MicroStrategy or a Massey Ferguson?

[Bill Bonner’s Diary]( MicroStrategy or a Massey Ferguson? By Bill Bonner Wednesday, July 14, 2021 [Bill Bonner] YOUGHAL, IRELAND – A small item in an English farming magazine tells us that: “Used County 1474 tractor sells for 196,000 pounds ($270,000) in ‘spectacular’ auction… a record breaker.” The “County” is a “Ford conversion” tractor sold in England. This tractor was built in 1983 and sold, new, for £20,597 (about $28,500). Now, it is a “classic.” Even adjusted for inflation, the latest price represents a gain of about $200,000. What to make of it? Why would a used tractor be worth so much money? Can you protect yourself from inflation with tractors? The news brought us hope. We have several old tractors, still laboring in the fields and vineyards after years of service. Maybe one of them is worth something? Recommended Link [Take a good look at this dollar bill…]( [image]( A prominent financial research firm has news for you. This year could be the last time you see one… Radical changes are taking place in the financial system – as we speak. According to the Federal Reserve, a new digital currency could “become systemically important, overnight.” (And it’s not Bitcoin, Ethereum, or any crypto you’ve likely heard of before.) But you can get all the details you need to prepare for this massive change – as well as profit from it… [By learning the full story here.]( -- Broken Records We don’t know, but prices are on the rise almost everywhere. In England, inflation is running at about 2.5% annually – the highest level in three years. And here in Ireland, a young woman we met in Dublin yesterday told us that she and her husband were unable to buy a house, because “prices have just gone crazy.” Small row houses in decent, but not deluxe, neighborhoods sell for more than $1 million. In America, too… inflation is working its way through the vintage record shops… leaving plenty of broken vinyl on the floor. [Featured: Shameful! See What Biden and the Democrats Just Did To YOUR Money]( Asked and Answered This morning, a headline story at The Hill tells us all we need to know: Democrats reach deal on $3.5T price tag for infrastructure bill Whee! You understand… This has little to do with “infrastructure” – which is a local matter – and everything to do with bribing the voters and rewarding the elite special interests that control the government. The Hill continues its report: “Every major program that President Biden has asked us for is funded in a robust way.” [Senate Majority Leader Charles Schumer (D-N.Y.)] The deal will also include funding for expanding Medicare to cover dental, vision and hearing and addressing climate change – key asks from progressives, including [Vermont Senator] Sanders. Right! The “key asks” will get answers. Three and a half trillion of them. And that money, unlike the Federal Reserve’s Wall Street payoffs, will go directly into the consumer economy. For many years, Wall Street has broken records. Now, it’s time for Main Street to crack a few. Recommended Link [Will “New” Currency Trigger Another Stock Price Drop?]( [image]( For over 20 years, expert Dan Denning has exposed the secrets of the 1%. [His latest revelation may shock you]( [Learn more about it here]( -- Inflation Update Which is why we are confident that our major forecast is correct: Like the heat of a summer’s day, inflation readings will rise. Then, expect some severe storms. Here’s the latest from The Wall Street Journal: Inflation Accelerates Again in June as Economic Recovery Continues The Labor Department said last month’s consumer-price index increased 5.4% from a year ago, the highest 12-month rate since August 2008. The so-called core price index, which excludes the often-volatile categories of food and energy, rose 4.5% from a year before. The WSJ is talking about the year-to-year rate. The actual increase from May to June was 0.9% – the biggest one-month increase in 13 years. If that were to continue, it would put the inflation rate over 10% for the year. [Featured: Have a Visa or Mastercard? Get Ready To Shred Them!]( Consumer Pays the Price Globally, most stuff moves around on ships. The Harpex Index tracks the cost of moving it on container ships. The Harpex is normally in the 300-500 range. A year ago, it was at 450. But today, it’s more than 2,600, after going up 290 points in a single week. These costs need to be passed along to consumers. Breitbart describes what happens next: A record share of small businesses say they are raising prices, data released Tuesday showed. The National Federation of Independent Business said that the net percent of small businesses that have raised prices rose seven points to 47 percent, the highest seasonally adjusted inflation since 1981. Ultimately, all costs are passed along to consumers, as they are the source of all wealth… all output… and all consumption. Recommended Link [The dreaded chicken wing shortage of 2021]( [image]( It’s upon us: the chicken wing crisis of 2021. Experts say we have the “lowest wing stocks since 2011.” And it’s made worse by the 2020 air fryer craze. But what has us even more concerned are strange signs popping up across America about your money. Asset expert Nick Giambruno warns that anyone with money in the bank, a credit union, or a retirement account needs to beware. [Watch here.]( -- Wrong Investment But the path of true inflation never runs smooth. There will be ups and downs… broken records… shattered businesses… confusion… misunderstandings… cracked-up investments. When the value of your money changes, you miscalculate. You make mistakes. You invest in the wrong things at the wrong times. You buy [MicroStrategy]( (MSTR) stock, for example… or [Tesla]( (TSLA)… …when you should have bought a Massey Ferguson! Regards, [signature] Bill --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=MicroStrategy or a Massey Ferguson?). --------------------------------------------------------------- FEATURED READS [U.S. Gas Prices Rise Amidst Oil Surplus]( are paying more for gas today than they have in the last seven years. Prices are expected to continue to surge as COVID-19 restrictions are lifted and more people hit the road... [Silver Could Be This Year’s Breakout Metal]( beginning of last year’s pandemic left the silver industry with the largest surplus since 2010. Yet, as many countries reopen and the demand for “the green transition” unfolds, the market for silver will surely be one to watch. MAILBAG Dear readers are weighing in on inflation, the role of central banks, and politics… “Inflation is taxation without legislation.” That’s from Milton Friedman. Not sure if you’ve used that quote before, but thought it was à propos these days. Central banks have announced plans to fight the risks related to climate change. Perhaps if they stopped diluting the value of money and subsidizing (over)consumption with negative real interest rates, it would give Mother Earth a breather. Just a thought. Long live the Diary! – Sébastien P. Inflation, unfortunately, is our only way out of the mess we are in. Cheapening the dollar cheapens our debt burden. The problem for most countries adopting this strategy is that their debt is dollar denominated. The problem for the U.S. is that quantitative easing has significantly replaced long-term debt obligations with short-term ones. The resulting stimulus is great in the short term, but it makes it more difficult to inflate your way out of debt as creditors will demand ever-higher rates of interest. As this phenomenon picks up speed, buyers of U.S. debt obligations will say, “NO MORE,” and the dollar will be dethroned as the world’s reserve currency. Can you imagine the U.S. Treasury having to borrow in Chinese renminbi or bitcoin? At the heart of the problem is the evolution of U.S. values that now find it acceptable to spend money you don’t have. Politicians (Republicans or Democrats) are now certain they will get fewer votes by saying, “We must tighten the belt,” than if they say, “I’ll give you free education, health care, and the like.” One of Thomas Jefferson’s “Rules of Conduct” was “Never spend money before you have it.” At the time Jefferson wrote that, the vast majority of the populace would have agreed with him. Today, I bet only 30-40% would. Being frugal is not popular anymore. Free stuff is much easier than sacrifice. – Steve H. I can’t tell you how much I enjoy reading your commentary daily. It is such a breath of fresh air, with honesty, thoughtful narratives, and superb writing. Many thanks, and hopefully your wine equals your Diary! Can’t wait until it arrives. – Louisiana L. Should politicians spend money on social services even if they’re not affordable or create national debt? Do central banks have a social responsibility to invest in protecting the climate? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=MicroStrategy or a Massey Ferguson?). IN CASE YOU MISSED IT… [Wall Street veteran admits: “At this rate, the America we love might cease to exist”]( Teeka Tiwari moved to America at 16 to chase the American Dream… By age 20, he had become the youngest VP at one of America’s largest investment banks. He loves this country. But he also says the America he knows and loves is crumbling… Our freedoms are under attack from Washington, Wall Street, and some of the most powerful corporations on the planet. The only solution? A new "Liberty Code" that’s minting up to 25,000 millionaires per month… And that could finally bring real freedom back to America. [Click here to find out more.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. [image]( [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [image]( [The Trader’s Guide to Technical Analysis]( [image]( [The Ultimate Guide to Taking Back Your Privacy]( [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. 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