| By Bill Bonner Tuesday, January 12, 2021 WEST RIVER, MARYLAND – Yes, Dear Reader, 2021 is going to be a doozy. America’s money supply (M1) rose 70% last year. And it looks like the combination of the increasing supply of money and the anticipation of the damage to be done by a Democrat-controlled government might have finally turned the bond market around. The yield on the 10-year U.S. Treasury bond – the I-beam of the entire capital structure – has gone up 20% in the last week. It’s still preposterously low – at 1.17%. (But remember, the real yield is adjusted for inflation. So if the nominal yield is 3%, and inflation is at 2%, the real yield is just 1%. Inflation is currently 1.81%. So the current real yield on the 10-year bond is -0.64%.) And it’s still too early to know if the downward trend in yields has come to an end. But just to be clear about it, rising yields in an economy with $80 trillion of debt is a sign of impending doom. It becomes ever more expensive to finance and refinance the debt… requiring more and more infusions of fake money. The locomotive goes faster and faster… until it flies off the tracks. | Recommended Link | | NEW Gold Interview – Not Available on CNN, Fox, or MSNBC Legendary investor Doug Casey just made a MASSIVE gold prediction… It’s so outrageous, we nearly refused to publish it. But then Doug agreed to fly 5,700 miles – from his ranch in Argentina to Aspen, Colorado – to explain everything in this exclusive interview. And what he told us left us all shocked… Our entire office is still talking about it. Doug calls it the “most bullish sign he’s seen in 45 years”… and shares his #1 Gold Secret – LIVE on camera. If you’ve been waiting to profit from this massive gold boom… Now, is your chance. | | | -- | Democrats in Control And now, Democrats control both houses of Congress and the White House. Since the time of FDR, Democrats have always tried to get the government to do more – more welfare, more laws, more spending, more debt, and more regulation. They recognize that the more they spend, the more powerful they become. They regulate; they control; they subsidize this and bail out that. And then, even the rich and powerful are forced to come before them on their knees – bearing campaign contributions, speaking fees, and sinecures – and beg them for help. Of course, Republicans know the game, too. When they’re in power, they are insufferable… even bigger spenders than the Democrats (perhaps because there is no longer anyone holding them back). But when they are out of power, they become more philosophical and poetic. You will soon hear them fret that the Democrats are spending like drunken sailors… and the nation’s finances are going to Hell in a handcart. Unfortunately, the Republican Party is now so powerless, and so brainless… it cannot act as much of a brake on the runaway Democratic train. Does this, too, signal a major change of direction? Again, we don’t know. But we will offer you a little reflection on the value of real conservatives. [Featured: Stock Options are DEAD! "Penny Trades" have WON…] Give and Take Every society needs its forward-thinkers… and its foot draggers. Some people want to bring the Trojan Horse within the city walls. Others think it might be a trick. A society needs both. It needs those who want progress and are sure the greenest pasture is just around the corner. But it also needs people who hold onto their old Studebakers (Why not? They run great.) and think America’s last great president was Jefferson Davis. It is the polite give and take… between new and old… looking ahead but with respect for the past… that makes a healthy, balanced community. The forward-looking world improvers always think they have solutions (mostly to the problems caused by their last solutions). True conservatives listen carefully. At first, they are uncertain. But then, after hearing the argument, they are not so sure. | Recommended Link | | Have You Heard About the New Bitcoin Interest Account That Pays Up To 6%? Bitcoin is on a tear. It has risen nearly 275% this year… And soon, it could reach record highs. Recently, our colleagues at the Palm Beach Research Group uncovered a company that is willing to pay you interest in the form of Bitcoin… At rates up to 6%! That’s 120 times what you would get with a traditional savings account right now. | | | -- | Richer and Better Many intelligent people, for example, are convinced that new technology will make our lives richer and better. The technophiles go on and on about how this or that breakthrough will “change our lives.” And yet, we eat the same food, more or less. We live in the same houses. We exchange lovesick glances… and howl at the moon, occasionally, just as we did when we still walked on all fours. It’s been more than 20 years since the great internet-led tech breakthrough. The “dot-com revolution” was, of course, supposed to make us all richer and happier. But we can’t think of a single person who – thanks to the wonders of Facebook, Twitter, Snapchat, or the worldwide web itself – was made happier by the digital advance (though many were made richer… including your editor). Tesla founder Elon Musk recently became the richest man on the planet. (Yesterday, he fell to #2… the poor sap.) His shares in Tesla are valued at nearly $195 billion (the company is worth about as much as the GDP of Turkey). And what does Tesla do? It produces electric cars. But battery-powered cars are not new. The first one was driven through the streets of Paris by Gustave Trouvé in 1881. Now, 140 years later, everyone is sure that cars and trucks powered by internal combustion engines will soon go the way of lightbulbs powered by hamster wheels. Then, too, people who know a lot more than we do insist that bitcoin is a superior form of money. It will soon make the other forms – including gold itself – as obsolete as the gas-powered auto, they say. Is that so? As for face masks… keeping the grandchildren at a six-foot distance… and taking the vaccine as soon as it is available to us… is it only the QAnon people who doubt it? [Featured: This one stock could be a game changer for you] Done Deal And who doesn’t know that more “stimulus” will help jump-start the economy? “We should be investing in deficit spending in order to generate economic growth,” says Joe Biden. Borrowing money can help you create a profitable new business. But what are the odds that government boondoggles – carefully dressed by lobbyists and masquerading as capital investment – will yield a positive rate of return? And what’s ahead for the stock market? Every thirty-something RobinHoodie is absolutely convinced that the Dow is headed for 50,000… thanks to tech breakthroughs and the feds’ support. They’ve priced stocks today as if the future were a done deal… as if Tesla had sold a car – at a profit – to everyone on the planet with a driver’s license. Worth Listening To And now, in the latest step towards a glorious future, the owners of America’s most important communication channels – Facebook, Twitter, et al. – have decided to exclude the president of the United States. For all his obvious faults and failings, Donald Trump nevertheless speaks for a sizable portion of the U.S. population. Will the silencing of the Trumpistas by a few Silicon Valley billionaires really lead to peace, harmony, and prosperity? And what other “bad” ideas should be censored? We bring this up just to remind readers that, sometimes, people you don’t want to listen to – the Cassandras in the story of the Trojan Horse – are worth hearing out. Sometimes, there really are Greeks hiding in the Trojan’s horse. Sometimes, the wonders of the future – like the flying cars we imagined in 1960 – never show up. Stock markets go down as well as up… all paper money eventually goes back to its intrinsic value (zero)… and all empires decline, sooner or later. And sometimes, you need the old-school, grumpy-pants conservatives to remind you. We suspect that this is one of those times. Regards, Bill
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FEATURED READS The Fight to Overcome Economic Inequality
Since last March, Bill has reminded Diary readers that COVID-19 didn’t cause the economic issues we see today; the pandemic only exacerbated underlying problems. One such issue economists are grappling with: economic inequality… How to Use Risk Management to Protect Your Wealth
For Bill and his Rogue Economics colleagues Dan Denning and Tom Dyson, protecting the wealth you already have is of utmost importance. One way to do that is to calculate and know your risk. Our colleagues at the Palm Beach Research Group show you how… MAILBAG Harsh words from one dear reader, following Friday’s Diary, “Fake Revolutionaries”… Bonner: At times, you must be living in a closet. You remind me of the fake mainstream media. Trump led a fake MAGA program? 80 million voters would disagree with you. Neither draining the Swamp? Who do you think is fighting for their lives? The Swamp… because Trump has exposed them all after the vote in the middle of the night on Thursday morning. It’s all out in the open now. The flow of wealth from the masses to the crooks? The Quantum Financial System has cut the flow. Quit trying to put out false-flag information. Those of us who do research know the truth. – Michael P. Meanwhile, others have a different take on Friday’s essay… I love this piece. Thank you for sharing your insights. While I don’t entirely agree with the blurb on Trump being merely a showman, I do wish that he had been more successful in draining the Swamp and exposing corruption. His timing in doing this very thing at the stimulus package approval seemed more like a last jab before he leaves office. I sincerely hope that he continues this cause and that others take it up as well. We are truly in need of a revolution in this country, before God judges us directly. – Jesse M. Glad to hear that you are sharing your barbs equally between both parties. I agree it wasn’t anything but a bunch of clueless thugs trying to obey their equally clueless leader, Trump. Thank God that Trump is so stupid, or we may have had a real mess on our hands. – Phil N. Excellent article! Hopefully, many people will read it. The entering of the Capitol was wrong and inexcusable. The media response was a scripted exaggeration. This was not 9/11, Pearl Harbor, nor the storming of the Bastille. But, regrettably, this could ignite a real revolution. – Dennis K. Dear Bill, Once again, you offer a considered comment on a current subject of interest, one which is making many politicians and most media reporters wet their pants, in their readiness to comment on recent events in Washington, D.C. Your comments will probably elicit criticism from both ends of the political spectrum, thus proving, to my mind, that you are spot on. I’d like to thank you for the time you spend most days, offering us a fair and unbiased view of events which are likely to be of interest to your many readers. – Dave G. Might others in Washington take up the cause of draining the Swamp, like Jesse says? Could last week's events at the Capitol incite a "real revolution"? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… Millionaire Trader Reveals "5 Minutes A Day" Retirement Blueprint Jeff Clark, the self-made multimillionaire, has helped people from all walks of life retire wealthy… His plan is designed to get your retirement on the fast track with his unique strategy. What's more… it's a piece of cake. "With my strategy, you can take advantage of it with as little as a few minutes a day." – Jeff Clark Do you know what it really takes to become a successful trader? Click here, and he could change your life. 
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