Worst. President. Ever. And It Ain’t Biden...

A complete screw-up… [Morning Reckoning] May 18, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Worst. President. Ever. And It Ain’t Biden… - He supported Prohibition and brought in the dreaded income tax. - He created the Federal Reserve. - He dragged the U.S. into a World War. Who is this man? [Is this the Dems biggest scam yet?]( It all started with [Executive Order #14066 passed by President Biden.]( Millions of middle-class Americans are already at risk… and they don’t even know it… Biden’s policies have set us up for an unprecedented summer ahead. [Are you prepared for Biden’s biggest blunder to date?]( Because thanks to the dems' latest scam I believe we are headed for trouble in the coming days. You need to learn how to prepare for the looming Biden Blackouts set to spread across the country. [C]( here right now]( pay very close attention.]( [LEARN MORE]( Jacksonville, Florida May 18, 2023 [Sean Ring] SEAN RING Hi Reader, Good morning from Jacksonville International Airport, where I’m waiting for my flight to Atlanta. And from there, I’ll fly all the way to Milan. What a wonderful time it’s been here! I got to meet most of my colleagues, who are some of the best people I know. We’ve closed the bar down in the Jekyll Island Resort Club every night. Brian Maher, the venerable editor of the Daily Reckoning, has been instrumental in that endeavor and excellent company to boot. Sitting down with Jim Rickards, Matt Insley, Doug Hill, Zach Scheidt, Dan Amoss and Byron King for our Whisky (no “e,” thank you very much!) Bar was a fantastic experience. We'll let you know as soon as we finish editing the film on that. Our very own Miss Moneypenny, Lydia England, deserves all the credit in the world for organizing the event. Dustin Weisbecker, Patrick McKelvey, Frank DeVechio, Jonathan Eaton, Amanda Stiltner, Brian Damario, Rick Barnard, Emily Graham, Chris Harris, Ben Gurtshaw, Marilyn Herbst and Zach Fowler all deserve immense gratitude for their hard work behind the scenes. Thank you! If I missed anyone, please forgive the unintentional omission. At this grand old hotel and resort, we got to absorb history. And while I was mulling over the Fed, the history started to come together… Dinner, Two Nights Ago Paradigm’s very own Gandalf the Grey, Byron King, and his lovely wife, Barbara, are a treat to spend time with. We shared a great dinner at Eighty Ocean Kitchen and Bar on the ocean side of Jekyll Island. I remain amazed by the quality of conversation whenever I’m with Byron. And as you’d guess, Mrs. King is just as erudite and intelligent as her leading man. Oh, and she’s beautiful, too! To top it off, we somehow wound up with an Italian native as our waiter. Being a native Tuscan, Alex ribbed me about choosing Piedmont over his impossibly beautiful region. Byron and Barbara left after dessert while I stayed behind to imbibe more of the American ales with the rest of the Paradigm crew. Snacks, Yesterday Afternoon I went down to the Pantry to say goodbye to Matt Insley, who was rushing back to Maryland to see his newborn daughter. (Congrats to the whole Insley family!) Luckily, I ran into Byron and Barbara and sat down with them for about 30 minutes. And boy, did that clear up a few things. I told Byron, “You know, we’re here talking about the Fed and everything that entails. But Woodrow Wilson was a mess. He also introduced the Fed, Prohibition, and dragged us into World War I!” Byron looked at me seriously and added, “And don’t forget about the income tax!” [New “WiFi Crypto” Token is Going NUTS!]( Only a handful of crypto investors know about this… But there’s a tiny, affordable device… That’s paid investors real crypto – every day, with zero work… Just for having a working WiFi connection! It sounds crazy, but it’s true… And [this 3:28 video]( explains everything. [Click here to view it NOW](. [LEARN MORE]( Temperance and the Tax (1913) Of course! The [Second Plank of the Communist Manifesto]( was introduced in 1913 as well. How Wilson is ranked in the Top 10 of Presidents is beyond my comprehension. Byron went on to explain the situation. I’ll paraphrase his wise words. Well, Wilson was a supporter of the temperance movement. But you have to realize something. At the time, the US government took up only 3% of GDP. Not 13%. Not 33%. Only 3%. That 3% was funded this way: One-third came from tariffs. One-third came from selling postage stamps. And the final third came from taxes on alcohol. But if you’re going to “temper” - or cut out altogether - your ability to tax alcohol, you’ve got to come up with something else. That’s why the income tax was introduced. An astute reader like you may be thinking, “Hang on, the income tax (1913) preceded Prohibition (1919) by six years. How could the income tax be a result of Prohibition?” Great question. The short answer is that the temperance movement cut into the revenues. Prohibition was merely the codification of what was already happening on the ground. Government revenues from alcohol sales experienced a significant decline before Prohibition was introduced. The temperance movement gained considerable momentum in the late 19th and early 20th centuries, driven by concerns about the social, moral, and health impacts of alcohol consumption. As a result, many states and localities started implementing restrictions on alcohol sales and consumption. This led to a decrease in alcohol production and sales, subsequently reducing the revenue generated from alcohol-related taxes and fees. Add to it that several states had already implemented their own prohibition laws before the 18th Amendment (Prohibition) was ratified. These state-level prohibition measures, often referred to as "dry laws," further restricted or banned the sale and production of alcohol within their jurisdictions. Of course, government revenues from alcohol sales declined even before the nationwide implementation of Prohibition. The declining revenues from alcohol, coupled with the growing influence of the temperance movement, contributed to the overall push for Prohibition at the federal level. But we’ll get to Prohibition later. Let’s review Wilson’s enormous mistakes first. The Federal Reserve Act (1913) We’ve beaten this horse to death this week. But, after that fateful November 1910 meeting here on Jekyll Island, President Wilson signed what would become known as the Federal Reserve Act of 1913 [with his four gold pens](. Entry Into World War I (1917) Wilson campaigned for re-election in 1916 on a platform of maintaining neutrality and keeping the United States out of World War I. So much for that. What contributed to his decision to enter the U.S. into the war just months after his re-election? Let’s count the ways: - German submarine warfare: Germany's use of unrestricted submarine warfare, which targeted and sank both military and civilian ships, played a significant role in shifting public opinion and Wilson's stance on the war. The sinking of the British passenger liner RMS Lusitania in 1915, resulting in the loss of American lives, had already strained U.S.-German relations. - The Zimmermann Telegram: In early 1917, the British intercepted and decoded a secret telegram from German Foreign Minister Arthur Zimmermann to the German ambassador in Mexico. The telegram proposed a military alliance between Germany and Mexico, with the promise of supporting Mexico in reclaiming lost territories from the United States. The revelation of this telegram further fueled anti-German sentiment and outraged the American public. - Public opinion and pressure: While Wilson campaigned on a platform of neutrality, there was a growing segment of the American population, particularly among certain influential groups and the media, that supported U.S. intervention in the war. Over time, public sentiment shifted, and there was increasing pressure on Wilson to take a more active role in the conflict. - Economic interests: The war presented economic opportunities for the United States. As the conflict continued, American businesses saw profits from supplying goods to the Allied powers. Wilson likely recognized the potential economic benefits of U.S. involvement in the war, as it could boost the American economy and position the country as a major player on the world stage. - Wilson's naive idealism: Wilson believed that the United States had a unique opportunity to shape the post-war world and establish a lasting peace. He developed his vision, known as the Fourteen Points, which outlined principles for peace. This included self-determination for nations and the establishment of a League of Nations. Wilson saw U.S. intervention in the war as necessary to achieve his vision and ensure a just and lasting peace. Whether Wilson walked us into the war or he pushed us, is inconclusive. Ultimately, it was a combination of factors that got us into the conflict. Prohibition (1919) My grandfather was born in 1919. I’m so glad I wasn’t around for this tomfoolery. During his presidency, Wilson publicly expressed his support for Prohibition. He saw it as a moral duty and an opportunity to promote social order and increase productivity, particularly during World War I. Wilson believed that banning alcohol would help conserve resources, maintain discipline among the troops, and bolster the war effort. While Wilson didn’t actively push for the amendment himself, his endorsement and influence helped sway public opinion and create political pressure on state legislatures to ratify the amendment. The ratification of the 18th Amendment in 1919, which prohibited the manufacture, sale, and transportation of alcoholic beverages, Prohibition became the law of the land. Of course, Prohibition did not go as planned, leading to unintended consequences such as the rise of illegal activities and the growth of organized crime. Thank heavens the ban on alcohol was eventually repealed with the ratification of the 21st Amendment in 1933. Wrap Up How Woodrow Wilson is considered anything other than a complete screw-up is beyond my comprehension. He was a warmongering, income-taxing, central banking monster. And he deprived the citizenry of a stiff drink as he did all this! Oh, the shame of it all. The Federal Reserve vexes us daily. The income tax redistributes your hard-earned cash to someone else every April 15th. And you can certainly argue America’s interventionist, itchy trigger finger is a direct descendant of Wilson’s damn fool crusading. At least, we can have a martini. Perhaps we can reverse some of his other awful decisions one day. Let me know what you think by emailing me [here](mailto:feedback@dailyreckoning.com). See you next week! All the best, [Sean Ring] Sean Ring Contributing Editor, The Morning Reckoning feedback@dailyreckoning.com Twitter: [@seaniechaos]( [Biden Just Signed Death Warrant On Your Freedom]( [Click here to learn more]( If Biden’s Executive Order 14067 comes to pass, a former advisor to the CIA and Pentagon is predicting legal government surveillance of all US citizens; total control over your bank accounts and purchases; and indefinite Democrat control past 2024. He says Covid was a trial run for how to control a population. Dems will use their “pandemic playbook” to silence any dissent. [Click here to see exactly what to do before it happens](. [LEARN MORE]( In Case You Missed It… Godfather of AI Issues a Warning Greg Guenthner, Editor [Greg Guenthner] GREG GUENTHNER Good Morning Reader, The hype surrounding artificial intelligence is getting out of control. I figured choppy market conditions would put a lid on some of the crazier AI discourse pundits have tossed around since these stocks first started running earlier this year. But it’s only getting worse. Every day, I stumble across a new hot take on the market’s latest fad. AI will improve our efficiency, destroy menial office tasks, and make millions of jobs obsolete. It will write music, make movies, and solve complex scientific and medical problems. It will be the best — and worst – technological development to ever happen to humankind. That’s probably why former Googler and media-proclaimed “godfather of AI” Geoffrey Hinton is calling for a six-month moratorium on artificial intelligence research in order to better learn to contain it and avoid its negative consequences… Is this a bit extreme? Perhaps. But when it comes to AI, I just assume that no one knows what the heck they’re talking about. That’s why it’s so important to break down the price action of the mega-cap players and the pure-play stocks to determine where we are in this bubble cycle — and what to look for next. [Urgent Notice From Paradigm CIO Zach Scheidt!]( [Click here to learn more]( Hi, Zach Scheidt here… I’m the Chief Income Officer at Paradigm Press. With inflation raging (and showing no signs of coming to an end any time soon), almost everyone in America is feeling the pain in a big way. Which is why, several months ago, I set out on a big mission… my goal was to create a [complete, step-by-step plan to surviving and beating inflation]( one that anyone could take advantage of. Today, after hundreds of hours of research, I’m revealing all of my findings. [Simply click here now to see how to survive America’s deadly inflation crisis](. [LEARN MORE]( Google Joins the Party Tech growth stocks attracted renewed interest during the January snapback rally, which helped kick off the artificial intelligence bull that has quickly become the go-to micro-bubble of 2023. The AI bubble was so powerful during its January explosion into the mainstream that it even tore down tech giant Alphabet Inc. (GOOG). You probably recall the hubbub surrounding Bing’s partnership with ChatGPT, which some tech analysts were quick to declare a Google killer. Investors took the bait, and GOOG shares fell nearly 20% from their pre-earnings highs in February before finding a floor. Meanwhile, Microsoft (MSFT) and NVIDIA (NVDA) shares blasted off as management hyped their involvement in the AI space. [We discussed two important points as this story emerged during the first quarter:]( - GOOG’s quick fall from grace was likely a knee-jerk reaction to the AI hype cycle. - The stock should be viewed as a bounce candidate if and when it finds support above its year-to-date lows. Google crashing to new lows just didn’t make sense barring a broader market move to the downside. Sure enough, the stock carved out a bottom by early March and rallied back to its February highs by the beginning of the second quarter. Following a 30%-plus rally off those recent lows, GOOG is posting an even bigger breakout. [chart] GOOG has managed to survive earnings season and play a little catch-up with its AI competitors. Last week, CEO Sundar Pichai unleashed a laundry list of AI advancements coming to its platforms at the company’s developer conference. The financial media ate it up, declaring that Google is no longer playing AI defense to Microsoft. The positive reception sparked a massive rally, prompting the stock to jump more than 10% last week to new eight-month highs. More importantly, GOOG has finally cleared a base the stock has been building since late last year. GOOG lost as much as 45% of its value since topping out in late 2021, spending the entire next calendar year locked in a vicious downtrend. That’s now in the rearview as shares vault higher – and not a moment too soon. GOOG was lagging its mega-cap counterparts up until last week’s breakout. Apple Inc. (AAPL), MSFT, and NVDA have all locked into strong uptrends this calendar year. Even Tesla Inc. (TSLA), which topped out in February, has bested the averages by a wide margin. GOOG was the final piece of the FANG+ puzzle. For better or worse, We’re currently seeing mega-caps dominating the market right now — whether they’re playing the AI hype game or not. [“Could Outpace Bitcoin In 2023” – The Motley Fool]( Bitcoin is on a tear. At its peak, a $2,500 investment at its March 2020 lows would’ve been worth as much as $31,150. And that explosive growth doesn’t appear to be stopping any time soon… Fortune Magazine reports Bitcoin is set to hit $100,000 this year. But as great as that is, one hidden crypto is poised to run even higher… One hedge fund expert says it could overtake Bitcoin as the most valuable crypto in 2023. [Click here now for the full story](. [LEARN MORE]( What About the AI Bubble Basket? The AI pure plays were all the rage during the first quarter. What happened? C3.ai Inc. (AI) is the poster child with the perfect ticker. We’ve closely tracked the stock as it shot up more than 200% at the beginning of the year. But it has yet to perform in the second quarter. In fact, it showed signs of trouble as it failed a big test at $20 last week. [chart] AI was hit hard in April by an analyst short report that raised some serious questions about the company’s accounting practices. That decline continued until a brief bounce earlier this month, which appears to be running into some trouble back at $20. That’s an important pivot where the stock consistently found support as it consolidated its January rally. The bulls are getting a little reprieve early this week thanks to AI announcing it will beat top-line estimates. The stock is back above $20 for now, but will need to extend beyond the lower end of its Feb. - April consolidation zone if it’s going to make another run. It’s possible we’re simply dealing with some sloppy trading action due to choppier conditions in the broad market. But I wouldn’t rule out a bigger move lower, either — especially if the major averages lose their footing. We’re also not seeing a ton of action down the cap scale. The smallest artificial intelligence names aren’t playing nice. Most are caught in wide, sideways ranges. The best hands off approach to AI is to stick with the major players until frothier conditions resurface. The Global X Robotics & Artificial Intelligence ETF (BOTZ) we discussed earlier this year continues to look constructive. It’s a much better bet than most of these broken speculative plays. What do you think? Will the AI bubble continue to inflate? Or is it destined to burst before it even gets off the ground? Let me know what you think by emailing me [here](mailto:feedback@dailyreckoning.com). Best, [Greg Guenthner] Greg Guenthner Contributing Editor, Morning Reckoning feedback@dailyreckoning.com Thank you for reading The Morning Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Sean Ring] [Sean Ring, CAIA, FRM and CMT]( is a former banker and financial educator and is the editor of the Rude Awakening. Sean has trained interns and graduates from Goldman Sachs, Morgan Stanley, Citi, Bank of America, Standard Chartered Bank, DBS (Singapore), the Abu Dhabi Investment Authority (ADIA), Bank Indonesia (the central bank), HSBC, Barclays, RBS, and BlackRock. He knows the global economy is being corrupted by forces that most people can't understand and has used his unique and worldly experiences to help people navigate the markets. [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your The Daily Reckoning e-mail subscription and associated external offers sent from The Daily Reckoning, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@dailyreckoning.com. 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