| By Bill Bonner Tuesday, February 9, 2021 The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists. – Ernest Hemingway RANCHO SANTANA, NICARAGUA – Today, we’re putting aside our travel tales and turning to more important matters – the future of the nation, that is. For a president, there are only two things that really count: Protecting the citizens’ wealth… and protecting their freedom. Typically, presidents do neither. Instead, they eat away at them, like termites hollowing out a log. They waste the nation’s wealth on jackass programs… inflate the currency… and make enemies all over the world, with their wars, sanctions, bullying, and meddling. With those basics in mind, it is probably not too early to look at what the new Biden team has in store for us. In short: Same old, same old. Plus Ça Change Looking back a few weeks, we wonder… What was all the election bruhaha about? What difference did it make who was elected? We forecast that it would make none. And as to the basics, we were right. Nothing much has changed. War? If anything, the Biden Bunch is likely to make a bigger mess of things than the Trump gang. To his everlasting credit, Donald Trump was the first American president in nearly 50 years not to start a new war. But Biden has already signaled that he won’t cancel Trump’s sanctions… that Russia and China will continue to be regarded as adversaries… and that those in the military/industrial/Deep State complex can begin building new vacation homes. Lest we forget, as a senator and then as vice president, Biden played his part in getting Democrat support for the War on Terror, the invasion of Iraq, and the other military misadventures of the last 20 years. He and the “queen of the warmongers,” Hillary Clinton, pushed the bombing of Libya and the war in Serbia before that. [Featured: Firm That Predicted 9/11 Issues Urgent Warning: Move Your Money Now] Professional Warmongers And now, the liberal media says Biden is bringing professionalism back to American foreign policy. Yes, he’s replacing Trump’s amateurish incompetents with seasoned war criminals and career cronies. The rascals are taking refuge in the nation’s capital. Antony Blinken, Jake Sullivan, Neera Tanden, and Michèle Flournoy – smart scalawags, every one of them. Wasting no time, the retreads and has-beens from the Clinton and Obama days are back on the job… desperately trying to remain relevant (and keep the cash flowing) by throwing their weight around. CNN reports: US deploying B-1 bombers to Norway to send a message to Russia The US Air Force is deploying B-1 bombers to Norway for the first time in a move that sends a clear message to Moscow that the US military will operate in the strategically important Arctic region and demonstrate that it will defend allies in the area against any Russian aggression close to the country’s border. Going Big As for the other part of the formula – inflation – nothing has changed there, either. The Biden boys and girls are going to “go big,” just like the Trumpistas before them. It’s hard to exaggerate the biglyness of Trump’s inflationary push. During his reign, the spending… the deficit… the budget… the debt… and the money-printing all expanded more than ever. [Featured: The #1 Tech Stock of 2021] Not even in wartime was so much monetary and fiscal inflation added to the system. And if Donald Trump had somehow managed a recount, and gotten another four years in office, it would inevitably be more of the same – more spending, more deficits, more debt, and more money-printing. The Donald was all for it. And so is Joe Biden. The bigness of Biden’s plan is so loony that even the loons themselves are beginning to wonder about it. Here’s Breitbart: Leading Liberal Economist Sounds Alarm Over Biden’s $1.9 Trillion Covid Bill One of the world’s leading liberal economists dealt Joe Biden a blow in recent days, warning that the president’s $1.9 trillion Covid relief legislation could ignite an inflationary conflagration. Olivier Blanchard, the former chief economist of the International Monetary Fund and perhaps the most cited economist in the world, spelled out his case against the Biden bill in a series of tweets on Saturday. Blanchard’s argument is that the size of the stimulus injected into the economy would be too large, especially when added to the measures taken last year. The additional spending power created by the additional $1.9 trillion budget deficit would drive up prices and force the Federal Reserve to hike interest rates. But to hear the “experts” tell it, printing-press money is just the panacea that America needs. The only question, for them, is, “How much?” Bird on a Wing They believe they can use government spending – funded by fake money – to stimulate the U.S. economy… to rescue American families from poverty… to redress the wrongs of the patriarchy, white supremacy, Big Business, greed, and nature… and even to save the planet from the evils of carbon dioxide. And they believe (according to the now-popular Modern Monetary Theory fantasy) that the only real limit is consumer price inflation. When the cost of living rises above their target, they say they’ll let the printing presses cool down… and raise taxes to control inflation. But as we know, that’s not going to happen. Those who live by the printing press die by the printing press, with more and more “liquidity” (aka fake money) needed just to stay in the same place. Yes, Dear Reader, it’s “inflate or die.” And Joe Biden, like Trump before him, will continue to inflate the American economy. And what’s this? Agricultural commodities are up 13% over the last 12 months. Metals are up 18%. The buzzard of consumer price inflation hath but a short way to fly… And as we reported yesterday, lo… the bird is on the wing. Stay tuned… Regards, Bill
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Bill Bonner and his Rogue Economics colleagues Dan Denning and Tom Dyson believe owning physical gold is crucial to a secure portfolio. But once you've done that, there is another way to diversify your gold holdings, through a little-known investment called a warrant… MAILBAG Kind words for Bill today, as he arrived safely to Nicaragua… I am glad you made it. I felt bad for you trying to get through Miami with constant rule changes. It takes someone with a sense of humor to endure. I live in Ft. Lauderdale. The virus has infected and killed scores of people here, but things are much more normal than I expected. Perhaps we are just getting used to it. I have been reading your stuff for several months, and I find your point of view interesting and worthy of my continued attention. – Dan M. Meanwhile, another dear reader comments on the travel requirements stemming from the COVID-19 pandemic… and one shares their own Nicaragua experiences... Masks are for control until they’re not. My daughter is on the COVID front lines as a travel nurse in Dallas, and has to wear one for 12 hours. I wonder how this nation will survive if we ever had a real pandemic, where it kills off more than 8% (by definition) rather than 2%. – Walter S. I find it interesting you should have a place in Rancho Santana. Not a lot of people have any familiarity whatsoever with Nicaragua, and those who have, generally have come for the surf. Or perhaps, when cruise ships were a thing, they decamped for a few hours in San Juan del Sur and sometimes took the bus to Grenada. I first came to Nicaragua in March of 2017, on the recommendation of a friend of a friend. The previous year, I sold my 4-flat buildings in Chicago, where I had lived my entire life, and I was looking to get out. I first went to Colorado, looking for a place slightly less on the grid. But that did not work out. So on vacation, traveling around the north part of the country, I contacted a realtor down in San Juan and told him that I wanted to see some properties. I moved into my new house in Playa Majagual that June. The U.S. government has a long and sordid history with regard to its interference in Nicaragua (well, most all of Central America and many other places to boot!). And it is a funny thing to realize, harkening from the “Land of the Free,” that I am much freer here than back in the good ol’ USA. While I took a bit of a leap of faith, I sort of knew that would be the case. This June, I will celebrate four years here. Before coming, I would joke that I was going to watch America, the United States, burn from afar. To my dismay, and as far as I can tell, the flames are jumping higher. Suffice it to say, I couldn’t be happier with my decision to live here and I couldn’t imagine a better place to be. Really, I just wanted to say that I admire your writing and your sentiment. – Tim R. Have you taken the “leap of faith” that Tim describes, and moved out of America to avoid its decline? If so, have your experiences been positive, like Tim’s? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… We are facing an unprecedented challenge A pandemic has struck the world. Governments reacted by shutting down the economy. A vaccine is here. But now stocks face a new threat. Huge debts… civil unrest… looming corporate bond defaults… a great monetary reset. Fortunately, Bill Bonner, Dan Denning, and Tom Dyson have been tracking these trends for more than 20 years. What they see next for America may shock you. Click here for details. 
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