Who could have seen that coming?

[Bill Bonner’s Diary]( Who Could Have Seen That Coming? By Bill Bonner Friday, November 19, 2021 Fish gotta swim Birds gotta fly Rain gotta fall And it’s gotta go somewhere – Bill Bonner, with apologies to the writers of Showboat [Bill Bonner] BALTIMORE, MARYLAND – When you see someone setting fire to a federal building, shouldn’t you say something? And what if the matches and gas can are in your own hands? The Federal Reserve printed up nearly 5 trillion brand-spanking-new dollars between August 2019 and today. Surely, there must have been at least one alert economist among the 1,000 Ph.D.s on the Fed’s payroll who noticed that they were about to cause the whole economy to go up in flames. But what was he thinking? Was he thinking at all? This was classic monetary inflation on an unprecedented scale. Never before had any government “printed” so much money in such a short period of time. But nowhere in the history of the economics profession is there an instance where such prodigious effort on the part of the money-printers led to genuine prosperity. Instead, many centuries of history show us that monetary inflation leads to price inflation… which then leads to bubbles and busts… confusion… and finger-pointing. And if it’s not stopped, it can lead to hyperinflation, depression, hunger, poverty, riots, and revolution. Recommended Link [[Urgent] message from Bill Bonner…]( [image]( The world-wide lockdown kept Bill at his ranch in northern Argentina for much of 2020. But it didn’t slow him down one bit... Now, he’s releasing a very special book – his last. If you’ve enjoyed Bill Bonner’s Diary over the years – or even if you are new to Bill’s work… You’re going to love this special message about Bill’s latest book… [Click here to find out more.]( -- Obvious Question The finger-pointing was on display on the front page of The Wall Street Journal yesterday: President Calls for Inquiry Into Price of Gas. Biden, in letter, alleges wrongdoing by energy firms. There will be a lot more finger-pointing… as the real culprits try to divert attention from themselves. But… our aforementioned Ph.D… Shouldn’t he have asked the obvious question back when it started? “Uh… Chairman Powell… I hate to be a Debbie Downer… but we’re, like, pumping $5 trillion into the economy. That’s, like, nearly a quarter of annual GDP. “Uh… What is supposed to happen? I mean, isn’t it likely to cause some… well… distortions?” Fish gotta swim. And dollars gotta buy something. And therein hangs the answer to the one question Fed economists should have asked… …along with another they should be asking now. [Featured: Introducing: The 3-Stock Retirement Blueprint]( Obvious Outcome Supply chain disruptions were relatively unknown back in March 2020, when the spree of money-printing began in earnest. Now, they’re as common as strip malls. How came they to be? When the offices, restaurants, and bars closed, people turned to their home computers… found that they had stimmy money from the feds in their accounts… and determined to spend it. Some ordered consumer goods. But since America doesn’t make much anymore, these had to be shipped from the other side of the world. And in a few months, the ships were backing up in the harbors… docks were stacked with containers… and trucks labored night and day to deliver them to every Middlesex, village, and town in the country. Hence, the “[supply chain disruptions]( It seems so obvious, now. Shouldn’t our man at the Fed have seen it coming? Recommended Link [Former Tech Executive Issues Urgent Plea]( [image]( "I'm not trying to scare you... But for many people - life is about to take a very strange turn." [Click to Hear His New Warning.]( -- Deadly Combination Then, shipping rates soared. Trucking costs, too. And so did prices on some items that were in short supply… as well as on other items that were plentiful. Milk, eggs, bacon… gasoline… houses. The supply of houses doesn’t change much, month to month. But by September of this year, [new house prices in the U.S. were up 18%]( over the year before. And as prices bubble up… so do mortgage rates, a deadly combination for new homeowners. Prices for investment assets also caught a bid. [Zombie companies]( [meme stocks]( [NFTs]( cryptos, options – people who didn’t know an option from a hole in the ground a year ago are now seasoned “day traders.” Tesla (TSLA) has doubled since this time last year. Grant’s Interest Rate Observer tells us that on November 5, the price-to-earnings (P/E) ratio of the S&P 500 went over 40 for the first time in 21 years. And at the beginning of the month, Grant’s reported that there were some 528 special purpose acquisition companies (SPACs) with blank checks, looking for acquisitions. Wasn’t that, too, completely predictable? After all, the money had to go somewhere. Shouldn’t our man at the Fed have said something? [Featured: A message from Jeff Brown on the hottest investment in 2021]( Big Quit Perhaps less foreseeable… but with so much liquidity weeping from the clouds, many people just decided to stay home permanently. In what came to be known as the Great Resignation, some 4.4 million workers went AWOL, in September alone. And then businesses, eager to meet the increased demand, found they had to pay higher wages and benefits to keep their workers happy. Our friend David Stockman tells us that the latest Employment Cost Index figures show labor costs rising at a 6% annualized rate. Compensating workers is the number one expense of U.S. industry. So, any rise in labor costs is important… and must be passed along. It is also the most “sticky” of cost increases. Prices for raw materials may go up and down, but once an employee gets a raise, it is hard to take it back; there’s nothing “transitory” about it. Recommended Link [“Sorry, U.S. taxpayer”]( [ad_img]( “I’m sorry, America” Those are the exact words of the former U.S. government official at the epicenter of a terrible mistake. This mistake is already destroying the lives of millions. Wealthy elites – including former President Trump himself… Barack Obama… Bill Gates – all look to be moving into position to avoid the fallout. [Click here to learn what they’re doing – and how you can stay safe yourself.]( -- Benefit of Hindsight And thus it was that prices rose… not for any mysterious reason, but for an obvious one – people were buying stuff. But not with real money that they earned (which would have increased the supply of goods and services as well as the demand for them). They were spending fake money delivered unto them by the Fed. It would have taken years of advanced study… and perhaps at least a master’s degree in economics… not to see it coming. And so, we’ll prompt our Ph.D. friend at the Fed. Here’s a question to put to your comrades now: “Well, what did you expect?” Regards, [signature] Bill --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Who could have seen that coming?). --------------------------------------------------------------- FEATURED READS [CVS to Shutter 300 Stores, Transition to More Digital Presence Starting 2022]( spring 2022, CVS says it will close 300 of its drugstores and transition some of its customer experience to more digital platforms. It will also streamline remaining store models to fit the needs of each community… [Venture Capital-Like Returns for Everyday Investors]( trend gaining traction is private investing – for everyday, Main Street folks. Because of a change in SEC rules, you could start investing alongside the wealthy in lucrative deals. Longtime angel investor Jeff Brown explains how… MAILBAG Following [Bill’s essay on the end of the COVID-19 panic]( readers are weighing in… I have no issue with an individual’s right to choose not to take the vaccine, but the medical community does not have the right to deny that person care should COVID strike. If you choose not to take reasonable risks to protect me, I should not have to take obvious risks to treat you. Stay home and save the bed for someone who did what they could to protect others. – Chris K. Meanwhile, the climate change debate continues… Not everyone agrees with everyone on everything. That is probably a good thing. Global warming and climate change. The woman whose reply you printed mentioned the way the climate was going. The EPA did a great job back in the late ’60s and early ’70s of holding companies' feet to the fire to pollute less. We have waterways that have fish and can be used for swimming, land under trees, etc. We have come a long way, should we endeavor to improve. But not at the whim of politicians who know only two things, tax and spend. Keep writing. I won’t always like what I hear but it challenges me to look at my position to defend it properly. – Roger S. There's far more danger to human habitat on the planet from an asteroid than Global Warming. No money or government power in that. Must say it is nice to see quiet cars and interesting inventions using electricity but hate those ugly windmills. – Steven L. Lastly, readers question the state of the economy, the government, and where America ends up… This whole economy rests on the premise that the Fed has complete control of rates; what they say, goes. When will this end? Can this end? Is there no “wrath to come” short of divine intervention? Could an economic war from China or Russia take it all down? Can the Fed ever lose control, after all, it’s a relatively young organization, right? – Russell R. Vote for Bill. Your government does nothing to look after the people. Governments have no morality. Control the people. We are their milk cows. Follow the money. Repeated lies are still lies. Wise up. – John L. Does Bill’s writing challenge you to look at your position and defend it, as Roger S. says? When did the U.S. government give up on morality? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Who could have seen that coming?). IN CASE YOU MISSED IT… [Billionaires, Banks in Frenzy for One Crypto]( This is a “BUY Before SKY HIGH” warning… Seven billionaires including Elon Musk, Mark Cuban, Peter Thiel, Mike Novogratz, and Marc Andreessen… Along with major banks like JPMorgan, UBS, and Goldman Sachs… Are all racing into one smaller cryptocurrency… (Not Bitcoin.) In 2021 alone, this small crypto soared 4X FASTER than Bitcoin… And over the next decade, this crypto could be worth more than Apple, Amazon, Google, and even Facebook… If you only buy ONE CRYPTO… This is the one you want. [Get the Crypto Name FREE (The #1 Must-Own Crypto).]( [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 Gold Investor’s Guide]( [image]( [The Trader’s Guide to Technical Analysis]( [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. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. 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