A Decade Lost

The trouble is that the people in power now seem to have no clue about the source of the problem or the fix. [Gilder's Daily Prophecy] May 19, 2022 [UNSUBSCRIBE]( | [ARCHIVES]( URGENT: Intelligence Briefing [Click here to learn more]( When I began to circulate my thesis of an impending market meltdown in 2006... Washington failed to warn the American public of what was to come. That’s why I’m reaching out to you directly with [my latest thesis and intelligence briefing.]( The cracks in the financial system are already starting to show... With major indices down 20% from their peaks. However... This is just the beginning. So please, [click here to view this intelligence briefing before its too late.]( It’s come to our attention that you might be missing out on extra benefits exclusively for Gilder's Daily Prophecy subscribers. Check out our website where you can find archives, updates, and everything else included in your subscription. You can access it by [clicking here now](. A Decade Lost [Jeffrey Tucker]Dear Daily Prophecy Reader, The year began with promises that the bad times would end soon. Inflation would subside. Financial markets would calm down and start rising again. Supply chains would fixing themselves. Markets would normalize, just wait and see. Now we are headed to the summer of our discontent. Headline writers have begun competing with each other for just how dreary they can be. The Wall Street Journal yesterday went all out, predicting a “lost decade” for financials. But the message was even broader: it will take another 8-10 years to straighten all this out. We might add: if it ever gets straightened out. The trouble is that the people in power now seem to have no clue about the source of the problem or the fix. The ignorance is truly astonishing. It would appear that several decades of miseducation in every field (from economics to history to biological science) have taken their toll. The miseducated youth eventually got jobs and rose up the ranks to be in charge. Now we have utterly blind leadership in every sector. Always More Force A good example was on display this week with the great baby formula fiasco. Shortages had been growing for months but they became ever more intense. The administration ignored the problem for as long as possible. But the online cry from new moms became absolutely deafening. Finally government decided to act: by invoking the Defense Production Act. It’s a dangerous tool because it essentially takes control of private industry. And yet, a hundred years of central planning should have taught us that you cannot make products and services magically appear merely by waving around an edict. Plus, there is a vast regulatory thicket governing baby formula. The FDA has to approve and monitor its production in the name of safety. They don’t do this for any other food or drink sold at the store but because this involved babies, the FDA presumes it to be their purview. With that of course comes corruption. The FDA has approved only three large companies to make it, and the program called WIC further distorts the market because it too massively subsidizes the cartel. So when one producer, Abbott, became concerned about one of its plants, it used the cautionary principle and shut it down. The FDA took its own sweet time to reauthorize the opening. I’ll stop with the details here: suffice it to say that this was a massive disaster in the making. So here we are in the land of plenty and suddenly, seemingly out of nowhere, the babies can’t get food! Cross the border to Mexico and the shelves are full of product. Same anywhere in the world. This is a U.S. problem, owing to our disastrous deep state. So what does Biden do? He invokes the worst-ever Cold War emergency law, to mandate that planes fly formula into the U.S. from abroad, but that too faced a problem because laws and regulations strictly control these imports. So the administration is working to liberalize that too. Trouble is that none of this will happen in time. The fix is likely months away. The very clear answer here would be to simply free the market. Let all kinds of producers jump in right away, with the full knowledge that this is not rocket science. Another option would be to allow imports of all kinds immediately. Even without any edicts, and enough of a profit opportunity, the market would be cleared in a matter of days. But no! For these people the answer is always and everything the same: more force! The Metaverse Story You’re NOT Hearing… Everywhere you turn, people are raving about the Metaverse. Facebook’s now called Meta. Microsoft’s CEO says, “The Metaverse is here.” Apple’s all in too. But there’s a critical piece of the Metaverse story you’re NOT hearing about… [Click here now for the full details](. The Poor Fed All financials are now under intense pressure. By now, the usual response by the Fed would be to support the markets. But look at where we are: the Fed is babbling on and on about how they are dedicated to crushing inflation by reducing their balance sheet. So you have a stated policy at war with a long-practiced policy. How will this be resolved? If anyone expects bravery from the Fed at this point, they haven't been paying attention. We can fully expect some sporadic interventions day to day from the Fed with various attempts to protect against plunges, in the hope of walking down the highs more gradually than the market wants to go. This is because the Fed truly does fear contagion. Meanwhile, inflation is running loose as never before. Gas price pressures are rising. It is now running $5..50 in parts of Massachusetts, for example. Food prices have started to rise again. Rents are way up. Meanwhile, defaults in cars and housing loans are already starting to make an appearance. What a world: load defaults amid inflation and falling financials! No one is prepared for what this reality could mean for American life. And what is the administration’s answer? Publicly, it is nothing but prattle about making the rich pay their fair share. The new White House spokesperson stumbled very badly on this point. She tried three times but failed to explain how raising taxes fixes inflation. Meanwhile, the more radical voices in the party have already started pushing price controls in the form of anti-gouging legislation, exactly as we predicted last fall. This is absolutely certain to happen: no strict and legislated prices (not yet) but just threats not to raise too many prices, too fast! No History, No Future Yesterday we wrote about the tragedy that people cannot learn from history. Check this weird and not-at-all unexpected news from the WSJ this morning: “Consumers with low credit scores are falling behind on payments for car loans, personal loans and credit cards, a sign that the healthiest consumer lending environment on record in the U.S. is coming to an end. The share of subprime credit cards and personal loans that are at least 60 days late is rising faster than normal… Delinquencies on subprime car loans and leases hit an all-time high in February.” Will cars be the new version of housing in 2008, a trigger that causes financial disruption in all lending markets? Maybe, but housing is not off the hook either. Commentators today are utterly mystified how slowing sales can coincide with continual rising prices. Gosh, no one can explain this, hahaha! What sector will be hit next with the brutal effects of the great bust? If we really are talking about a lost decade, we have a very long way to go before this ends. Regards, [Jeffrey Tucker] Jeffrey Tucker P.S. Just minutes ago, an ex-CIA insider “broke rank” and released a [shocking video]( It contains details of a plan from an institution with close ties to the government that could destroy the lives of millions of Americans at or near retirement age. I believe Washington would do anything to bury this story. That’s why I’m sharing it here. If you own any stocks, bonds, cryptos or mutual funds, I urge you to [watch this now](. Because come midnight tonight. it could already be too late. [BREAKING: Elon Musk Bets Big On One Crypto. Click Here Now For The Details.]( [Three founders Publishing]( To end your Gilder's Daily Prophecy e-mail subscription and associated external offers sent from Gilder's Daily Prophecy, feel free to [click here](. If you are having trouble receiving your Gilder's Daily Prophecy subscription, you can ensure its arrival in your mailbox by [whitelisting Gilder's Daily Prophecy](. Gilder's Daily Prophecy is committed to protecting and respecting your privacy. 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