“Investors” get bitten

[Bill Bonner’s Diary]( “Investors” Get Bitten By Bill Bonner Tuesday, November 30, 2021 [Bill Bonner] BALTIMORE, MARYLAND – And what would you expect? Since the Money Madness began in earnest in March 2020, consumer spending – as measured by real retail sales – has gone up 13.5%. That’s thanks to the feds’ giveaways, stimmies, non-repayable loans, deficits, and other money-shuffling claptrap. According to Say’s Law, real demand (purchasing power) comes from output. In other words, you gotta have something to spend. And you get it by having something to sell (labor, product, service, etc.). In the same period, real output (real personal income less transfer payments) went up, too – but by less than 1%. So demand (based on phony money-printing, not output) rose more than 13 times faster than supply. Recommended Link [We Are Now Living in “Supply Chain Hell”]( [image]( Our world is staring down what may be the worst supply chain crisis in human history. And it’s not something that will just “go away” in a matter of weeks. The previous shortages we saw in 2020 will be nothing compared to what is to come. Bloomberg calls it “Supply Chain Hell.” NPR calls it “Industrial Hell.” The New York Times calls it a “Disaster.” And the true culprit behind this new crisis may surprise you. [Click here to learn what’s causing all this – and how to prepare for what’s coming next](. -- What You’d Expect What should happen under these circumstances? Prices should rise. Which is exactly what happened. Last month, the median price of a new house climbed to over $400,000 – a 27% increase over two years ago. Even by the Federal Reserve’s own inflation mismeasurement, the “PCE deflator” (Personal Consumption Expenditures) – a measure of inflation based on changes in personal consumption – from October 2020 to October 2021, price hikes averaged over 5%. [Featured: Retired yet? You can be, just watch this]( This is the highest reading in 31 years… and more than two and a half times the Fed’s own target. And the PCE deflator for durable goods came in at its highest level in 41 years. This is very gratifying and reassuring to us. Night still follows day. Gravity still holds everything down to Earth, even in Australia. And the law of supply and demand still works. Recommended Link [BIG — December 1st Crypto Prediction]( [image]( Write this date down: December 1st, 2021. According to Teeka Tiwari, voted the world’s #1 Most Trusted Crypto Expert by 130,000 analysts… This could be your LAST CHANCE to capture the biggest potential crypto profits. Teeka has a history of making winning predictions… But this could be his most important prediction yet. [Click Here to Watch Now (#1 Crypto to Own Today Named Inside).]( -- Bonner’s Law Not equal to Supply and Demand, or Say’s Law, but still on the books, is [Bonner’s Law]( and its corollary. Bonner’s Law says that “when the money goes, everything goes.” The corollary tells us that things in the financial world, especially, get a little funky. So, when the Fed added another $5 trillion (no point in trying to be precise, we’re talking trillions here), it was bound to set off some weird stuff. And in these Diaries, we enjoyed laughing at many of them – cryptos, [NFTs]( [Meme stocks]( [SPACs]( [Cathie Wood]( [Elon Musk]( et al. And they keep coming! [Featured: Jeff Brown says “This new technology is Ripping through the financial world”]( From the St. Louis Fed comes news that U.S. bank deposits are up some 33% since the beginning of the pandemic. That’s a lot more cash in search of something to buy. Not surprisingly, the Russell 2000, the broadest measure of U.S. stocks, more than doubled in that time. Since May of this year, Goldman Sachs’ index of money-losing tech companies has gone up 14%. Recommended Link [The 3-Stock Retirement Blueprint]( [image]( When most folks think about making money through the markets, they think “buy and hold.” They think “diversification.” And they think about investing in things like index funds. But one man has a different approach… It’s called the “3-Stock Retirement Blueprint.” It’s a way to play 3 stocks — yes, just 3 — and potentially make more money than you would by trading all the rest of them… Or by using an old-fashioned approach. Sound impossible? [Get all the details here]( — including the names and tickers of the three stocks. [Click here now.]( -- Another Rug Pull And also last week, we learned about yet another “[rug pull]( in the crypto casino. Here’s Benzinga: Avalanche (CRYPTO: AVAX)-based meme coin Snowdog (CRYPTO: SDOG), themed after Dogecoin (CRYPTO: DOGE), which was meant to last only eight days has ended in a rug pull. What Happened: As per a tweet from the project’s handle, on the eighth day after the launch of the coin, a “massive buyback” was to be orchestrated. The buyback was not successful and a single address rugged over $10 million by swapping SDOG for other cryptocurrencies. As near as we can tell, people thought that they would make money by buying a crypto, which was yet another spoof… on the gag known as [Shiba Inu]( (SHIB)… on [the joke by Jackson Palmer and Billy Markus]( known as Dogecoin (DOGE). The “greater fool” approach is as reliable as any other. It rests upon the assumption that there is always someone dumber than you, ready to buy your assets for more than you paid for them. The creators of the Snowdog token weren’t taking any chances. If there were greater fools out there, they would find them. So they put out the word that they were going to spend $40 million buying the coins back in eight days. A “game theory experiment,” they called it. Only someone with an IQ substantially lower than his body temperature would believe such a thing. But many did; the Snowdog token rose to be worth more than $6,000. Then, the insiders quickly exchanged their holdings for other cryptos, taking out some $10 million worth in a matter of hours. This “rug pull” sent the price of the poor Snowdog down 99%. This must have come as a shock to the buyers. The cute little puppy didn’t come when they called it. Instead, it pooped on the carpet, bit the hand that fed it, and took off running. How could it happen, they wondered? But it is a relief to us. God is in His heaven. The queen is on her throne. And investors didn’t get what they expected; they got what they deserved. Regards, [signature] Bill --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=“Investors” get bitten). --------------------------------------------------------------- FEATURED READ [Kellogg’s Workers on Strike, Continue Negotiations with Union]( for cereal maker Kellogg’s are on strike and have been for months. The union has met with the company for negotiations multiple times this year, without a solution. Kellogg’s is moving forward with contingency plans for operation… MAILBAG Dear readers share their thoughts on Monday’s essay, “[Passing the Cup]( and Friday’s missive, “[Give Thanks for the One Percent]( You are so right about this, but we did the best we could at the time. This makes me think about the potato famine in Ireland and religious freedom in other countries that brought us to America. No country has been perfect toward their citizens. I was born in 1937 and have lived through times that should not have been as they were, but the mighty DOLLAR has always been first in most instances. God save our nation, I pray. – Reba W. Bill forgot to mention the over million and a half Northern Europeans that were captured and enslaved by the Turks, North Africans, and Islam. The red heads were considered special prizes. There were coastal villages in Italy that were empty due to the slave raiders. So if remuneration is to be made, that means every one of European ancestry should be paid back first. Or we can go back even further to when the Israelites were enslaved. Or we could adapt, assess, and overcome. Move on to a better future where we don’t owe someone because of what might have happened hundreds or thousands of years ago. Take the knowledge we have gleaned from our living history and put it to use to make us all a better people. All of us should be color blind, as love knows no color. We are still proud to be called Americans, celebrate the blessings we have been given by being born an American, or becoming an American. Our forefathers were not sheeple; they decided what was right and fought for Justice… Oh yeah, they also won. – Debra H. I am thankful for those One Percenters and many others among us who chose to live their lives simply and give back much to help make the world a better place for all. Perhaps all our politicians could pay attention to the commitment reference. Happy Holidays. – Mac M. One dear reader gives their take on COVID-19… As an immigrant to the U.S. I came to this great land for its opportunities and liberty! Tell me this, what kind of pandemic is it when you have to test “healthy” people to find out if they have COVID. If there was a true pandemic, the evidence would have been in our face! Why do you think they locked us up in our homes… so that we “critical (aka free) thinkers” don't get to see the evidence? C'mon now! If you are fearful of COVID and are in the older age group and have existing comorbidities, by all means, do what you need to protect yourself… But don't impose your fear-based decisions on others. In the name of “the greater good,” they are imposing tyranny worldwide. – Abhishek B. And finally, another dear reader asks Bill a question… I enjoy reading your writings and information. With that in mind, why do you not advocate dismantling the Federal Reserve and putting control back to Congress to create Constitutionally sound money? The programs passed by the government really benefit the bankers and very rich that the media never reports and leaves the actual taxpayers left out. Power, profit and control are what it is all about. Climate and health care are the same. Telling the public what they must do. Not what is best for them. – John F. Should Bill advocate for the dismantling of the Federal Reserve, as reader John asks? Is the government really only about “power, profit, and control”? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=“Investors” get bitten). IN CASE YOU MISSED IT… [$3.1 Trillion Bitcoin Technology Found in The Arizona Desert?]( About 240 miles north of the Grand Canyon… Deep in the Arizona desert… A rogue multimillionaire has identified a $3.1 trillion opportunity. Some might call it “a miraculous discovery.” Right now the mainstream media… Wall Street analysts… Or anyone in the general public likely has no clue about this opportunity… But since early investors could soon make a significant amount of money from it… This renowned millionaire investor has given permission to share it with you. [Click here to see the full story.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. 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