We have previously discussed the dollar doom loop scenario, whereby a strengthening US dollar could cause a disastrous downward spiral around the globe, especially with respect to commodity dependent nations. However, there is also the possibility that this scenario does not unfold, and rather than having a “swan song” to new heights before its eventual collapse, the US dollar, just continues its descent. If this happens, this too can have devastating global effects, especially if this causes commodity prices to spike, among a whole host of other issues. In the midst of the Greatest Depression, higher prices are not a panacea, but will simply make the situation even worse. As higher prices will not be a result of an increase in demand, but rather the demise of the US dollar, rendering them near worthless. Looking into gold and silver as potential hedges against such scenarios may prove prudent as both have served as true money for millennia.
Is a new cold war brewing – this time between the US and China? Yes, most likely. Today the US government ordered the Chinese to leave their consulate in Houston, Texas. This is an escalation in recent tensions between the two nations as the pair goes back and forth on a number of geopolitical issues. Some of these pertain to the South China Sea, Hong Kong, Taiwan, trade and tariffs, human rights issues, and COVID-19, amongst others. It is unlikely that all of these disagreements will be solved in the near future. Therefore, expect a lot of uncertainty and volatility for the foreseeable future as both sides attempt to play the “strong-man.” Let us hope this does not turn into a hot war, but be prepared if it does happen. And should it happen, the economic fallout will be nothing short of catastrophic, not to mention the loss of life. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Gold #Silver #Debt #Bailouts #USA #China #BananaRepublic #Depression #Recession
While the price of gold has been moving up steadily over the past few years, silver on the other hand, has been more range bound. That is until recently. Today the price of silver moved up by several percentage points taking the metal to a spot price of over $22/oz – this is a level not seen since late 2013. So, the question becomes – is this a temporary spike in price or the beginning of what could prove to be a massive bull market? This of course remains unknown. However, with the current state of affairs from policymakers, politicians, and central bankers around the world, it would suggest that there are a lot of tailwinds behind gold and silver. The printing press is no panacea as the world is soon going to discover and the people are also going to become well aware that “free” money was never so expensive. Add to this the geopolitical uncertainties, the upcoming US Presidential election, more talks of government spending, higher inflation expectations, and a further deterioration in the overall economy, places the precious metals market in a ripe environment for perhaps the next several years as a means of diversifying, protecting, and adding to your wealth. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Recession #BananaRepublic #USA #EndTheFed #Depression #Inflation #Gold #Silver
More vaccine headlines because, well, it’s a day that ends in “d-a-y.” More “stimulus” on it’s way because, well, that’s what an out of control Congress and White House do – they beg, borrow, and spend money we do not have. Former Chairs of the Fed, Ben Bernanke and Janet Yellen testified before Congress last week on how to weather the COVID-19 storm and suggested to do, “whatever it takes” – because, well, that’s what central bankers operating in banana republic do – they print money like it’s going out of style – because it is. And lastly, the weakest links in the global economic chain are beginning to completely collapse.
We highlight the devastating economic and social destruction of Lebanon. Wrought with years of political corruption, fraud, abuse, and nepotism, coupled with flawed economic policies have brought the Middle Eastern state to its knees. Unfortunately, the policies and actions that have caused this collapse are all too familiar to billions of people around the world – whether 3rd world or highly industrialized. This is what ultimately led to the global protests prior to the pandemic, and given the economic, health, and social fallout due to the pandemic, the protests will become even larger and likely violent. Any chain is only as strong as its weakest link and if recent history is any guide, do not be surprised if over the course of the next 1-2 years, we see the collapse of not only smaller countries, such as Lebanon, but of larger economies around the globe. A global economy built upon and maintained by debt cannot stand the test of time nor forever defy the laws of economic gravity. A day of reckoning is upon us and the Greatest Depression is now well underway. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Debt #Bailouts #BananaRepublic #USA #EndTheFed #Gold #Silver #Protests #Depression #Recession #Inflation #Peace
Where to even begin? The excessive and abusive taxation across federal, state, and local jurisdictions. The theft of our savings and purchasing power through the effects of inflation. The two-tiered justice system.The endless wars and interference and meddling in other countries’ affairs. The trillions of dollars spent on social and corporate welfare programs. The poor state of our infrastructure and education systems. How much further must we go? Oh, yes, and how can we forget the protests and riots from coast to coast.
This has been years in the making and this country along with several others are taking to the streets to demand change. To hold their respective governments and officials accountable for years, if not generations’, worth of failed, flawed, fraudulent, and corrupt policies. The end game is near and unfortunately, millions, if not billions of people around the world are going to experience the severe consequences of these policies. And most don’t even know they’re coming. The sad thing is, at least here in the United States is that we have the answer, but choose to ignore it. The answer is a return to our constitutional republic and to free-market capitalism. If we restore ourselves to these principles and adhere to them, then we can turn this decline around and our best days may very well be ahead of us. But if we do not and continue with the same policy prescriptions, then our decline and demise is just around the corner. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Depression #Debt #Bailouts #EndTheFed #BananaRepublic #USA #Revolution #Liberty #Gold #Deficits #Protests #War #Peace #Truth #Recession #Jobs
As Q2 earnings season gets underway, major banks reported today. With the likes of JP Morgan Chase, Wells Fargo, and Citigroup, there were a couple common threads throughout. First, all banks expect that the worst of the economic fallout is yet to come as they amend their forecasts from the prior quarter to a more bleak outlook for the months ahead.
As such, their collective loan loss provisions take us back to levels not seen since the GFC. Despite this negative bit of news, however, with respect to JP Morgan and Citigroup, their trading desks did phenomenally well. Gee, we wonder why that could be? Oh, that’s right – thank you Federal Reserve and all your banana republic funny money. The industries hardest hit when it comes to the banks are retail, real estate, and oil and gas. The very industries that we have been discussing here for months. It was also quite interesting to hear from the banks that all of the “stimulus” spending and other policies that have been implemented has simply delayed the inevitable – protracted economic growth. The problem of course with this is that there is no free lunch. So all we get are a few extra months at the expense of trillions of dollars that we do not have, only to end up where we would’ve ended up anyways, but now with a higher debt load. Only the arrogance and fraudulent behavior of bureaucrats, politicians, and central bankers could have come up with such a scheme. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Debt #Depression #USA #Recession #EndTheFed #Gold #Liberty #Silver
It has become a world of extremes. Extreme stock market valuations. Extreme abuses of government powers. Extreme abuses of power by central banks. All of this and others, does not portend a solid economic recovery, nor a functional society. Quite the contrary, as has been seen even well before the onset of COVID-19 with the global protests as such an example. These will continue and they will increase. The protests are not transitory, but rather history in the making.
Another extreme was the US monthly deficit of $864 billion in June. For a little context, the federal government collects around $3 trillion for the entire year. So it should come as no surprise that we’re staring at a $26.5 trillion national debt and an annual budget deficit of nearly $4 trillion. And don’t forget, Congress is likely to pass another $1-2 trillion “stimulus” package before they go back on recess by the end of August. Where does the money come from? The printing press because Uncle Sam is broke. But the cost(s) associated with all of this “free” money will be nothing short of extremely expensive on so many levels. The likely outcome of inflation, stagflation, and potentially hyperinflation over the coming years. With it the higher costs of living and lower standards of living. With it the higher financial asset prices may rise (until they don’t), which will either have people buying at or near all-time highs or losing a significant amount of wealth if history repeats and there is a major correction in stock, housing, and other financial assets. The costs are real and more than just dollars and sense as people will lose their jobs, businesses, homes, vehicles, businesses, etc. This will having a lasting effect and is truly the real toll of generations of failed, flawed, and fraudulent policies. Let us just hope that through this, we can identify the root causes and adopt and implement the much needed structural changes that a free people should demand and deserve. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Debt #BananaRepublic #USA #EndTheFed #Gold #Silver #Liberty #Protests #Revolution #Depression #Recession
With nearly 33 million Americans receiving some sort of unemployment assistance as of last week, there is now a serious concern pertaining to the amount of people facing evictions over the coming months. During the pandemic response, federal and state authorities have issued various moratoriums with respect to renters and home-owners with mortgages. These temporary stays are coming to an end over the next month. If Congress and/or state legislatures do not act, some 20 to 28 million Americans may face eviction over the coming months. For comparison, during the GFC, which at the center was a real estate collapse, some 10 million Americans over the course of a few years were evicted. So even if half of this new estimate should come true, then we’ll match the GFC or worse. And even if “something” is done by government authorities – how much will it cost and will it simply just delay the inevitable?
Many landlords are a part of the “middle-class,” and use real estate as a means to generate extra income and cash flow. Many of these landlords are not outright owners of their properties and as such, also have mortgages and other loans to pay. Well, if their tenants are not paying, then how can the landlord afford to pay their mortgage(s) among other maintenance costs? This is a vicious cycle, because even if there are additional moratoriums, then how will the banks be paid? And as such, would banks then not move to increase their lending standards? Yes, they’re already doing so. This would then mean, if someone wanted a loan, there are going to be higher thresholds that need to be met in order to receive the loan(s), thus translating into a smaller group of people and corporations that will receive the loans. And all of this is on top of trillions of dollars being printed out of thin air. This is a tale of two cities where the largest corporations are being bailed out and even having the corporate debt purchased by the Federal Reserve and on the other side of the city – 33 million Americans unemployed (even more), food bank lines like the Great Depression, and millions about to be evicted. We told you we’re in a banana republic and it’s just getting started. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Depression #Recession #BananaRepublic #EndTheFed #Debt #Gold #Silver #Liberty
Don’t you find it rather amusing that the President “attacks” and calls out the “deep state” for allegedly committing crimes and espionage against himself, his campaign, and his administration, yet at the same time, the President is also a huge cheerleader for the stock market and massive amounts of fiscal and monetary “stimulus?” One of these things is not like the other. Especially when one considers that the largest corporations and biggest components of the markets, especially the Nasdaq, are the likes of Amazon, Apple, Facebook, Google, and Microsoft. You know, those same corporations who were revealed by Edward Snowden to be collecting an endless amount of data on Americans and turning over such information to the government with virtually no questions asked. Also the same companies that pay little to no federal taxes, are awarded sizable government contracts, and now have their corporate debt being purchased by the Federal Reserve. You could not make this stuff up if you tried! And at the end of all of this, the President will still try to have you believe that he is against the deep state and is “draining the swamp.” Give us a break – the swamp is alive and well and those closest to it are taking all the funny banana republic money they can get their hands on. So much for free-market capitalism. And to add insult to injury, the Congress and the White House are getting ready to spend another $2 trillion that we do not have – turn on those printing presses – again…
We also discuss the newly released initial jobless claims figures, the Fed’s balance sheet, and the Supreme Court’s decision with respect to two cases pertaining to President Trump and his tax and financial records. Stay diversified, stay vigilant, and stay with The Kapital News. #BananaRepublic #Economy #Depression #Bailouts #EndTheFed #USA #Gold #Liberty #Recession #Debt
In today’s podcast we discuss the rising levels of corporate debt in the form(s) of commercial and industrial loans and debt securities (i.e. corporate bonds). We also highlight some of the key points from the Payment Protection Program (PPP Loans) from the Small Business Administration (SBA). A list of companies can also be found here.
When we analyze the corporate debt landscape, it is immediately evident that there is a deviation from cycle trend. Typically, when the economy is about to enter into or is already in recession, corporate debt levels will plateau and/or be reduced. This is logical behavior as recessions are indicative of slower growth and thus corporations will be looking to shore up their balance sheets and will do so by reducing their debt burdens. Well not this time. In fact, we’re witnessing quite the opposite with sizable increases to corporate debt. Just with commercial and industrial loans, an increase of some $600 billion from February to May of 2020 took place. For a little perspective, commercial and industrial loans did not total $600 billion until the late 1980s! Now, we’re adding that much in a matter of a few months! These actions to continue to kick-the-can down the road will not work and we will all be paying dearly for these actions in one form or another. Stay diversified, stay vigilant, and stay with The Kapital News. #BananaRepublic #Debt #Bailouts #Economy #Depression #Recession #USA #Gold #Liberty #EndTheFed
How many more trillions of dollars are going to be printed, borrowed, and spent before the people of this country wake up to this fraud? Stealing from current and future generations in an attempt to keep this corrupt system afloat is their (the Fed and politicians) goal and they care not about the price nor the consequences. They’ll do whatever it takes to not have to look the American people in the eye and tell the truth – the truth that our system is unsustainable. The truth that our system is corrupt. The truth that our system is broken. No, they would rather just turn the printing press on and print money in attempt to solve all of our problems as if we’re some sort of banana republic – because we are! We just celebrated the birthday and founding of this nation – July 4, 1776. Look at us now and how far we have fallen from our founding principles. How much longer will the American people continue to play the fool? How much more needs to be stolen through taxation and inflation until the American people demand real change? How much longer until their is another revolution? Stay diversified, stay vigilant, and stay with The Kapital News. #BananaRepublic #Debt #Bailouts #Revolution #Economy #USA #1776 #Depression #Recession #Gold #EndTheFed
