The FAO Food Price Index report for February 2022 was recently released and it has hit a new all-time high. The previous high was back in February of 2011 – which was also the beginning of the Arab Spring. Coincidentally, oil prices are back to 2011 levels as well. The cause of increase in world food prices is multi-faceted. There is of course the major fiscal and monetary policies that were implemented over the past two years and continue to this day – their very actions are inflationary by definition. Global supply chain disruptions persist adding chokepoints and contributing to upward price pressures. Growing conditions and crop production is also of concern – the FAO cites issues with corn production in Argentina and Brazil. Corn is not just used for human consumption, but also for livestock and ethanol – thus contributing to further downstream price increases. Lastly, the uncertainties that exist due to the Russia-Ukraine conflict. These two nations account for 25 percent of global wheat production and 20 percent of global corn production. Ukraine exports the bulk of their exports to Asian and Middle Eastern nations – as such, the stage is set for a redux of the Arab Spring – as bread is a main staple of the diet in the region. The conflict is also leading to some countries beginning to hoard their food production and limit or halt entirely the export of foodstuffs – Hungary just halted all grain exports. Other countries may very well follow suit and others, such as China, may go on a buying binge to obtain and store as much as possible in fear of continued rising prices – which if happens, such buying will continue to put upward price pressure on agricultural commodities. Further, in retaliation to economic and financial sanctions that have been placed on Russia, President Putin is retaliating by telling Russian fertilizer firms to stop exporting their products. This will have huge ramifications as Russia and Belarus, an ally of Russia, are two of the world’s top producers and exporters of fertilizers. In addition to this, natural gas prices have been rising, which is an input good and thus a cost to manufacturing fertilizers. It is easy to connect the dots and realize that higher food prices are likely the norm for the foreseeable future.
US gasoline prices are now averaging over $4 per gallon, a level not seen since 2008. The price increase is also the largest increase over a 10-day period, where the prior 10-day record high occurred following Hurricane Katrina in 2005. Transportation costs have already been on the move higher through the pandemic and rising fuel prices will only exacerbate the concerns. Stay diversified, stay vigilant, and stay with The Kapital News. #Inflation #FoodPrices #Revolution #USA #Russia #Ukraine #Gold #Silver #Wheat #Corn #Oil #Commodities #Protests #Liberty #Peace #Stagflation
Global markets continue to be rattled by the ongoing conflict between Russia and Ukraine. However, this is the easy scapegoat for what truly ails the markets – easy money. Governments and central banks injected trillions of dollars into the world economy. Their excuse then, and justification for such actions was the pandemic. Now as the pandemic is seemingly coming to an end, they have a boogeyman to blame for supply chain disruptions, higher prices, etc – Russia. It is almost too coincidental, don’t you think? Several major global stock markets have given back all of their pandemic gains. It only takes a few short months, sometimes even weeks, to erase a year or years of gains. This is a direct result of markets having been juiced by cheap money. It wasn’t real. It was a bubble. As such, it can collapse easily and that is what is unfolding now. However, governments, central bankers, and other policymakers are not going to take responsibility for their actions. Thus, they will look for any and all excuses possible. Now, it’s the pandemic and Russia. What will be next?
As is highlighted in today’s podcast, global trade is discussed and how countries the world over will likely engage in hoarding their goods that are typically exported. This past week, Hungary announced that they are stopping the exports of grain products. Russia and Ukraine account for nearly 25 percent of the world’s wheat production and 20 percent of global corn production. Also this week, President Putin of Russia, reached out to fertilizer companies, basically instructing them to slow or stop the export of fertilizers. Russia and Belarus, an ally of Russia, are two of the largest fertilizer producers in the world. If they were to stop exporting, global food prices, which are already at or near all-time highs, will get even higher. Revolutions are fought on empty stomachs. We witnessed the Arab Spring only a decade ago. Rising global food prices were a major factor in that movement. Now with even more debt, higher food prices, a pandemic, and energy prices at levels also not seen for several years, sets the stage for a lot to go wrong in short order. Such protests, riots, strikes, revolutions, should they occur, will only exacerbate the current situation. Further disruptions to supply chains, less production of goods, fewer exports due to restrictions and/or lack of production – all of which translates into higher prices for the basic necessities. Stay diversified, stay vigilant, and stay with The Kapital News. #Commodities #Gold #Silver #Recession #Peace #FoodPrices #Revolution #Protests #Russia #Ukraine #USA #Liberty #Stagflation #Inflation
Out of the frying pan and into the fire. Just when you thought two weeks to end the spread was bad because it turned into two years – now we find ourselves on the doorstep of war. And not war with a small country that we typically after, but one with nukes. Yes, I mean Russia. Today, Russia decided to invade Ukraine and they did so on all fronts. The Russian stock market crashed over 30 percent, the Ruble hit an all-time low against the US dollar, and western nations set into place further sanctions against Russia. The blame game can wait. What we need to know is if this has staying power and if it’s a distraction. A distraction from the pandemic and all the draconian measures that followed. A distraction from a weakening economy being destroyed by inflation. A distraction from financial markets that appear to be ready to buckle under the weight from a decades long artificial intervention. There are many questions to ask, but the most important one may simply be to ask, why? Is this really the best we can do as the human race? Be prepared for the ensuing economic fallout and the political instability that will follow. Stay diversified, stay vigilant, and stay with The Kapital News. #War #Peace #Russia #Ukraine #Gold #Silver #Economy #FoodPrices #Recession #Protests #Revolution
In the 24/7 news cycle, there is always a moving target. So it is not uncommon for there to be a new narrative from week to week or even day to day to hold the attention of their viewers. The Kapital News does not play this game and has called out most, if not all of these narratives as of late for being what they are – phony. The main narrative to focus on with respect to markets is the liquidity injections by central banks into the system. It is the funny money that is conjured up out of thin air that continues to prop up these markets. Simply ask yourself where would bond prices, bond yields, interest rates, and equity prices be if it were not for these actions undertaken by central banks? The answer is quite simple, yields and interest rates would be higher, and bond and equity prices lower. This is a house of mirrors and one which is built upon a foundation of sand. Nonetheless, the markets continue to buy into this narrative and policy and so they march onward and upward to new highs. Yes, there have been some minor pullbacks here and there, but they then go on to make new highs. As long as this is the case, then markets move higher. But once this relationship breaks down, and The Kapital News believes that it is only a matter of time, then these liquidity injections will no longer matter and will be impotent in propping up the markets. This will likely result in a great unraveling, whose force cannot be stopped by any kind of monetary or fiscal intervention. At this juncture, market forces are in complete control and they will rid the system of malinvestments and fraudulent businesses. Look out below.
Other news discussed pertained to updates on the Colonial pipeline situation, the Israeli and Palestinian conflict that has been intensifying, and an update on the tensions between Russia and Ukraine. Much of these geopolitical events are not receiving the news coverage they deserve and furthermore, the equity markets do not seem to be pricing in the types of risks that can rapidly develop if any of these global issues escalate more seriously than where they currently stand. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Inflation #Fraud #FoodPrices #Debt #Spending #EndTheFed #bananarepublic #FireCongress #USA #Israel #Palestine #Russia #Ukraine #Protests #Riots #Peace #War #Gold #Silver #Commodities #Liberty #Leadership
In today’s podcast we continue to discuss the Derek Chauvin trial, the conviction, and the political fallout. We then continue with various articles pertaining to geopolitical risks. The focus of these news stories are centered around US and Turkish relations, rising tensions between Russia and Ukraine, and tensions among Israel, Syria, and Iran. To put it simply, the world is in chaos. Stay diversified, stay vigilant, and stay with The Kapital News. #DerekChauvinTrial #Geopolitics #War #Peace #USA #Israel #Russia #Ukraine #Turkey #China #Iran #Syria #Liberty #Leadership #Justice
As the impeachment inquiry continues, we are now starting to see a release of the transcripts of those who have already testified. To date, we have four transcripts that have been released. These are extensive and are hundreds of pages each. Contained therein is further information as to what these individuals know and how it relates to the phone call between President Trump and President Zelensky of Ukraine, as well as events leading up to the call and events that have followed.
The Kapital News will do its best to make its way through these transcripts to find interesting bits of information that brings us to the truth. We are not concerned with who is implicated and who is exonerated. We are interested in the truth and in justice being served. The country is at a crossroads and the divisive tactics that are deployed, equally, by both parties, needs to end or it will be the end of our Republic. Stay diversified, stay vigilant, and stay with The Kapital News. #Truth #Justice #Impeachment #Peace #Economy #Politics #EndTheFed
Central banks continue to cut rates or signal that in all likelihood that they will be doing so shortly. Of course there are a few “odd-balls” out there who are remaining steady or even increasing rates, but for all intents and purposes, the major global central banks are in the midst of a new easing-cycle. This easing-cycle is likely to continue as fundamental economic numbers around the globe continue to show stress in the system and an overall slowdown. The latest to cut rates is the Reserve Bank of Australia, which cut their rates by 25 bps to a new record low of 0.75% and signaled more easing if conditions warranted. We are also witnessing a stronger US dollar, which we imagine is likely to persist on a relative basis. This can have serious consequences for emerging markets that are reliant on commodities, which are likely to weaken in price with a rising US dollar. Further, these countries tend to have significant debt obligations that are priced in US dollars. These economies are then therefore hit on multiple fronts. First, their major commodity exports are hit due to falling prices. Secondly, it now takes more of their domestic currencies to purchase US dollars that are needed to meet their debt obligations that are priced in US dollars. This can cause economic and fiscal stress for these economies. As we look for a catalyst that can truly send markets lower, it may very well come from the emerging market space, if these current trends persist. In the form of a debt default, sovereign wealth fund shortfall, or a major corporation going bankrupt in one of these countries. These are not certainties, but most definitely possibilities. Continuing with our analysis and discussion regarding the impeachment inquiry and the whistleblower’s complaint – we continue to stress the importance of patience. Our goal here is to seek and find the truth and allow for justice to be served no matter who may be involved. It’s a divided country and it’s Left vs. Right. We need the process to proceed and for the facts of the case to be made known so Americans can make an informed decision. This is a sad day for the Republic, but our Constitution provides for checks and balances, and so once again, despite the uncertainties, our Constitution is standing the test of time and serving as a guide throughout this process. Let us pray that the truth and justice are found and administered. Stay diversified, stay vigilant, and stay with The Kapital News. #Impeachment #Whistleblower #Money #Truth #Justice #Peace #Economy #Politics #Recession #WakeUpAmerica #EndTheFed
Ep. 122A - Whistleblower Complaint Department, Part II
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Continuing with our reading of the official whistleblower complaint, we make our way through the remainder of the document. Recall, we also took the time to read the “transcript” that was released by the White House pertaining to the phone call between President Trump and President Zelenskyy of Ukraine. Additionally, we also took the time to read the full memo of the Inspector General of the Intelligence Community. Therefore, following today’s episode, we have all publicly available documents that have been presented regarding this “urgent concern.” For certain, politics will continue to be played as the Democrats argue that the President has abused his powers and thus a formal impeachment inquiry is warranted. Republicans are coming to the aid of the President and stating that this whistleblower does not have first-hand knowledge of his/her own accusations and thus this is all hearsay. Further, the Trump Administration is continuing to fight back by utilizing the “drain the swamp” mantra and that President Trump is “draining the swamp” and these attacks are simply the “swamp” and the “deep state” fighting back. These arguments from both the Left and the Right are and will continue to divide this Republic. Still yet, we have the Republicans continuing to point the finger at former VP Joe Biden and his son, Hunter Biden, when it comes to Hunter Biden’s business dealings with both Ukraine and China. This is for sure the stuff that spy novels are made, but this is no novel – this is our reality. Throughout the entirety of the whistleblower’s complaint, he/she frequently states that he/she does not have first-hand knowledge of the alleged offenses. However, what we do know from the publicly available documents, that some of what the whistleblower has stated, has proven to coincide with the phone call between Presidents Trump and Zelenskyy. We also know that the Director of National Intelligence (DNI), Joseph Maquire, during his Congressional testimony has claimed that the whistleblower acted in accordance with the law and that their complaint appeared credible. We also know that despite an indicia of political bias on behalf of the whistleblower, the Inspector General concluded that given their preliminary review, despite the possible political bias, the whistleblower’s complaint “appears credible.” There is a good deal of information that has thus been made public, but as with most issues, this simply raises more questions than it does answers. We need to be patient and allow the process to work and let us hope that the system works judiciously and seeks the full truth, no matter who may be implicated and/or indicted. Stay diversified, stay vigilant, and stay with The Kapital News. #Whistleblower #Impeachment #Justice #Truth #Politics #Trump #Peace #DeepState
Day two of the Impeachment Inquiry and the White House released the telephone call “transcript” between President Trump and President Zelensky of Ukraine. It’s a short transcript and as far as our analysis is concerned this does not rise to an impeachable offense on its own. This is clearly President Trump asking for a favor from the Ukrainian President – so what? Isn’t this politics? Don’t politicians and countries ask each other favors all the time? Furthermore, if there was election interference by Ukraine into the 2016 US Presidential election, then shouldn’t President Trump be looking into that matter? The big problem from the Democrats side is that this is also including Joe Biden and his son Hunter, and his business relationship with an Ukrainian company. Again, so what? They argue that this is politically motivated and the favor is only being asked so as to harm Joe Biden politically. Does this then mean that Joe Biden is above the law? Simply make yourself into a political opponent of the President’s and you are exempt from any type of investigation? This is a ridiculous notion. No one is above the law. This includes Joe Biden and this includes President Donald Trump. Let the truth be known and justice served. Further, the whistleblower complaint has been delivered to Congress where members of the intelligence committees have the ability to read the complaint. It was breaking news late this evening that according to several members of Congress that the whistleblower complaint has been declassified. Whether or not this will make its way into the public remains to be seen at this time, but it is imaginable that at some point, a redacted version will be released to the public. There will also be open testimony before Congress by the Director of National Intelligence, DNI, surrounding this issue. There is much more to come. Stay diversified, stay vigilant, and stay with The Kapital News. #Impeachment #Whistleblower #Justice #Truth #Economy #Politics #2020 #Peace
