At the mercy of the foxes

[Bill Bonner’s Diary]( At the Mercy of the Foxes By Bill Bonner Friday, June 18, 2021 [Bill Bonner] YOUGHAL, IRELAND – Our subject today has a little of everything – ambition… betrayal… idealism… cynicism… democracy… revolution… corruption… you name it! But today’s setting is not the USA. Still, we will turn to the U.S. media for a big surprise, before taking up our parable. Here’s a rare event… where the reporter got the story almost right. The Hill: Biden approaches economic point of no return …Inflation grew by 5 percent last month, the sharpest increase in 13 years. American families have noticed, with prices of gas, building materials, cars and food shooting upward significantly. Inflation is a scourge with a simple solution, but one the Biden administration feels it cannot afford: cutting spending and money-printing at the Federal Reserve. The latest inflation numbers are a blaring red warning sign that is both valuable and honest - it is the last point in which President Biden can put the brakes on before the specter of 10 percent (or higher) inflation. The elite control the government. And most of the money the feds print goes to them. Giving it up would mean huge losses. Stock and bond prices would be cut in half, as money-printing and rate-rigging came to an end… Earnings would be reduced, too, as boondoggle programs were trimmed back. And now, so much of the economy has come to count on ultra-low interest rates and stimmy money, the feds can’t “taper” off. Instead, they have to provide more and more fake money… until the whole system blows up. [Inflate and Die]( in other words. Recommended Link [“Strange Division” In the Market…]( [image]( “The largest, fastest change” we’ve seen… Tiger 21, a club of 800 ultra-rich investors, recently started hoarding cash. “We see no easy way out,” warns Bank of America. Jeff Bezos–the world's richest man – recently dumped $4.3 billion in stock. What is going on? The alarm bells are ringing. And what you do NOW will determine your future. Jeff Brown–arguably America’s most accurate investor–reveals [the strange “division”]( happening in the market right now… [Watch This Urgent Briefing Now]( -- Cunning Foxes A return to “normal” won’t happen voluntarily. But once you have corrupted your economy and your political system, it almost never does. And so, we come to our marvelous story. What a delight! It caresses our cynicism so tenderly… and demonstrates our theory of government. In a small, early democracy – like a New England town – a government may be run “for the people” and “by the people.” But in a larger setting, it doesn’t take long before a small group gets control. They are the people the great Italian economist, Vilfredo Pareto, called “the foxes.” They manipulate elections… They “sponsor” candidates… They run for office or lobby the legislators… promise pay-offs, contracts, and giveaways… and control the media and the bureaucracy themselves. They become a more or less permanent “deep state”… using the government itself to keep themselves in power. Usually, the process is hidden behind empty slogans and claptrap politics. But sometimes, it becomes as plain as day. [Featured: Caught on Camera: Tesla Car Shocks Everyone]( Pacific Paradise And so it has… in the bright sun of the Central American isthmus between Costa Rica and Honduras… between the Pacific and the Gulf of Mexico… …somewhere between paradise and Hell. There, on the Pacific coast of Nicaragua, where the sea breezes keep the temperature from getting too hot… we’ve had a vacation house for many years. [The location is stunningly beautiful](. The people are charming, gentle, and nice. And it is far enough from the capital, Managua, to avoid getting involved in politics. Surfers surf… fishermen fish… retirees lounge by the pool… and neighbors gather in the evening to watch the fat, tropical ball sink into the vast Pacific… But in Managua, the president – Daniel Ortega – huddles with his henchmen in his guarded compound… and goes over the list of those he will arrest next. The Wall Street Journal reports: Daniel Ortega, who is seeking a fourth consecutive term as Nicaragua’s president, has launched a broad campaign of repression, according to analysts, human-rights activists and Western governments. Recommended Link [Cell Phone Owners Beware]( [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.]( -- Iron Circle Danny Ortega’s clique of insiders – the “iron circle” – is in a trap, too. It has to use naked force in order to stay in power. And the more violence it uses… the more people are appalled… and the more violence it must use to keep them in line. Mr. Ortega was once a world improver, too… fighting, he said, for a freer, fairer society. Had he been in power in the 1960s, he might have taxed banks to support his activist agenda. Instead, he robbed them and was put in the hoosegow in 1967. He stayed in jail for seven years, until 1974, when a group of revolutionaries – called “Sandinistas” – crashed a Christmas cocktail party in fashionable Managua and took hostages. It was in order to liberate the hostages that the dictator of Nicaragua at the time – Anastasio Somoza – agreed to let Daniel Ortega go free. Then, the Sandinistas went on to chase Somoza out of the country. [Featured: 10-Second Trading Demo Stuns Everyday Americans]( World Improver Turned Dictator And after losing power… and then regaining it as a more modest “Christian, Democratic, Socialist” candidate, Mr. Ortega, now 75, holds power… and has become a dictator himself. His family owns the TV stations. Opposition is outlawed. And just to be safe, he recently began arresting everyone who looked as though they might pose a threat – including Hugo Torres. As Ortega stifled dissent, almost all his old comrades turned against him. Torres was one of the commandos who liberated Ortega from jail and later led the Sandinista army against the American-financed “contras.” But last Sunday, Ortega’s cops closed in. Remarkably, Torres was able to send out a video before they put the cuffs on: Today’s paradox of life is that someone who abandoned his principles, Daniel Ortega, the man I helped free 46 years ago, is now my captor. If Mr. Torres had been able to see what was coming, he might have thought twice about joining the Sandinistas in the first place… “Does it really matter who rules Nicaragua?” he might have asked himself. Or, at least, he might have left Daniel Ortega behind bars. Government is never “all of us,” he might have realized. Some rule and some are ruled. The key is not who rules, but how much ruling he can get away with. Recommended Link [“This Will Be the Hottest Ticker of 2021”]( [image]( Anyone who doesn’t buy this ticker will most likely regret it. Experts are projecting gains as high as 458% by the end of this year… Even Forbes has confirmed that when all is said and done, “a new class of millionaires may emerge.” Unfortunately, a recent study shows that only 3% of retirees have invested in this opportunity. That means a lot of people will miss out. Don’t be one of them. [Click here and get the ticker now… no strings attached.]( -- Vicious Circle Mr. Ortega has been ruling – in the name of the people, of course – for the last 14 years. He has no intention of giving up now. Which is okay with us. We don’t much care who rules… or what they call themselves. Democrat. Republican. Sandinista. Communist. It doesn’t matter; we just don’t like anyone telling us what to do. After working so long and so hard – and robbing banks is dangerous work! – Ortega must figure he deserves whatever power he has gotten. And there’s no reason some jumped-up Democrat should be allowed to take it from him. But the more Ortega rules, the more he must rule, in order to remain the ruler. The poor man is trapped. If he permits a free and fair election, he will most likely be defeated. Then, he will be at the mercy of the foxes, too. Regards, [signature] Bill --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=At the mercy of the foxes). --------------------------------------------------------------- FEATURED READS [Louisiana Is First Democratic State to End COVID-19 Unemployment Benefits]( state of Louisiana has defied the Democratic Party’s continued COVID-19 efforts, and will end the $300-per-week extra federal unemployment benefits at the end of July. The only other states that have decided to do so are led by Republican governors... [Oil Prices Are Headed Up]( is a volatile energy sector. Currently, prices are increasing… so Casey Research analysts break down how you can profit… MAILBAG Dear readers chime in on Bill’s recent essay, “[Inflate AND Die]( Thanks for providing some sanity as the body politic stumbles along, trying to figure out what is really going on in the real world of economic truths. Your elucidation of the truths about inflation are spot on, in my opinion. To add to your explanation, an ole professor of mine once said that wet sidewalks do not cause rain. Thus, trying to figure out inflation by looking at prices is useless. – John H. This weekend, I had the fortunate experience to a most remarkable individual. I put his age at around 80 years old, a successful lawyer, with an office in New York City and another in London. He explained that his undergraduate degree was in economics, at the University of Chicago. As we were discussing many topics on this day, he recalled that he and his college mates were playing Bridge one afternoon, back while attending the University of Chicago, and another student dropped in. This student explained that a man named Milton Friedman was going to lecture that evening about how inflation was caused by an increase in the money supply! As these students were all economics students, a bruhaha erupted about this crazy new theory. They all went to attend and listen to this “crackpot theory!” Based on this gentleman’s age, this must have taken place in the 1950s. I further explained that I followed the Austrian School of Economics, a devotee of Ludwig von Mises, and the conversation drifted to many economic topics. We finished the meeting with fear and loathing about the impending inflationary mess now in front of us… – Girard P. I really enjoy all your columns and look forward to each one. I especially love your sense of humor, your humility, and your ability to accept criticism, especially when it is unwarranted. I was particularly amused at the way you began your column, which reminded me of a famous quote from President Woodrow Wilson: “If I am to speak for 10 minutes, I will need a week for preparation; if 15 minutes, three days; if half an hour, two days; if an hour, I am ready now.” Apparently, that holds true for writers, too! Keep up the great work! – John F. What are your thoughts on the U.S. inflation conversation? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… [Dr. Ron Paul’s New Warning for Every American]( The former U.S. Presidential candidate and 22-year Congressional veteran is back with a brand-new message every American needs to see today. “Most Americans will be completely blindsided by what’s about to happen. So please, make sure you, your family, and anyone you care about are prepared,” he says. Dr. Paul explains what he believes is coming... plus the #1 first step every American should take to prepare right now. [Click here for details.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. 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