Forward, into the past

[Bill Bonner’s Diary]( Forward, Into the Past By Bill Bonner Monday, October 18, 2021 [Bill Bonner] BALTIMORE, MARYLAND – We have been stepping back… back… back… … trying to take it all in. The Big Picture, that is. How come… after more than 2,000 years of learning to make progress… all of a sudden, progress seems to be slowing down… or actually going into reverse? And how come our democracy – the crown of political creation – seems incapable of meeting the challenge? Last week, we were looking at the [headlines from Argentina]( to see where we were headed. After all, what the gauchos don’t know about backing up is probably not worth knowing; they’ve been doing it for decades. In terms of GDP per capita, Argentina was once one of the richest countries in the world. Now, it is number 94, below Turkey and Mexico. The IMF says that even Cuba is richer. And here’s the latest from the Buenos Aires Times: Argentina’s government has confirmed a sweeping voluntary agreement with retailers and business leaders that will see the cost of more than 1,200 household products frozen in a massive pre-election price-control freeze. Get it? Prices, up 37% so far this year, according to the country’s statistics bureau, will be held down… until after the election in November. Recommended Link [The White House… Congress… and Big Tech are all in a panic]( [image]( This has happened quietly… The White House is “racing” to respond. Congress is rushing billions of dollars out the door to stem the bleeding. Big Tech is in a predicament. As one tech analyst puts it, “Everyone is in crisis, and it is getting worse.” Elon Musk says he has “Never seen anything like it.” While Big Tech and the US government are in a panic… A select group of Americans preparing for the trade of a lifetime. Because they know the last time anything close to this happened, investors who acted fast snatched gains as high as 2,900% in one year… 3,700%… and even over 9,000%. [Click here to learn more.]( -- Price Controls Don’t Work We saw a similar headline in the U.S…. 48 years ago: The New York Times, from June 14, 1973: NIXON FREEZES PRICES FOR UP TO 60 DAYS, THEN WILL ESTABLISH PHASE 4 CONTROLS; FARM PRICES, WAGES, RENTS UNAFFECTED Richard Nixon had imposed the fake dollar on America in 1971. By 1973, prices were rising at an 8% rate. What did Nixon do? He commanded them to stay put! Of course, it didn’t work; price controls never do. The controls were quickly abandoned and prices continued to rise… with annual consumer price inflation reaching 11% in 1979. That same year [he was appointed in August 1979], Jimmy Carter appointed Paul Volcker to head the Federal Reserve. Volcker then almost single-handedly [turned things around]( – but only by putting the Fed’s key lending rate up to 18% (now 0.25%) and bringing on the worst recession since the 1930s.. Paul Volcker was America’s last honest Fed chief. And now, it’s too late. The elite have too much to lose. [Featured: Are you ready for Congress’ “Wealth Transfer Act”?]( Economic “Traffic Lights” After so many centuries of trial, error, and adaptation… it is obvious that the best way government can help progress is simply to let it happen. People go where they want. Government just has to make sure the economic “traffic lights” are kept working properly. Honest money, property rights, free markets – it doesn’t take much. And today, our universities turn out far more engineers, scientists, marketers, and managers than ever before. Our capital markets are awash in money; funding is easy to get, even for outlandish and implausible projects. And tech breakthroughs come so fast, we can’t keep up with them. You’d think the economy would be racing ahead, too… and people would be happier than ever. And yet, things seem to be going wrong. [GDP growth rates are falling](. Output is slipping. Freedom is declining. Jackassery is on the rise. The public is getting ripped off by its own leaders. And anger is increasing, as our “[consensual democracy]( is becoming more democratic and less consensual. Recommended Link [Reclusive Best-Selling Author Issues Final Warning]( The Founder of the largest “underground” financial research firm in the world… Has one last warning to readers. [image]( Bill Bonner founded The Agora in 1978. Today – after 40+ years in the publishing business – he’s coming forward with his final warning. And not a moment too soon… With offices in 11 countries… millions of daily readers… and two New York Times best-sellers to his name already… Bill’s latest – and last – warning may be the most important of his career. [Go here for details – and to get a personal message from Bill]( -- How Democracy Works What’s going wrong? Greek philosopher Aristotle said, “Democracy inevitably degenerates into despotism.” Juan Perón, an Argentine, proved he was right. Not by overturning democracy, but by perfecting it. Specifically, Perón showed that being able to fool all of the people some of the time… and some of the people all of the time… …was quite enough. [Featured: The End of the NASDAQ…]( That is, he showed how democracy really works. He proved that with some of the people all of the time (probably about a third)… and all of the people some of the time (especially during election season)… …you didn’t have to worry that you could never quite humbug all the people all of the time. All you needed was a simple majority! And he found them in the sprawl of Buenos Aires… an urban mob ready for a leader. Bribe them… lie to them… cheat them… …and they will re-elect you. Recommended Link [Watch Now: Millionaire’s Horrifying Prediction…]( [image]( Teeka Tiwari – America’s No. 1 Investor – just made an outrageous prediction. Recorded live from his living room couch… He blasts Congress, reveals nasty truths about America… And reveals one technology set to radically change our nation. Already, 400,000+ viewers have checked it out. WARNING: This video may make you furious. [Watch His Urgent Video Now]( -- The Elite Benefit Democracy is not so much a failure as a fraud. It works. But only for the people who control it. It pretends to allow “the people” to call the shots. But in fact, the elites are always in charge… and always use their power to enrich themselves. That is why they can’t “pull a Volcker.” Not this time. Normally, the stock market is equal to about 60% of GDP. But Fed policies over the last 33 years drove up stocks to where they are now, worth more than two times GDP. That extra gain put about $30 trillion of undeserved wealth [into the pockets of the elite]( (the upper 10% of the country). Returning to honest money and free market interest rates would wipe out that $30 trillion. Stocks would drop down to normal levels – about a third of today’s prices. Interest rates would rise back to normal levels, too – with mortgages probably around 7% or 8%. So what do you think the elite will do? “Pull a Volcker,” giving up their $30 trillion to protect the economy? Or continue ripping off the public to protect their wealth? Regards, [signature] Bill --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Forward, into the past). --------------------------------------------------------------- FEATURED READS [The U.S. Economy Is Far From Out of the Woods]( say there is just as much uncertainty now as there was in March 2020 when the pandemic began. The supply chain chaos continues, which is driving up prices, and the Fed’s “transitory” inflation isn’t going anywhere… [Coal and Gas Surges Are Being Felt Globally]( coal prices in China threaten more economic uncertainty for Chinese industry. Additionally, Europe’s gas prices are 350% higher than the start of 2021. European companies are also feeling the heat… MAILBAG A dear reader proposes a solution for America’s “[episodic inflation]( While others share their thoughts on the [failure of the American model]( There is a chance we could fix this mess the Deep State has gotten us into. It is called Article Five of the Constitution. It calls for a convention of states that can add amendments to the Constitution. It completely bypasses the House and Senate lawmakers, and must be ratified by three-fourths of the state-elected officials who are members of the convention. – Dean H. That’s why “democracy” was supposed to be such an improvement… Bill, I am reading Dinesh D’Souza’s United States of Socialism. His views and opinions complement yours. – Judith T. Because we have as a society turned our backs on biblical teachings about what is truly right or wrong, we will have to learn more thoroughly how to “work around” a government that doesn't have our best interests at heart. – Jeffrey P. What might it look like to “work around” the government, as Jeffrey suggests? What do you think the elite will do… return to honest money or continue their charades? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Forward, into the past). IN CASE YOU MISSED IT… [The Truth About Bitcoin [New Bug]]( If you’re a Bitcoin owner sitting on big gains… Or if you still haven’t bought any yet… This may be the most important message you read this year. Because while everyone obsesses over the latest price of Bitcoin… A new bug has emerged behind the scenes in the Bitcoin network and has nothing to do with Bitcoin’s volatility. It runs far deeper and it’s infinitely more dangerous… This new Bitcoin Bug has been discovered by the legendary research firm that predicted cryptocurrency 12 years BEFORE Bitcoin was even created! And now, one of their chief analysts, Dave Forest, has given a full talk on this new bug that could soon stop the growth of Bitcoin dead in its tracks. [Click here to watch the full talk.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. 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