Will the Fed Stab Investors in the Back?

Will the Fed Stab Investors in the Back? by Bill Bonner – Bonner and Partners

TDC Note – The question is not if, the question is how many more times will the Fed stab investors in the back.


BUENOS AIRES, ARGENTINA – First, a news update.

The Washington Post:

The Republican Party has largely abandoned its platform of fiscal restraint, pivoting sharply in a way that could add trillions of dollars in federal debt over the next decade.

Cutting spending to balance the budget was almost religion to the Republican Party for much of the past eight years. But all year long, despite their control of the White House and Congress, Republicans have not taken steps to balance the budget, to overhaul entitlement programs such as Medicare and Medicaid, or to arrest the growth of the country’s $20 trillion in debt.

Off the Rails

No kidding! Here’s the short version of what will happen…

Neither Republicans nor Democrats will show any interest in fiscal restraint; deficit spending will increase; the Deep State wants it.

The Fed won’t force restraint; instead, it will facilitate more deficit spending; the Deep State needs it.

This train is going to be running wide open until it flies off the rails; the Deep State deserves it.

Which brings us to… the “Warsh Call Option.”

Our speech in London described how Team Trump had failed to slow win-lose deals both at home and abroad… and why debt will continue to expand until the bubble pops.

Win-lose deals proliferate because the insiders who control government – aka the Deep State – want them to continue.

These insiders aren’t going to raise taxes on themselves… nor are they going to cut their privileges and benefits. This leaves them dependent on cheap credit from the Fed.

But why can’t it just go on, as it has for the last 30 years?

Real money – gold – survives market crashes and depressions. Because it represents real wealth.

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Bonner and Partners

Bill Bonner founded Agora Inc. in 1978. Since then, it has grown into one of the largest independent newsletter publishing companies in the world. Bill also co-wrote two New York Times bestselling books, Financial Reckoning Day and Empire of Debt, In his latest book, Hormegeddon, Bill describes what happens when you get too much of a good thing in the sphere of public policy, economics and business. This new newsletter is unlike anything else published in America today. Now in this industry, Bill Bonner has agreed to share his secrets and insights every month. It’s like having a super-wealthy uncle share his best ideas, insights and wisdom about business, relationships, investments, trends, developments, ideas and more.