I read this guy every day. Helps keep my head on right…
Bezzle, Bezzle, Boil and Bubble |
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By Bill Bonner
Tuesday, October 19, 2021
BALTIMORE, MARYLAND – What a marvelous time to be alive… with a front-row seat to watch a great empire stumble and fall! It only happens once every hundred years or so… So pull up a chair and enjoy the show. Here’s the big news, from Bloomberg:
Supply chain? What’s happening is much more than just a weak link. Adjusted for inflation, real industrial production has been going down for half a century and now is only a third of its 1968 level.
Falling ApartThe U.S. enjoyed a fake prosperity for the last 30 years – but only because China picked up the burden of manufacturing and sold goods to Americans at discount prices, keeping inflation in check. And now, the U.S. no longer has the good jobs, the infrastructure, or the know-how to make things Americans want. Instead, appliances and geegaws are shipped across the Pacific Ocean – at enormous cost – while the discounts disappear. China’s raw materials costs – metals, fuel, etc. – are going up. So are its wages. It can no longer offset America’s money-printing with cheap products. Yes, here in the U.S., “inflation” is now out in the open… and the whole scam is coming apart. CBS News reports:
On the CaseBut don’t worry. The Biden team is on the case. Spotted on Bloomberg last week:
But is the president really doing Americans a service by making it easier for them to buy Chinese products? Both the Trump and Biden administrations share the same COVID-19-fighting strategy – close up U.S. businesses, but give Americans money so they can shop for Made-in-China goods. Here’s the Asia Times:
FraudfestAs we’ve been saying… the whole thing is a fraudfest. From the most basic premises – that wise guys in Washington can make decisions better than consumers, producers, and investors… …that American “democracy” follows the “will of the people”… and adapts to its needs… …that elected officials know how to run a shipyard better than people who’ve been doing it all their lives… people with skin in the game and real brains in their heads… …that you can spend more than you earn, year after year, and cover the deficits with “printing press” money… …and that this fake money actually “stimulates” the economy – it’s a “bezzle.” From start to finish. Dishonest. Corrupt. Incompetent. Fake ProsperityYou can’t “print” prosperity. You can’t make an economy work with five-year plans. And “democracy” does not mean that the majority always gets what it wants. Nope. It gets whatever bone the elites toss its way. But while tossing out scraps was easy when the economy was growing, of late, it’s become much more difficult. The U.S. squandered trillions on its misbegotten wars and social programs. Now, it’s got a $3 trillion deficit – even without a recession. And this week, Republicans and Democrats consider the next trillion-dollar-plus programs… while the printing presses run hot to pay for them. More to come… Regards,
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Silverboom — great to see Bill Bonner again. I used to read him all the time but that was long ago and he faded away as others became more relevant. Did you get this via subscription or somewhere on the net?? Thanks for posting it!
Nope, he did not fade away, just easily lost in the ever-changing world of financial newsletters. Bill doesn’t write typical analysis anymore, he’s retired from that, but his “observations” daily letter is always provocative. His musings are free – you can subscribe here:
https://www.rogueeconomics.com/bill-bonner-diary/