Out of Style

BALTIMORE – Dow up again yesterday! According to Wall Street analysts, investors were front running a non-event. The Fed is in a credit “tightening cycle”, but without the tightening. On Wednesday, it announced it was leaving short-term rates unchanged at 0.5%.


richard-cline-this-is-his-first-fed-tightening-new-yorker-cartoonOne was already too much…we simply cannot have too many of these sad scenes.

Cartoon by Richard Cline


Since not tightening is what investors are counting on, stocks rise… at least a little… in anticipation. But investors should watch out… We may be in a tightening cycle that goes way beyond the Fed’s control.


1-DJIA dailyThe Dow Jones Industrial Average, daily – still creeping higher after concerted cooing by assorted central bankers – click to enlarge.


“Germany is a disaster right now,” says Donald J. Trump A lot of Europeans would agree with him. Chancellor Angela Merkel’s open-door refugee policy is leading to widespread discontent. Her political position is “becoming weaker,” says the Financial Times. Why?

Because she represents the spirit of a different age. Once the most popular leader in Europe, if not the world, Ms. Merkel is now the Lady for Whom Time Stopped. She is an anachronism from a more optimistic era, when people believed in free trade, democratic government, and ever-rising prosperity.


Merkel-1Angela Merkel: out of touch, out of style…

Photo credit: Markus Schreiber / AP


Now, the zeitgeist has changed. Ms. Merkel is out of style and out of step. In Britain, France, the Netherlands, Slovakia, Hungary, and the U.S., the candidates getting the most enthusiastic support are those who urge closing borders, restricting trade, and looking to protect themselves from all that is threatening, different, or new.

Forget free trade! Forget freedom of travel! Stop immigration… especially of the Muslims and Mexicans! Build a wall! Torture your enemies! Stop trying to expand the empire!


Empire’s Destiny

Gone is the brave optimism of the 1980s (remember “Morning in America”?)… and the bumptious corruption of the 1990s (remember Monica Lewinsky?). Now, we are old, tired, fearful, cowardly, and cranky. We want a strong leader to protect us – one who promises to take us back… to make us strong again… to make us young again.

Here at the Diary, we do not believe the “Great Man” theory of history. Look closely at the great men of history… and they don’t look so great. They are just as flawed as the rest of us – bumbling along from victory to disaster, with little real insight into what they are really doing or what role in history they are playing.

But a democracy must find a leader to express its soul. Unwittingly, he moves the country in the direction it was going anyway. Then, unaware of his limits, he goes too far. Marcus Licinius Crassus (the richest man in Roman history) attacked the Parthians… and died at Carrhae. Napoleon had Europe at his feet… and invaded Russia. Japan rolled over Southeast Asia… and bombed Pearl Harbor.


CarrhaeThe battle of Carrhae (53 BC) cost Rome seven legions plus one Marcus Licinius Crassus, member of the first triumvirate and the richest man in Rome.


We all breathe in and breathe out. Economies. Markets. Societies and human beings. Now, after at least a generation of globalism, imperial expansion, and EZ money, the world is ready to exhale.

Trump may be fulfilling the empire’s destiny… helping us retreat from promises that can’t be kept, delusions that can’t be financed, and commitments that never should have been made.


Butterfly on a Wall

It has taken us a long time to understand The Donald. We have been studying him, reading his books, listening to him talk… He is not a conservative… but he is the conservatives’ choice. He is not a religious man… but he is getting the born-again Christian vote.

He is a Republican in name only… but the Republicans have him as their standard bearer. Go figure. We think we have figured him out… and now we have him… like a butterfly pinned to the wall.

In France, Britain, Japan… and to a lesser extent the U.S… populations are getting older. They no longer want more; they just want to hold onto the privileges and benefits that they feel they have earned.

Some of those benefits are purely monetary, and some are not. Pensions need to be protected. Drugs need to be affordable. Borders need to be stiffened. Tomorrow needs to be kept in its place – in the future.


trump caterpillarThere is actually a Trump caterpillar, here seen ambling about in the rainforest in Peru.


Selling Out

Tuesday brought news that “U.S. drug prices doubled in five years.” How could that happen? No voter is going to think too hard about it… or connect it to the real cause: the insiders’ control of the pharmaceutical and medical service industries.

Instead, he is going to look for someone to blame… and someone strong enough to fix the situation. Ms. Clinton was quick to jump on the case. Calling aggressive pricing by drug-maker Valeant “predatory”… adding: “I’m going after them.”

But voters know Hillary will cozy up to anyone – Wall Street, the NSA, the military, Big Pharma – if it gains her money or power; they know she will sell them out.

Donald Trump, on the other hand, appears to be a man who can’t be bought. He’s got enough money already. And his “straight-talking” style suggests he might shoot straight, too. When he talks, voters believe he means business.


2-Valeant - VRX, dailyValeant no longer needs Hillary Clinton to “go after it”…it has somehow managed to go after itself – click to enlarge.


The End of Growth

The typical voter has no way of knowing what is going on. He is a ball ricocheting off the bumpers. When hit by a contraction… he shrinks, too. We all come to think what we must think when we must think it. And when it is time to sink, we are ready to drown.

In the U.S., median incomes are lower today than they were 10 years ago. In his book, The Rise and Fall of American Growth, economist Robert Gordon argues that it’s over. The growth spurt that began in 1870 has ended. It can’t be repeated.

But it is not just a matter of money. The temper of the times has changed. The credit system is just part of it. We want what we have lost: a growing economy, growing wages… growing hair! Give up our liberty… and our dignity… to get it?

It seems a small price to pay! Says The Donald: “Make America Great Again.” Yeah… just like it was before.


make greatOne has to hand it to Trump…it is simple, and yet, it is the most effective election slogan of any of the candidates. Can you remember any of the others?


Charts by: StockCharts


Chart and 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.



Emigrate While You Can... Learn More



Dear Readers!

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


4 Responses to “Why Trump Triumphs”

  • No6:

    But Obama wanted the future.
    Remember him saying “We must pledge once more to walk into the future.”


  • All-Your-Gold-Are-Mine:

    I can not forget, “All the way with LBJ” in 1964 for Lyndon B. Johnson. At 7 years old, I was just learning to read then.. it was plastered all over billboards and signs people put in their yards.

    Trump’s “Make America Great Again” is just a rip off from Reagan’s “Let’s Make America Great Again” when he ran in 1980… I remember it because I was attending Sonoma State, a very liberal university in California where Reagan (Raygun) was hated.

    All the “change” bull shit began with Clinton and barfed up again by Obama… yes, people are stupid. sigh…

  • wmbean:

    I prefer Hillary’s “I’m with stupid!”

  • kopavi:

    Yeah. I remember “Change We Can Believe In.” Makes me want to barf.

Your comment:

You must be logged in to post a comment.

Most read in the last 20 days:

  • 5-cotmmrangegc03Ganging Up on Gold
      So Far a Normal Correction In last week's update on the gold sector, we mentioned that there was a lot of negative sentiment detectable on an anecdotal basis. From a positioning perspective only the commitments of traders still appeared a bit stretched though, while from a technical perspective we felt that a pullback to the 200-day moving average in both gold and gold stocks shouldn't be regarded as anything but a normal - and in this case actually long overdue -...
  • gold_bullionGold Sector Correction – Where Do Things Stand?
      Sentiment and Positioning When we last discussed the gold sector correction (which had only just begun at the time), we mentioned we would update sentiment and positioning data on occasion. For a while, not much changed in these indicators, but as one would expect, last week's sharp sell-off did in fact move the needle a bit.   Gold - just as nice to look at as it always is, but slightly cheaper since last week. Photo via The Times Of India   The commitments of...
  • wryAustralian property bubble on a scale like no other
      Australian property bubble on a scale like no other Yesterday Citi produced a new index which pinned the Australian property bubble at 16 year highs:   Bubble trouble. Whether we label them bubbles, the Australian economy has experienced a series of developments that potentially could have the economy lurching from boom to bust and back. In recent years these have included:    the record run up in commodity prices and subsequent correction;  the associated...
  • urban_ii_croppedPope Francis: Traitor to Western Civilization
      Disqualified There has been no greater advocate of mass Muslim migration into Europe than the purported head of the Catholic Church, Pope Francis.  At a recent conference, he urged that “asylum seekers” be accepted, “through the acts of mercy that promote their integration into the European context and beyond.”*   Before we let Antonius continue with his refreshingly politically incorrect disquisition, we want to remind readers of two previous articles that have...
  • 9-market-internalsBubble Dissection
      The Long Term Outlook for the Asset Bubble Due to strong internals, John Hussman has given the stock market rally since the February low the benefit of the doubt for a while. Lately he has returned to issuing warnings about the market's potential to deliver a big negative surprise once it runs out of greater fools. In his weekly market missive published on Monday (entitled “Sizing Up the Bubble” - we highly recommend reading it), he presents inter alia the following eye-popping...
  • spankinggoodtimeUS Stock Market - a Spanking May be on its Way
      Iffy Looking Charts The stock market has held up quite well this year in the face of numerous developments that are usually regarded as negative (from declining earnings, to the Brexit, to a US presidential election that leaves a lot to be desired, to put it mildly). Of course, the market is never driven by the news – it is exactly the other way around. It is the market that actually writes the news. It may finally be time for a spanking though.   Time for some old-fashioned...
  • fischersDoomed to Failure
      Larded Up and Larded Over We’ve been waiting for the U.S. economy to reach escape velocity for the last six years.  What we mean is we’ve been waiting for the economy to finally become self-stimulating and no longer require monetary or fiscal stimulus to keep it from stalling out.  Unfortunately, this may not be possible the way things are going.   As Milton Jones once revealed: “A month before he died, my grandfather covered his back in lard. After that, he went...
  • andy-duncan-and-claudio-grassA Looming Banking Crisis – Is a Perfect Storm About to Hit?
      Andy Duncan Interviews Claudio Grass Andy Duncan of FinLingo.com has interviewed our friend Claudio Grass, managing director of Global Gold in Switzerland. Below is a transcript excerpting the main parts of the first section of the interview on the problems in the European banking system and what measures might be taken if push were to come to shove.   Andy Duncan of FinLingo.com (left) and Claudio Grass of Global Gold (right)   Andy Duncan: How do you see the...
  • state_police_980_600_s_c1_t_c_0_0_1Are the Deep State’s Drones Coming for You?
      What’s Aleppo?   Look out kid Don’t matter what you did Walk on your tip toes Don’t try "No Doz" Better stay away from those That carry around a fire hose Keep a clean nose Watch the plain clothes You don’t need a weather man To know which way the wind blows – “Subterranean Homesick Blues,” Bob Dylan   The entrance to Baghdad's “Green Zone”. Photo credit: Karim Kadim / AP   DELRAY BEACH, Florida – Biggest foreign policy blunder...
  • speculatorInterview with Doug Casey
      Natalie Vein of BFI speaks with Doug Casey   Our friend Natalie Vein recently had the opportunity to conduct an extensive interview with Doug Casey for BFI, the  parent company of Global Gold. Based on his decades-long experience in investing and his many travels, he shares his views on the state of the world economy, his outlook on critical political developments in the US and in Europe, as well as his investment insights and his approach to gold, as part of a viable strategy for...
  • larry-1Meet Your New Stimulus Allocation Czar
      March Towards Midnight The march towards midnight is both stirring and foreboding.  Like a death row inmate sitting down to savor his last meal, a grim excitement greets the reality of impending doom.  Thoughts of imminent mortality haunt each bite.   Tic-toc, tic-toc...   As far as the economy’s concerned, there’s no stopping its march towards midnight.  The witching hour’s rapidly approaching.  We intend to savor each moment and make the best of...
  • walmart-st-augustine-flaEvacuate or Die...
      Escaping the Hurricane BALTIMORE – Last week, we got a peek at the End of the World. As Hurricane Matthew approached the coast of Florida, a panic set in. Gas stations ran out of fuel. Stores ran out of food. Banks ran out of cash.   A satellite image of hurricane Matthew taken on October 4. He didn't look very friendly. Image via twitter.com   “Evacuate or die,” we were told. Not wanting to do either, we rented a car and drove to Maryland. “We’ll just...

Austrian Theory and Investment

Support Acting Man

Own physical gold and silver outside a bank




Realtime Charts


Gold in USD:

[Most Recent Quotes from www.kitco.com]



Gold in EUR:

[Most Recent Quotes from www.kitco.com]



Silver in USD:

[Most Recent Quotes from www.kitco.com]



Platinum in USD:

[Most Recent Quotes from www.kitco.com]



USD - Index:

[Most Recent USD from www.kitco.com]


THE GOLD CARTEL: Government Intervention on Gold, the Mega Bubble in Paper and What This Means for Your Future

Buy Silver Now!
Buy Gold Now!