There is seemingly no limit to the greed or stupidity of politicians, central bankers, and many on Wall Street and corporate America. As this economic, financial, health, and social crisis continues to unfold, there is nothing but further calls to do more, more, more. Let us not pay attention to the minor detail that the federal government is broke – as is evidenced by a national deficit that is likely to be larger than $4T for FY2020. Let us not pay attention to the minor detail that for decades States’ governments have squandered their citizens’ hard earned tax dollars on vanity projects, fraud, abuse, and waste, and are now on bended-knee seeking more bailouts from a federal government that is also broke. A key distinction between the two, however, is that the latter has a printing press via the Federal Reserve and the former does not. Nevertheless, there is no free lunch and if we are going to be resorting to the printing press to cure all that ails us, then we are turning into a banana republic. The costs of conducting such flawed and fraudulent policies will come in the form of inflation and hyperinflation. Understand this is a process, but it will show itself in due time and the picture will not be a pretty one. These federal policies are all but guaranteeing that what would likely be a severe recession is now going to become a depression.
In other news on today’s podcast we discuss the Fed’s FOMC meeting that will be concluding tomorrow. We also mention the upcoming Q1 2020 GDP figures. And we close the podcast by highlighting some trade figures and recent surveys as to how the current economic situation is affecting everyday Americans. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Recession #Debt #USA #Gold #Inflation #Congress #Depression #Oil #EndTheFed
Phase 1 signing ceremony. Articles of Impeachment sent from the House to the Senate. And an exclusive TV interview from Lev Parnas, an associate of Rudy Giuliani, who has been charged by the US Attorney from the Southern District of New York. What a day! On the US-China trade front – this is a terrible deal and one that basically takes us back to where we were two years ago before this whole thing started. Most of the goods and services that may be purchased by the Chinese are to take place in 2021 not 2020. Most of the goods that China may purchase are goods that they need anyway – pork, soybeans, and energy. The Chinese can remove their tariffs on US goods at their leisure – not on an agreed upon timetable. Some US tariffs will remain in place on Chinese goods and services. Thus keeping prices artificially high and continues the trend of uncertainty. There is an escape clause that basically states that if one party believes that the other is acting in bad faith, that the agreement can be severed. China also stated that they will make their determination to purchase goods and services based on market forces – i.e. prices, not because of a trade deal. In short, this is a pathetic deal – if we can even call it a deal. And don’t forget the numerous amount of farmers who have filed for bankruptcy during this process. And don’t forget the tens of billions of US dollars, from the taxpayers that went to bail-out farmers, especially large corporate farms.
An historic day for the United States of America as the Articles of Impeachment have been formally sent from the House to the Senate. The trial is expected to start next week and will likely last for at least a couple of weeks. We imagine, if it is an open, fair, and transparent trial that it will last longer. Time will tell. All we want is the truth to be known and for justice to be served. Regardless of who is implicated and charged. Put the politics aside.
Lastly, Lev Parnas gave an exclusive interview to Rachel Maddow of MSNBC, part 1 aired this evening and part 2 is scheduled for tomorrow evening. Much of what was stated raises more questions than it does provides answers. However, some of the answers appeared credible and can be corroborated with documentation. Some answers can be reasonably presumed to be correct, however, further evidence is needed. Further, some answers were speculative in nature and they also require further investigation and corroboration – either documentation and/or personal testimony of other individuals. One of the key themes as outlined by Parnas is contradicting the President and stating that Donald Trump was fully aware as to what Parnas, Giuliani, and others were doing in Ukraine. Recall that Parnas has also submitted documents to the House and those documents will now be a part of the official record with respect to the impeachment inquiry. Also, do consider the motive of Parnas when it comes to his statements – remain skeptical and ask tough questions and demand the truth and further investigations. This is far from over and there are many questions that need to be asked and answered. And many of them need to be asked of and answered by the President’s Men. Stay diversified, stay vigilant, and stay with The Kapital News. #Truth #Justice #Impeachment #Economy #Politics #Peace #USA #China #Trade #War
They’re all wild, but this week, we’re going to witness some major events. First, the signing of “Phase 1” of the US-China trade talks is scheduled to occur on 15 January. The details you ask – we don’t know and that truth is likely to remain unknown. Despite the fact that it will be touted by President Trump as the “greatest” deal ever, the details remain elusive. Also, remember that President Xi of China will not be a signatory to this deal. So how great can it be if the leader of the other country is not present to sign?
On the impeachment front, the articles of impeachment are expected to make their way to the US Senate, also on 15 January, so that the trial of President Donald J. Trump may commence. It is likely that the trial will begin next week. All details as to how the trial will proceed are yet to be known. However, there are a handful of Republicans that have publicly stated that they are looking for a fair process with documents and witnesses. So perhaps, this is not going to be rubberstamped along party lines. There may well be a trial. For the sake of the US Constitution and for the sake of process, the trial needs to take place and there needs to be transparency. If guilty then guilty and if not guilty then not guilty. Put the politics aside and let the truth be known and justice served. Furthermore, documents have also been released regarding Lev Parnas, one of Rudy Giuliani’s associates, who has been arrested by the FBI. These documents will become a part of the record in the impeachment inquiry and possibly in the trial as well. This just goes to show that this impeachment drama may continue for quite some time, regardless of what happens over the next few weeks. Stay diversified, stay vigilant, and stay with The Kapital News. #USA #China #Trade #Economy #Impeachment #Politics #Peace #Truth #Justice #War
The Phase 1 trade “deal,” the US-Iranian tensions, and the Federal Reserve are front-and-center during today’s podcast. Of all these topics, which one is the most fraudulent? Which one pushes the most misinformation? Disinformation? Propaganda? Outright lies? Whether it’s coming from the President himself, a member of the Administration, any member of either party in Congress, or members and officials of another country – trying to determine the truth is a monumental task. And then one has to ask himself – does it even matter? Are the powers that be just going to do what they want to regardless of the truth? Regardless of the righteous and moral action? Runaway government spending, runaway money printing, and geopolitical tensions that could place us in WWIII. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #USA #China #Iran #Peace # War #Politics #EndTheFed
They say hindsight is 2020. Well clearly that is not the case in the old US of A in the year 2020. Following the drone strike by US forces that killed a top Iranian general, we heard remarks from President Donald Trump, stating that we are not looking for regime change, and that this action was not taken to start a war, but to end a war. Really? No regime change? This general was expected to perhaps become the Iranian president in the not too distant future. This by definition is regime change. This action is not a declaration of war? Really? What happens if a US general travelling in Canada was killed by an Iranian strike at Toronto International Airport? – we imagine that the US would consider this an act of war. The rhetoric and actions taken by the Administration are eerily reminiscent of the language used to hype the Iraqi War in 2002-2003 (clear intelligence assessments and pre-emptive attacks). Have we learned nothing? It appears not.
There are many in the media claiming that President Trump is using this as a distraction from the impeachment trial. Perhaps. But perhaps this is also an attempt at distracting the American people from an economy that continues to show signs of weakness. Released today was the ISM Manufacturing PMI figure and it declined to 47.2 – a low not seen since June of 2009. Another report was also released showing signs that nine states are headed for contraction – this number has not been this high since 2009 as well. If everything is so great, then why are we comparing numbers to the Great Recession? And perhaps even further, the President is attempting to use geopolitical tensions and even war itself as the reason why the stock market experiences a major pullback. We’re not claiming that such a pullback is imminent or that one will even happen (although the data shows that it could), but that the President will use that as an excuse for any type of “poor” market performance. It’s only the 3rd day of 2020 – buckle up. Stay diversified, stay vigilant, and stay with The Kapital News. #Peace #War #Politics #Economy #Truth
Happy New Year from The Kapital News! Many of the stories that we have been covering in 2019 will likely continue throughout much of 2020 if not continue well beyond. For instance, the global protests that are taking place will have effects that will be felt for years to come. On the economic front, the massive liquidity injections by global central banks will have countless negative ramifications for the masses and this too will likely last for years if not generations. All of this, in addition to the US 2020 Presidential election, will have massive political implications. Frequently countries will find themselves at a crossroads and this election year is no different, except for the fact that so much of our future is at stake. What kind of country do we want? One of market manipulation and a Presidential Administration hyping materialism or one rooted in truth and justice, liberty, and free-market capitalism? The answer should be an easy one. However, we live in a society where this choice is not easily evident. Reminds me a line from a Pink Floyd song, “so you think you can tell, heaven from hell?” The truth should be clear and while it may not be the easy route, it is the one we should always take. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Politics #Truth #Peace #Justice #Freedom #Republic #EndTheFed
Reviewing a list of 20 market risks for 2020 was the focus of today’s discussion. The list of concerns was created by Deutsche Bank and much of the points are topics that The Kapital News has been discussing for quite awhile. There is much uncertainty that remains, from trade deals, to global protests, to Brexit, to Middle East tensions, to political elections, central bank policies, and much more. The year 2019 saw a big return when it came to US equity markets, (which made new all-time highs again today), this came on the back of massive amounts of liquidity provided by the Federal Reserve and other central banks, massive debt issuance by corporations and the US government, misleading trade deal headlines by President Trump and his Administration, and many others. In short, the markets were propped up by easy money and $1 trillion deficit spending. This is a far-far cry from the “greatest” economy ever in the history of the United States. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #EndTheFed #Debt #Politics #Peace #Truth #Justice
We could simply copy and paste the headlines that pertain to the US/China trade deal or lack thereof. This is like living in the Twilight Zone with this constant and continual occurrence of yes there is a deal, to no, we have to increase tariffs, and rinse and repeat. Well it appears today that President Trump is ready to roll back 50% of the tariffs and cancel the upcoming tariffs that were scheduled for 15 December. What does the US get in return? We really have no idea. Possibly the Chinese will buy more ag products like soybeans and pork bellies. But that really just takes us back to where we were when this whole thing started. So what really has been accomplished? We also have early reporting that a Phase 2 deal will not commence until after the 2020 elections. So is this the end of trade headline optimism? Meaning, what are the markets going to look to so that they can “justify” climbing higher? Perhaps the Federal Reserve will come to the rescue and just flush the markets with liquidity like they’ve already been doing – just in a larger order. Time will tell, but if there really is a deal, early reporting is also stating that it will not be released for public review and President Xi will not be signing it. So there’s that.
UK elections look to keep PM Boris Johnson and his Conservative party in power and by a wide margin. Labour leader Jeremy Corbyn is expected to step down as the leader following the election results. What does this mean for Brexit? Will it finally happen? It appears by the voice and vote of the British people that Brexit must occur. After all, it’s only been 3 1/2 years and counting.
Here in the US, the House Judiciary Committee is expected to vote on impeachment tomorrow morning following a marathon day of amendment issues, debates, and committee procedural votes. The vote in the affirmative for impeachment is likely, thus setting the stage for a full House vote on impeachment for next week. This will then move the trial to the US Senate where Senate majority leader, Mitch McConnell, is already working closely with the White House on how to proceed. Does this make sense? A juror is working closely with the defendant. What could possibly go wrong? Stay diversified, stay vigilant, and stay with The Kapital News. #Trade #Economy #Impeachment #EndTheFed #Recession #Politics #Congress #Republic #Truth #Justice #Peace
Of course President Trump couldn’t stay away for too long when it comes to tariffs and so he has placed tariffs on Brazilian and Argentine steel and aluminum. Claiming on Twitter that both countries were engaged in a deliberate effort to devalue their currencies. Trump argues that this places US manufacturing firms at a disadvantage. What he leaves out is the fact that Argentina is on the brink of economic collapse and a massive debt default. This is why the Argentine peso has lost so much value. Unless the President is arguing the Argentines are conspiring to collapse their economy for the sole purpose of devaluing the peso? We think not.
In the same vein of economics – US ISM manufacturing PMI contracts for the 4th straight month with leading indicators such as new orders and employment continuing to show signs of a further slowdown. And on top of all of this, President Trump is once again attacking the Federal Reserve and “demanding” that they cut interest rates and devalue the US dollar. Do you want your cost of living to increase faster than it already is? Well if you do, then I guess you want a weaker US dollar as well. We do not.
Lastly, on the economic front, US non-financial corporate debt nears the $10 T mark, which is almost 50% of US GDP. This eclipses the corporate debt levels prior to the recessions of the early 90s, the dot-com bust, and the GFC of 08-09. So, what could possibly go wrong? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #EndTheFed #Politics #Trade #USA #China #Truth #Justice #Peace #Protests
A busy week ahead on multiple fronts and most likely these stories will persist throughout much of 2020. Whether it’s the global economic data that continues to show signs of slowing or stagnation or central banks that continue to pump markets with liquidity – one thing is certain, global debt continues to rise. When this debt bubble bursts, it will likely be one of the largest and worst global economic slowdowns in history.
On the global protest front, the Iraqi PM resigns; however, protesters are stating that this is not enough as they are demanding that the entire regime step down. These global protests as The Kapital News has stated repeatedly, are not transitory, but rather history in the making. People around the world are fed up with the corruption, abuse of power, fraud at the highest levels of their governments, and higher costs of living across the board. The people of the world are finally starting to stand up for themselves and for each other, and let us pray this is resolved peacefully and for the betterment of mankind.
On the domestic front, President Donald J. Trump and his legal team have denied the opportunity to go before the House Judiciary Committee to ask witnesses questions. Instead, the Administration continues to claim that this is all an unfair process and they want no part – at least not as of yet. All of these stories will continue and we must pay close attention. Stay diversified, stay vigilant, and stay with The Kapital News. #Truth #Justice #Peace #Impeachment #Economy #Recession #EndTheFed #Politics #Protests #HongKong
