| By Bill Bonner Friday, November 20, 2020 When men choose not to believe in God, they do not thereafter believe in nothing, they then become capable of believing in anything. – Belgian author Émile Cammaerts BUENOS AIRES, ARGENTINA – Last night, we got on a plane bound for Buenos Aires… As you know, Argentina has gone all-out in its war against the coronavirus. First, we had our temperatures checked. Then, our papers. We needed to show our special permission to fly to Buenos Aires. We also needed to show our special permission to leave Argentina (long after our visa had expired). Plus, we needed a declaration proving that we brought our cellphones into the country when we arrived. And then, they checked our temperatures again – 35,2 – and noted it on a form that gave us police approval to get on the airplane. Will all this delay and inconvenience save one person from dying? Will this homage to “science” pay off? We doubt it. Argentina’s death rate is a bit higher than in the U.S. Not Tempting Fate But here in the capital, things seem almost normal. People wear the “holy rag” – covering their mouths in deference to the new religion… desperately hoping this act of faith, like holding up a crucifix to ward off the devil, will protect them. But the latest studies – one done on Marine Corps recruits on Parris Island, the other, a much broader study in Denmark – strongly suggest that face masks are useless. Not that we know, one way or another. But so far, they are worn as an act of faith, not science. People want to believe… in a vaccine… in a leader… in “science” – in anything that will save them… We are not really very “religious.” But we are not foolish enough to think we know how the world works or that we can bend it to our own desires. And we’re not reckless enough to want to diss the gods. Jehovah, Pachamama, Zeus, Kali… we bow to them all. We go to church. We pick up pennies on the sidewalk. Maybe it doesn’t make any difference… But why take chances? Don't Be Left Empty Handed — Why Banks Bought 1,300 Tons of Gold. Fallen Cross So it was that on Saturday morning, we found ourselves laboring up Mount Calvary… cross on our back… For there, on the top of the hill, in the intense wind, the cross had fallen down. It lay on the ground, like a dead crusader. We didn’t want to leave it that way. And the “cross” we bore up the hill was in the form of a Stihl chainsaw. The stem of the cross had broken. We were going to fix it. The altitude makes work harder than usual. So we paused at each cross along the camino de la cruz (the stations of the cross) for profuse prayer… and deep breathing. Finally arriving at the top, we cut off the broken wood (a very hard algarroba) and notched the remaining pieces so they could be fitted together (roughly) by the cowboys and secured with bolts. Our work done, we walked down the hill more easily than we had labored up it… and were ready to leave. False God Now, here we are in Buenos Aires. The restaurants are mostly open… and life seems (mostly) normal. When we rolled into town last night – at about 11 p.m. – people were still sitting in sidewalk cafes. Almost everyone respects the rules of the new faith. They cover their faces. Entering a restaurant, they hold out their hands, palms up – as if they were to receive the consecrated host – so they can be disinfected. But not all the gods are equal. Some are imposters. So far, the god of “science,” called upon to protect us from COVID-19, has been a flop. A Fauci god. He may or may not be able to part the Red Sea… but he hasn’t been able to stop the virus. | Recommended Link | | Latest Bank Scandal (footage) This is outrageous! On page 37 of one of President Trump’s recent financial disclosures… there it was… A stunning line that proved what some consider a “theft” of as much as $4.3 million by one of America’s largest banks. Now, you may not have billions to your name. But here’s what matters… Almost ALL Americans are falling victim to this same “robbery.” In fact if you have $10,000 in a big bank… Bank of America… Wells Fargo… Chase… Capital One… or others. You’re likely being “taken for a ride” to the tune of almost $1,000 a year… Find out all the details about what’s going on in this video. | | | -- | Harmful Fantasies And what about the god of “economics”? There is a rascal, if ever we saw one. The tenets of the faith are plainly preposterous: …that they (the economists who run the Federal Reserve) can inflate the money supply – by printing more and more money – without causing domestic consumer prices to rise… …that the world is suffering from an excess of savings, when savings rates are near all-time lows… …that they can do a better job of price-fixing than the free market… …that they know what interest rates the economy needs… and what inflation rate it should have… …that they can shut down an economy and replace real output (real wealth) with fake money. These fantasies are not harmless. They encourage the world’s central bankers to print more and more money… until inflation finally explodes like a bottle of champagne. Then, who’s going to put the cork back in? No one. Strange Holdings In Buffett's Portfolio… China Effect But wait… There’s more… Charles Goodhart and Manoj Pradhan of the Bank for International Settlements (BIS) argue that inflation rates would soon head up, even if central bankers weren’t imbeciles. They claim the declining inflation rates of the 21st century were caused by globalization, not by the feds’ policies. What really happened, they say, was that China joined the World Trade Organization in 2001. It brought with it hundreds of millions of people who were ready to work their tails off for peanuts. And despite the “communist” party rhetoric, Chinese entrepreneurs and businessmen were actually freer to innovate and create wealth than their competitors in the U.S. This – and output increases in other parts of the world – led to a big increase in the supply of goods, which depressed prices. | Recommended Link | | #1 step to prepare for Biden Presidency? Surprisingly, only roughly 10% of people in the U.S. have made this move… yet it's already created tens of thousands of millionaires. And with Biden and company about to occupy the White House, this could prove to be the No. 1 most important financial step you take between now and the end of this year. | | | -- | Inevitable Inflation But guess what? There is only one China. The China effect was yesterday. And guess what else? All over the world, the working class is getting older… and retiring. Birth rates are falling. Fewer workers… More retirees. Inevitably, output per person will fall, too. Demand remains high, while supplies slump. Prices will rise. Governments – mostly elected by old people – will need to print money to keep up with their commitments (entitlements). What does that sound like? Messrs. Goodhart and Pradhan believe it will mean a major shift… from the low-interest-rate, low-inflation trend of the last 40 years… to a high-interest-rate, high-inflation trend for the next 40. Four decades of fairly low inflation has produced a race of know-it-alls who believe incredible things and bow down before crackpots. They think they can do what no one has ever been able to do – create real prosperity with fake money. Whatever else happens, their faith is likely to be tested. Regards, Bill
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Since the early 2000s, China has been the go-to country for cheap labor and cheap production. Now, China is growing rich off of U.S. consumerism. And while other countries around the world still struggle, the Chinese economy is thriving, as evidenced by double-digit sales growth reported by some luxury goods companies. MAILBAG In today’s mailbag, harsh words from one dear reader about money as freedom in the U.S… In spite of the obvious corruption that has taken place in the presidential election, and the justifiable lawsuits to force honest recounts, it seems you have divorced yourself from the one thing that would actually make having a lot of money enjoyable. If we don’t have freedom to walk around without a mask, or try on more than three garments of clothing in a day, after driving two hours to get to a favorite department store, money isn’t the consolation it should be. – Bonnie S. Meanwhile, another dear reader praises Bill for understanding the plight of everyday investors... I often wonder how a man like you, being one of the pampered, moneyed aristocrats, can still see the plight of the common man or woman so clearly. I don’t know... but I, for one, am glad that you can and hope that you will continue. – Mike W. And finally, others have kind words for Bill’s stories from Argentina... I am stirred by your stories and opinions. You are quite fearless in confronting some uncomfortable truths. I have a holy card with an image of St. Jude on it. You resemble him. “May they be confounded that persecute us. May they perish that are bent upon our ruin.” – Robert B. Often, the family chapel (or altars) become places of hypocrisy. May the Lord grant yours a place of true humility and then faith. I’m glad you’re not completely cynical of piety and worship. – Nathan D. Is money no longer the consolation it should be, as Bonnie believes? What is the plight of the common man that Mike mentions? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… NOW PLAYING
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