Tag: Venezuela

Ep. 469 – Election Interference
The Kapital News
The Kapital News
Ep. 469 - Election Interference
Loading
/

No one holds a candle to the type of election interference that the US engages in, but nevertheless, we heard from the Director of National Intelligence (DNI), and Director of the FBI this evening about interference campaigns being run by Iran and Russia. Apparently, Iran is sending out emails to Americans with threatening statements to vote for a certain candidate. The Kapital News is sure that there are many other attacks and attempts underway, but this is what we are being informed of as of this evening – with only two weeks to go until election day.

We have discussed in previous podcasts the dangers of social media platforms and their effectiveness with respect to spreading misinformation and disinformation. With some deep pockets and/or a very creative mind, individuals, teams, campaigns, political groups, and yes, foreign actors, can shape political opinions, and with it, potentially drive election outcomes. This social media Pandora’s box has been opened, and the contents are not going back in anytime soon – if ever. And don’t forget, this is all going on while President Trump claims that it’s a rigged election if he should lose, but evidently everything is fine if should he win – this is outrageous and only goes to further divide, confuse, and frustrate the American people.

In other news, President Obama was on the campaign trail this evening in Philadelphia, Pennsylvania – a battleground state. Attempting to be the “closer” for the Biden-Harris campaign. The Democrats are looking to regain Pennsylvania, Michigan, and Wisconsin, the “blue wall.” If this should happen, then odds have it that Joe Biden will become the next President. Current polling would indicate that Biden has a lead in all three states, but so did Clinton in 2016 – this race is far from over. We shall see if President Obama’s message was enough to turn PA blue once again for the Democrats. Early vote counts are currently north of 44 million, representing about 32 percent of 2016 total voter turnout. It’s nearly 3-to-1 in the breakdown between mail ballots and in-person votes at this juncture. With more votes taking place in these early rounds, it increases the likelihood that we’ll know the winner within a day or two of the election. However, should there be some tight races in key battleground states, then it could take weeks or months to determine the winner of the White House. And buckle up – tomorrow evening is the second and final debate between President Trump and VP Joe Biden – anything can happen. Stay diversified, stay vigilant, and stay with The Kapital News. #Elections2020 #Debates2020 #Economy #USA #Russia #Iran #China #Vote #Gold #Silver #Inflation #Debt #Bailouts #Jobs #Liberty #Revolution

Ep. 387 – Rome Is Burning!
The Kapital News
The Kapital News
Ep. 387 - Rome Is Burning!
Loading
/

Protests coming to a theater near you is something that we have been saying here for months. They have unfortunately, finally arrived. While we thought the catalyst would be more from the economic side of the ledger as opposed to the social side of the ledger, it appears that the recent tragic death of George Floyd, in Minneapolis, at the hands of police officers, is the trigger. Nevertheless, given the combination of COVID-19 lock-downs, economic hardships, social inequities (perceived or real), political divisiveness, and this event in Minneapolis, the stage was set for massive riots and protests to take center stage. Let us pray for a peaceful solution and resolution, but we imagine there will be more storm before their is the calm. We also expect global protests to pick up as well.

The Federal Reserve Chairman, Jay Powell, today during an interview admitted that the Fed has crossed some red lines – but he used the pandemic to justify their recent, continuing, and future actions. It is no longer behind the scenes. It is no longer, “pay no attention to the man behind the curtain.” No! It is in your face! And nobody seems to notice and nobody seems to care. The Fed is buying up everything. The federal government sanctions such actions and bails out major industries as well. Meanwhile, 40 million Americans have been laid-off over the past 10 weeks, a countless number of businesses have closed for good or are on their way there, and yet the stock market is near all-time highs once again. These actions by the Fed and the government are all but guaranteeing a prolonged economic contraction that is likely going to push us into the Greatest Depression.

President Trump this afternoon made comments in the Rose Garden in response to a number of issues. However, the main focus was on China and their recent legislation that encroaches on the autonomy of Hong Kong. Of course, as reported earlier this week, the US no longer recognizes the autonomy of Hong Kong. This point was reiterated by the President, with very little else thrown into the mix. The President informed the world publicly that should China pass this bill, that it would be met with a strong response from the United States. This does not appear to be a strong response. And to no surprise, the markets rallied on this news because they were selling off earlier in the day expecting a “strong” response – but they got a weak one instead. Yes, the President added a few other items, such as withdrawing from the World Health Organization (WHO), and mentioning some restrictions of Chinese students to US universities, amongst a couple other minor points. Yet, given this weaker response now begs the question, how will China and other major global players react to the President’s remarks? Will they feel empowered and emboldened to do more? One can only bluff so many times at the table before the other players start picking up on it, especially once they know you’re bluffing. So either play the “strong-man” role and follow through, or don’t. Because the outcomes and the stakes are too great. Peoples’ lives and livelihoods are not a game. The President also did not make comments on the protests during his remarks, nor did he take questions from the press, as was expected. There is simply a lack or leadership and this is a global problem. This weekend is going to be quite interesting to say the least as are the coming months. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Protests #USA #Riots #Depression #Recession #Debt #Bailouts #Gold #Silver #Peace

Ep. 374 – American Dream or Ponzi Scheme?
The Kapital News
The Kapital News
Ep. 374 - American Dream or Ponzi Scheme?
Loading
/

A very fitting title for today’s podcast as we digest further the national debt, national deficit, State and local debt, and household debt. With over $25T and growing, will this national debt ever be paid back and if so, how? Will it take the form of inflation, stagflation, hyperinflation, default, and/or some combination thereof? These are serious questions that have serious consequences. The American people need to wake up to the fact that the US economy is a Ponzi scheme – especially at the government level. Broken promises, whether that being Social Security, government and/or corporate pensions, Medicare, etc… These are huge price tags and it places an ever-increasing burden on younger and future generations and taxpayers – making this by default a Ponzi scheme. Why? Because the scheme relies upon new entrants/taxpayers/investors to come into the system to support earlier contributors. The Kapital News is of the mindset that the government in conjunction with the Federal Reserve are well aware of this and thus explains their insane response to printing and spending. These institutions know the fragility of the system. They know it is a Ponzi scheme and thus they are implementing such policies to the tune of several trillion dollars because they have to keep this fraudulent system alive. Otherwise the masses will awaken to such fraud and demand real change. So that old American dream of getting an education, a solid job with a pension and/or retirement plan, buying a house, starting a family, and hoping your kids have it better than you did – well, that dream is getting awfully expensive and is looking more and more like a nightmare. And the price tag just keeps going up!

The global protests that we witnessed well before COVID19, are starting back up and we imagine they’ll be even more intense. Be on the lookout for civil war(s), government overthrows, and war(s) amongst nations. We stated for months that these protests were not transitory, but rather history in the making. And we ain’t seen nothing yet! Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Debt #Bailouts #Recession #USA #Depression #Protests #Oil #Gold

Ep. 371 – The Blame Game
The Kapital News
The Kapital News
Ep. 371 - The Blame Game
Loading
/

As we continue to navigate this new world during a global pandemic, coupled with a Presidential election in the United States, one thing is certain – the blame game. With all of the fallout surrounding the genesis of COVID19, who knew what when, who knows what now, and all of the societal and economic shifts – somebody is going to be blamed. Never ones to take responsibility, politicians the world over have been slowly starting to point the finger at each other, with most of the blame being hoisted on China. In turn, China has also started a media campaign that is blaming the West, and in particular, that of the United States. Despite the recent signing of the Phase 1 trade deal between the US and China, relations between the two nations may be in for some rough waters ahead. Expect the blame game to heat up.

As we enter the spring and summer months of 2020, there is much hope and anticipation that the US economy, among others, will begin “opening” back up and with it a strong economic recovery. We are very skeptical of a strong economic bounce-back. Nevertheless, this is also a Presidential election year and there is no question that the major candidates, President Trump, and most likely, former Vice President, Joe Biden, will step up their rhetoric against China. This rhetoric will likely lead to further distance between the US and China and may cause both sides to engage in economic and cyber warfare to greater degrees than which is already being conducted. In addition, there is the possibility of stepped up aggression by China in the South China Sea and perhaps responses by the US and regional allies. Other physical disputes could take the form of proxy wars, and we believe Venezuela and Iran to be probable candidates. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #USA #China #Peace #War #Trade #Recession

Ep. 370 – War Propaganda Beginning?
The Kapital News
The Kapital News
Ep. 370 - War Propaganda Beginning?
Loading
/

A modern day Bay of Pigs on our hands in Venezuela? Criss-crossing messages from the DoD and State Department with their “intelligence” assessments surrounding the genesis of COVID19. And Israel vowing to continue to bomb targets in Syria until Iran leaves. These are just a few of the items on the agenda during today’s podcast. After all, never let a good crisis go to waste.

In Venezuela, two former US special forces operators have been arrested by the Maduro regime during what they are referring to as a plot to overthrow the Venezuelan government. The US government denies any and all involvement with the matter. However, a private security firm in the US has taken responsibility and the company’s founder has claimed those arrested are “his men.” Venezuela has been a hot spot for US saber rattling over the last couple of years. Recall, just a few months ago during the President’s State of the Union Address, that Juan Guiado, was an honored guest of the President’s. Guiado is the opposition leader in Venezuela, who is also recognized by the US, UK, and several South American countries as the “real” President of Venezuela. Questions remain as to how this matter will be treated with respect to an American response to get these men back into the United States. Questions also remain as to how the Maduro regime will handle the situation. It’s these “little” skirmishes that can turn into something much larger – let us pray this does not happen.

A case of good cop-bad cop? When it comes to intelligence assessments and talking points around the genesis of COVID19, it would appear that the US government is working two different messages. On one hand, we have the broader intelligence community in addition to the Defense Department stating that the US does not know where the COVID19 pandemic actually started – meaning in a wet market in China, a lab, what have you. Yet according to General Mark Milley, Chairman of the Joint Chiefs of Staff, the virus appears to not have been man-made. This is in stark contrast to the recent comments made by Secretary of State, Mike Pompeo, where he insists that there is strong intelligence that the virus was made in a lab in China. Regardless of which may prove to be the case, it appears that the US government continues to plays its games of misinforming and dis-informing the American public. Reminiscent of so many other instances – such as the lead up to the invasion of Iraq.

We conclude the podcast with a discussion of Israel’s defense forces regarding their Syrian operations, African locusts updates, and the German Supreme Court’s ruling on actions undertaken by the European Central Bank (ECB), and what this may mean for the European Union. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #War #Peace #USA #Venezuela #Debt #EU #Recession #Gold #COVID19

Ep. 367 – Gold, Oil, + War
The Kapital News
The Kapital News
Ep. 367 - Gold, Oil, + War
Loading
/

Remember the golden rule – those with the gold makes the rules. This of course is not the moral version of the true golden rule, but nevertheless, it’s one that the world has operated from for quite some time.

In today’s podcast we highlight the economic and financial news with initial jobless claims hitting 3.8 million in the prior week – taking the six week total to over 30 million Americans having filed for unemployment insurance. The Fed also updated their balance sheet and it’s week over week change was an additional $82B. This figure is well below that of the last several weeks as the Fed has added over $2T to its balance sheet over the past month.

The crux of today’s discussion is centered around the political blame game that is both coming and underway, especially as it relates to COVID19. We mention how this heated rhetoric may lead to conflict that may likely take the form of proxy war(s). A couple of strong candidates would be that of Iran and Venezuela. Over the last couple of days, news agencies have been noting how Venezuela has sent about $500 million worth of gold to Iran in exchange for Iran’s assistance with one of their refineries. Also, Venezuela has been asking the Bank of England, which stores some of Venezuela’s gold reserves, to sell some of their gold and give the proceeds to the United Nations. This would be to serve the purpose of assisting the UN so that in turn the UN may assist Venezuela combat COVID19 as well as their many economic woes. The Bank of England is refusing to comply with Venezuela’s request because the UK does not recognize the Maduro regime as the legitimate government. So now as a result, even more people will become refugees and/or suffer from starvation, energy shortages, and a myriad of economic problems.

So in short, when gold starts getting moved around (or is prohibited) and when it also pertains to a couple of countries that are both under harsh US sanctions, while at the same time both of these countries are heavily reliant on oil and gas – it makes us wonder here at The Kapital News as to what is truly going on and where me may be headed. In addition, US naval and military forces are around both countries. We do not want war, but if history is any indicator, we’re likely headed in that direction. Stay diversified, stay vigilant, and stay with The Kapital News. #Gold #Oil #War #Economy #Recession #Debt #Bailouts #USA #Venezuela #Iran #Peace

Ep. 363 – Nationalization + Negative Rates
The Kapital News
The Kapital News
Ep. 363 - Nationalization + Negative Rates
Loading
/

Well we now have them both! As the Trump Administration readies yet another bailout package, Phase 4, they’re also openly discussing bailing out energy corporations. However, with respect to “assisting” the energy sector, a potential condition of extending any type of “capital” will come with strings attached – the government will take an equity stake. This is completely un-American and should not be tolerated nor considered. The government does not have the authority to lend money – it does have the ability to borrow money. It also does not have the authority to take equity stakes in companies. Well, US Constitution be damned as the government is preparing for exactly that. Furthermore, the US government is broke! We have a $24.5T national debt with a deficit that is likely to be north of $4T for FY2020. And the only way this can be financed is through the printing press. This is now a banana republic. Can you say hyperinflation?

On the negative rates side – we already have them and have had them for some time now on a real basis. However, when we consider the Fed’s own research in noting how balance sheet expansion and contraction also serves as a de facto rate cut or hike, respectively, now begs the question – do we now have nominal negative rates? Given their research and their past decisions, The Kapital News is of the mindset that the US now has de facto negative nominal interest rates. Look no further than the Fed’s balance sheet that now stands near $6.6T and counting. With over $2T added just over the last month. We would think that this would amount to a sizable rate cut. Understand that rates are already back to the zero bound at 0.00 – 0.25 bps. With this recent and continuing balance sheet expansion, it can be reasonably assumed that we are well into negative territory. This is detrimental to financial systems – look no further than to Japan and Europe for a case study.

The United States has failed and the only thing that can save it is a return to free-market capitalism, our Constitutional Republic, and liberty-loving men and women across this country that demand their country back! Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Recession #Debt #Deficits #USA #Congress #Depression #Gold #Oil #EndTheFed #Revolution

Ep. 362 – A Total Collapse
The Kapital News
The Kapital News
Ep. 362 - A Total Collapse
Loading
/

Another week and an additional 4.4 million Americans have filed for unemployment insurance. This take the five week total to nearly 26.5 million. These last five weeks of job losses have entirely outstripped the job gains since the end of the Great Financial Crisis (GFC).

PMI figures have also been published globally and we are witnessing levels in both manufacturing and services that are nearing levels not seen since the GFC. In some cases, they are even worse.

The Federal Reserve has updated its balance sheet, which now stands at nearly $6.6T and counting. This represents an increase of around $200 from the week prior. If this rate of increase remains, then we are talking about an increase of $10T on an annualized basis. If this happens, the Fed’s balance sheet would be around $14T. This would then represent about 70% of US GDP. Most of the gains on the balance sheet were from purchases of US Treasuries and mortgage-backed securities. Of course, there is little outside demand for US Treasuries, which is even why a recent analysis by Goldman Sachs suggested that nearly 70% of new Treasury issuance will be purchased by the Federal Reserve. This is virtually debt monetization and more reminiscent of a banana republic as opposed to a Constitutional Republic. There is no free lunch and per a previous podcast, “Free Was Never So Expensive.”

We lastly discuss some recent surveys that highlight the economic and behavioral changes that we’re likely to see once the economy is “opened” up for business. When asked about receiving government spending money directly and what would you do with it, the largest responses were the following – savings, everyday expenses, and payoff debt(s). A handful of other options, primarily centered around spending, all received a response around 5%. Then there was another survey that asked if stay-at-home orders were lifted, how comfortable would you be going to bars and restaurants, getting on an airplane, and going to a large event – by factors of 3 to 1, people would not feel comfortable with those options. This simply confirms what we have been discussing here for weeks – and that is how people will be changing their spending habits and behavioral “norms” for the foreseeable future, which will translate negatively with respect to the economy on a short and mid-term basis. On a longer-term basis, this kind of deleveraging is healthy for an economy and is part of the broader correction. This is a process and will take time. And the more the government tries to “help” the worse the outcomes will be and the longer it will take to recover. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Recession #Debt #Gold #Depression #USA #EndTheFed #Congress #Bailouts #Oil

Ep. 361 – State Bailouts Next + Market Manipulation?
The Kapital News
The Kapital News
Ep. 361 - State Bailouts Next + Market Manipulation?
Loading
/

We have been talking about it for weeks and now there appears to be an appetite from President Trump and the Democrats to work on another bailout program that incorporates the States and cities. Yet, now, after various spending programs in the trillions of dollars, Mitch McConnell, Senate Majority Leader, is now drawing a line in the sand when it comes to assisting the States. May it be known that The Kapital News is against all forms of bailouts. But isn’t it interesting that Wall Street and Corporate America can receive trillions of dollars within the blink of an eye from Senator McConnell, yet when the States ask for assistance, now hes’ all of a sudden concerned about debt levels and future generations paying for it. This is exactly what is wrong with our political system – amongst many other issues. Perhaps the States do not contribute to the Senator’s campaign fund(s) and is therefore of little significance to him? We digress. Some numbers that have been noted when it comes to “assisting” the States may amount to $500B and if including cities, this can be another $250B. So, just for the States and cities, we could be talking a near $1T spending program. Also note, as far as we know as of today, these figures are to make up for tax revenue shortfalls, pension plan assistance, and other responsibilities of State and local governments. Therefore, these figures are absent any major type of infrastructure spending, which has already been rumored to amount to nearly $2T! Where is all of this money coming from? Because Uncle Sam is as broke as a joke – which makes it ironic that broke States are asking a broke Federal government for assistance. So who comes to the “rescue?” That’s right, the Federal Reserve will have to continue its counterfeiting, oops, we mean, money printing operations. Just for a FYI – US national debt is $24.5T and the deficit as of now is $2.3T and expected to double – at least, by end of FY2020. Ain’t you proud to be an American?

We also continue our discussion of the oil markets, since history was made earlier this week when WTI went negative and settled at nearly -$38 per barrel. Well, this of course raises a lot of questions, and now Continental Resources, is asking the Chicago Mercantile Exchange (CME), to look into market manipulation. In their request, they provide a timeline of events which they argue gives the appearance of market manipulation and/or a flaw in a new computer model. Either way, these are legitimate questions and they require thoughtful and truthful answers. We will keep you posted as updates become available. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Oil #Bailouts #Gold #USA #Recession #Debt #Depression #Congress #War #Peace

Ep. 360 – A Barrel of Problems
The Kapital News
The Kapital News
Ep. 360 - A Barrel of Problems
Loading
/

A follow-up discussion on the oil and gas markets as well as how the exact opposite scenario may unfold with respect to gold and silver. These markets are crazy to say the least – a direct result of a decades plus asinine economic experiment that is in the process of unraveling. Congress is ready to pass another spending bill of nearly $500B and we expect that more will be coming in due time. Most of this will be an extension of the forgivable loans program to small and mid-sized companies to assist during the COVID19 lock-downs. However, we anticipate several states around the country are getting ready to line-up, if they haven’t already, to seek assistance from the Federal government. This is laughable as the Federal government is out of money as well – but hey, at least they have access to a printing press via the Fed. In addition, or perhaps in tandem with a states’ spending bill, that of infrastructure spending will also be a part of the “assistance.” The US deficit for FY2020 is already projected to hit nearly $4T and we expect this to be surpassed as even more government and Federal Reserve packages and facilities are announced.

We provide a brief update to the President’s recent call to suspend temporarily, immigration into the USA. We also note how the CDC Director is mentioning that a second wave of COVID19 is likely and that it may be worse than the first wave – since a second wave is likely to strike in tandem with the seasonal flu season this coming winter. As we have been predicting, the IMF (International Monetary Fund), is now seriously contemplating debt forgiveness, especially for third-world countries. They are also considering a near $1T loan package to assist several countries – this will not be enough funding to stave off what is coming. On a central bank note, global money printing just over the past few months has totaled nearly $23T. To put this into context, the GDP of the United States is just over $20T.

And lastly, but definitely not the least or final of problems, is that of a potential “hunger pandemic.” This is what the United Nations is now discussing and preparing for as COVID19 continues to make its way around the world and the health and economic damage that it is leaving in its wake. Given the economic downturn, especially regarding commodities prices, which many third-world and emerging economies are heavily dependent, is now dealing another blow that may lead to the starvation of millions around the world. Again, as The Kapital News has been discussing for months, many of these same countries were protesting prior to COVID19. Now that the environment on multiple fronts is even worse, what do you think these people are going to do now? These protests are not transitory – they are history in the making. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Oil #Gold #USA #Debt #Recession #Bailouts #Depression #Business #Russia #SaudiArabia #China #Protests #War #Peace