Let’s drink to the hard-working people

[Bill Bonner’s Diary]( Let’s Drink to the Hard-Working People By Bill Bonner Tuesday, August 31, 2021 Raise your glass to the hard-working people Let’s drink to the uncounted heads Let’s think of the wavering millions Who need leading but get gamblers instead Spare a thought for the stay-at-home voter His empty eyes gaze at strange beauty shows And a parade of the gray-suited grafters A choice of cancer or polio – Salt of the Earth, The Rolling Stones [Bill Bonner] YOUGHAL, IRELAND – So many jackasses. So little time. We don’t know which one to laugh at first. Labor Day is coming up. So let us continue honoring the laboring man… the salt of the Earth… the rag-taggy people, who make the lattes and drive the trucks. Upon his sweaty brow, the gray-suited grifters press down their thorny claptrap. And upon his back, they place the whole burden of their goofy plans. Federal Reserve top dog Jerome Powell is howling for something he calls “maximum employment:” We have much ground to cover to reach maximum employment, and time will tell whether we have reached 2% inflation on a sustainable basis. He thinks everybody should be schlepping or toting, bussing… or hod-carrying, helping us dig our way out of the hole he has dug for us. He believes his policies are the key to getting us all on the job. Recommended Link [Unlike Anything You Have Ever Seen Before…]( [image]( Jeff Clark calls it the “3-Stock Retirement Blueprint.” It’s a way to play 3 stocks and potentially make more money than you would by trading all the rest of them… His method is unlike anything you have ever seen before… And it’s being unveiled for just $19. That’s the lowest price EVER offered for a trading research service… but hurry, it may not be available for long. [Get all the details here]( – including the names and ticker of the three stocks. [Click here and watch this 10-second “live demo”.]( -- Wrong Reasons And then, there’s AOC, who thinks Powell should be replaced… for all the wrong reasons, of course. She thinks she knows what laboring people should be laboring at. MarketWatch reports: A group of progressive House Democrats, including Rep. Alexandria Ocasio-Cortez of New York, on Monday called for President Joe Biden to replace Fed Chairman Jerome Powell when his term expires in February. In a joint statement first reported by Politico, the lawmakers urged Biden “to re-imagine a Federal Reserve focused on eliminating climate risk and advancing racial and economic justice.” We have no trouble imagining a Federal Reserve focused on “eliminating climate risk” (whatever that means) and “advancing racial and economic justice” (whatever that is). But it gives us a shiver. These old guys and gals had one main duty – protecting the integrity of the U.S. dollar and its financial system. They made a total mess of it – with the country now up to its neck in debt… and headed into deeper water. Imagine the damage they could do if they were turned loose to improve the world’s weather… its race relations… or its “economic justice.” [Featured: New Investment “Craze” Hits All 50 States]( Vicious Cycle And continuing in this delusional direction, perhaps the wackiest of all comes from economists themselves. Business Insider reports: It’s inequality that dragged interest rates lower, not the other way around, NBER researchers said Friday. […] The Fed has taken flak for the [low interest rate] trend, with economists warning that near-zero rates worsen inequality. But what if that narrative is wrong, and the wealthy are behind rates’ steady decline instead of the Fed? The conventional argument should be flipped on its head, according to a study published Friday by the National Bureau for Economic Research. Wealthy Americans’ booming income powered the decades-long decline in interest rates, economists Atif Mian, Ludwig Straub, and Amir Sufi wrote. That downtrend then lifted stocks and most recently powered the market’s rebound from 2020 lows. “It is a vicious cycle, and we are stuck in it,” Mian wrote in a Tuesday tweet. In other words, it may not be the Fed’s fault, which means it will be much harder to solve. Huh? Who paid for that “research?” Recommended Link [The Great Bitcoin Meltdown Is Coming]( [ad_img]( “If you suspect Bitcoin is going to crash, I just want you to know, you’re right.” – Jeff Brown Prepare now, and get rich later… [Here is the truth about Bitcoin that no one else will tell you.]( -- Problem Solved? The Fed has spent $7.5 billion every day for the last 18 months – $4 trillion in total – intentionally pushing down interest rates by buying bonds. That is, for every dollar the working stiffs created in the real economy (GDP growth), the Fed printed more than three dollars and fed it into the financial industry. The wavering millions saved their pennies. But they got nothing for their efforts. After inflation, they lost money on their savings accounts. And how long does this trio – Mian, Straub, and Sufi – think real interest rates would stay below zero if the Fed announced an end to its price-fixing, money-printing, market-meddling policies? Ten seconds? Two minutes? In a flash, stocks would crash and about [$30 trillion of fantasy stock market wealth]( would disappear. The “inequality” problem – solved. [Featured: (Bizarro World) Facebook set to launch new cryptocurrency?]( The rich would be a lot less rich; the salt of the Earth would be, relatively, richer. And with no open spigot at the Fed, all of a sudden, millions of people would be desperate for money. They would have to line up at the only tap left to them – the real savings of real people, not the fake money of the Fed. Interest rates would go “to the moon.” It would be like a scene at Kabul airport. Chaos. Confusion. With investors desperately trying to exit their risky speculations… and no buyers on the other side to take them out. Recommended Link [Buy This Ticker Now: Projected To Jump 458%]( [image]( With experts projecting gains as high as 458% by the end of this year… If you don’t buy this ticker, you may regret it later. Forbes has already confirmed that when all is said and done, “a new class of millionaires may emerge.” [Click here and get the ticker now… no strings attached.]( -- Lazy Youth Returning to Mr. Powell… As we saw yesterday, [labor force participation has been going down for 20 years](. Apparently, there are a lot of people who aren’t much interested in participating in the workaday world. But why is that any of Powell’s concern? (We recall, mischievously, that the “maximum employment” record for modern times is probably held by Nazi Germany. There were no idle hands in that devil’s workshop! Almost everybody was required to contribute to the war effort… including millions of Poles, French, and Jews held in slave-like conditions.) In today’s world, people seem to be schlepping less than ever before. And the youngest members of the proletariat seem to like labor the least. More to come… Regards, [signature] Bill --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Let’s drink to the hard-working people). --------------------------------------------------------------- FEATURED READS [Democrats urge Pelosi, Schumer to Extend Eviction Moratorium]( after the Supreme Court rejected Joe Biden’s latest moratorium protecting renters, progressive lawmakers asked to extend it. House Democrats already extended the bill earlier this summer. Will they get their way again? [Federal Reserve to Taper Stimulus Later This Year]( chair Jerome Powell says the central bank will begin tapering its economic stimulus later this year. But when the tapering begins, interest rates will rise on homes, student loans, personal loans, and even credit cards… MAILBAG One reader has thoughts on Bill’s essay, “[Some Things Are Best Left Alone]( … There are no places where centralization has worked, you say? Hmmmm… What about China? They’re doing pretty well, and the greatest civilization of them all was a top down central planners dream: Ancient Egypt. Pharaoh was in charge, and all orders came down from him. He was the ultimate chief central planner. – Andrew D. Meanwhile, other readers respond to yesterday’s Diary on labor and taxes, “[Love of Labor Lost]( This whole idea that less than half of the households pay income tax is a hoax. Since the Nixon administration, the payroll tax goes in the same pot as income taxes and is counted the same for spending and deficits. Everyone that actually works for a paycheck pays payroll taxes which are about 15% from the first dollar up to about $120k. People that make money only by capital gains and dividends don't pay payroll taxes. The other situation is for young people that work a summer job, for example, often don't earn enough to pay income taxes but must file to get the refund for what was withheld. For a family with two young students this could be two tax returns out of the three total filed by the family or 66%. Of course the two young students did pay the payroll tax with no refund. – Paul L. The best solution to unfair taxes on working/non-working layabouts, rich or poor, is to just cancel income taxes altogether and use the freshly printed dollars to pay for all of the government requirements. There, no more complaints about taxes. Done. – Lyndon B. Lastly, one reader praises Bill for his home renovations… Beautiful “weekend” projects, Bill. I can only dream of being away from the Florida heat and in my ancestors’ hospitality. Good for you and yours! – Miguel C. What will happen to interest rates if The Fed announces “an end to its price-fixing, money-printing, market-meddling policies”? Why do you think labor participation has been trending downward for the last 20 years? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Let’s drink to the hard-working people). IN CASE YOU MISSED IT… [Forget Bitcoin: Here’s the #1 way to trade]( Bitcoin is DEAD! Because there’s a NEW way to trade. - It can pay far more than cryptos… - Trades can cost as little as 1¢… - Warren Buffett made $12 billion with the idea behind this technique… One of these odd trades even shot up 183% in one day! Readers across two services saw the chance at a rare 4,942% gain with one 19¢ recommendation. 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