You are receiving this email because you signed up to receive our free e-letter Gilder's Guideposts, or you purchased a product or service from its publisher, Eagle Financial Publications. [Gilder Guideposts] [Technology Report]( [Tech Report PRO]( [Moonshots]( [Private Reserve]( Guideposts: No More Buggy Whips to China Says Top U.S. Agency by George Gilder and Richard Vigilante
04/26/2023 SPONSORED CONTENT [Better Than Oil Stocks]( The best way to profit from energy is NOT a stock... Rather, it's this little-known alternative investment. [CLICK HERE TO FIND OUT MORE]( The United States Department of Commerce, which is credited by many experts with powering the $25.5 trillion U.S. economy with discoveries such as the internal combustion engine, the integrated circuit and fire, continues its bold defense of American business. In a dramatic move, Commerce officials have imposed the largest fine in the agencyâs history, some $300 million, on a U.S. company that secretly sold over 7 million buggy whips to a Chinese company on the âEntity List.â Under strict rules to protect Americans from the Yellow Peril, U.S. companies may sell only to non-entities. Though the buggy whips in question actually were made in China, U.S. officials warned that they were made using âelite U.S. whip technology that must not fall into the hands of the nations identified by the U.S. government as inscrutable.â Commented one official familiar with the matter, âHave you ever read a fortune cookie? There is just no way for us to understand what those people are thinkingâor planning.â Other officials questioned why the Chinese suddenly need 7 million buggy whips. âThey donât even have buggies,â commented one person in the know. âThat raises the question of just what they intend to do with those whips.â Okay, some of thatâs not true. The Department of Commerce did not discover fire. Oh, and it wasnât 7 million buggy whips. It was 7 million hard disk drives (HDDs), which are kind of like buggy whips but shorter and less flexible. The two do have this in common: like buggy whips, HDDs are technology from a prior century, and rapidly disappearing on their way to obsolescence. Once ubiquitous (iPods used them!), hard disks are increasingly relegated to the role of a rarely visited basement, to store stuff you might never need but canât bring yourself to toss. They are scandalously mechanical, with the disk spinning as many as 15,000 times a minute (that would be 250 times a second) underneath a moving read-write head, suspended 10 micronsâone fifth the width of a human hairâabove. Replacing HDDs are solid state memories, which have no moving parts or mechanical risk, read and write many times faster, require less maintenance, last longer, fail less often, and have come down in price so rapidly that soon they will be no more expensive. One reason we added Pure Storage (PSTG) to our investment portfolio was that they were the first major enterprise storage supplier to eschew HDDs altogether and commit to 100% solid state. [The 5 Stages You Need to Know in Order to Invest in Technology Companies]( Investing in technology companies can be somewhat difficult. It always seems like you learn about these companies after they take off. But what if you knew about the 5 stages that every technology company goes through so that you, too, can invest in them before the stock price soars. Our Gilderâs Moonshots publication might be the perfect fit for you. We take a deep dive into all of these companies and use our methods to know when to invest in them. We recommend not only small and micro-cap stocks, but also Reg-A (Pre-IPO) opportunities. [Click here to learn more now.Â]( So, why is the United States banning sales of 20th-century technology to Chinese companies on the Entity List, in this case Huawei? We werenât in the room, but we can guess what happened. Regulations are made to be gamed, and there are few better games than portraying your toughest competitor as a threat to national security. When the persecution of Huawei by U.S. China hawks commenced (on the absurd and soon abandoned premise that Huawei gear was full of tiny bits of spyware that would share your shopping list with Beijing), Huaweiâs competitors must have been thrilled that their mightiest rival might be sidelined. And then, no doubt, the scholarly appearing âwhite papersâ and market surveys were written by the usual consulting firms whose impeccable credentials are rivaled only by their pliability. Long and improbable lists of critical components in Huaweiâs supply chain were assembled, and gravely presented to the Commerce Department. With equal gravity, the Commerce guys, who never met a protectionist measure they didnât love, ordered that, in the name of national security, these deadly devices must never reach the Orient. It hardly needs to be said that these great patriots never ever, ever, even considered how many competing U.S. firmsâCisco, Apple, HPOE, Juniper, Ciena, Infinera to name just a few--might benefit from Huaweiâs downfall. How the lobbyists must have bragged to their clients that Huawei was doomed by their efforts. [Whereâs the Next Stock Market Gravy Train?]( Join our FREE live interactive masterclass for traders and weâll share with you which stocks may be about to explode. [Click here]( now to get access. Alas, the story had an ending the lobbyists probably donât find as delicious as we do. Though Huaweiâs consumer cell phone business was upended by the ban on it using the Android operating system, Huawei remains the worldâs most proficient supplier of telecom network gear, a technology leader, and a great spur to Chinaâs effort to make state-of-the-art semiconductors at home, making U.S. suppliers unnecessary. As Huawei still serves the fastest-growing markets in the world, it will likely outlive and out- prosper most of its Western rivals. U.S. protectionists, once again, have protected only China. P.S. Come join our Eagle colleagues on an incredible cruise! We set sail on Dec. 4 for 16 days, embarking on a memorable journey that combines fascinating history, vibrant culture and picturesque scenery. Enjoy seminars on the days we are cruising from one destination to another, as well as dinners with members of the Eagle team. Just some of the places weâll visit are Mexico, Belize, Panama, Ecuador and more! [Click here]( now for all the details. Sincerely,
[The Editors]
George Gilder, Richard Vigilante, Steve Waite, and John Schroeter
Editors, Gilder's Guideposts, Technology Report, Technology Report Pro, Moonshots, and Private Reserve About George Gilder: [George Gilder]George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives. He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance. George and his team are the editors of Gilder Technology Report, Gilder Technology Report Pro, Moonshots and Private Reserve. To ensure future delivery of Eagle Financial Publications emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list. View this email in your [web browser](. This email was sent to {EMAIL} because you are subscribed to George Gilder's Guideposts. To unsubscribe please click [here](. If you have questions, please send them to [Customer Service](mailto:customerservice@eaglefinancialpublications.com). Legal Disclaimer: Any and all communications from Eagle Products, LLC. employees should not be considered advice on finances. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized advice on finances. Eagle Financial Publications - Eagle Products, LLC. - a Salem Communications Holding Company
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