| By Bill Bonner Tuesday, August 18, 2020 – Week 23 of the Quarantine SAN MARTIN, ARGENTINA – The trouble with a democracy is that “the people” vote. You know them as well as we do. They’re our friends and neighbors. Nice people. They run their own lives plausibly well. But you wouldn’t want them running your life. Or your country. Highest Bidder And they never really do. The insiders, cronies, and Deep State elite control government policy, not the voters. But the insiders are not all the same. They divide into two groups – Republicans and Democrats. Each needs votes to gain power. So, with an election approaching, each tries to be the highest bidder in the auction of goods that haven’t even been stolen yet. Here’s where the bids stand: The Democrats are at $3.4 trillion. The Republicans are at $1.1 trillion. But Donald Trump is waving the nation’s checkbook. Here’s the latest from the Daily Mail: President Donald Trump said on Friday that he is readying $3,400 checks to go out to American families, but blamed Democrats for holding up a deal in talks that broke down a week ago. “I’ve directed the Secretary of the Treasury to get ready and send direct payments, $3,400 for a family of four to all Americans – Democrats are holding this up,” Trump said. Who wouldn’t like an extra $3,400? It would cost another $300 billion that the feds don’t have. But why not? They’ve got a printing press. Team Trump has even signaled that it would toss another $25 billion to the Post Office – whose losses have nothing to do with the coronavirus or the recession – if the Democrats go along with the rest of his big spending boondoggles. | Recommended Link | | Study this photo – it could change your life What you see in this photo costs just 10 cents to produce. It's also no bigger than a grain of rock salt. And yet… this same tiny discovery could soon remap the U.S. economy… create millions of new jobs… and make millions of regular Americans very, very rich. This is such a breakthrough, I've actually written to the president to request a meeting. I think I'll get it too. What makes me so sure? You need to read my letter to Trump to find out. | | | -- | Classic Problem Old-fashioned “conservatives” – if there were any left – would be appalled. Their knees would jerk. Their moss-covered backs would shiver. They would hrrumph in disgust and spit in contempt. They sought their votes honestly – by promising “balanced budgets” and “fiscal integrity,” not by dropping money from helicopters. They loathed debt. And they loathed politicians who courted the masses with federal funds. But Donald Trump, a Democrat for most of his life… who made his fortune in the bubble of fake-money financing, has an election to win. The FINAL Wave of 5G Millionaires Starts Any Day Now. The problem is classic. The frugal politician, like the chaste prostitute, is rare. Even rarer is the successful politician who promises to cut back on the free stuff voters enjoy. In a small, honest money system, the tendency to over-promise and over-spend is held in check by limited resources. Voters realize that any bribes or giveaways must be paid by the taxpayers themselves. The mob, of course, hopes to “tax the rich” and redistribute the loot to itself. But it rarely happens. Politicians are almost all relatively rich themselves, as are their major campaign contributors. Money talks. “Spare me,” it says, “and I’ll help you win re-election.” Washington listens. The feds still want to promise (and deliver) favors. But, read my lips, without raising taxes. Voters don’t like tax increases. Plus, higher taxes reduce both economic growth and their chances of re-election. | Recommended Link | | PLEASE BE ADVISED One of the most successful VCs of our generation has made his next big move. This is a VC so legendary… Insiders compare him to Elon Musk, Richard Branson, and Bill Gates. 10 deals alone have built his billion-dollar fortune. And finally, he’s selected #11. Incredibly, you can discover how to take part in this billionaire’s 11th deal – BEFORE its IPO… If you act by this Friday at midnight. (That’s the strict deadline.) | | | -- | Desperate Measures What to do? The easy solution is to borrow. But again, in an honest money system, they soon run into a limit. The more they borrow, the more they “crowd out” private borrowing. Then, interest rates rise, the economy slows, and they get less tax revenue! In the final, desperate, and degenerate stage, they turn to the printing press. Neither taxed nor borrowed, printing-press money appears like magic… free as the wind… and as destructive as a tornado. Here’s dear reader James D. explaining it: …new [dollar] bills still beguile and bewitch the masses and keep a lid on the very dangerous undercurrents of unrest in all societies. Thus, I believe, because people want stability (mostly), they will continue to place their beliefs in this new money theory of printing what you need to pay for the desires of the voters. Until it doesn’t work anymore. But the fake-money system does work… for a while. People love it. They want more fake money, not less. Here’s a dopey opinion from The Week: It is absolutely within the rights of the people to demand that their elected representatives make sure everyone has enough to eat and a roof over their heads at all times, not just in a crisis. And when a Great Depression-scale disaster is allowed to fester for no reason, it is anybody’s guess what will happen. As we saw with this summer’s racial justice protest movement, mass despair is just waiting for a spark to blow into a conflagration of rage. The result could easily spin out of anyone’s control. This Revolutionary Tech IS the #1 Investment of the Century. No Choice And who can blame Donald J. Trump for paying attention to the threat? And for doing what politicians have always done? Besides, it’s what the public (and the press) demands of them. Dear reader Felix M. explains that The Donald has no choice: I wish to point out that if Trump implemented austerity, vetoing spending bills and opposed stimulus, he would most definitely lose the upcoming election. The Democrats would promise free stuff and would win. Trump’s hands are tied. Well… yes and no. He still could do the right thing. But Felix is right; he would almost definitely lose the election. And, who knows, the Democrats might even be worse than Trump is. Different Trump And another of our readers thinks it is essential that Mr. Trump win. He may be a toad now, says Joseph M., but he’ll turn out to be a prince after the election: First, we must re-elect the president. Then with four years, he can get to work with fireside chats telling Americans the party is over. Stop all non-essential spending, revert back to the gold standard, and let the economy reset. Then, he will be known as the greatest president. But why would we expect a different Mr. Trump in his second term than the one we had in term one, when he increased spending and the U.S. debt more than any other president? Why would he jeopardize his own fortune… and risk impeachment or assassination? Why would the fatal flaw of democracy suddenly disappear? Not going to happen. We don’t know who will win the election. But both parties are playing the same game. Neither will stop the money-printing. Regards, Bill
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MAILBAG Criticism for Bill today regarding his stance on COVID-19… I love reading your financial essays and find myself mostly in alignment with your thoughts. Your essays on COVID-19 are probably the grossest oversimplification of a highly complex issue I have ever read. They are far off the mark. Health care, clearly, does not suit you. Keep up the good work commenting on the economy! – Judith S. One dear reader is gravely concerned for future generations… Why doesn't Congress have any positive, forward thinkers and doers? I have little tolerance for the media and its presentations. Everyone wants to have their hand in the cookie jar. The giving of stipends from the government only creates a populace that can be easily controlled, leading us further and further away from a republic and nearer to Marxism/communism. I do not have any answers, but I will continue to go to the polls and vote for the person with theirs eyes open and a functioning brain. – Sharon A. And a call to return to sound money principles… Thank God for your clear sightedness. “Let us vanquish this virus,” while not letting our lives and those of our loved ones to be swiftly swept away by those who seek only to subjugate us. Self-reliance and hard work are what made America great. If we wish to be that again we MUST return to those values. MMT should be washed down the canal like so many used prophylactics. We need only sound money based on intrinsic value and the understanding that we ALL must make our OWN lives better, with far less bureaucracy in regard to our government. – Richard N. Are you concerned for your children’s and grandchildren’s futures, as Sharon is? Is American recovery about self-reliance and hard work, like Richard says? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… Big Banks are pulling off a masterstroke of propaganda… at YOUR expense… Wall Street loves to pump up assets before they're available to the public… and then cash-in. But right now, there's a tiny subsector that allows you to get in before Wall Street. For once, you get to invest BEFORE they do. And a tiny investment in this small corner of the tech market could turn a modest stake into $1,052,477 for your retirement. Go here to find out how you can finally stick it to Wall Street dirt-bags. 
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