Buffett's Vote of Confidence in Capital One

Paid Subscribers, why Gold?

Warren Buffett's Berkshire Hathaway disclosed on Monday that it has begun investing in Capital One Financial Corp. The Omaha, Nebraska-based firm noted in a 13-F filing that it had bought up shares worth $954 million in the U.S. bank. Capital One shares rose more than 3% on the news.

Berkshire Hathaway's investment in Capital One is its first major investment in a bank since 2016. The purchase could be seen as a sign of confidence in Capital One's management and business model. Capital One is one of the largest banks in the United States, and it has a strong track record of profitability. The bank has also been investing heavily in technology and data analytics, which could help it to compete more effectively in the digital age.

Capital One (COF): up pre-market 6.54% on the Berkshire news.

Debt Ceiling

The U.S. debt ceiling is currently set at $28.9 trillion. The Treasury Department has said that it will run out of money to pay its bills on October 18, 2023, unless Congress raises the debt ceiling.

The U.S. debt ceiling is a limit on the amount of money that the federal government can borrow. The debt ceiling was created in 1917 to prevent the government from running out of money. However, the debt ceiling has become a political tool in recent years, with Republicans and Democrats often using it to try to extract concessions from each other.

The current debt ceiling was set in 2019. Congress has raised the debt ceiling 80 times since 1960. However, the debt ceiling has never been allowed to default.

US Treasury: Liabilities and Capital: Liabilities: Deposits with F.R. Banks, Other Than Reserve Balances: U.S. Treasury, General Account: Week Average

The account balance Year over Year has drop 79%.

Federal Reserve: Liabilities and Capital: Liabilities: Earnings Remittances Due to the U.S. Treasury: Wednesday Level

Federal Reserve owes the US Treasury 57 billion.

Will the negotiations go down to the wire? Of course. But could we see the Republicans pushing for a default to damage the Biden Admirations hopes for a second term. Of course. I believe we are in a pivotal point in history. The Mega MACRO Cycle that happens every 50-100 years. Caused by three things. One, the over expansion of Credit. Two, War and three, Social Unrest. Sit back an thing about the last 50 years. Are we at a peak level in all three of these areas? I believe so.

Paid Subscribers: Copper / Gold ratio

Subscribe for $11.99 a month until June 1st at which time price will go up to $25 a month for all new subscribers.