Bumpy, Lumpy and Slumpy
The inability of democratic assemblies to carry out what seems to be a clear mandate of the people will inevitably cause dissatisfaction with democratic institutions. Parliaments come to be regarded as ineffective “talking shops,” unable or incompetent to carry out the tasks for which they have been chosen. The conviction grows that if efficient planning is to be done, the direction must be “taken out of politics” and placed in the hands of experts – permanent officials or independent autonomous bodies.
— Friedrich Hayek
F. A. Hayek among his students at the London School of Economics in 1948
Photo credit: Getty Images
AIKEN, South Carolina – Last night, we sat on the porch of the old Willcox Hotel. The sky was clear. The temperature was perfect. The sun sank in the West… just as it should. But today, we’re leaving town. Saying goodbye to Aiken. Probably not a moment too soon. We’ve heard the local sheriff has collected a posse of architects and is looking for us…
Left: police photograph of a secret architect weapons cache; right: depiction of a scene from the today largely forgotten Architect’s War of 1453.
U.S. stocks were flat yesterday. But the world was bumpy, lumpy, and slumpy. No matter. We’re going to look on the bright side. The cup is half full! The news is full of commentary on the U.S. presidential primaries.
We watch like a prairie dog staring at a train crash: We have no idea of what is going on, but we can’t take our eyes off it. The smoke. The twisted metal. The luggage and bodies flying through the air.
The Great Hope of the Republican Establishment was junior Florida senator Marco Rubio. But now, poor Rubio is trailing frontrunner Donald Trump by 20 points in his home state.
This comes after, in the March 6 debate, New Jersey governor Chris Christie ripped Rubio apart. In front of the world, he exposed the simple gears of a puppet, mindlessly mouthing his lines as if they were on a cue card.
But a puppet for whom? Who is pulling the strings?
A photograph submitted by a Diary reader…
Zombies vs. Cronies
U.S. elections used to be simpler. They were battles between zombies and cronies. Traditionally, Democrats represent the zombies – the little guys who want more little payoffs and bribes.
Republicans are supposed to represent the cronies – fewer in number but with more money – looking for tax breaks, contracts, subsidies, and ways to keep the zombies in their place…
For Republicans, government was a devil at home but an angel abroad. For Democrats, it was the other way around. In their minds, the feds did nothing but good at home; it was abroad that they made a mess of things.
But politics is fluid. Both parties appeal to popular myths in an effort to lock-in the marginal voter. They move around, like wrestlers circling each other… each looking for an opportunity to get a purchase on his opponent.
Gay rights? Prayer in school? Abortion on demand? Voters get worked up – convinced that they and they alone must have the one indisputable last word on the subject.
And while the cultural conservatives were at war with the cultural liberals… the Deep State grew. It didn’t matter which party was in power… more and more of our lives, and our money, came under the control of the insiders, the permanent government that actually runs things – the “shadow government” that rules no matter who is in power.
The zombies get more food stamps, drugs, and retirement benefits. The cronies get more special deals and favors… including the biggest scam in world history, a money system that shifts trillions in real wealth to the financial industry and its clients.
Today, it’s hard to tell the two parties apart. Hillary, the Democrat, seems to want to prove that she has the cojones to be president. Trump, the Republican, seems to want to draw in the working class by promising to stop competition from abroad.
The little guys are moving to Trump. The fat cats – especially on Wall Street – are casting their lot with Clinton. Go figure. But it’s still early. Anything could happen.
Clinton is plainly the most obvious choice of the Deep State insiders. She and her husband played a major role in helping it get where it is today. They support globalization, the Fed, Wall Street, and the Pentagon. Hillary can be counted on: If elected, she will deliver more of the same.
As for Donald Trump, no one is sure what he’ll do… probably not even The Donald himself. Word on the street is that he may intend to shake things up. Donald Trump is apparently not in the Deep State’s pocket.
But if that is true, there are people – on the edges of the Internet – who worry that he may soon be in its sight. Around the World Wide Web, you’ll find comments such as: “Donald Trump better beef up his security. Or he’ll end up like JFK.”
Recommended clothing to forestall JFK fate…
Image via beforeitsnews.com
Donald’s Biggest Deal
We don’t know. But we find it hard to imagine that The Donald hasn’t already made a deal with the “powers that be.” His career was forged in the white heat of the building trade – with mafia-run unions, along with banks and regulators in Las Vegas and New York hammering him.
He denies it. But he depends on all of them – the government, the banks, and the system of Bubble Finance – to keep his fortune intact. He knows how important they are. And he knows how they operate.
The wheeler and dealer book…
Donald claims to be one of the greatest deal makers in history. It is hard to imagine that he hasn’t made the most important deal of his life.
Image captions by PT
The above article originally appeared at the Diary of a Rogue Economist, written for Bonner & Partners. Bill Bonner founded Agora, Inc in 1978. It has since grown into one of the largest independent newsletter publishing companies in the world. He has also written three New York Times bestselling books, Financial Reckoning Day, Empire of Debt and Mobs, Messiahs and Markets.
It is that time of the year again – our semi-annual funding drive begins today. Give us a little hand in offsetting the costs of running this blog, as advertising revenue alone is insufficient. You can help us reach our modest funding goal by donating either via paypal or bitcoin. Those of you who have made a ton of money based on some of the things we have said in these pages (we actually made a few good calls lately!), please feel free to up your donations accordingly (we are sorry if you have followed one of our bad calls. This is of course your own fault). Other than that, we can only repeat that donations to this site are apt to secure many benefits. These range from sound sleep, to children including you in their songs, to the potential of obtaining privileges in the afterlife (the latter cannot be guaranteed, but it seems highly likely). As always, we are greatly honored by your readership and hope that our special mixture of entertainment and education is adding a little value to your life!
Bitcoin address: 1DRkVzUmkGaz9xAP81us86zzxh5VMEhNke
One Response to “Will Donald Trump End Up Like JFK?”
Most read in the last 20 days:
- Gold Price Skyrockets in India after Currency Ban – Part III
When Money Dies In part-I of the dispatch we talked about what happened during the first two days after Indian Prime Minister, Narendra Modi banned Rs 500 and Rs 1000 banknotes, comprising of 88% of the monetary value of cash in circulation. In part-II, we talked about the scenes, chaos, desperation, and massive loss of productive capacity that this ban had led to over the next few days. Indian prime minister Narendra Modi – another finger-wagger, as can be seen in this...
- Gold Price Skyrockets in India after Currency Ban – Part IV
A Market Gripped by Fear The Indian Prime Minister announced on 8th November 2016 that Rs 500 and Rs 1,000 banknotes would no longer be legal tender. Linked are Part-I, Part-II and Part-III updates on the rapidly encroaching police state. The economic and social mess that Modi has created is unprecedented. It will go down in history as an epitome of naivety and arrogance due to Modi’s self-centered desire to increase tax-collection at any cost. Indian jewelry...
- A Note on Gold and India – What is Driving the Gold Price?
Hidden Motives It is well-known that India's government wants to coerce its population into “modernizing” its financial behavior and abandoning its traditions. The recent ban on large-denomination banknotes was not only meant to fight corruption. Obviously, this very bad Indian has way too much cash. Just look at him, he looks suspicious! Photo via thenewsminute.com In fact, as our friend Jayant Bhandari has pointed out, fresh avenues for corruption ...
- Gold Price Skyrockets in India after Currency Ban – Part V
A Brief Recap India's Prime Minister announced on 8th November 2016 that Rs 500 and Rs 1,000 banknotes will no longer be legal tender. Linked are Part-I, Part-II, Part-III, and Part-IV, which provide updates on the rapidly encroaching police state Expect a continuation of new social engineering notifications, each sabotaging wealth-creation, confiscating people’s wealth, and tyrannizing those who refuse to be a part of the herd, in the process destroying the very backbone of the...
- Attaining Self-Destruct Velocity
Bad Monday Some Monday mornings are better than others. Others are worse than some. For one Amazon employee, this past Monday morning was particularly bad. No doubt, the poor fellow would have been better off he’d called in sick to work. Such a simple decision would have saved him from extreme agony. But, unfortunately, he showed up at Amazon’s Seattle headquarters and put on a public and painful display of madness. Good-bye cruel world! On this our planet,...
- All Aboard! Trump’s Express Train to the Future
Free Money! BALTIMORE – Last week, the Dow punched up above 19,000 – a new all-time record. And on Monday, the Dow, the S&P 500, the Nasdaq, and the small-cap Russell 2000 each hit new all-time highs. The last time that happened was on the last day of December 1999. Ironically, two events that were almost universally expected to trigger large stock market declines were followed by quite rapid and strong gains. Would the market have fallen if Hillary Clinton had won...
- India's Currency Debacle – An Interview with Jayant Bhandari
A Major Crisis Last week Jayant Bhandari related the story of the overnight ban of certain banknotes in India under cover of “stamping out corruption” (see Gold Price Skyrockets In India after Currency Ban Part 1 and Part 2 for the details). Banned 500 rupee banknotes The problem is inter alia that the sudden ban of these banknotes has hit the Indian economy quite hard, given that 97% of all transactions in the country are cash-based. Not only that, it has...
- Will the Swamp Swallow Trump?
Permanently Skewed TRUMP HOTEL, New York – Trump’s rambling army – professionals, amateurs, camp followers, and profiteers – is marching south, down the I-95 corridor. There, on the banks of the Potomac, it will fight its next big battle. Lieutenants in Trump's army: Bannon, Flynn & Sessions Photo credit: Drew Angerer / AFP Here at the Diary, we do not like to get involved in politics. But this is a special time in the history of our planet – a...
- There Are Two Types of Credit — One of Them Leads to Booms and Busts
Stumped by the Bust In the slump of a cycle, businesses that were thriving begin to experience difficulties or go under. They do so not because of firm-specific entrepreneurial errors but rather in tandem with whole sectors of the economy. People who were wealthy yesterday have become poor today. Factories that were busy yesterday are shut down today, and workers are out of jobs. What has caused the bust? The modern-day economic orthodoxy continues to be unable to provide...
- Gold Bull Market Remains Intact – Long Term Fundamentals Outweigh Short Term Market Gyrations
A Strong First Half of the Year, Followed by Another Retreat In early 2016 gold had a big bull run. The precious metal rose close to 25% this year, pushed higher in a summer rally that peaked on July 10th. Gold experienced a bumpy ride over the remainder of the summer though, as investors became increasingly concerned about a potential rate hike by the Federal Reserve. Uncertainty returned to gold market and has intensified further since then. Initially, gold rallied sharply...
- Too Early for “Inflation Bets”?
The Trump Trade After 35 years of waiting... so many false signals... so often deceived... so often disappointed... bond bears gathered on rooftops as though awaiting the Second Coming. Many times, investors have said to themselves, “This is it! This is the end of the Great Bull Market in Bonds!” The long bond's long cycle – red rectangles indicate when the post 1980 bull market was held to be “over” or “over for sure” or “100% over”, etc. We have...
- US True Money Supply Growth Jumps, Part 1: A Shift in Liabilities
A Very Odd Growth Spurt in the True Money Supply The growth rates of various “Austrian” measures of the US money supply (such as TMS-2 and money AMS) have accelerated significantly in recent months. That is quite surprising, as the Fed hasn't been engaged in QE for quite some time and year-on-year growth in commercial bank credit has actually slowed down rather than accelerating of late. The only exception to this is mortgage lending growth - at least until recently. Growth in...