With the Mueller testimony proving to be a big flop for the Democrats, they are now attempting even further investigations into President Trump – essentially grasping at air. The President meanwhile, disgusted with these seemingly endless investigations, and rightly so, looks to perhaps be turning the tables on the Democrats. Calling out President Obama himself, Hillary Clinton, and the Democrats at large, the President is calling for investigations into the genesis of the whole Russia-Trump conspiracy. This is right and needs to take place because this nation cannot be a nation of laws and also carry with it, a two-tiered justice system. We are awaiting the reports from Inspectors General and also DOJ investigations that are supposedly looking into the genesis of the Russia-Trump conspiracy. In other news, the US economy grew at 2.1% for Q2 2019, besting expectations of 1.8%. While the President was content with the number, he still takes time to blame the Federal Reserve and accuses them of raising interest rates to high, too quickly, and also embarking on quantitative tightening. On the back of the GDP news and some positive earnings reports, the S&P 500 and Nasdaq make new all-time highs. Next week the Fed meets to determine monetary policy. All eyes and ears will be waiting. Stay diversified, stay vigilant, and stay with The Kapital News. #EndTheFed #WakeUpAmerica #Justice
Well the S&P 500 and Nasdaq made new all-time highs today. Yet somehow central banks the world over are getting set to undergo the next interest rate easing cycle. We have stock markets making all-time highs in the USA, Australia, and New Zealand. Meanwhile, other markets, like the Nikkei are hitting multi-month highs. If the markets are making all-time highs, and prices are stable (i.e. low inflationary effects), then why do central bankers need to cut interest rates and even embark on further rounds of quantitative easing, QE? The title of today’s podcast explains this well – this is a market mania and if history is any guide, mania’s do NOT end well. Stay diversified, stay vigilant, and stay tuned to The Kapital News. #EndTheFed #WakeUpAmerica #Economy
A serious question we’re posing here on today’s podcast. While this was never going to be an easy undertaking, the question still remains. Cutting taxes, but not cutting spending. Record revenues and profits for military-industrial corporations, as well as the banking sector. Are not these the industries that swarm and “own” the swamp? If they’re doing so well then how is this swamp being drained? We don’t demonize profits and success, unless they’re gained fraudulently or through questionable relationships with the government. Former members of Goldman Sachs, Boeing, and Raytheon occupying some of the highest offices in the USA. So?… It has come to light that the only thing the two-party system can agree on, is raising the debt-ceiling and thereby increasing the national debt of the country. So another question is warranted – where are the fiscal conservatives? Or is everything ok since a Republican is in the Oval Office? Serious questions that need answered by a public that is supposed to be eternally vigilant. #WakeUpAmerica #Freedom #Peace
So our fearless leaders in Washington DC finally got together on a bipartisan level to increase the country’s debt-load. Aren’t you proud to be an American when the only thing our politicians can agree on is to increase spending and our national debt?! This bipartisan action all but guarantees $1 trillion deficits for the next two years and this is assuming the status quo. Should the US economy falter, which is more likely than not, then these deficits will dwarf $1 trillion. So much for draining the swamp and fiscal conservatism. Across the pond in the UK, the conservative party will be electing the country’s next PM. Former Mayor of London, Boris Johnson is expected to take the seat. He will be dealing with the Brexit fiasco, the escalation with Iran, and a deteriorating economy, which is all but in recession according to a UK think-tank. Well wishes to the next PM – he’s going to need it. Lastly, the ECB has a policy meeting and is expected to signal more rate cuts and/or QE in September. Prime the presses as central banks the world over are set to begin a race to the bottom with their respective currencies. #EndTheFed #Brexit #WakeUpAmerica
With the price of gold and silver on a solid streak as of late, is this a sign of more upside to come for the precious metals? On top of this, we have witnessed some large money managers come out with strong cases for higher gold prices. The likes of Ray Dalio, Paul Tudor Jones, Jeffrey Gundlach, and Peter Schiff to mention a few. What do these gentlemen know that the markets do not? Is it income inequality and the potential subsequent political fallout? Is it the expectation of more easy money and further rounds of global QE that may spark high inflation? Perhaps it’s a combination thereof, but regardless of which may be the case, it’s always prudent to be diversified, and in a world of growing uncertainty and a global economy awash in debt, owning some precious metals might not be a bad idea. In other news, get ready for the circus in DC as former Special Prosecutor Robert Mueller is set to testify next week. Enjoy the show! #EndTheFed #WakeUpAmerica #Peace
As the saying goes, power corrupts and absolute power, corrupts absolutely. Concentrated and centralized power amongst the few is the antithesis of the United States of America. Nevertheless, we have before us a handful of powerful men and women on the global stage that have the power to move trillions of dollars worth of financial assets and markets with just a simple word or phrase. If this isn’t absolute power, then The Kapital News doesn’t know what is. Yet again today, we witness John Williams, President of the Federal Reserve Bank of New York, give a speech and make remarks during a Q&A session whereby he “hinted” that the Federal Reserve should slash interest rates. Saying it’s better to be preventive than to wait for the crisis to happen. Wait?! Aren’t we told by the President on a near daily basis that this is the greatest economy is US history – so why throw around the word crisis or problem or recession or even slow-down? The addicts on Wall Street took this as positive news as the junkies are set to get their next fix after crying about it – even though stocks are at all-time highs? Is this making any sense to anyone? Yet, only a few hours later a spokesperson from the Federal Reserve came out and said, the statements from Mr. Williams does NOT represent what the FOMC will be doing at the end of this month – referring to the Fed’s meeting on July 30-31 to decide interest rate policy. These members of the Fed are poor economists and they’re even worse at communicating. And by all indications, they want to continue pumping the patient (i.e. the economy) with more of the disease – lower interest rates and QE. Toto – I don’t think we’re in Kansas anymore. Buckle up! We’re Fed Up! #EndTheFed #WakeUpAmerica
While it’s still very early on in Q2 earning’s season, the transports have been releasing their financials and while yesterday there was a rally of around 2%, today was another story as additional transports reported. Today, the Dow Jones Transports saw a decline of 390 points or 3.60%. The Kapital News has been discussing the Dow theory for quite awhile and our analysis has shown that over an 18-month period, the divergence between the S&P 500 and the DJT has never been this wide nor spanned such a duration. If the Dow theory is to hold, that is to say that it’s a leading indicator, then one would expect the S&P 500 to correct in the near-term. However, we remain in the financial world of Oz with central bankers standing at the helm ready to cut interest rates and even inject further liquidity into the financial system – therefore, anything is possible. Yet, history has shown that interest rate cuts are not a panacea and diminishing marginal returns will take root. Stay informed, stay diversified, and stick with The Kapital News.
The printing of funny-money, the tweets from politicians, and the distractions from the mainstream media are sure to make anyone go mad if they’re truly paying attention. Well safe to say for most that they’re content being distracted by the noise of politicians, central bankers, and the media. Meanwhile, we’re taxed to death, face ever-increasing costs with respect to rent, home prices, autos, insurance, education, food, and energy – you know, the things we use everyday. Let’s not focus our attention on the real issues and the real people and institutions causing them – no, rather, let’s focus on Presidential nonsense along with four lunatic Congresswomen and whether or not they should stay in this country or leave it all together. Let’s not focus on $23,000,000,000,000 in national debt, or Social Security and Medicare, or endless wars and nation-building, or the income tax, or the Federal Reserve. No! Let’s instead focus on pea-brains and their lunacy and a reality-tv nightmare. Welcome to the USA in the 21st century. Time for a new Declaration of Independence! #1776 #2019
It’s the talk of the town that the Federal Reserve is all but 100% certain to be lowering interest rates at the end of July. However, the Fed is still engaged in quantitative tightening, QT. According to some of their own studies and analysis by outside parties, QT also has the effect of increasing interest rates. So will the Fed also call an early quits to QT in July? If not, then are the effects of a rate cut coupled with a continuation of QT a neutral or “non-move” by the Fed? It appears that the Fed doesn’t know or at least it hasn’t said much about this issue. At current expectations, the Fed is to wind down QT in September – removing up to $50 billion per month from their balance sheet. They have been doing so for well over a year and so while the official Fed Funds Rate is range bound between 2.25 – 2.50%, with the add-on effects of QT, we’re more likely in an actual range of 3.75 – 4.25%. Following the analysis by The Kapital News, it takes a lower Fed Funds Rate to burst/prick and ever-increasing bubble. Therefore, either scenario, the implicit higher rate or the official rate has already done its damage. It’s now simply a matter of time before the full effects are felt. Also be mindful that the true negative effects came from low interest rates and QE. We will soon be witnessing this global debt coming home to roost and a 25 or even 50 basis point drop, is not going to cut it. Stay tuned.
Jerome Powell, Chairman of the Federal Reserve, concluded his two-day testimony before Congress and strongly hinted that the Fed will be cutting interest rates at the end of July. The question remains as to what degree. Will it be a 25 or 50 bps cut? In addition, we have reports and statements out from the IMF and ECB both stating that Europe is likely to continue to face challenging economic times ahead. Both institutions are advocating for more stimulus and the ECB is standing at the ready to cut rates further into negative territory and/or to launch another round of their version of QE. Elsewhere around the world, we continue to witness further deterioration in the fundamentals and there are hints that many other central banks will continue to cut interest rates or embark on a cutting-cycle. This is a new currency war in the making and it’s a race to the bottom.
