The masses will pay the price

[Bill Bonner’s Diary]( The Masses Will Pay the Price By Bill Bonner Wednesday, June 16, 2021 [Bill Bonner] YOUGHAL, IRELAND – We’re in a rush this morning. No time to write a short message. We’ll have to send you a long one. First, here’s Business Insider with a news update: Michael Burry said markets were in a bubble of unprecedented scale. The “Big Short” investor tweeted his dire warning after a 10-week break from Twitter. Burry has flagged reckless speculation on Tesla stock, bitcoin, and other assets. “People always ask me what is going on in the markets,” the investor tweeted. “It is simple. Greatest Speculative Bubble of All Time in All Things. By two orders of magnitude. #FlyingPigs360.” Meanwhile, a dear reader in Canada, Luke K., sees inflation in action: Hi Bill, inflation is definitely here. And it came with a massive bang. Our pool heater went on the fritz the other day. We called to have a heater technician come by for an inspection from our local pool company. $349 Canadian for one hour of his time. To clean the heater and get it going. Parts extra. Instead, we called a private individual. Showed me the part that needed replacing. A small circuit board that might cost $10 to build. Local shops, and online ones, were selling the card for $600 CAD. After the tech left (which cost me $100 for his visit), I removed the card from the heater and found a spider had touched two live leads on the other side and virtually exploded all over the circuit board. Cleaned the card with a toothbrush and reinserted. Heater was working again. Best $100 I ever spent. As for new heaters? $2500 (used to be $1000-$1500) and not a SINGLE ONE in the entire city. Backordered until July. Welcome to the beginnings of hyperinflation! That’s a shocker! We didn’t even know they had swimming pools in Canada. Recommended Link [New Cash Law Will Be Disaster for Savers]( [image]( New law has expert warning seniors and retirees to beware. There’s a darker truth behind this political event… [Read the shocking details]( -- No Choice Another dear reader, Patricia M., wonders what to do: I’m a very new investor in the stock market. I’m astounded at what I’ve learned in just nine months on the scene, which is that there’s no rhyme or reason to investing in stocks. I know I’m failing to protect myself and my family, but there doesn’t seem to be much I can do to turn the tables without having an awful lot of money! I can see something really huge coming down the pike. I think I understand most of it; I’ve been reading like there’s no tomorrow, just trying to learn how to play. But every time I turn around, up pops another story to complicate, obfuscate, misdirect, and so on. So, my big question is: How does an average Joe get a leg up on this situation? Between Wall Street, governments, the International Monetary Fund (IMF), the 1%ers, and whoever else is “IN” the game, I don’t believe life will ever again make sense. I used to be an optimist, but how can one remain optimistic in a world that one just can’t relate? I just can’t see a positive outcome for the masses. You’re right. There’s not going to be any positive outcome for the masses. The game is rigged against them. The feds (representing the entire elite of the U.S.) cannot expect to get much more from them in taxes. And their savings are not enough to cover the deficits. Now, as we told you yesterday, its [Inflate AND Die]( meaning, the feds have no choice. They have to print money. And this means the masses will pay – via consumer price inflation. [Featured: Watch Demo of Elon Musk’s Next Big Project]( Dangerous Time But let’s try to be helpful. What should a normal person do to protect himself and increase his wealth? The quick answer: The normal person, in a normal time, should do the normal thing. But this is no normal time. It’s a freaky… weird… and head-scratching time. And a very dangerous time. But we still have to start with the basics. The trouble with the average Joe is that he has only his time to sell. And the trouble with his time is that even in normal times, it may not be worth very much. It depends on what he does with it. The average wage is about $25 an hour. So, if he works 40 hours, he makes $1,000 per week. If he does that for a full year, after taxes, he ends up with about $40,000. That’s not going to take him very far… If he is a skilled professional, on the other hand – an accountant, dentist, surgeon, lawyer, engineer, or architect – he should do better. He might net out (after fixed office costs, insurance, and fees) $100 an hour. This would give him $200,000 a year… which might then be reduced to, say, $150,000 after taxes. The trouble with time is that it is not scalable. Each hour clicks by exactly like the hour before it. And the hourly worker – no matter how skilled – cannot make more of it. So, selling his time, the average Joe cannot increase his earnings easily. He has to take some of his earnings and put them into something that is scalable… Recommended Link [To Any American Who Owns a Cell Phone]( [image]( If you own a cell phone, then mobile service providers hope you never get to see this video that could soon go viral. It was shot in downtown Denver by a multi-millionaire, who exposed sensitive truths about mobile phones and 5G. His experiment could strike a bad chord with mobile phone companies. But you’ve got to see what this man discovered and what it means for phone users in the weeks ahead. [Click here to see this video.]( -- Too Little, Too Late Investing, for example. He might, for example, buy a rundown house… fix it up on weekends… and rent it out. The house might go up in price, while he is collecting a decent rent. Then, he might be able to borrow against the equity in order to buy another house. That is classic scaling. It works as long as he doesn’t get stuck with too much debt… and empty houses. This approach also has the advantage of offering some protection against inflation. Typically, people try to escape inflation by buying real estate – something solid that won’t lose value. This pushes up property prices. [Featured: The 3-Stock Retirement Blueprint]( Plus, the landlord can raise rents to try to keep up with his rising costs. But the poor renter is squeezed. He struggles to keep his wages in line with price increases. But he falls behind… the salary adjustments don’t come fast enough. They’re too little and too late. Inflation makes time less valuable! Not only because the average wage-earner can’t keep up… but also because it destroys capital – which is what gives value to time. Recommended Link [How To Retire Rich Off a Single “Boring” Stock]( [image]( Most people wouldn’t look twice at this stock, but it helped make this man rich… (Name and ticker FREE). [Get the details here]( -- Unhealthy Economy In a healthy economy, people save… and invest their money to try to earn more money. They start businesses and hire workers. Wages go up. But in an inflationary economy, nobody wants to save. Capital gets frittered away on [meme stocks]( [NFTs]( [dogecoin]( overpriced [zombie companies]( gambling… [super yachts]( and government boondoggles. An air of Sha… na… na… Live for today takes hold. And then it turns grim… and the masses are robbed. We’ll be back tomorrow with more helpful comments! Regards, [signature] Bill --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=The masses will pay the price). --------------------------------------------------------------- MAILBAG A dear reader appreciates Bill’s missive, “[Bezos Blasts Off](... meanwhile, others share their thoughts on “[Elite Heist](... The fact that you said, “That is, it was a fraud, financed by the Federal Reserve’s below-zero (in real terms) interest rates” says it all for me. When you put real terms in parentheses, it is like telling me, as a mountain trekker, about the height of an edge of a windy cliff (in real terms). That’s the beauty of math. Know all of the variables and coefficients in an equation and the output is known. As soon as we have a derivative or a “changing” constant, then the equation just won't balance. Someone is going to have to pull out the eraser and fess up. – Achilles Y. I’m not disagreeing entirely with your point about inflation, but you are comparing apples to oranges when you look at prices today compared with prices of similar goods a year ago. A year ago, the economy was being strangled by government shutdowns blamed on COVID-19. Try comparing today’s prices to prices two years ago, which was NOT a shutdown year. I think you will then have to revise your inflation numbers down significantly. – Fred L. While I’m generally on board with seeing higher inflation, too, we also have a lot of people right now not able to buy services with that same money (or stimulus money). In other words, they’re buying stuff instead of services, “inflating” the same items being purchased. They may not even want some of what they’re buying! A frenzy? We saw this with hand sanitizers last year. They were going for three or four times the normal price. Now, they’re giving the stuff away, so much is available. Freezers, same. Toilet paper, check. Many of the hot items last year are not now, and it’s early days. We’re still in the frenzy. I imagine that’s what we’re going to see in many areas, if not all. – Adam L. When I moved here some 55 years ago, my property taxes were $700. I still live in the same home, and my property taxes now are $4,300, a 600% increase, while my taxable income remains almost the same. – John W. The game goes on until it all crashes. Simple. Some of us will survive and some won’t. Will all the figures, charts, and statistics matter then? Not to us, maybe to historians? – Richard S. Is the equation “unbalanced,” like Achilles says? Is it better to measure inflation versus a non-COVID-19 year? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=The masses will pay the price). 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