| By Bill Bonner Wednesday, January 20, 2021 – Inauguration Day WEST RIVER, MARYLAND – Today, the new president takes over. You’d think he would find it an easy job. He only has two major responsibilities to remember: - Protect citizens’ freedom
- Protect their wealth
Everything else is detail… distraction… and (usually) delusion. Blame Game But the distractions are many… and the delusions are more common than houseflies. There’s still no wall keeping Mexicans out. But at least there’s a wall – chain link and razor wire – protecting the insiders in Washington from the outsiders in the rest of the country. Some of our dear readers blame the Republicans for America’s sad state. Others blame the Democrats. But here at the Diary, we blame them both… and no one at all. Birds gotta fly. Fish gotta swim. And a degenerate empire has to find its way down from the peak, one stumble at a time. Each president has to take the fall assigned to him. Bush with his War on Terror. Obama with his Wall Street bailout. Trump with his spending increases, tax cuts, trade wars, COVID-19 checks, and other abominations. Who’s to blame? Is the wolf to blame for eating sheep? Does he even know he’s a carnivore? And now, et tu, Biden? The new president is just a human. He is probably unaware that he’s supposed to destroy the empire. He just does what comes naturally. He listens to those around him – the other members of the Deep State elite. And they all agree. They have a list of priorities. Protecting citizens and their property is not even on it. | Recommended Link | | The Doors Are OPEN!
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Brownstone Is Here The man who's identified four unicorns and decacorns himself… Is finally going to show YOU how to invest BEFORE the IPO day. EVEN if you're not an accredited investor. | | | -- | Falsified Economy Their first priority is to keep the fake economy going. Stansberry Research’s Morning Market commentary reports: Treasury Secretary nominee Janet Yellen warned lawmakers any delays or insufficient support in implementing Biden’s stimulus plans could lead to lasting economic damage. A healthy economy hardly needs regular inputs of fake money. But we will cue you in… the U.S. economy is an imposter. Interest rates are fraudulent. Prices are phony. Output is depressed and perverted. Tesla is not really worth $800 billion. Wall Street honchos don’t really earn their executive millions. The federal government can’t really afford to send $2,000 checks to people who don’t deserve the money. The whole system is contrived… jacked up… and falsified. It is now like a married man with a second family… hidden away on the side. He’s gotta stick to his lies. And Yellen et al. have got to stick with their fake money. The transformation happened over many years. Hardly noticed… rarely understood, it nevertheless turned the U.S. economy into something ghastly… grotesque and unnatural. Over the centuries, mankind learned that central planning, paper money, and prices set by bureaucrats always end in disaster. But somehow, America’s economic elite forgot. It was as if they had forgotten how to walk upright without dragging their knuckles on the ground and grunting. And now, the simians are in control. Like those in the zoo, they swing from the bars and occasionally throw sh*t at the public. [Featured: Stock Options are DEAD! "Penny Trades" have WON…] Obvious Loss But let’s look a little more closely at the fake economy… and where it is headed. We have seen how the fake dollar system, set up from 1968 to 1971, when the U.S. dollar was unpegged from gold, caused a pandemic of amnesia. People forgot how fake money worked. But the counterfeit money helped the elite shift the nation’s wealth from the 90% of the population on Main Street to the 10% on Wall Street. And the little guys had no idea what was going on. They thought the rich people were just lucky… or that their wealth would “trickle down” to everybody else. Every president since Richard Nixon aided and abetted this bamboozle. Most people lost wealth. The loss in relative wealth is obvious: the Federal Reserve gives money to the rich, not to the middle classes. Less obvious is the loss of wealth in the whole fake economy. | Recommended Link | | Brace Yourself Our country is falling apart. And it’s about to get much worse. The siege of the Capitol… the riots and protests… the political division… that’s all nothing compared to what’s coming next – as soon as hours from now. The most important thing you must do, right away, is this… Protect your wealth while you still can. | | | -- | Growing Output When you can “print” money and manipulate interest rates… you foul the whole shebang. Savers don’t save. Businesses don’t invest in new factories and better-skilled labor. Investors turn to speculation. The whole economy becomes “financialized,” driven into a frenzy of “get it while you can,” rather than real wealth production. These things drive down real output – the supply of goods and services that constitute real wealth. While GDP growth – the growth in the value of all the goods made and services provided – clocked in at 4-5% before the fake money did its damage… now, growth rates are barely half that. And if consumer price inflation were measured in the same way it was back in the good old days (prior to the 1990s revisions), today’s real rate of wealth increase (as measured by GDP) would be close to zero. Then, the authorities claimed that more printing-press (i.e. fake) money would “stimulate” the economy to boost GDP growth. And by the 21st century, the presses were running hot. By the end of 2020, the Fed had added nearly $7 trillion in new money to the system – multiplying its balance sheet 10 times. [Featured: This one stock could be a game changer for you] No Growth Alas, real output did not increase. Instead, all of this “stimmy” spending (the War on Terror… Wall Street bailouts… Obamacare… Quantitative Easing… COVID-19 relief… the Paycheck Protection Program… Supplemental unemployment…) had the effect of making Americans poorer. JPMorgan Chase CEO Jamie Dimon said that if previous growth rates had been maintained, U.S. GDP would have increased by $20 trillion in the last decade, not just $10 trillion. If his estimate is right, American families each lost an average of about $100,000 in the last 10 years alone. Our presidents – Bush, Obama, and Trump – all failed to stop the loss. All of them failed to do the job they were elected to do. Bad Start But what about the other major responsibility of the president of the United States? What about making sure Americans can go about their business without anyone bothering them? In this regard, too, the 21st century got off to a bad start… with George W. Bush’s “Patriot Act.” We’ll look at what this might mean tomorrow… Regards, Bill
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FEATURED READS What to Expect of Joe Biden’s First 100 Days as President
It’s Inauguration Day in the U.S., the day Joe Biden will be sworn in as the 46th President of the United States. Here’s what you can expect to see coming from Washington, D.C. during his first 100 days in the Oval Office… The Most Important Chart for Gold Traders
Like Bill, options trader Jeff Clark is “old school.” He still uses a yellow notepad to take notes, and uses a Rolodex. And he’s also bullish on gold. Here, he shares the one chart he believes gold traders need to see, and explains why 2021 will be a big year for gold… MAILBAG In today’s mailbag, one dear reader gives their take on the government’s “free” giveaways Bill mentioned in Tuesday’s Diary, “A Man of Distinction, So Refined”… Dear Bill: I had not read your pieces in a number of months. It was nice to return and see you acknowledge that our monetary system can provide endless streams of credit and currency. No, there still isn’t anything such as “free.” However, by the time one is able to figure out who exactly is paying for the $2,000 checks, let alone how it is done, the system that brought forth the seemingly “free cash” will be long since dead. – Aaron K. Meanwhile, another writes in with their views on the “entitlement” of universal healthcare in the United States… Your perspectives are most (and mostly) refreshing. Though as a western Canadian reader, I would argue that a U.S. universal healthcare scheme would NOT result in bankruptcy for the nation. Personal U.S. bankruptcies, occurring due to the inability to pay for medical catastrophes, is the reality. None of the western European nor Eastern bloc nations, Russia, nor your northern neighbors (where people are eligible for state-paid healthcare) have had these schemes bankrupt their treasuries. – Patrick W. And finally, other dear readers have concerns about the stimulus measures and eviction moratoriums Bill references in “Note to Heaven – Get Out of the Way!”… Bill, there is no such thing as “rental protections.” All the government is doing by delaying evictions is increasing the amount that renters will owe when they finally leave where they have been staying rent-free. The renters of my wife’s four-bedroom house were scheduled for eviction the day after the eviction ban was instituted. With late fees and legal expenses, they currently owe over $35K. The delay on evictions until September 2021, which will be pushed to at least March 2022 because evictions do not occur during the winter in Illinois, means that they will owe a minimum of $75K by the time this is over. Meanwhile, we are not allowed in the house to do basic maintenance. We have been told that there is a leak in the basement and another in the roof, but we are not allowed to fix them because the tenants are afraid we will get them sick. The associated damage from these issues will be at least $50K, once we regain access to the house and can fix them. Since this damage is caused by the tenants, we will pay to get them fixed, and then recoup these costs from the tenants. If the eviction had gone through when scheduled, the tenants would have moved into a smaller, more affordable place and faced a judgement somewhere around $5K. Now, they are looking at a minimum of $125K if they leave in 2022 and $200K if they stick around until 2023. Neither one of us will ever be made whole from this. Essentially, “rental protections” are bankrupting small landlords, who have to dump their properties through forced sales or foreclosures, and setting up renters with wage garnishment for the rest of their lives. A simple solution is for the government to set up a program similar to TARP (the 2008 Troubled Asset Relief Program), that will pay the rent and utilities for these tenants (or the mortgage and taxes for homeowners). This could be set up as a loan with a nominal interest rate, with the first payment due once the crisis is over or the tenant returns to work. This could be administered by the IRS and the tenants could pay back the loan over 10 or 20 years as part of their annual tax filing. This would keep the cash flowing so the landlords could then afford to pay their expenses, and prevent a real estate crash that will put 2012 to shame. – John S. Do you agree with Patrick, that universal health care would be cheaper for the U.S. than its current private health care model? Have you been impacted by the U.S. government’s “rental protections” program, like John has? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… The Most Important Day of Your Life? Are you looking for a new and exciting way to invest? Are you willing to step outside your comfort zone? If so, Wall Street legend Teeka Tiwari would like to invite you to his first event of the year: Freedom 2021: A Lifetime of Wealth on IPO Day. In this massive livestream event, Teeka will detail his first-ever tech recommendation. You don’t want to miss this… RSVP Now for Freedom 2021: A Lifetime of Wealth on IPO Day. 
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