POITOU, FRANCE – What a rollicking good time we’ve had these past few days.
The G7… the North Korean summit… Canada’s “backstabber” chief… trade wars… U.S. midterm elections…
Did any generation before us enjoy so much cheap entertainment?
Place in Hell
The highlight was probably Peter Navarro’s comment, referring to Canadian Prime Minister Justin Trudeau, that “there’s a special place in Hell for any foreign leader that engages in bad-faith diplomacy with President Donald J. Trump…”
This seems to represent yet another remarkable extension of executive authority. The White House has already taken upon itself the power to decide, without any input from Congress, when the U.S. goes to war, and with whom.
It also seized the power to set the terms of trade with other nations… and even to determine the fate of a single foreign company, as it did with Chinese telecom firm ZTE, which was banned from purchasing equipment from American companies.
And now, it’s taken an unprecedented step towards total, unbridled power. Up until now, it was God who determined who went to Heaven or Hell. Now, apparently, it is America’s duly elected president.
Later, Navarro even bungled his apology, saying that his “mission was to send a strong signal of strength.” Then, on the heels of this gibberish, rather than admit that he had been talking nonsense, he said that his “language was inappropriate.”
But it wasn’t the language; it was the thought. And it wasn’t inappropriate; it was simply dumb.
So much delicious noise… all sound and fury… signifying nothing, of course.
But very entertaining.
On the front page of Monday’s Financial Times was the obligatory distracting headline:
Trump’s snubs at G7 summit leave closest allies in turmoil
The FT, which calls itself the “world’s leading global business publication,” is positively horror-struck.
It is the voice of the international Deep State elite, the people who run the banks and major companies, work for finance ministers, or have tenure in the economics departments of leading universities.
The FT readers don’t go to NASCAR races. They don’t watch pro wrestling.
They send their children to business schools. They attend conferences on global climate change and equality in the workplace. They talk the talk of the global elite and fear the barbarians at the gate.
And they know Navarro is a moron.
But they share the same political theory. The way to build a better world, they believe, is to force the other guy to change.
Cometh the Great Barnum himself… Donald J. Trump… and they are rendered speechless, apoplectic. Here is someone – the President of the United States of America, no less – who insists that they do the changing.
“Trump goes rogue…” begins an FT editorial. “In the end, it would have been better if President Donald Trump had carried out his threat and declined to attend the summit…”
The global elite see their cozy world upended. All their favorite acronyms – TPP, NAFTA, WTO, ICJ… even the EU itself – are under attack.
The G7 may become the G6 as the U.S. walks out. And then, without the big boy, the group becomes the G-Zero, as Team Donald quickly pointed out.
Meanwhile, over on page 12, the FT offers an Investment Management Summit on “Rebalancing Return and Risk Amid Global Recovery.”
Our advice to readers eager to attend is to flip ahead to the next page. There, they will find out why the headlines are nothing but distractions…
…and why “global recovery” – whether pitched as dignified fraud by the FT or as blustery BS by Donald J. Trump – is a mirage.
For there, on page 13, is a photo of “Super Mario” Draghi, formerly of Goldman Sachs and lately of the European Central Bank.
It was Draghi who said, famously, that he would do “whatever it takes” to save the financial system the elite had created.
“A rising tide raises all boats,” is the old expression. Following the crisis of 2008-2009, Draghi, Yellen, and practically all of the world’s central bankers got to work and flooded the markets with a sea of cash and credit.
Draghi added some $2.7 trillion over the last 43 months. The Fed added nearly $4 trillion.
But the tide raised some boats more than others. Yachts owned by bankers, stock market speculators, hedge fund managers, and FT readers, generally, have never seen such high waters.
But the container vessels, the oil ships, and the fishing boats – the working barges, skiffs, and slow-moving tugs of the real economy – have barely gotten off the bottom.
U.S. GDP was nearly $15 trillion in 2008. Now, it is almost $20 trillion – an increase of about a third. Stocks, however, went up from a low of around 8,000 in the fall of 2008 to over 25,000 currently.
That’s an increase of more than 3 times… or about nine times more than Main Street growth.
And now, Mario Draghi, following the lead of the Fed’s Jerome Powell, is turning off the spigots.
The EU wants to return to “more normal financial conditions,” says the FT. Both the FT’s Deep State elite and the Trump administration’s new insiders believe the economy is booming.
They think its bubble hide is tough enough to resist the pins of “normalized” monetary policies, trade wars, shooting wars, trillion-dollar deficits, the growing social welfare needs of aging populations… and a carnival of claptrap that goes on 24/7.
So far, they’ve been right.
But when the bubbles pop, they could find that there is a special place in Hell for them, too.
TECHNOLOGY INSIGHT: THE BOOMING WORLD OF BLOCKCHAIN
By Jeff Brown, Editor, The Near Future Report
As regular Diary readers know, I’m heavily involved in researching the blockchain and cryptocurrency industry.
And because this is such a fast-moving industry, I wanted to take a quick moment to update readers on the developments I’ve seen during my recent travels.
I just got back from some of the biggest blockchain conferences of the year.
In the past few weeks, I’ve attended the Ethereal Summit (the ConsenSys-driven Ethereum community), Consensus (the largest blockchain event of the year, hosted by Coindesk), the third Token Summit, and the inaugural Security Token Summit (put on by the Security Token Academy)… and I can tell you that the blockchain revolution is here – and there’s much more to come.
Let me put into perspective just how large this industry is getting…
Last year, there were fewer than 3,000 attendees at the Consensus conference, and nearly all of them were industry insiders.
This year, there were 8,500 attendees, and many sessions were so packed that there wasn’t even standing room available. I wouldn’t be surprised at all if there were 15,000 attendees next year.
Jeff shares a picture of record attendance at a recent blockchain conference
Whereas last year’s focus was on potential applications for blockchain technology and cryptocurrency, this is the first year that many blockchain projects have launched alpha and beta versions.
So it’s no longer just theoretical. This year’s presenters were talking specifically about the blockchain projects that are going live.
At Consensus 2019, I believe we will see many presentations sharing the use cases and metrics of fully developed blockchain technology.
It’s been mostly hype in the cryptocurrency/blockchain space up to this point, but now it is starting to get very real. The technology is growing up… and it is about to change the world in a massive way.
As I’ve said before, blockchain technology can be applied to almost every industry. Finance, supply chain logistics, insurance, and even property title management can be improved with the application of a well-designed blockchain solution.
It will reshape our world the way the internet did in the late ’90s. I believe the impact will be even more profound.
Dr. Whitfield Diffie, a cryptography pioneer in the 1970s, may have encapsulated this idea best when he said at Consensus: “In some sense, you can’t be a revolutionary force without eventually taking over the establishment.”
So I’ll repeat what I told you late last year.
There will be ups and downs in the blockchain and cryptocurrency industry. But these are merely “bumps in the road.”
Digital assets are the future, and the best digital assets are going to explode by a factor of 100 over the coming years as this trend plays out.
– Jeff Brown
P.S. There is one more development that I didn’t have time to mention above. I recently uncovered something unusual during the course of my research. In short, I believe that a well-known, multinational corporation is preparing to launch its own cryptocurrency. And when it does, I believe it could signal the mass adoption of blockchain technology and send a handful of quality blockchain projects soaring.
But don’t take my word for it. To see the evidence for yourself, and to learn which company it is, go right here.
The Plan to Kill Coal
Coal is out of favor. Cheaper, cleaner energy sources like solar and natural gas have grown in popularity. Now, a potential plan to shutter the failing coal plants for good has come to light.
What Wall Street Wants to Know From Powell
Fed Chairman Jerome Powell is expected to hike rates again during the Federal Open Market Committee meeting this week. But that’s not what Wall Street wants to know about. Here’s the question that investors want answered…
Forget Stocks and Bonds
Commodities will be the biggest investing story of the next two years. That’s the message from Casey Research’s globetrotting geologist, David Forest. He believes one commodity in particular is primed for explosive gains.
Today, a mixed mailbag: talk of Trump and the Swamp… and a Dear Reader even accuses Bill of being a “closet liberal.”
It would be a perfect world if we all did win-win deals, or did to others what we would like them to do to us. It is also easy to go back to the Founding Fathers of the USA and read with nostalgia their visions of the just USA. Unfortunately, they were just humans and did not have a forward vision to accommodate all the changes that have followed.
A ship on the waters of oceans, full of crew and party-loving passengers, is a picture of goodwill to everybody. Just ponder for a minute: A rumor starts to circulate that the ship will go down if half of the people are not taken off. How long would it take for a passenger to hit the water, despite the captain’s assurances that all is OK?
– Joe L.
My question is: What will the Deep State have if the American Empire goes bankrupt? I would rather have a solid piece of a thriving economy than a whole bank vault full of debt and IOUs. “Human nature” – people today can’t look a gift horse in the mouth without wanting to add a free ride.
– James B.
Mr. Trump has broken an alliance with western nations with his rhetoric. He courts Mr. Putin and Mr. Kim – and loves the hate groups in our country. He is also ignorant of our Constitution, and disrespects women, veterans, Muslims, and Mexicans. He destroys our environment, and is an immature, rich, narcissistic bully who has mocked the office he holds. Many who voted for him voted out of fear.
– Joe S.
Trump is a builder. He actually has to do stuff and make it profitable. Your arrogance shows. When you can provide an actual service or product at his level, then you can criticize.
– Tom S.
What’s wrong, Bill? Are you and your New World Order, globalist buddies feeling the heat of the awakening? We’re in the craphole we are in because of your executed plans, and now your plans are being thwarted by we, the people. We, the people – Democrats, independents, and Republicans of all races – looked beyond the globalist smokescreen, and evil Hillary, and said, “We get it. No, thank you.”
– George M.
I have always thought it, but now, I know it’s true – Bill Bonner: a closet liberal.
– Al M.
But our editor still has his stalwarts…
Bill, I have been reading your Diary for a couple of years. I enjoy it immensely. I just purchased some of your wine; I look forward to the decanting and digesting.
For years, I have thought that all politicians and their families should be tossed in jail and their assets used to pay down the national debt. After the last few blogs, I have to admit that I set my sights too low. Anyone who is in government at any level and receiving a paycheck in excess of $175,000 should be tossed in jail, made to break rocks or work with the poor, and lose all of their assets. We have been robbed. Thanks for your musings; they brighten an otherwise dismal swamp.
– Theodore G.
IN CASE YOU MISSED IT…
Are you ready for tomorrow?
The man they’re calling the “Billionaire Broker” is blowing the lid off of one of Wall Street’s best-kept secrets. And he’ll reveal how you can use it for yourself to secure triple-digit gains in as little as a few months…