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
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
With only a week left to go until a change in administrations, the House of Representatives is moving forward with a vote on impeachment. This time, however, there will be Republicans joining in to vote, yes. If impeached again, Trump will be the first President to have been impeached twice. This action comes on the back of last week’s protests at the US Capitol that turned violent and led to some deaths and injuries. There is a lot of political calculus on both sides of the aisle as to whether or not impeachment is a good idea. There are valid arguments on both sides – for and against. But it must be understood that the most loyal of Trump supporters will see this as another assault on the President and on them as well. This will likely result in further protests and violence across the country. However, the threat of violence is not an excuse to not do something if it serves the purpose of justice and upholding the rule of law. Regardless as to which side wins out, the hypocrisy from both parties is thick enough to cut with a knife and they should all resign #FireCongress. The division will get worse before it gets better.
In the latter half of today’s discussion we look once again at the US debt clock to see where we are now and where we will be four years from now. Their analysis assumes current rates for all revenues and expenses. Suffice to say we are on an unsustainable path and things are likely going to get worse. The real effects of such policies that are and have led us to this economic, political, and societal ruin, may best be seen when it is shown that savings per family today is around $28,000. In January of 2025, this figure drops to around $1,500! This is theft, this is taxation, this is inflation, this is a lack and loss of opportunities and future prosperity. There is no free lunch and things that may appear “good” now are coming at the expense of the future. This is only the beginning. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Impeachment #Vote #USA #Liberty #Revolution #Debt #EndTheFed #BananaRepublic #Inflation
The circus that is our government continues to be on full display as our economy and country crumble. Whether politicians are calling for another impeachment trial, the invocation of the 25th Amendment, demands for resignations, etc… there is no shame, and the hypocrisy is thick enough to cut with a knife. If history is a guide with respect to the the fall and end of countries and empires, then the United States of America is sadly making her way down the list, checking off many of these boxes, one-by-one. As it stands this evening, President Trump will not be attending the inauguration ceremony. The Kapital News believes that this is a mistake. It is also uncertain as to whether the President will be giving a farewell address to the nation as is the tradition. Social media and tech companies, such as Twitter have permanently suspended President Trump’s accounts. Apple and Google are removing the social media app, Parler, from their app stores. Parler has risen in popularity over the last several months as conservative and Republicans seek out alternative platforms and media. As The Kapital News has been discussing and warning, when we create these types of platforms with a bias to a particular political party, then this is likely to divide us further since opposing viewpoints are not likely discussed, if even heard. This serves as an echo-chamber with people sharing the same articles, videos, and other media – all of which already conforms to their beliefs and what they likely deem as “true.” This can become extremely dangerous and we are already likely on that path. Debate is supposed to be civil and various viewpoints heard and discussed. If everyone pretends to already “know” what and how the “other” side thinks, then where is the debate?
Lastly, we discuss the jobs report for December of 2020. The unemployment rate remained unchanged at 6.7 percent and 140,000 jobs were lost. This report, in conjunction with the initial jobless reports as of late, are showing signs of continued economic weakness and persistent job losses. A printing press may be able to print US dollars, but it cannot print jobs. Various revisions and calculations will be made by the BLS and will be presented in the January 2021 jobs report. The economic decline that has already occurred has caused long-term structural damage and will not be repaired with the current set of policies. In fact, such actions have all but guaranteed a prolonged economic contraction. And with it, the likely continuation of political and social strain. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Liberty #Vote #Peace #Justice #Revolution #EndTheFed #BananaRepublic #Bailouts #Inflation #Recession #Depression #Gold #Silver #USA #Debt #FireCongress
It’s all about the story, the narrative, the headline. Global equities are all about weaving a nice bed time story to pump stocks higher and here in the US – to all-time highs and record valuations. This historically does not bode well at all for future positive returns. In fact, it’s usually a harbinger of a significant decline – a reversion to the mean. As we have been witnessing, markets, once they sell-off, have been doing so to a greater degree and with greater rapidity. Recall Q4 of 2018 where the major indexes lost around 20 percent. Then fast forward to earlier this year, where we witnessed a near 40 percent drop within 6 weeks. What might this portend for the next leg down? Perhaps 50 percent within a few weeks – could you imagine the carnage?
Nonetheless, like a good little addict, the market has been conditioned to take any negative news in stride, “knowing” that their dealer(s), the Federal Reserve and the Congress will have their backs and throw as much monetary and fiscal support (dope), into the system as they can. And if the actual liquidity isn’t enough – don’t worry. This is because there are a number of headlines that can be circulated to juice the markets. Take for example the US-China trade talks that we heard about endlessly throughout 2019 and only to come to a “Phase 1” agreement that was no where near the hype. Then onto Covid-19 and the “need” for monetary and fiscal support – this coming to the tune of trillions of dollars that we did not and do not have. Then calls for further actions from our policymakers and this has been making the headlines for several months now, but with no deal yet agreed upon and signed. Why actually do something, if the headline is good enough to pump the markets? Then there’s the vaccine headlines – with several major pharmaceutical companies working on this assignment, this means that there can be headlines galore promising a vaccine soon to enter the market. Over the last two weeks and even today we hear of more information on the effectiveness of some of these vaccines. And while there are others, we’ll leave with the rush of IPOs – reminiscent of the late 1990s and the dot-com bust, a myriad of companies, mainly tech, are rushing the markets to raise capital. Of course very few, if any, are actually profitable – but profits matter not. This is because we’re in the midst of the headline economy – fundamentals don’t matter – just a good story. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Jobs #Markets #Liberty #Revolution #EndTheFed #BananaRepublic #USA
The first casualty of any conflict or any war, is the truth. With that said, in the fog of war it is too easy to get the facts wrong. This evening, Iranian forces retaliated against American interests by attacking with missiles, Iraqi air bases that house US forces. There is mixed reporting as to whether or not there have been any American injuries or deaths, but what we do know is that via twitter, statements have been made by both Iranian and US officials.
On the Iranian front, the Foreign Minister has stated that Iran was justified in attacking these air bases as a matter of self defense in response to the recent American assassination of a top Iranian general. He continues by stating that Iran does not want things to escalate and that Iran does not want war. President Trump also commented via twitter stating that “all is well,” at least for now. That the US will be assessing closely the situation and will take account of the damage at the air bases. The President is expected to make comments tomorrow morning.
There is early speculation and analysis that Iran targeted these sites purposefully with the intent of not doing any physical harm to any American life. This would afford the regime the ability to show their people that they responded with force against the Americans. Yet at the same time, allows for a message to be sent to the Americans that Iran has the capability to attack with precision, but having chosen not to could be a message to Washington, that they are serious in de-escalation. Time will tell. All we can hope for is that this leads to constructive dialogue and not further destruction. Let us pray for peace. Stay diversified, stay vigilant, and stay with The Kapital News. #Peace #War #USA #Iran #Iraq #Oil #Economy #Politics #Truth
Ep. 16A - Trump-Kim Round II + Brexit: Another Referendum?
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President Trump is set to meet with North Korean Leader, Kim Jong-Un. Will this relationship translate into peace and prosperity – let’s all hope. This would be a great thing for the world. In a blow to the people’s vote – is the UK setting up for a 2nd referendum?
