Jim’s Mailbag

It’s been a while. What are you thinking? [The Rude Awakening] May 23, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Jim’s Mailbag - How does Scotch get into America? - Why does money-printing lead to trade deficits? - Second passports and citizenship. [External Advertisment] [Central Bank: “Final stage” beginning now]( The end is near… Our financial system is about to be transformed in a way that would’ve been unthinkable just a few years ago. And almost nobody is prepared for the chaos that follows. According to Bank of America, this overhaul is imminent – And Dr. Nomi Prins says the final stage begins in July, with the rollout of the FedNow system. To show you everything you need to know about the FedNow system – and to help you prepare – Dr. Prins has recorded a free presentation with all the details. It’s controversial, but Nomi’s interview is a must-watch for anyone with more than $2,500 in an American bank or retirement fund. [Click here to find out what you need to do to prepare for this historic transformation](. [Click Here To Learn More]( [Sean Ring] SEAN RING Dear Reader, Good morning from a summer-like Northern Italy. Today’s issue is long, so I’ll keep my intro short. William S, I’m dedicating tomorrow’s entire Rude to your question, because it’s essential, and I can flesh out more of the topic. In today’s Rude, we see there are plenty of “Jims” who wrote in! First Things First Please ask Sean to explain how he went through JFK security and boarded with two bottles of Scotch. It seems to me that they would have to go in checked baggage or be confiscated. Jim C. Hi Jim! Any traveler entering the United States (and most other countries, as I recall) can buy two bottles of alcohol in Duty-Free and bring them through. Duty-Free shopping comes after you check in your bags and before you get to your gate. My mistake was putting the bottles in my carry-on bag, and that’s why security went through my bag. They don’t get confiscated, though I could see by the look in her eyes that my security checker was sorely tempted to take them! Our Politicians Help Themselves, Not the Citizenry "The great Austrian economist Murray Rothbard didn’t think the Fed should exist, let alone be charged with such an important task. By manipulating the money supply and interest rates, Rothbard believed that the Federal Reserve interfered with the market's natural ability to price goods and services, consequently contributing to boom-bust cycles." Our corrupt politicians are constantly interfering with the market's natural ability to "price goods and services." So, while the Fed may have a bigger hammer, politicians are constantly hammering to help themselves and their cronies that keep them in power. They're all in the kitchen. Jim T. Hi Jim, Yes. Yes. And yes. I don’t have much to add to that other than saying the free ride may end soon - especially if we see a few more hikes in quick succession. Dollars and Deficits Every time I read an educational piece, it just raises questions that sit unresolved in my brain until I trip over that thought again. So I kind of understand what you are writing about, as I have seen it before. But there are some basics that I don’t understand, so I am going to choose one. You wrote: On the one hand, the global economic community demands an ample supply of reserve currency for international trade and financial transactions. This means the country issuing the reserve currency (the US, in today’s case) would need to run large trade deficits, essentially supplying the world with its money. Why does it follow that we need to run a large trade deficit? Can’t the USA hold the currency of other countries in exchange for US Dollars? Or, is that simply going to break down because of the floating nature (severe deflation by money printing) of the other countries' currency? Couldn’t the USA demand that the other countries' currency be backed up by that country's natural resources or other assets? This could be like a USA Belt & Road. Possibly giving more USD away but getting something in return. I know I’m not smart enough to think up something new, so the question becomes are we doing this in some form already, or is it a non-starter for reasons I don’t yet understand? Jim T. Hi again! To do this as simply as possible, I’ll use bullet points. - Foreign country (FC) wants USD to trade with. How do they get it? - FC makes “stuff” that Americans want. - Americans buy the “stuff.” - FC gets the USD. The US imports loads of “stuff” in exchange for USD in the above scenario. In fact, it’s usually far more “stuff” than other countries buy from the US. A trade deficit is when imports are larger than exports. Below is the US trade deficit from the [Bureau of Economic Analysis]( [SJN] The US can and does hold the currencies of other countries. But you don’t want too much of that because those currencies are only helpful when buying that country’s stuff. A great example of a country having too much of another country’s currency but not wanting any of that country’s stuff is [Russia concerning India](. If the currency you’re holding breaks down by money printing (that’s inflation, by the way), it’s much worse. That’s because you can buy less and less of the other country’s stuff. The US wouldn’t demand any other country back up their currency with real stuff, like gold. If Switzerland did that, the entire world would dump their dollars for Swiss Francs. It’s far likelier the US would invade Switzerland than ask them to back their currency with gold. Remember, the US isn’t “giving away” dollars. It’s printing $100 for $0.17… but getting $100 worth of goods from foreign countries. That’s why it’s called the “exorbitant privilege.” [Over 62 And Collect Social Security? Take Action Immediately!]( [If you’re over the age of 62 and currently collect Social Security, you need to prepare now](. Because Biden has given our country the worst inflation in decades – and many warn things will only get worse from here. Worse yet, the Social Security check you receive now may not keep pace with inflation… [Which is why, if you don’t act now, you could fall behind in the months ahead](. Is your retirement at immediate risk? [Click here now to get the simple, step-by-step actions to survive inflation](. [Click Here To Learn More]( Oh, Henry! Sean, While I am not a fan of Kissinger, your lack of understanding of what was going on in the Vietnam War, I assume, is a function of your age. The NVA used Laos and Cambodia as sanctuaries to attack ARVN and American troops daily. Hell, the Ho Chi Minh trail ran through Laos and into Northern Cambodia. Without their presence in those two countries, they would have struggled to supply their troops in South VN and have lengthened the war even further. Lastly, there were communist forces in both countries: the Pathlet Lao and Khmer Rouge. While there was no formal declaration of "war" both countries fought internal battles against these forces, as well as the NVA, and to claim that our bombing these combatants was a "crime" ignores the fact that the whole region was at war. We fought in Vietnam for more than a decade and yet a state of war was never declared. Killing the bad guys before they kill you isn't a crime. Fighting a war for all the wrong reasons is a crime. Walter B. Walter, thanks for writing in. You make some excellent points. But we can call the “Domino Theory” a failure, as Southeast Asia didn’t become a communist hotbed after the US withdrawal. So your final sentence is the one that sticks with me the most. Just as a side note, this is what the [World Bank has to say about Vietnam]( whose economy is now growing faster than China’s: Thanks to its solid foundations, the [Vietnamese] economy has proven resilient through different crises. GDP growth is projected to ease to 6.3 percent in 2023, down from 8% in 2022, due to the moderation of domestic demand and exports. Vietnam's economic growth is expected to rebound to 6.5 percent in 2024 as domestic inflation could subside from 2024 onward. This will be further supported by the accelerating recovery of its main export markets (U.S., Eurozone, and China). Second Passport Sean, Can you explain how a second passport (Italian, I assume) allows one to move to Italy? How does one go about getting such a passport and why does a passport allow one to actually move to Italy? I’m naïve on this, can’t anyone just fly to Italy on a USA passport, let’s say, and buy a house? Thanks. Do you find Italy to be a simpler place and time? Very interested because I have thought about moving to Italy, but I doubt it will ever really happen. I’ve never even been there! Jim T. Hi Jim, To get a passport to any country, one must become a citizen first. There are a few ways of doing that. - One is by right of blood (in most European and Asian countries); - another is by birthright (the US); - citizenship by investment is another option (Caribbean and some European countries); - yet another is by naturalization (moving to the country and staying there for a set number of years); - and finally, by marriage (which I only recommend if you’re really, really sure). I got mine thanks to my paternal grandparents, who were Italian. It takes a while, and you’ve got to organize many documents, such as your birth certificate, marriage certificate, and your ancestors’ birth, marriage, and death certificates. Americans can buy a house in Italy, but crazily, that doesn’t guarantee a residence visa! That’s why I recommend having a good specialist lawyer guide you through the process. Italy is less consumer-oriented than the States, but it’s still got all the modern conveniences of the US. With better food and wine, I hasten to add! Come visit. You’ll love it. Wrap Up Lots of Jims wrote in, and I thank them for it. And thanks to Walter, as well! Have a wonderful day! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening In Case You Missed It… “DeSantis Made Me!” Cries Disney [Sean Ring] SEAN RING Dear Reader, Good morning from a soggy but sunny Asti. We’ve had crazy amounts of rain in Italy. You may have read about the floods in Emilia-Romagna. Luckily, we haven’t been hit here in Asti. But the ground needs a respite to soak up all the water before more rain comes. I landed in Italy on Friday. I’ve never been so grateful. Delta switched out our plane at the last minute for a vintage model. I wasn’t sure if we’d make it all the way across the Atlantic. I think I heard Princess Leia ask, “Would you like me to get out and push?” But we made it without incident, thankfully. Pam picked me up at Milan Malpensa airport, and then we drove 90 minutes to our apartment. My days and nights are still upside down, but I’ll get over it. And I’m still missing my Paradigm peeps and looking forward to our next offsite! Of course, when I checked my Twitter feed, various bits of nonsense were scrolling before my eyes. But the biggest load of horsefeathers came from leftist Twitter, supposedly celebrating how Disney halted a $1 billion investment in Orlando and a 2,000-person move from California. Liars. Yes, they are liars. How do I know this? One, DIS’s financials aren’t what they used to be. And two, the YouTubers have been killing DIS for ages now. YouTubers Know All Pam and I often watch YouTube to escape when we’re not traveling. We’ll watch videos of all the places we want to go to… and the places we’ve been if we feel nostalgic. The other big thing I watch YouTube for are the movie trailers and reviews. And there are no better reviewers than [Nerdrotic]( [The Critical Drinker]( and [Ryan Kinel](. They have pilloried DIS for their awful live-action remakes, ignored lore, and politicized screenwriting. Much of what I write about today comes from their research. I thank them wholeheartedly for their hard work. But first, let’s recap the “feud.” DeSantis Pulls Disney’s Special District… and Then Gives It Back. I’ll do this in bullet points to make the chronology easier. - In March 2022, the governor signed into law the Parental Rights in Education Act, often referred to by critics as the “Don’t Say Gay” bill. This perfectly sensible legislation prohibited classroom instruction and discussion about sexual orientation and gender identity in lower elementary school grades. - Disney said nothing, which pissed off its employees. Next, then-CEO Bob Chapek made a cringe, groveling apology to his employees and promised to be a better ally. He was later fired anyway. - DIS’s special district, formerly known as the Reedy Creek Improvement District, allowed the theme park to make its own decisions on the planning and permitting process for construction on its property, to levy taxes to pay for its own fire and medical response services, and even to generate some of its electricity. This saved the company untold millions. - DeSantis pulled the special district from Disney… until he realized taxpayers in Orange and Osceola Counties would have to pay for Disney World services like fire protection, policing, and road maintenance. The district also carried roughly $1 billion in bond debt, which would have been transferred to the counties. - So… DIS still has its district, renamed Central Florida Tourism Oversight District. But Governor DeSantis appoints the members of the tax district’s five-member oversight board. - DIS rewrote some covenants into the new agreement that circumvented the new board’s power. - The State of Florida nullified the agreement. Then, on May 17th, DIS canceled a long-planned office complex and a move of 2,000 California-based employees to Florida. Of course, the left media blamed this on DeSantis. But DeSantis spokesman, Jerry Redfern, kicked Disney right in the goolies. He said, “Given the company's financial straits, falling market cap, and declining stock price, it is unsurprising that they would restructure their business operations and cancel unsuccessful ventures.” Ouchy! Is Redfern correct? Yes, I think he is. [The U.S. is Turning RED!]( This map shows [a disturbing global trend]( you NEED to know about… [CLICK HERE To See When the U.S. Will Turn Red]( As you can see… Right now the U.S. is still “yellow”… But thanks to a sinister move Biden just made… The U.S. could soon “turn RED”! And if that happens… Every dollar you own could be made worthless – or even confiscated. [Click here NOW to learn how to protect yourself before the U.S. turns red](. [Click Here To Learn More]( Iger, Feige, and Kennedy Are Still in Their Seats Last November, I wrote, “[Disney Should’ve Fired Feige and Kennedy, Too!]( I stand by that post and would double down. Bob Iger was reinstated as CEO when Chapek was fired. Iger had been the Executive Chairman after vacating the CEO’s seat in 2020, leaving Chapek to hold the COVID bag. Kevin Feige is a spent force. [Marvel Phase 4 sucked](. And Kathleen Kennedy doesn’t know her ass from a hole in the ground. It proves that just because you were Spielberg’s secretary doesn’t mean you’ll become Spielberg one day. She’s just awful. The Force is not, in fact, female. The Force is something Kennedy doesn’t feel at all. Her next plan is for yet another Rey Palpatine/Skywalker movie no one wants, needs, or asked for. And we haven’t even gotten to Pixar, 20th Century Fox, or the rest of DIS’s holdings. But let’s get financial. Look at this chart. [chart] You don’t need to be a technical analyst to see that the chart goes from the upper left to the lower right. DIS stock lost 44% in 2022. It’s up about $4 year-to-date. Disney Plus lost 4 million subscribers in the last three months. [Willow and many other titles are gone.]( Hulu and ESPN+ are unprofitable. Allegedly, Disney Plus lost the rights to the Indian Premier League (Cricket) in 2022. Somehow, that loss is only hitting them now. Outside of India, the subscriber count grew by 600,000. Pixar, Marvel, and Lucasfilm should be written down. These pieces of intellectual property aren’t worth what they used to be. But to write them down would be an enormous admission of failure. It’s scary, but have a look at these stinkers: Pixar and Disney Animation Pixar’s Lightyear was just one big flop. The movie, about the Toy Story character, just wasn’t what Toy Story fans wanted. It lost $106 million. Worse was Walt Disney Animation’s Strange Worlds. That lost $197.4 million. I know. I haven’t heard of it, either. M-She-U [All girls and no boys]( make the Marvel Cinematic Universe (MCU) a dull world. It seems no one watched Ms. Marvel, She-Hulk, or Hawkeye (which was more about Clint Barton’s replacement than his character). The Marvels movie will surely flop, as did Black Widow, Shang Chi, and Ant-Man and The Wasp: Quantumania. Guardians of the Galaxy: Volume 3 was supposed to be the “big win” Disney needed to get the MCU back on track. It has grossed about $657 million worldwide. But with Fast X in the theaters now, it’ll have a tough time getting to $800 million. Star Wars I won’t write about the woeful sequel trilogy. It sucked, and the world knows it. As do most of the Disney Plus Star Wars shows like The Mandalorian and Obi-Wan Kenobi. But Disney has now decided to nix the Star Wars Galactic Starcruiser hotel at Disney World. From [The New York Post]( Fans reacted to Disney’s decision to shutter its ultra-expensive Star Wars-themed luxury hotel, which boasted rooms that ranged from $6,000 for a two-night stay for a family of four to an eye-popping $20,000 for a “tricked-out suite.” The “Star Wars” Galactic Starcruiser hotel, which opened in March 2022 at Disney World, said Thursday it will close its doors on Sept. 28 — less than two years after opening — amid struggles to fill the 100-room facility. One user on Reddit said: “Hmmmm…so you mean to tell me that Disney opened a crappy, cinder-block hotel filled with bad cosplay, cheap sets, silly acting theatre, basic arcade games, cell-like beds, and bland space windows, charged $5,000+ for a two-night stay…and somehow, this did not attract the average person into purchasing said experience enough to keep it afloat?” Kathleen Kennedy destroyed this intellectual property. Indiana Jones Speaking of Kennedy destroying IP, Indiana Jones is next. Harrison Ford got an emotional standing ovation before the movie began. The ovation for the film itself was tepid at best. Bored viewers were whispering in French throughout the showing. That’s what happens when you start the movie with a drunk Indiana Jones looking over his divorce papers. An 80-year-old getting divorced in 1969? Piss off… The live-action remakes are awful. From The Little Mermaid to Peter Pan and Wendy to Aladdin, the live-action remakes are primarily flops. They’re made for modern audiences, except no one wants to watch them today, especially when overconfident writers change the plot completely. Wrap Up Disney is producing crap content, and it’s paying for it. Put simply, not as many people watch Disney shows and films as they once did. Blaming DeSantis for canceling a move is cunning, designed to take the heat off. But ultimately, it’s untrue. DIS just has bigger fish to fry, and it’s got to conserve as much cash as possible. Office moves are luxuries, not necessities. Have a great week ahead! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( [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. 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