It’s Sunday evening, but as we watch the overnight futures markets, we are seeing some nice moves to the upside in the commodity space. This decade is likely to be a bull-market for precious metals and commodities. It’s back to the basics. It’s back to real tangible items that are needed for an economy to function and hedges against fiat currencies and weakening governments. All of the funny-money printing is going to end up somewhere, and precious metals and commodities is a place to pay close attention to.
During today’s podcast we discuss initial jobless claims for the week ending 26 December, which came in at 787,000; we also cover the Fed’s balance sheet, M1 and M2 money stock, and a few other data points of interest. We have been stating this for weeks, if not months, that economically speaking, 2021 is likely to be worse than 2020. Tomorrow begins the first trading day of the year, and while one day does not make a trend, it’ll be interesting to see how the markets navigate the oncoming turmoil, chaos, certainties, and uncertainties. Stay diversified, stay vigilant, and stay with The Kapital News. Happy Birthday Papou! #Economy #Debt #Gold #Silver #Inflation #Liberty #USA #Bailout #BananaRepublic #EndTheFed #Recession #Depression #Jobs
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
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
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
Our typical Thursday discussion revolves around initial jobless claims, the Federal Reserve’s balance sheet, and M2 money stock. With respect to initial jobless claims, 712,000 Americans filed for the week ending 28 November. While this is below market expectations and a reversal from the prior two weeks’ upward trend, this number is still over 3x the weekly claims witnessed prior to the lockdowns and restrictions. It also remains higher that the numbers experienced during the depths of the GFC. And if The Kapital News is correct in forecasting a serious number of bankruptcies and insolvencies over the next two years, then these numbers will likely remain stubbornly high. The total of all persons claiming some form of unemployment insurance came in at 20.2 million for the week ending 14 November. While this is a decrease from the prior week of some 350,000, this still provides us with a 13.7 percent unemployment rate. This would be nearly twice the headline rate at 6.9 percent. Tomorrow, 4 December, is the first Friday of the month, and as such, the official jobs report will be released.
The Fed’s balance sheet increased from the prior week, but is slightly below its all-time high experienced a few short weeks ago. The current figure is $7.222 trillion. With respect to M2 money stock, another all-time high was also reached, now standing at $19.12 trillion. This is monetary destruction in our face. This is destroying savings, capital formation, and prudent investments. It is increasing the cost of living, decreasing living standards, fueling our debt binge, and creating malinvestments across the spectrum. It is breaking and distorting markets – this will not end well. These actions are not free. Quite the contrary, as they are proving to be very expensive and destructive. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Recession #Depression #Gold #Silver #Iniflation #EndTheFed #BananaRepublic #USA #Liberty #Revolution
Ep. 494 - Biden's Economic Dream Team Is Really A Nightmare
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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
The recent pullback in silver and gold have many wondering what this means, and what may lie ahead for the precious metals market. There are of course many theories out there, but today we discuss a couple. First, could silver and gold be sniffing out the likely oncoming tsunami of bankruptcies and insolvencies? Some argue that if this scenario unfolds, that this will be “deflationary” and thus bad news for silver and gold prices. The Kapital News notes, however, that silver and gold can also do well in a deflationary environment. It must also be stressed that when the mainstream uses the words inflationary and deflationary, they are usually used incorrectly. These are monetary phenomena whereby inflation is an increase in the money supply and conversely deflation is a contraction in the money supply. Well, hello – central banks the world over are printing their respective currencies like they are going out of style – because they are! However, what most people mean by deflation is that prices will drop and inflation – prices will rise. The Kapital News is focused on the goods and services that people actually need and use – not so much the things they do not need and are not spending money on. And with this – prices are going up. In addition, we are seeing financial asset prices make new highs, especially with respect to equities and housing. People around the world are not protesting and rioting because the cost of living is so affordable – on the contrary – the cost of living is unaffordable!
We then look at these recent price declines as perhaps simply a period of consolidation, followed by a sell off, but only to prove to be the start of the next leg higher – bull markets climb a wall of worry. The Kapital News looks at silver and gold as a long-term investment. There are simply too many boxes that are checked or will soon be checked that add fuel to this precious metals bull market. Such as low interest rates, negative rates, negative real rates, massive deficit spending, massive expansion of central bank balance sheets, political and geopolitical risks, a stagnant economy, and a whole host of uncertainties that remain with how countries and societies will handle the wealth and income inequalities, the pandemic, higher prices, elections, and so much more. The remaining decade is going to be one for the history books – what we have done to ourselves and each other, and what we do to ourselves and each other as all of this immoral and unethical behavior, along with trillions in malinvestment(s), comes home to roost. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Silver #Gold #Inflation #EndTheFed #BananaRepublic #USA #Liberty #Revolution
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
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
For the week ending 14 November, jobless claims came in at 742,000, which is an unfortunate increase from the prior week’s figure of 711,000. However, the total of all persons claiming UI benefits decreased week-over-week by nearly 841,000 to stand at 20,319,615 – this would be for week ending 31 October. Nonetheless, with the massive interventionist fiscal and monetary policies, there still remains distortionary effects that makes it difficult to truly gauge the jobs market. Furthermore, with the winter months in front of us, in conjunction with rising Covid-19 cases and hospitalizations – what measures will state and city governments adopt to slow the spread? We’re already witnessing several states and major cities implement another round of restrictions, lockdowns, and/or curfews in attempt to bring the cases down. However, will such actions make things even worse economically? Could this be why week-over-week claims are up and could this be the start of another trend higher? Let us hope not, but let us also not be surprised if that comes to fruition. These measures in conjunction with fiscal and monetary policies are not healthy, beneficial, or sustainable in the long-run. In fact, they are quite detrimental to future growth and prosperity.
Also out this morning were the updates to the Federal Reserve’s balance sheet and M2 money stock. Both of these figures made new all-time highs. The Fed’s balance sheet is now at a record high of $7.243 trillion! The Kapital News believes this is just the beginning of another major leg higher. With respect to M2 money stock, we now stand at nearly $19.1 trillion, which is an increase of over $170 billion from the prior week! The markets are getting drunk on these monetary actions. But parties don’t last forever, and this kind of “partying” usually comes with some major negative side effects. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Bailouts #Debt #Inflation #Recession #Depression #Gold #Silver #Liberty #Revolution
