Tag: Republic

Ep. 503 – Junk Debt, Junk Economics

The Kapital News

Ep. 503 - Junk Debt, Junk Economics

00:00 / 00:31:57

Trillions of dollars in negative yielding debt, zombie corporations, modern monetary theory (MMT), universal basic income (UBI), out of control central banks, and a seemingly never-ending government spending spree. These are just some of the items that can be classified as junk economics. The economy is suffering and is need of a major correction. This correction will undoubtedly be painful and widespread, yet current policies have led us to this current environment that is also painful and widespread. Yet, our policymakers believe it’s right and prudent to continue with the very same policies that led us to this ruin and to do even more of it! What is needed is free-market capitalism. Markets need to correct. This means bankruptcies, restructurings, insolvencies, liquidations, and the cleansing of malinvestments. When governments and central banks intervene and interfere with the proper functioning of a market economy, they can only serve to make the problem(s) worse. They end up picking winners and losers; they prop up businesses that otherwise would be out of business, such as our zombies corporations; and all of this goes to hurt those well-functioning businesses, as they would have picked up the market share, where others have failed. In essence, it’s all about maintaining the status quo and prioritizing the short-term at the expense of the long-term. Problem-being is that it’s just a matter of time before the long-term catches up with us. We are nearing this moment. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Bailouts #Revolution #USA #Liberty #EndTheFed #BananaRepublic #Inflation #Gold #Silver

Ep. 502 – More Cash In Your Stocking

The Kapital News

Ep. 502 - More Cash In Your Stocking

00:00 / 00:30:08

It looks like the gift-giving season isn’t over yet, as President Trump signs the $900B “stimulus” bill. This package contains the $600 checks, which may very well turn into $2,000 or at least more than the $600 figure. The House has already passed a new bill that increases the amount to $2,000. It now goes to a vote in the GOP led Senate. All of these Republican Senators voted for the Nobody CARES Act earlier this year, but now all of a sudden they’re seemingly concerned with spending levels, deficits, and the national debt. The Kapital News is of course against all bailouts, but at least we’re consistent and not hypocrites like so many politicians. This is still the early innings, as there will be more spending measures to come throughout 2021.

We also cover initial jobless claims, the Fed’s balance sheet, and M1 and M2 money stock. The monetary measures all hitting new highs as we print our way into oblivion. And jobless claims are still north of 800k, which is heart-breaking and very much in the wrong direction. However, it is in alignment with our analysis – and economically speaking, 2021 is likely to be worse than 2020. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Inflation #Gold #Silver #Liberty #Revolution #USA #EndTheFed #BananaRepublic

Ep. 501 – A Nation of Debt

The Kapital News

Ep. 501 - A Nation of Debt

00:00 / 00:36:16

We continue our discussion and analysis of the Federal Reserve’s balance sheet and the national debt of the USA. We provide an historical perspective with respect to these two variables so that the audience can gain a better picture of the current state of monetary and fiscal policy. It also serves the purpose to highlight the rapid decline of the United States and how this is the management of the bankruptcy of the United States of America. With each passing administration, there is exponential growth with our levels of debt, but unfortunately, not with our levels of growth. And this makes intuitive sense because debt is not growth. In fact, debt, especially at these levels, retards and stunts growth. Debt is the theft of future prosperity. This is clearly evident, yet the political will to stop this type of debt expansion is non-existent. It is non-existent because the truth is too hard to stomach for these politicians and the coward’s way out is to add to the debt and to inflate our currency. Truth, prudence, and principle are not words that are used or understood in Washington, DC. And as such, it is the people and the country at large that has to pay for and suffer the consequences of such poor and absent leadership. Because of this, we are not a free nation, but rather a nation of debt. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Bailouts #Revolution #EndTheFed #BananaRepublic #Inflation #Leadership #Gold #Silver #USA

Ep. 500 – More Spending Is Never Enough

The Kapital News

Ep. 500 - More Spending Is Never Enough

00:00 / 00:37:11

More drama in Washington, DC as the President condemns the Covid-19 “stimulus” bill and says the $600 checks are not enough. Instead, the President wants Congress to authorize checks in the amount of $2,000. The President also criticized the amount of wasteful and overseas spending. The Speaker of the House, Nancy Pelosi, has already stated that she and her fellow Democrats will be happy to take up the bill again and include the $2,000 figure. The question will now be put to the Republicans to see if they can stomach that amount. There was already pushback from some Republicans when it was $600 – so will they be able to tolerate $2,000 or will this bill now get shutdown?

Of course, should this bill in conjunction with the $1.4 trillion spending bill get passed and signed into law, where will all of this money come from to finance these monstrosities? Well the printing press certainly. The latter half of today’s discussion is centered around the Federal Reserve’s balance sheet. As we noted yesterday, the Fed’s balance sheet hit an all-time high last week at nearly $7.4 trillion. With all of this additional spending coming down the pike, it stands to reason that the balance sheet will hit and/or exceed $10 trillion by the end of 2021. This is ridiculous and would be a near 10x fold increase to the balance sheet just since the Great Financial Crisis and would be about 50 percent of US GDP. These numbers are unsustainable and go against everything this country is supposed to stand for. Where are the free-markets, and where are the checks and balances? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Bailouts #Inflation #Gold #Silver #Liberty #Revolution #EndTheFed #BananaRepublic

Ep. 499 – Nobody CARES Act 2.0

The Kapital News

Ep. 499 - Nobody CARES Act 2.0

00:00 / 00:34:05

So after months and months of political infighting and election posturing, it appears that Congress will pass another major “stimulus” bill. With a price tag of $900 billion this will be one of the largest bills ever passed and it is even tied to another spending bill that comes in around $1.4 trillion. Congress has clearly taken out the country’s credit card during the holiday season. The $1.4 T will only keep the lights on in the country for a few months and then they’ll be right back to the drawing board.

Nonetheless, the $900 billion is already drawing some harsh criticisms as there are billions that are going to foreign countries. And while the bill is securing another round of “stimulus” checks, this time the amount will come to $600 as opposed to the $1,200 issued earlier in the year. Further extensions have also been put into place with respect to unemployment programs and eviction moratoriums. These are merely temporary adjustments to structural issues and as such, will not solve anything. 2021 is likely to prove even worse than 2020 with respect to the economy and these measures passed by Congress are further indication that this will likely prove correct. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Bailouts #USA #Liberty #Revolution #EndTheFed #BananaRepublic #Inflation #Gold #Silver

Ep. 498 – 2020, The Year That Will Live In Infamy

The Kapital News

Ep. 498 - 2020, The Year That Will Live In Infamy

00:00 / 00:29:23

Since it is the anniversary of the Pearl Harbor attacks, 7 December, 1941, we thought it prudent to title today’s podcast as such. Of course, this is a play on words to those spoken by President FDR, following this attack. We think it’s more than fair and reasonable to make such a statement.

During today’s show we discuss a number of items of which we were able to recall as happening throughout this year. Surely, topics were missed, but we ask the audience to share any items not mentioned. The events throughout this year are nothing short of Biblical – various natural disasters (fires, hurricanes, locusts, etc); trade wars, impeachment hearings and trial, negative oil prices, economic and/or country and government collapse, Presidential primaries and elections, Brexit, wars and conflicts, Covid-19, significant inflation and debt expansion, massive job loss and business closures, protests and riots, banking and financial market fraud, and what lies ahead for much of the world, may very well be a combination of civil wars, revolutions, and world war. We pray that we are wrong due to the destruction and devastation that will follow. However, this is an honest assessment given the moral, political, social, and economic decay and decline that has been experienced for generations and is picking up momentum. So while 2020 is a year for the record books – prepare yourselves, as 2021 and beyond are likely to be even worse. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #War #Recession #Debt #Bailouts #Inflation #Depression #Gold #Silver #EndTheFed #BananaRepublic #Liberty #Revolution

Ep. 494 – Biden’s Economic Dream Team Is Really A Nightmare

The Kapital News

Ep. 494 - Biden's Economic Dream Team Is Really A Nightmare

00:00 / 00:32:23

President-elect Joe Biden released more names today to fill positions within his economic team. These characters are all familiar names as many have held posts within the Obama Administration. As The Kapital News likes to say, “it’s a revolving door down there in Washington, DC.” It is quite remarkable, yet also not surprising, that such people will be filling these positions. Remarkable in the sense that no one seems to have any basic common sense for what is going on in this country. Evidently, the same people who are responsible for past and current economic calamity are now back in the fold – apparently so they can be responsible for the future economic calamity. This makes zero sense. However, what can be deduced is that the incoming Biden Administration must be fine with how things were managed in the past and thinks that’s how things should be managed going forward. This becomes the definition of insanity. And of course, it will continue to be the American people who are responsible for the bill. This will be paid through taxation, inflation, a stagnant economy, higher costs of living, lower living standards, few opportunities, and more debt. Just when you thought 2020 was nearing its close – we have all of 2021 to contend with in the aftermath of all of these flawed policies. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Bailouts #EndTheFed #BananaRepublic #Inflation #Gold #Silver #Liberty #Revolution #USA

Ep. 492 – Turkey Or Jobs On The Chopping Block?

The Kapital News

Ep. 492 - Turkey Or Jobs On The Chopping Block?

00:00 / 00:33:07

Happy Thanksgiving from The Kapital News! Hopefully everyone was able to get together with some friends and family – even if via remotely. Social interactions and traditions are important, especially during these trying times.

Being that it’s Thanksgiving, we know the turkeys were on the chopping block. However, we received some unfortunate news the other day out of the Labor Department, telling us that initial jobless claims were higher than the previous week. This is two consecutive weeks where jobless claims have been trending higher. Given recent “lockdown” orders across various states and cities, it’s no surprise to see these figures increase. Yet, it’s our analysis that the economy remains extremely weak and vulnerable to various shocks and to time itself, and thus this may be signaling something more than just job losses due to restrictions. Printing, begging, borrowing, and spending money that we do not have will only take us so far. We may very well be reaching those limits.

For the week ending 21 November, 778,000 Americans filed an initial jobless claim. This is 30,000 more than the previous week’s figure of 748,000 – which was revised higher by 6,000. In aggregate of all persons claiming unemployment insurance, for the week ending 7 November, totals 20.45 million. This is a week-over-week increase of over 135,000. Using this number would give us a rough figure of about 14 percent as the unemployment rate. Notice that this is twice the percentage as what the jobs report tells us is the official unemployment figure – which currently stands at 6.9 percent. So while there is of course much to be thankful for during this holiday season, there is also much to be concerned about in the coming weeks, months, and even years. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Bailouts #Debt #Inflation #Recession #Depression #Gold #Silver #USA #Liberty #Revolution #BananaRepublic #EndTheFed

Ep. 491 – Yellen: No Checks, No Balances

The Kapital News

Ep. 491 - Yellen: No Checks, No Balances

00:00 / 00:34:24

Today’s title has a couple of meanings. First, since we’re a first world banana republic, we have no checks to write because there is no balance in the Treasury to cover them. Further, the only way we really show a balance in the general fund is because we print the money like it’s going out of style – because it is. Then of course, the United States government is supposed to be a system of checks and balances. But how can our system truly function as such a system, if there exists a central bank, the Federal Reserve, that is accountable to no one? Presidents, Representatives, and Senators can be voted in and voted out by the people. The President can override Congress with a veto. Congress can override the veto should enough votes exist. Congress can impeach and remove a President. The Supreme Court can rule actions and legislation to be unconstitutional. Yet, if and when central bankers set interest rates and embark upon other policies, there is no one who can overturn their decision. These “officials” are not elected, and thus cannot be voted out by the people. So where is the check and balance to their power? This is exactly the problem.

Now, with President-elect, Joe Biden, beginning his transition into the White House, he is starting to pick his cabinet. Continuing with yesterday’s discussion, we highlight his pick of Treasury Secretary of Janet Yellen. Yellen was the former Vice Chair and Chairman of the Federal Reserve. She was very a much a part of implementing and overseeing quantitative easing. She is also an advocate for granting the Fed the ability and authority to purchase equities outright. While she makes such a claim in a veiled way – make no mistake that she believes this is something Congress should consider doing – granting the Fed such powers. She, like many of her predecessors and successors, are destructive to the United States of America. Their policies are the root of our economic malaise in conjunction with actions taken by our government. It has been and remains to be a great concern that these policies are going to become even more extreme, and thus worsen and add to the damage. It’s a revolving door in Washington, DC and this is further evidence that our elected officials care not about the health of our country. The people need to wake up before it is too late. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Markets #Jobs #Debt #USA #Inflation #Recession #Depression #Gold #Silver #EndTheFed #BananaRepublic #Liberty #Revolution

Ep. 490 – Yellen + Screamin’

The Kapital News

Ep. 490 - Yellen + Screamin'

00:00 / 00:34:15

So here we have it! It’s vaccine Monday once again and right on cue, AstraZeneca comes out and announced the results of their vaccine’s efficacy. This is now three Mondays in a row – Pfizer, Moderna, and AstraZeneca, respectively. However, today’s news was further bolstered by the announcement that former Chairman of the Federal Reserve, Janet Yellen, is getting the nod to become the next Treasury Secretary. Of course she will need to be confirmed by the Senate, but since she has been confirmed before, there’s really no reason to think why she won’t be confirmed again. Now, The Kapital News can come up with trillions of reasons as to why she should not be confirmed, but you get the point.

The stock market loved this news and why wouldn’t that be the case? Equities rose considerably under the Yellen-Obama tenure. This is thanks to record low interest rates, and quantitative easing being the norm for the past decade plus. This monstrosity of a policy continues and now with a one-two punch at Treasury and the Fed – what could possibly go wrong? Again, The Kapital News can provide a trillion scenarios, but you get the point in that the addicts on Wall Street will continue to get their hit and in larger doses. This is destroying, if it hasn’t already killed the patient, with the patient being that of the US economy. For that matter, it’s really the global economy since these actions are being undertaken in an orchestrated manner.

What’s so sad of course, is the fact that tens of millions of Americans are still going to food banks, collecting unemployment insurance, facing eviction(s), and massive uncertainties ahead, yet global equities continue reaching new heights. This is massive fraud and contributing greatly to wealth and income inequality. This is a recipe for political, social, and economic disaster because this is not the result of production, productivity gains, and prudent valuations. No, this is at the hand of easy credit and trillion dollar liquidity injections. In short, this is a first world banana republic and the funny money is inflating financial assets into the stratosphere. Just wait until this is reflected in commodity prices and general consumer prices. The inflation is already here – now await it’s truly destructive force and the coming stagflation and potential hyperinflation. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Inflation #Gold #Debt #Silver #Recession #Liberty #Revolution #EndTheFed #BananaRepublic #Depression #Bailouts #USA

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