| By Bill Bonner Wednesday, September 2, 2020 – Week 25 of the Quarantine SAN MARTIN, ARGENTINA – We wrote about the Democratic National Convention on Monday. Silence… Yesterday, we wrote about the Republican confab… and sent it off at precisely 30 minutes past midday, Eastern Time. Shortly thereafter, the artillery opened up… with dear readers blasting us for criticizing Mr. Trump and his party. We’ve been taking “incoming” ever since. Tomorrow… we counterattack. But today, we continue connecting the dots. Moratorium Time We’ve seen that neither the Democrats nor the Republicans have any idea of the developing catastrophe… nor any plans to avert it. Here’s the latest from King Canute, as reported in USA Today: Relying on a public health law intended to prevent the spread of an illness, the Trump administration said Tuesday it is implementing a national four-month moratorium on residential evictions. The moratorium, announced by the Centers for Disease Control and Prevention, was the latest measure by the administration to get a handle on the economic fallout from the coronavirus pandemic absent an agreement with Congress on a more far reaching package that would have the force of law. And what about the landlords? Will there be a moratorium on mortgage defaults? And what about the banks that hold the mortgages? Will there be a moratorium on bank failures? And what about real estate prices? If landlords can’t collect rents… and can’t pay their mortgages… won’t real estate prices fall? Should there be a moratorium to stop them? Maybe Mr. Trump should declare a moratorium on all bankruptcies, defaults, sales shortfalls, profit slumps, crashes, and repossessions… and knuckle-breaking loan shark collections. And why not put a moratorium on weight gain and COVID deaths, too? Web of Deceit The whole faked-up web of deceit and delusion is becoming more tangled up every day. People were paid more not to work than they earned in their jobs… but they didn’t have to pay their rent. Businesses were given billions of dollars to pay employees on the payroll… but they didn’t have to produce anything. Wall Street got an extra $3 trillion… pushing stock prices to record highs… while a recession actually reduced sales and profits. But this is no reason to feel downcast or need medication. In private, we can still lead jolly, prosperous lives. But we need to be careful. Because our public life is headed down fast… Our economy, our political system, and the harmony of our social lives are all in danger. The system is corrupt and unstable. Our leaders are ignorant and foolish. A Revolutionary New Force Set to Create 818,236 New Millionaires Over the Next Three Years... Fake Recovery And it looks to us that we have just entered a darker phase, as we explain below. From Bloomberg: The dollar dropped to a two-year low, while U.S. futures climbed after Chinese manufacturing data indicated that exports are underpinning a recovery… If you will recall from previous Diaries… the dollar is the weak link in the whole chain of fantasy. From the fake money… to the fake interest rates… to the fake stock market… to the fake “greatest economy ever”… to the fake federal budget… even to the fake “Republicans” and counterfeit “conservatives.” And now, it leads us to… a fake recovery. | Recommended Link | | Most Accurate Tech Investor Makes New #1 Pick… Jeff Brown is arguably America's No. 1 most accurate technology investor. In 2015, he singled out bitcoin before it shot up almost 100x… He also recommended the No. 1 tech investments of 2016, 2018, and 2019… And – this year – he's already picked two of the three top-performing stocks! Recently, Mr. Brown sat down with Chris Hurt to discuss the state of the stock market… And discuss his new No. 1 pick. As you'll see, it's in an industry that billionaires like Jeff Bezos and Warren Buffett are flocking to… (In fact, Buffett recently dumped $800 million of Apple stock to invest in this!) It's also set to grow an astonishing 5,900%. If you have any interest in tech stocks, you can't miss this special interview. And the new report Jeff Brown put together. | | | -- | No Recovery We introduced a provocative idea last week… so discreetly, even we almost missed it… that the recovery may not be V-shaped… or even U-shaped… It might turn out to be more like an L… That is, there may be no real recovery at all. How is that possible? Isn’t there always a “recovery” after a correction? Doesn’t the stock market always bounce back? And the economy, too? The answer is, “No.” As for the stock market, the Japanese stock market peaked in 1989. It is now more than 30 years later. It has never recovered. Here in Argentina, the economy has been in a downward trend (compared to the rest of the developed world) for 70 years. The Roman Empire went into decline about 190 AD. Almost two thousand years later, it still hasn’t recovered. And how many dead men come back? And look at America itself. Real wages for American white men of working age have been going down for 45 years. GDP growth rates have been in decline, too, for about the same time. Averaged over Trump’s three and a half years in office, they hit a post-World War II low of less than 2% per year… …and are currently running negative for 2020. Total debt, meanwhile, is edging up towards $80 trillion. Looking for the next tech cash cow? This is it. Tumbling Down We know this contrasts sharply with the narrative of the Trump campaign and the Republican National Convention… and that of many of our dear readers. They believe Mr. Trump created the best economy ever… and that “he’ll do it again,” if he is given the opportunity. This is very unlikely. First, because he didn’t create anything. The economy of 2017-2020 merely continued on the same course that had been set in the Obama years. It was an expansion – aided, abetted, and amplified by the Federal Reserve’s money-printing. Second, we’re coming to the part of the catastrophe cycle where more dollars does more harm than good. Left to work itself out, the current recession would be deep and long-lasting… simply because there is so much unpayable debt (secured with over-priced assets)… and so many insolvent debtors… in the system. At “normal” interest rates – they would all go broke… And so would the federal government. It owes $27 trillion… more than $8 trillion of which it has to refinance in the next 18 months. Without money-printing, that funding would have to come from private sector savers. And it would force interest rates up – fast – and bring the whole shebang tumbling down. | Recommended Link | Bezos + Musk + Zuckerberg + U.S. Military Chasing This New Tech Jeff Bezos, Elon Musk, and Mark Zuckerberg... Along with the Army, Navy, Marine Corps, Air Force, and Pentagon... Are all piling into a controversial new technology. According to the World Economic Forum, this new technology could be worth $12.7 trillion over the next few years… That’s 10X the size of Amazon today. And bigger than mega tech firms like Amazon, Apple, Google, and Facebook combined. If you’re looking to cash in on the next major tech trend… This is it. | | | | No Quick Fix Both Democrats and Republicans are determined to avoid that “day of reckoning” by showering voters with a torrent of money. But while money can drive up prices – on Wall Street as well as Main Street – it can’t create real jobs, real wages, or real wealth. The extra dollars distort and disrupt… Like moratoria on evictions, they don’t fix anything. More to come… Regards, Bill
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Casey Research commodities expert Dave Forest has traveled the world over the last two decades in search of the best investment opportunities for his readers. And he’s gained invaluable life experience along the way. Here, Dave shares four lessons he’s learned while on the go… MAILBAG Dear readers are riled up by Bill’s criticisms of President Trump, from Tuesday’s Diary, “GOP R.I.P.” Bill, you must have bad eyes and ears if you didn’t like the RNC convention. I’m guessing you are neither a Democrat nor a Republican, and think you can do better than anyone at anything. You cannot relate to the common man on any level. I think you travel to stay away from the USA, which I can understand during these times. But I also don't see you as much of a patriot either. You seem as boastful as Trump, so don’t say bad things about him. – Allan K. In all this hyperbole, you fail to mention that a number of solid Republican ideals still unify the party – lower taxes, border security, and a tougher stance on crime. Yes, I agree, there are many issues that have drifted, but times change. Trump is not at all a perfect representation of true Republican ideals, but he is the best we have. I, for one, will never support the Democrat agenda around the broad social issues, which you conveniently avoid in your article. If Trump is Big Government, I shudder to think of what it looks like under Biden/Harris. – John S. Very disheartened to read your comments today. At least President Trump is trying, and all you can do is criticize him and demean his character and intelligence! By the way, he takes no salary for all the BS he endures; I think that shows he truly wants to help America. He didn’t have to run for president as he was quite happy in his life before. But he wanted to do something for the country, while you hide out in Argentina. Mr. Bonner, you’re a very wealthy man. Why don’t you step up and help America, if you think you can do way better? I have followed you for years, and I am just so disappointed in you jumping on the “Criticize Trump Train” for everything. – Ellen S. I never really liked or paid much attention to DJT. The only thing bigger than his ego is his ego. The first time I heard him on the campaign trail, he mentioned H1B visas. H1Bs are why I became a teacher. He’s also the only president that hasn’t started any fresh wars since I don’t know when. – Richard P. Trump is a disruptor. He always has been. Why change now? But I seldom vote for politicians for their personality. I vote for the policies they support – or at least claim to. So say what you will about President Trump. There are certainly policies of his I don’t like. But in my opinion, he has kept more of his promises and done more for the American people in the last three years than any other president I can think of. In American politics, we only get two choices for president: one bad and, hopefully, one not so bad. So for now, I will stick with less bad, because in my opinion, the Democratic Party has lost their ever-loving mind. – Kevin L. Is Trump the “less bad” candidate, as Kevin believes? Or do you believe a Biden/Harris America would be better? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… '80s Financial Prophecy Finally Coming True? These men made millions predicting financial events. But one of their strangest predictions has yet to come true… Click for full details. 
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