The stink of zombies

[Bill Bonner’s Diary]( The Stink of Zombies By Bill Bonner Wednesday, June 2, 2021 [Bill Bonner] YOUGHAL, IRELAND – The subject this week is transformation. And zombies. The Biden Bunch wishes to [transform the government]( making it bigger and better than ever. To make a long story short, what they are really doing is zombifying the whole country. But the transformers are on the march everywhere. Recommended Link [You’re doing it wrong...]( [image]( You’ve heard it all before... Go to school. Get a decent job. Work hard for years. Buy and hold stocks. That’s the HARD way to get rich. But this “secret” can help you make an extra $1,400... $5,420... $7,470... in a matter of weeks. And you can do it from the comfort of your own home … [Show me the way!]( -- Path of Righteousness Each group has its bugaboos… The “anti-racists” are trying to transform the human mind… No more shall we have the prejudices and inequalities that come so naturally to us all. Vegans are trying to transform the human diet… Say goodbye to those beef steaks and “Got Milk” slogans… Not only would this stop the exploitation of animals, it would also stop all that cow flatulence that is destroying the planet. Democrat activists seek to destroy the last vestiges of the Republican Party, giving themselves a permanent lock on power. Republican activists hope to rise again… and put the country back on the path of righteousness… or, at least, Trumpeousness. And activists wish to transform the oil companies into clean energy companies. For us, this is not just a matter of academic curiosity. Our Trade of the Decade features oil and gas on the long side (we’re short the U.S. dollar on the other side). [Paid-up Bonner-Denning Letter subscribers can find out all the details [here](. To subscribe, [click here]( How are we doing? Keep reading… [Featured: Watch Demo of Elon Musk’s Next Big Project]( Thriving Capitalism Just because activists target an industry doesn’t mean it’s a bad investment. Capitalists connive… and capitalism survives. It goes about its business the best it can, swatting every curve ball that comes its way. Remember, government is inherently reactionary… always trying to protect the old elite who control it. So, the more the feds “transform” an industry, the more the insiders are likely to profit. We looked at the tobacco companies [yesterday](. And our old friend Chris Mayer pointed out that the transformation wrought by activists and regulators didn’t harm investors in the Big Tobacco companies one bit. In 1998, the Tobacco Master Settlement Agreement required America’s four major cigarette companies – Philip Morris, R. J. Reynolds, Brown & Williamson, and Lorillard – to pay a minimum of $206 billion over the next 25 years to settle the medical claims against them. Then in 2012, The Tobacco Atlas reported: “Tobacco Industry’s Profits Greater Than Ever.” How could that be? Recommended Link [CENSORED?]( [image]( Twitter silenced former President Trump… Google erased over 100,000 user complaints to “protect” a private company… And one non-profit advocacy group reports: “Facebook is more willing than ever to ban users who don’t follow their rules.” Now, a former Wall Street VP is stepping forward… He’s issuing a major warning. He says the American financial system is falling apart. And millions of Americans could soon slide into poverty. [Click here to watch his new video before it’s too late.]( -- Consequences of Activism When activists or the feds target an industry, the first consequence is that money turns away from the sector. Fearing higher taxes, bad press, or stricter regulation, investors move on. Nobody starts a new cigarette company when the feds are trying to ban smoking. And few investors are going to put their money into building new oil rigs when the feds are insisting on going “green.” This has the effect of making the existing capital – already invested in the industry – more valuable. No new competition, in other words; higher profits. The second consequence – which is why we are so bullish on energy – is that the lack of new investment means supply goes down. But today’s standard of living depends largely on the dense energy in oil and gas. Over time, uranium, hydrogen, solar panels, and windmills may play bigger roles. But for now, it’s oil and gas we use. And with new competition largely eliminated… and little growth or fresh investment… the oil companies will be more profitable than ever. But they will be transformed, too – into zombies. Output will fall… Demand will continue to increase… And prices will rise. (Later, activists and the feds will blame the “greedy” oil companies for raising prices.) Gasoline use has already returned to pre-COVID levels in the U.S. And our oil and gas investments are up more than 50% since the beginning of the year. So far this year, oil is the best-performing sector. Not only are investors anticipating higher profits, they’re also looking to oil and gas to protect them from inflation. Once you’re pumping oil, your capital expense is “sunk.” You can keep pumping until the well goes dry. And you can easily keep up with inflation by adjusting prices upward. [Featured: The 3-Stock Retirement Blueprint]( Government Policy Yes, that was a big story last week, too – [inflation](. When the supply of goods and services goes down (thanks to the zombification of the economy) and the supply of money goes up (in the 12 months of the COVID-19 hysteria, major central banks added nearly $10 trillion to their balance sheets)… …Mr. Market rations those aforementioned goods and services by raising prices. Which leads us to more footnotes in our Chronology of a Declining Economy. The U.S. budget deficit last year was $3.2 trillion… or 14.9% of GDP. (For comparison, Argentina, with 50% inflation, had a budget deficit last year of 8.5% of GDP.) And now, Joe Biden has proposed a $6 trillion budget. Inflation is now government policy – intentional… deliberate… and disastrous. Recommended Link [You’ve got to see this map (frightening)]( [image]( Take a look at this map… All part of a “Great Digital Reset” set to hit America. And, so far, [it’s estimated 205 million Americans have been affected by the move](. Are you one of them? And, if so, what should you do? [[Reset 2021] View the Warning Here]( -- Inflation Herald The Financial Times is on the story: Key inflation gauge registers big jump in the US. A US inflation measure closely watched by the Federal Reserve posted its biggest year-on-year jump since the 1990s in April, rising more than expected and fuelling concerns about price increases. This is the Personal Consumption Expenditure Index (PCE) they’re talking about. It’s now going up at 3.1% year-on-year. (The Consumer Price Index, CPI, another important inflation measure, rose at a 5% annual rate during the first quarter). Which is not so alarming in itself. But it heralds the inflation trend we expect. Combining the latest figures for CPI and PCE, the statistical glop “gives off a faint whiff of stagflation,” said Paul Ashworth at Capital Economics. Even over here, drifting across the crystal sea on the North Atlantic wind to our current Diary headquarters in Ireland, the smell of zombies is unmistakable. Regards, [signature] Bill --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=The stink of zombies). --------------------------------------------------------------- MAILBAG Dear readers give their take on Bill’s missive, “[Zombie Highway]( Wonderfully written piece, Bill! As usual, you have a way to distill complex issues into easier to understand parts. Your essays should be required reading in all high school economics classes across the country. Keep up the great work! – Andy L. Transitory? Forcing employers to pay $15 an hour (and more now with the so-called “unemployment” stimulus). Who in their right mind thinks that once people get increased wages, they will be taken away? Permanent and long-lasting inflation, the likes that will shock most. – James S. I agree with virtually all of your thoughts about the current economic mess. Another significant part of any proposed solution to this situation (that will never happen) would be the imposition of term limits on both houses of Congress, for sure… and probably SCOTUS as well. – George F. Will inflation be permanent, as James believes? Or will it be short-lived, as seen in U.S. economic history? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=The stink of zombies). IN CASE YOU MISSED IT… [The Final Warning every American should hear.]( In March 2020, Casey Research analyst Nick Giambruno uncovered a sinister scheme by Nancy Pelosi and her government colleagues to take the cash out of your wallet… And replace it with a digital currency. According to their research, one of Biden’s top priorities could forever change our financial system, and completely alter the way we spend, borrow, save, and invest. Millions of Americans will be completely blindsided by the events to come… But [this short presentation]( will show you exactly what’s coming… what Pelosi’s plans mean for your cash… and how you can prepare. If you have money in any kind of U.S. bank account… business contract… or even cash under your mattress… You’ll want to take a look at Nick’s briefing as soon as possible. [Click here now to see what you need to know.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. 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