BALTIMORE – Bloomberg reports that a panel of Nobel Prize-winning economists has given Donald Trump’s economic policies the thumbs down.

Professor and former World Bank chief economist Joseph Stiglitz summed up the views of the panel, which “included his fellow Columbia University professor Edmund Phelps and Yale University’s Robert Shiller”:

There is a broad consensus that the kind of policies that our president-elect has proposed are among the polices that will not work.

Some of the guff coming out in the press is insidious… and warns of an impending disaster. The rest is merely puerile or idiotic.

The hardest thing for us is to know when to laugh. A “broad consensus” of economists is always a rib buster.

Trivial Amusements

Sticking with trivial amusements… CNN earnestly reported a comment by Valerie Jarrett, a senior adviser to President Obama.

She gave what was called “advice” to Trump’s son-in-law Jared Kushner, who will have a gig similar to hers in the president-elect’s administration.

“Listen to the American people,” Jarrett said on CNN’s New Day. “Make sure you stay in touch with them. Make sure you have your pulse on them.”

Uh… huh?

She must mean he should check their pulses, if that were possible – which it isn’t.

Listening to the American people isn’t possible, either. There are 320 million of them. Each has his own point of view – most of them moronic.

Another goofy story is that the Russians “hacked” the U.S. election.

Republican Senator John McCain even says it was “an act of war.” But if that were so, the U.S. has committed acts of war against dozens of different countries over the last 50… 100… 150 years!

Stephen Kinzer, a senior fellow at Brown University, wrote in The Boston Globe:

One of our first operations to shape the outcome of a foreign election came in Cuba. After the United States helped Cuban rebels overthrow Spanish rule in 1898, we organized a presidential election, recruited a pro-American candidate, and forbade others to run against him. Two years later, after the United States annexed Hawaii, we established an electoral system that denied suffrage to most native Hawaiians, assuring that only pro-American candidates would be elected to public office.

Ever since, says Mr. Kinzer, the CIA and other clandestine U.S. agencies have been routinely “hacking” elections.

Sordid History

But Kinzer doesn’t go back far enough or deep enough into the sordid history of the U.S.’s meddling in other people’s business.

In 1860, following honest elections and legal legislative action, 11 southern states voted to secede from the United States of America. It invaded them, killed an estimated 400,000 of their citizens, and put their leaders in jail.

But let’s allow bygones to be bygones. Let’s look ahead. Our hypothesis is that the economic policies of the Trump team – whatever they turn out to be – will turn out no better than the attack on Fort Sumter. They will not create a healthy, growing economy.

That is the point we’ve been reaching for: There are no policies that will successfully eliminate the distortions and grotesqueries caused by the fake-money system, with its fake interest rates, fake wealth, and fake savings.

Some things need to be corrected… not denied and delayed.

And that is the very thing the Trump team and its Deep State allies will fight hardest to prevent: a correction.

King of Debt

From an economic standpoint, there are three major components of the Trump bunch.

First, there are the generals, who will fight to the death to defend the $1 trillion military-industrial-security complex in all its glory.

Second, there are the Goldman boys, who will pimp for Wall Street and its privileges.

Third, there is the “king of debt” himself, Donald Trump, who seems to have some good instincts, and some bad ones… but is not about to sit on his hands while the U.S. Empire of Debt collapses.

Debt, demographics, fake money, and zombie degeneration are all working against the U.S. economy. As we reported on Monday, the energy is draining out… helped by millions of leaks caused by policymakers.

The elite have not only failed, they have also created a dysfunctional, parasite-ridden, wealth-destroying economy.

“Better deals” won’t help. We are well past the point of declining marginal utility of the government and its policies.

The economists are right.




Further Reading: Bill is so adamant about the disaster that’s coming, he’s put together a tell-all presentation to help you prepare for the consequences of this dysfunctional, wealth-destroying economy.


Investor Focus

By Chris Mayer, Editor, Chris Mayer’s Focus

Editor’s Note: Chris Mayer is one of Bill’s star analysts.

Bill even invested $5 million from his own family trust into following Chris’ stock picks.

The investment strategy I recommend to my readers, and the one I personally follow, is controversial.

It’s about focusing on a small number of stocks – only your best ideas – and letting them ride.

Most “experts” tell investors to hedge their risk by owning 20 or more stocks. But the effects of a small-portfolio approach can be mind-boggling.

Let me walk you through one example…

This one comes from Murray Stahl at Horizon Kinetics. I bring it to your attention because when I read it in 1997, it “wowed” me such that I’ve never forgotten it.

Maybe it will have the same effect on you.

Imagine it is 1982 and you have a portfolio with equal dollar amounts in the following six stocks:

  • Chrysler

  • General Public Utilities

  • Pan American

  • Massey Ferguson

  • International Harvester

  • White Motor

How do you think you would do if we fast-forwarded to about 10 years later – the end of 1993?

Before you answer, let me give you a clue: Both Pan American and White Motor go to zero.

Put another way, one-third of your portfolio would become worthless – a loss of 100%.

And here’s another clue: The S&P 500 would return 17% annually from 1982 to 1993.

Given those two clues, do you think that six-stock portfolio beat the S&P 500?

The surprising answer is… yes.

That six-stock portfolio would return about 19% annualized. And the source of those returns comes almost entirely from just two stocks: Chrysler (which returned 32% annualized) and General Public Utilities (28%).

These two stocks would come to represent 93% of the portfolio.

Stahl writes: “The power of compounding is so remarkable that these two more than compensate for disastrous selections.”

It’s an extreme example. And maybe it’s impractical to expect anybody to stick with a six-stock portfolio untouched for 10 years. Then again, maybe that’s why so many do so poorly in the market.

In any case, the example shows you what just a couple of big winners can do to a focused portfolio.

This is the strategy we follow in my latest investment service, Chris Mayer’s Focus. It’s all about finding a few great businesses with huge growth potential – those that can return 100 times your money. You can get all the details right here.

Editor’s Note: Last week, thousands of Diary readers tuned in to learn an investment strategy Chris calls “the biggest breakthrough of my career.”

Chris Mayer’s Focus is all about his secret for identifying “the next Starbucks,” “the next Apple,” and “the next Wal-Mart” years in advance of anyone on Wall Street. To find out more, go here. But don’t hesitate. This presentation – and Chris’ special offer – ends in a few short days.

Featured Reads

This Could Level the Entire Global Financial System
Shares in Italy’s second-largest bank, Banca Monte dei Paschi di Siena, are down 81% from their peak in 2007. And the bank is on the verge of collapse. This could trigger a great leveling of the global banking system.

High Likelihood of Large-Scale Terrorist Attacks in 2017
For the first time ever, large-scale terrorist attacks have entered the World Economic Forum’s list of the top five global risks in terms of likelihood for this year.

The Most Successful Investments Have Two Things in Common
If you do these two things, there’s no need to worry about the crazy ups and downs of the markets… or what the Fed is doing… or the state of the economy.

In Case You Missed It…

Who we are… We’re a fast-growing company with all the opportunities of a small startup and the stability of a deep-pocketed firm with a 30-year track record.

We publish more than a dozen advisories covering finance and economics. We have hundreds of thousands of readers around the world. Our business is providing profitable ideas, explaining how the markets really work, and telling great stories.

We’re completely independent and unbiased. We don’t take money from Wall Street or the government. Our revenue comes from selling subscriptions. One by one. Word by word. We offer refunds on all of our products. We make money only if our readers are happy.

Who you are… You’re a voracious consumer of information. You have a genuine passion for finance, economics (favoring the “classical” or “Austrian” genre), and writing. You’re intensely curious and live and breathe the world’s markets.

You’re energetic and ambitious. You’re willing to travel anywhere and everywhere. You’re ready to improvise, adapt, and overcome.

You’re great at reading balance sheets, parsing footnotes, and valuing companies. You’re overflowing with investment and trading ideas. You’re able to analyze assets from macro, technical, fundamental, and sentiment perspectives.

You’re a good thinker, a good speaker, and a good writer with great storytelling ability. You can be boring in person, but never in print.

The Job We Need Done

We’re looking for a smart analyst to help write a newsletter and share big ideas with the world. If you’ve ever wanted to make a living reading, thinking, and writing and meet the criteria above, we’d love to hear from you.

The compensation will depend on your level of experience. Know this… Dozens of analysts in The Agora (our group) who write newsletters earn up to $500,000 annually. Over the years, the company has made millionaires of more than 30 employees.

To start, we’ll need you to relocate to Delray Beach, Florida, where our head office is located. (USA Today calls it the most fun small town in America.)

What to Do Now

Send us a basic resume. We’d like to see where you’ve worked.

Write a letter telling us about yourself. We don’t care much about what school you went to. We do care what you’ve learned doing whatever it is you’ve been doing. We appreciate odd jobs, but we’re also willing to consider Wall Street refugees.

Send us an idea. Tell us about an investment opportunity. Explain the fundamentals. (Don’t just show us a bunch of charts.)

Prepare for travel and conversation. If you have what we’re looking for, we’ll fly you to Delray Beach for a full day or two of interviews. If we still like each other after that, we’ll talk about the next steps.

Get in touch at [email protected]. Put “Financial Analyst” in the subject line. That’s your first test.