Hell can wait

[Bill Bonner’s Diary]( Hell Can Wait By Bill Bonner Friday, September 25, 2020 – Week 28 of the Quarantine …the future is somebody else’s problem… – The Stansberry Digest paraphrasing U.S. Secretary of the Treasury Steve Mnuchin’s remarks to Congress yesterday [Bill Bonner] SAN MARTIN, ARGENTINA – And so, we come to the end of another week. Let’s see if we can summarize what we learned. The Old Economy is fading away… The New Economy is a dangerous bubble… One grows cold. The other is too hot to touch. What are we to do? No Friends Economies always evolve. And governments always try to look into the future and stop it from happening. The future has no friends. It generates no revenues. It pays no taxes. It can’t vote… It can’t riot in the streets… It can’t even write a letter to the editor. The present, though, is Mr. Popularity. It makes profits, pays wages… and has deep pockets. After all, it owns 100% of America’s wealth. It has lobbyists, too, and trade unions, political parties, and 535 members of Congress ready to do its bidding. What’s more, the future is where Hell is located. The planet is overheating! Two million COVID-19 deaths! China is overtaking us! Robots are stealing our jobs! Oh… and here comes a depression! Recommended Link [FAANG v. KAASH – No contest!]( [image]( Right now, if you’re chasing big tech stocks, odds are you’ll be “sucking wind.” According to analysts, over the next 12 months, the 5 big “FAANG” stocks are only projected to grow an average of 1.4%! Compare that to “KAASH” stocks, which are 5 small “Penny IPO” stocks tech insider Jeff Brown just located… which, as of early September, are projected to grow [over 93 times more](. It’s a no contest! [Click here to watch Jeff’s special video on these Penny IPOs…]( -- Full Weimar Whatever the threat, the feds mobilize to stop it… with green-energy subsidies, tariffs, sanctions, lockdowns, hiring credits… a Patriot Act… or a Paycheck Protection Program (PPP)… Naturally, the feds are most eager to stop a depression. But they will not admit that they had any role in causing it… that their own policies (ultra-low interest rates and fake money) created excesses that need to be purged… Nor should you expect them to confess that their quack remedy (more money-printing) will only make the eventual correction worse. So far this century, they’ve held off three major corrections. From October 2000 to July 2003, they chopped 5% off their key lending rate and set off the mortgage finance blow-up of 2008-2009. Then, they stymied that correction, too, again cutting their key rate by more than 500 points… and printing up an additional $3.6 trillion. And this year, they’ve gone Full Weimar, with rates back down to zero… and another $3 trillion in new money. [A Revolutionary New Force Set to Create 818,236 New Millionaires Over the Next Three Years…]( Old Economy Fails But try as they will, the world still spins. And the future happens anyway. It just takes another shape. Their efforts to prevent necessary changes and corrections in the Old Economy – by flooding Wall Street with cash, for example – created a bubble in the New Economy. Most old-economy stocks are down for the year. In terms of gold – the only measure we trust – the old-economy Dow stocks have lost about 19% of their value since January. And of all the U.S.-listed stocks, only three are actually ahead of the game for the year. New Economy Thrives But look at what’s happened in the New Economy. The four leaders – Apple, Amazon, Microsoft, and Google – are worth about $6 trillion in total. There are only two countries in the world with a GDP greater than that – the U.S. and China. Amazon alone is valued at 43% of the entire S&P 500 Consumer Discretionary Index. And Tesla is now worth almost as much as America’s largest retailer, Walmart, even though it has only 5% of its sales. The feds’ foolish shutdown and their clumsy attempts to stop a much-needed reckoning have only accelerated the shift from Old to New. The internet darlings – Zoom, Amazon, Netflix, etc. – sucked up the new money like an escapee from a dry-out clinic. Recommended Link [See this card?]( [image]( It’s not a regular credit card. It’s not a debit card. And it’s not a loyalty or rewards card either… But if you have this card, you could start covering all your daily expenses – without spending a dime from your own pocket up front. [Find out how to get yours here]( -- Obsolete And suddenly, much of the old economy infrastructure was obsolete. The new economy doesn’t need so much office space – people are working from home. Nor does it need so many parking places – who needs them? Restaurant tables… airplane seats… big-city housing… cruise ships… theatres… And if people don’t commute to work, they don’t need so many automobiles, either. Or so much gasoline… (Exxon stock has been cut in half so far this year.) And the old industries don’t need so many workers, either. The trend has been in motion for a long time – replace human employees with robots. But come the coronavirus… and factories had to shut down, because humans were afraid of getting sick. And coming back to work, they expect more protective measures. But no robot ever put on a facemask. Robots don’t strike. They don’t complain. They don’t demand equal pay… or fear the virus. They don’t need a lunch counter. They don’t expect overtime pay… or hazard pay… or nighttime bonuses. Or air-conditioning. They don’t take breaks. They don’t vote. And they don’t give the boss any lip. So, when the feds try to buck up the old economy with more free money and below-inflation lending rates, what do employers do? Call back the old workers? Or hire electronic brains and machine-powered arms? [Looking for the next tech cash cow? This is it.]( Poor Schmucks The trend is so unmistakable that even the Robinhooders can see it. They take their government checks ($1,200… or unemployment), turn their backs on Ford (down almost 30% this year) and GM (down almost 20%), and buy Tesla (up 363%!). They think they’re joining the future, not fighting it. But the feds’ fake money has turned the future into such a speculative bubble that it is ready to blow up again – for the fourth time this century. The poor schmucks… They lost their jobs in the Old Economy and had to move in with their parents (more young people currently live with their parents and grandparents than at any time since World War II). And now, they’re going to lose their money in the New Economy. Zoom Towns But it’s not all gloom and doom. Many people are older, richer… and moving to zoom towns. A dear reader, James P., comments: Living in a remote mountain valley, about 90 minutes from Colorado Springs, our economy is booming. New housing construction is booked out through late 2021. Available houses are getting offers above asking prices and selling in as little as 6 days. And this is in a place with only two paved roads – the rest are dirt; only dial-up DSL internet; no traffic lights; no hospital; a tiny pharmacy that opened two weeks ago; and where jobs and homes are simply unavailable for the working classes. The economy here is booming. But only because people are abandoning the cities as fast as they can move. Some people are saving money at twice to three times last year’s rate – and sitting pretty. Many of them are retired… or able to work (remotely) in the New Economy. They made the transition from Old to New smoothly. And they’re too smart (or too poor) to put their retirement money in the go-go FAANG stocks. But even for them… the future may not be easy. Having dodged one danger and avoided the other… they are now set up like bowling pins… ready to be knocked down when the next big balls come rolling down the alley. Recommended Link [$19,000 Test + Private $500M Research Facility [Photos + Update]]( [image]( “These methods are not approved by the FDA.” Jeff Brown had just flown 2,900 miles… and paid $19,000… All in order to access an advanced $563 million private research facility. [He wasn’t going to say no.]( So, he stepped inside. And what he discovered next shocked him… A special piece of equipment this research facility makes use of is at the start of a massive, new 5,900% technological boom. This has major repercussions if you have any money invested. And it could be [the closest thing to buying Amazon back when it was $50](. [See Jeff’s Big Reveal HERE]( -- Killer Blow The first will bring deflation and depression, as the New Economy blows up… and the Old Economy fails to recover. The second will be the killer, as the feds fight the depression with trillions in printing-press money. According to the Financial Times, 90% of the American public favors more “stimulus.” And probably 100% of Congress. They want the money now. The future can wait. But when the future shows up, it will almost certainly be Hell on wheels – wiping out savings, reducing Social Security, destroying the economy and the “social contract”… and raising the cost of living for everyone. When will it be over? In 5 years? Ten? More? We don’t know. But when it is over, we predict there will be few pins left standing. Regards, [signature] Bill --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Hell Can Wait). --------------------------------------------------------------- FEATURED READS [U.S. Coronavirus Recession Is Over, Says Richmond Fed President]( Federal Reserve President Tom Barkin announced the U.S. is out of recession today, but urges caution as the economy is still “vulnerable.” And he suggests full recovery won’t come until the end of 2021 or later… [Keep Your Eye on Copper Prices]( and silver might be taking center stage during this financial uncertainty, but there is another metal Casey Research geologist Dave Forest says you should keep on your radar: copper. There is a flurry of conditions that will push prices through the ceiling… MAILBAG One dear reader believes America is suffering under the guise of past transgressions… and another believes the country is living in an alternate reality… America is under attack, and her destruction is sought, riding upon a lie. The historical sin of racism that America overcame is claimed as the present evil that requires her destruction. The attackers care nothing about ending a falsely claimed present evil that has already ended. Rather, they despise freedom, and adore tyranny, with themselves as the tyrants. They seek an egalitarian mass of impoverished mediocrity, white and Black, reduced to that by their leavening force from above, but with themselves at the top, in power and wealth, ruling over the rubble. – Lee H. What happened to political cynicism, the essence of which is the old adage, “Question everything”? Picking sides is proof that people are attached to dreams and hope since facts do not seem to matter. Since when do we judge words rather than actions? Politics today seems to be about words, not actions. Actions can be judged by real outcomes. What outcomes do we have? You are pointing out those outcomes, Bill, politics aside. Thank you. Like you, I am an old man of conservative philosophy – small government, fiscal responsibility, and no meddling in the affairs of other countries. The Republican Party ended years ago’ today, we have only the party of Trump. And, as you point out, all of the folks that are not happy with your review talk about the “Big Man,” not the party values. There isn’t even a Republican Party platform telling us what the party actually stands for in this election. Yep, we live in an alternate reality. – Patrick F. Are politics today really about words, not actions? Is political cynicism gone, as Patrick says? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… [Banks Preparing for Major Devaluation of the U.S. Dollar]( The agency that regulates banks in the U.S. has just issued a new banking rule that has been called “a game-changer.” And now, for the first time ever… A former vice president of a major investment bank is sounding the alarm bell. According to him, the banks are preparing for a major devaluation of the U.S. dollar. [Click here to see what he has to say](. [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. [image]( [The Ultimate Guide to Taking Back Your Privacy]( [image]( [The Gold Investor’s Guide]( [image]( [The Trader’s Guide to Technical Analysis]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Share]( [FACEBOOK]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. 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