The Bubble Buys A Bubble
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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

Ep. 520 – Weekly Wrap Up
The Kapital News
Ep. 520 - Weekly Wrap Up
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An outgoing Trump administration, an incoming Biden administration, executive orders, another 900k Americans file jobless claims, all-time highs hit in the markets, the Fed’s balance sheet, and in M1 and M2 money stock. We also learned that the impeachment process will be continuing, however, there will be a slight delay as it will not begin until the week of 8 February. Just because there is a new administration in office, does not mean that all of the political division has gone away or that it will go away. Most likely, it will be quite the contrary. There will be more spending, more money printing, and more politics to be played. The end result is a declining nation that is going the way of a banana republic. The solution is freedom and the restoration of our constitution and free-market capitalism. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Liberty #Jobs #Markets #FireCongress #bananarepublic #EndTheFed #Inflation #Gold #Silver #Debt #Bailouts #Protests #USA #Recession #Depression #Revolution

Ep. 518 – Joe Biden’s Inauguration
The Kapital News
Ep. 518 - Joe Biden's Inauguration
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Joe Biden became the 46th President of the United States of America as he was sworn into office this afternoon by Chief Justice, John Roberts. Kamala Harris was also sworn in as the Vice President, becoming the first woman, black and Asian American to become the VP. So whatever your political leanings and thoughts are of VP Harris, this was nonetheless an historic day on those fronts.

President Biden struck the right cord, tone, and balance in his speech today. This is typically the case for any incoming President as this is the first message to the nation as the new Commander-in-Chief. It is an all hands on deck effort to craft and deliver an inspirational and memorable address to the country. While words may motivate, it is action that ultimately counts. This is where reality meets optimism. This country has been and is torn apart for a number of reasons that The Kapital News discusses on a daily basis. So it is difficult to believe that the same cast and crew of yesteryear who are partially responsible for such decay, decline, and calamity, are now somehow going to be the people to rectify and structurally reform our economic and political systems.

We know well the math behind our fiscal situation and we know the trends and trajectory. And what we have already heard from the new Biden administration, is more of the same policies that are all but guaranteed to make matters even worse. This is true, especially with respect to the middle class and lower wage earners. We will soon witness and be in the midst of the largest transfer of wealth in human history – surpassing the one we experienced following the GFC and the one we are going through now. While we do not wish the new administration any ill-will, we do however, wish that they would change course and restore our constitution and free-market capitalism. Stay diversified, stay vigilant, and stay with The Kapital News. #Biden #Trump #USA #Liberty #USA #Revolution #Leadership #FireCongress #Economy #Inflation #Gold #Silver #EndTheFed #bananarepublic

Ep. 517 – Farewell President Trump
The Kapital News
Ep. 517 - Farewell President Trump
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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

Ep. 515 – Weekly Wrap Up
The Kapital News
Ep. 515 - Weekly Wrap Up
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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