From Bill Bonner’s Diary (USA) –
DUNMORE EAST, Ireland – We came down the coast from Dublin to check on our new office building.
For this visit, we wanted to stay somewhere different than we normally do. So we chose a small hotel on the coast, called the Strand Inn.
It is an excellent place for seafood and soda bread on a rainy day. Later, you can go to the bar, get in your cups, and sing sad songs about dead Irish heroes.
Ireland has a literate, educated population. It is pleasant… pretty… and has a low corporate tax rate. So, we are expanding here.
Apparently, companies escape taxes by moving their headquarters or their technology overseas. We would do the same, but we’ve never been able to figure out how it saves any tax money.
Owners end up paying tax in their home countries. And Americans pay U.S. taxes no matter where the money is actually generated.
Regardless, we bought a large, 19th-century mansion in the aftermath of Ireland’s real estate bust… which took average property prices down by more than one-third.
It seemed like a good deal. But every real estate investment we ever made has turned out to cost more… and take more time… than we imagined. This time is no exception.
Still, it is a handsome, capacious place, which will house more than 150 employees.
The Irish have charming and understandable accents. Many of these employees will be answering calls from all over the world. So, if you call us after September, your call might be routed to County Waterford.
High on the Hog
Now, back to the Deep State…
Much of its growth is recorded in the pages of the Code of Federal Regulations (CFR). This tracks all the laws laid down by successive governments.
A privilege… a special tax break… a rule… a prohibition… a piece of meat here, a piece of meat there… and soon the foxes are eating high on the hog.
Now Airing: “AMERICA: GROUND ZERO”
A multimillionaire and legendary investor’s new broadcast just went live…and I guarantee you’ve never seen anything like this before. It reveals why a financial shock far greater than 2008 could strike America within the next 7 months. And how it could either wipe out a big part of your savings…or be the fortune-building opportunity of a lifetime. This special presentation won’t be online for long. Click here to watch it now.
But what’s meat for the foxes is poison for the economy.
Each piece requires paperwork, delays, permits, accountants, lawyers. You can’t do this… you can’t do that – with so many hurdles in their way, entrepreneurs think twice, capital investment declines, and the economy slows.
Each favor to the foxes is an act of larceny… taking something away from the people who earned it to redistribute wealth, power, and status to the insiders.
From fewer than 25,000 pages when President Eisenhower left the White House, the CFR now has nearly 200,000 pages – each one a honeypot for Deep State cronies.
And who reads this stuff?
Do you know what rules and regulations you are breaking right now?
Most people are too busy earning their money and raising their families to spend much time tracking the federal bureaucracy and its cronies. But the foxes make it their business to pay attention… and make the rules that work for them.
An honest person is at a great disadvantage.
Rules and Regulations
Think you’re going to change this system by voting for Hillary or Trump, Democrat or Republican?
Maybe, but there’s no evidence of it in the CFR.
The number of pages kept rising, year after year, no matter who was in the White House.
Twenty-five thousand pages were added during the Kennedy and Johnson years… another 25,000 under Nixon and Ford… and another 25,000 during the Reagan and George H.W. Bush administrations.
Federal spending per capita shows the same basic trend, an almost unbroken uptrend – through Democratic and Republican administrations – stretching back from 2016 to 1952.
Under President Eisenhower, domestic discretionary spending per person was under $500. Today it’s over $4,500. Like the Federal Code, real spending per person has increased about nine times in the last 64 years.
There were two presidents under whom spending went down – Ronald Reagan and Bill Clinton. Go figure.
In neither case, however, did it stay down for long. Once Reagan and Clinton were out of the way, the foxes went to work and quickly brought spending back to the trend line.
What will happen to the little foxes under Donald Trump? Or Hillary?
The earnings of the top 5% – the “foxy five” – began to diverge from the earnings of everybody else in the mid-1970s.
Since then, they increased alongside the FCR and government spending. Rules and regulations multiplied. Spending increased. The foxes got richer; everyone else got poorer.
All this happened through both Republican and Democratic administrations. Most likely the foxes will continue to earn more through a Trump or Clinton administration too.
Still to come… insurrection and rebellion down on the ranch…
Further Reading: As Bill keeps saying, it doesn’t matter who wins the race for the White House. From health care to education to the food on your table to the never-ending War on Terror, the Deep State already controls just about every aspect of your life.
In Bill’s latest online presentation, he exposes how the Deep State’s cronies have pushed the world to the brink of an irreversible disaster. To hear how it will all unfold… and, more importantly, how it’ll change your life forever… go here now.
By Nick Giambruno, Editor, Crisis Investing
Editor’s note: Nick Giambruno is Doug Casey’s globetrotting analyst and the editor of the contrarian advisory Crisis Investing. Today, he tells how he identifies opportunities to profit from crises.
Right now, there are a number of financial “storms” developing around the globe. These storms are presenting us with incredible opportunities.
Today, I’ll discuss the proprietary tool I created to make sure none of these opportunities slip through the cracks.
I call it the “Value Radar.”
The Value Radar is all about finding opportunities in crises to buy the highest-quality assets at bargain prices.
It looks for two characteristics:
Markets priced far below their five-year high.
Markets with fat dividend yields.
I’m looking for markets afflicted with maximum pessimism and for a big decline from a market’s five-year high.
Next, I look at dividends. Double-digit dividend yields are a sign that sellers have panicked.
Now, let me show you what the Value Radar is pinpointing today…
Looking at the chart below, we’re most interested in the upper right corner. I’ve circled the sweet spot that shows the most beaten-up crisis markets with the highest dividend yields.
I’m most interested right now in South Africa.
Today, South Africa is facing a major crisis.
Its currency, the rand, has been in a freefall for the past year. It’s lost over half its value against the U.S. dollar since 2012.
This, plus the collapse in the gold price between 2011 and 2015, crushes South African gold miners. The stocks of some quality companies are down more than 80% from their recent peaks.
But with gold in a new bull market, now is the time to take advantage of South Africa’s currency woes and pick up an elite mining company at an extraordinary price.
The best offer a 10-1 upside… or even better.
Best of all, several can be found on the New York Stock Exchange.
Editor’s note: Nick and Doug have spent their careers turning crises into wildly profitable investments. And now they’re about to put that strategy to the ultimate test.
They warn of a “financial hurricane” headed to U.S. shores. But for those who know how to position themselves, the coming disaster could be a massive profit opportunity. To find out more, watch the video Nick’s team put together.
Venezuela Is Falling Apart
The news coming from Venezuela – including toilet paper shortages, riots over blackouts, and the imposition of a two-day workweek for government employees – reveals a country coming apart at the seams.
Gold Price to Soar More Than 650%?
One currencies expert says a “super spike” in gold prices is headed our way. Here, he explains what will cause it and, more importantly, how you can position yourself to profit.
Do You Suffer as an Investor From Wishful Thinking?
A recent study reveals that 400 institutional investors expect average annual returns of 11%. Either they’re on psychedelic drugs… or they’re suffering from a severe case of wishful thinking.
Some sharp-eyed and pun-prone readers have drawn attention to an editing oversight in Tuesday’s Diary… about the long-buried secret of Napoleon Bonaparte.
I generally love Bill’s daily doses of clear, intelligent and beautifully expressed thinking, and I hate to be too much of a pedant, but: “He managed to recreate the Holy Roman Empire, bringing Europe together under one yolk almost 200 years before the European Union.”
Oh dear! I think that Bill has egg on his face today!
– John A.
Under one “yolk”?
Well, the French do like their eggs, and high-fat diets – and they have fancy ways to cook them. Keep up the good work. Those darn spell checkers any way… They just can’t think!
– John M.
I love your ranch and history stories and dire predictions regarding the coming catastrophes. But the word is “yoke” not “yolk” in your Napoleon story.
– Joseph P.
Honored Sir: Surely you jest! Napoleon had the Holy Roman Empire under the same YOLK?
It’s a joke, right? I think you mean “yoke,” a term that comes into English from the Latin expression often used by Caesar in his famous Gallic wars commentaries, “sub iugum iacere” (“to throw under yoke”).
Regardless of your homonymous joke, you are correct about government. No government “works,” as humans will always seek to game (corrupt) whatever system is in place. It’s the inherent, tragic flaw of imperfect humanity.
Pardon me while I go look in on my cabbages. Please carry on. Many thanks and best always.
– Paul M.
Meanwhile, readers continue to weigh in on the topic du jour, the upcoming U.S. presidential elections…
Humans, being what we are, look out for number one. From your remarks, that’s exactly what you’re doing.
History keeps repeating itself. All great empires fall. Some lasted longer than others. Some were fairly good, and others were really terrible. They all eventually fell into the abyss of greed, domination of personal freedom and suppression of every kind.
Nothing lasts forever. Our fall already started. Sorry to say America is on the edge and only needs a shove to fall in.
Who will do the shoving? Clinton, Trump, or the next one up? Are we close to anarchy or already there? It doesn’t look good in my eyes, but they’re old and getting foggy.
Maybe there is hope somehow. If so, I can’t see it.
– Mary K.