LOVINGSTON, VIRGINIA – Stocks show little movement. Investors are waiting for something to happen.
Corporate earnings have been going down for nearly three years. They are now about 10% below the level set in the late summer of 2014.
Why should stocks be so expensive?
Oh, yes… because the Trump Team is going to light a fire under Wall Street.
But they must be wondering about that, too.
Raising up stock prices – as we’ve seen over the last eight years – is not the same as restoring economic growth and family incomes.
And as each day passes, the list of odds against either seems to be getting longer and longer. As the petty fights, silly squabbles, and tweet storms increase, the less ammunition the administration has available to fight a real battle with Congress or the Deep State.
“Goldman Stock Hits Record on Bets Trump Will Unleash Wall Street,” reads a Bloomberg headline.
Goldman Sachs is a pillar of the Establishment, with its man, Steve Mnuchin, heading the Department of the Treasury. So a win for Goldman is not necessarily a win for us.
“Unleashing” suggests a win-win deal, as in allowing the financial industry to get on with its business. But there are different kinds of “unleashings.”
Some things – like Dobermans – are kept on a leash for a good reason. Unleashing the mob… or a war… might not be a good idea, either.
Untying Wall Street from bureaucratic rules is at least heading in the right direction. But it will only benefit the Main Street economy if Wall Street is doing business honestly, facilitating win-win deals by matching real capital up with worthy projects.
That, of course, is what it is NOT doing. It is a Deep State industry aided and abetted by the Fed’s fake money.
The “capital” (really, money out of thin air) it helps allocate is fraudulent… provided to the elite at preferential rates by the Fed banking cartel. That leads to a whole host of fraudulent transactions, losing propositions, and win-lose deals.
The public has to borrow money at twice the interest rates of the elite in business, finance, and government. Why? The risk is lower.
If Goldman or GM gets into financial trouble – even with their favored lending rates – the feds bail them out. If the man in the street is unable to pay his mortgage, he loses his house.
This unfairness is at the heart of today’s economic system.
It’s also the source of the discontent felt – but maybe not fully understood – by the masses and the current administration.
The typical household has less earned income today than when the century began. It should have been the biggest, most successful period in human history.
Why are American wages sagging?
After all, the number of patents has exploded. So has the pace of technological innovation. The number of people with advanced college degrees, too.
Meanwhile, the feds have pumped $37 trillion in excess credit – above and beyond the traditional relationship between debt and GDP – into the system over the last 30 years.
And corporations are more flushed with cash than ever before…
So, how come an economy with more technology than ever before… with more trained workers than ever before… with more “capital” available than ever before…
…lowers household incomes… grows at only roughly half the rate of the 1960s and 1970s… and registers the weakest “recovery” in history?
Globalization, Mexico, regulation, China, automation, inequality, financialization – they all have been blamed. But you know the real answer: because the money system is counterfeit.
It benefits the elite of Washington and Wall Street but not the rest of us. And “unleashing” Wall Street – without a return to honest money – means allowing this Deep State beast to prey even more on average Americans.
Further Reading: The “Deep State” is more dangerous than ever. It already controls just about every aspect of American life… from healthcare to education, from the food on our tables to the never-ending War on Terror.
In his latest warning, Bill exposes how the cronies behind the Deep State have pushed the world to the brink of an irreversible disaster. Click here to learn how that disaster could unfold… and how it could change your life forever.
BY CHRIS LOWE, EDITOR AT LARGE
Uranium stocks have staged a spectacular breakout…
Today’s chart is of the Global X Uranium ETF (URA).
This exchange-traded fund invests in a broad range of uranium mining companies…
And as you can see, it’s up 65% since its low last November.
– Chris Lowe
America’s Biggest Export: Debt
Debt is, without a doubt, America’s biggest export. The U.S. Treasury market is worth $13.9 trillion. But that could be changing as the U.S. finds fewer foreign buyers.
And the Greatest Stock Picker of All Time Is…
Who is the greatest stock picker of all time? Many investors’ knee-jerk reaction is Warren Buffett. Understandable response, but is that the answer? Maybe not…
How Fascism Comes to America
Fascism is totally the whim of the people in control… but they’ll prove to be ever more ruthless. And what happens now that Trump is president could change everything in sudden, unexpected ways…
In yesterday’s Diary, “An Homage to Love,” Bill wrote about sitting with his mother in the hospital as she hangs on to life by a thread. It clearly touched a lot of readers…
Much of what you write is with your tongue deeply ensconced in your cheek. However, these words brought tears to my eyes and are deeply ensconced in my heart: “So there we sat. Between one generation and the next… The issue of one. The progenitor of the next. One shining on national TV, young and beautiful. The other, her eyes shut… straining to breathe. Happy Valentine’s Day.”
And as you say, we have little ability to do anything about it. It just happens. Very poignantly said! Thank you.
– Avram F.
Sorry to hear about the difficulty your mom is experiencing. Praying for her, praying for you.
– Don C.
This is by far the best daily you have written. This goes for the tone, the content, and the feeling. When any of us write and conjure spirits, nothing can go wrong. We are attached to the source, the great unknown.
You did say it, we know nothing. No one knows what the future is, but many of us bet dollars and ourselves on the future. We must keep moving forward, especially those of us who find ourselves closer to your mom than we would wish to be. Thank you for the wonderful words.
– Bret L.
I pray your mother’s trip to a better place is peaceful and filled with love. God bless her for giving us you. Keep the hits coming.
– David R.
A return to classic form. Now, I can sit back and ponder your ponderings and call forth a muse to explain your musings.
– Joseph T.
Although Bill and his musings are getting bashed back and forth over his “Trump work,” whatever Bill writes about falls like music to my ear… content notwithstanding. The writing is delicious. I don’t require agreement with whoever I read. I prefer being informed and, in Bill’s case, delighted as well.
– Laurie F.
Please tell Bill I am sorry his mom is not doing well and that I am praying for her, Bill, and the rest of the Bonners.
– David L.
As a recently widowed mother of nine children, being without the loving devotion of my young (57-year-old) husband has been such a challenge. You remind me so much of him: a dedicated family man, a hard-working provider, and a devoted husband.
You are absolutely correct. Life is ephemeral and nobody knows anything. Continue doing what you are doing, being unafraid to speak the truth and offering real-world solutions to the many problems our government and culture face. I just pray that President Trump is reading what you’re writing. It’s our only hope.
– Patricia G.
Best to you and your family and may your mom be with Him that created her and be blessed in peace.
– Greg J.
Legendary gold investor – and Bill’s old friend – Doug Casey is finally sharing the secret of his investing success. He calls it the “Casey Method,” and it’s the private strategy he’s used to amass a fortune over the last 40 years… To get the details straight from Doug himself, listen here.