Thursday, May 16, 2019

This political event will be unlike anything we've seen in 50 years.

Stansberry Research

This political event will be unlike anything we've seen in 50 years.

It will "reset" the American financial system in ways you can't imagine—and it could be a national nightmare...

Dear Fellow American,
I’m sure I don’t have to tell you there’s a radical Socialist movement brewing in America in 2019...
New York Mayor Bill de Blasio recently said: “Brothers and sisters, there’s plenty of money in the world. There’s plenty of money in this city. It’s just in the wrong hands.”
In Congress, Senators Cory Booker, Kirsten Gillibrand, and Jeff Merkley are putting together a proposal in which the Federal gov’t would guarantee every American a job!
Then there’s the new star in Congress: 29-year old Alexandria Ocasio-Cortez. She’s a former Bernie Sanders activist who supports just about every Socialist scheme imaginable... including free medical care, free college, and tax-rate hikes up to 70%.
Nobel Laureate economist Paul Krugman has made the case  that 70% taxes might be too low... he’s pushing for 80%!
Democratic Presidential candidate Elizabeth Warren recently jumped on the bandwagon too, proposing an annual “wealth tax” that would give the government nearly $3 trillion in the years to come.
Incredibly, all across America, the general public is eating this message up...
A recent Bloomberg poll says 59% of voters are in favor of much higher taxes.
Membership in the Democratic Socialists of America has soared 790% in two years.
And in a recent Gallup poll, more Democrats now have a “positive view” of socialism (57%) than capitalism (47%).
Why is this happening in America?
And where is this all headed?
Well, today I want to share a few facts our politicians are afraid to tell you—including the secret reason why this Socialist trend has erupted in America... and why working class Americans have gotten dramatically poorer over the past 40 years.
Sure, some people—CEOs, tech entrepreneurs, and other members of the "1%"—are doing great. There's never been a better time for wealthy Americans. But the truth is, for most people, the situation is actually getting much worse.
And there’s a secret that explains why the rich are really getting so much richer—while everyone else is falling behind—and why socialism has erupted in America. I've never seen this secret explained anywhere else.
Once you understand it, you'll see why, for millions of Americans, Socialism is gaining mass appeal... and why a crisis is coming in our country.
I'm talking about a political event unlike anything we've seen in our country in nearly 50 years.
This looming event will "reset" the financial system in ways most Americans can't imagine—and for most, it will be a national nightmare.  
This secret I'm going to share with you here today protects the very rich and powerful. So they'll never reveal it.
But I'm going to explain it as clearly and simply as possible right now...

Why are so many Americans so angry?

Hi, my name is Porter Stansberry.
You may not know me, but nearly 20 years ago, I started a financial research and education business called Stansberry Research.
Today we have offices in the U.S., Hong Kong, and Singapore. We serve more than half a million paid customers in virtually every country (172 at last count). We have nearly 500 employees, including dozens of financial analysts, corporate attorneys, accountants, technology experts, former hedge fund managers, and even a medical doctor.
But what really sets us apart in the financial industry is our independence. We don't accept advertising. And we don't manage money.
So we're not hamstrung like major newspapers who can't offend advertisers. And we're not beholden to politicians for financial licenses. We operate under the protection of the First Amendment—so we can afford to be brutally honest about whatever is most important to our subscribers.
Today I'm contacting you with a serious warning: We've hit a serious tipping point in America.
Our nation, as I'm sure you've noticed, has become a financial, cultural, and demographic pressure cooker.
You've seen it in the riots and protests in Charlottesville, Ferguson, Milwaukee, and Baltimore.
You've seen it in NFL players refusing to stand for the national anthem... arguments about "The Wall" and immigration... and in the growing popularity of radical fringe groups like the White Supremacists and Black Lives Matter.
These uprisings and protests may be nominally about race.
Or Donald Trump. Or police brutality.
But what they're really about, underneath it all, is money... and hopelessness.
Now, you might hear the mainstream press and politicians talking about "wealth inequality" when referencing our country's social problems and political polarization.
But what they don't tell you is that the growing disparity between rich and poor in America is a symptom of our problem... not the root cause.
Yes, today the richest 10% of America owns 75% of the nation's wealth... a level we have not seen since the 1930s. Just look at the chart below...

Income Share of the Richest 10%

Income inequality So what's the real problem then?
Well, it isn't that a small number of Americans have done well. The real problem is how they've done well. And I'm going to explain this secret to you in just a minute: How the tremendous gains in wealth for the few have come directly at the expense of most working-class folks.
This is what's driving the anger, the radical politics, and the growing racism in our society.
You see, while the rich are getting richer, everyone else is losing ground. Look at this chart, which shows how for most Americans, real wages have been stagnant or falling for decades...

Most Americans are Getting Poorer:Cumulative change in real wages, by wage percentile

Most Americans are Getting Poorer
Source: Economic Policy Institute.
The middle class—the most politically and economically stable part of our society—is disappearing.
The foundation of the middle class in America was a long history of consistently rising wages. For millions of Americans, life got a little better, year after year, as the value of their wages increased and our economy grew into the world's largest.
But this is no longer happening. Low income earners now make LESS in real terms than they did in 1980! And middle income earners make just 6% more than they made back in 1980. That's an increase of just 0.00172% a year!
Can you imagine your boss telling you for 34 straight years that you're never getting more than a 0.00172% raise each year?
No wonder people are so angry and stressed.
They've been going to work, year after year, but instead of earning more over time, they've actually been earning less, in terms of what their wages can buy.
Despite the boom in the U.S. economy and financial assets over the past 30 years—which boosted the wealth and incomes of the wealthiest Americans like never before—average Americans are actually worse off than they were decades ago.
And so, they've been forced to borrow more and more money simply to keep up.
You can see that in the data—and I'll show it to you below.
But I bet you don't even need to see the data. Just think about your friends and people you know, and how much more debt these folks have to take on, just to keep their heads above water.
It used to be that most Americans didn't hold debt, outside of a mortgage on their first home. But after almost 40 years of declining real wages, Americans now have to go into serious amounts of debt for just about everything they buy.
Americans now have more than $1.5 trillion in college debt, for example. Look at this incredible chart...

The Incredible Rise of Student Loan Debt in America

The Incredible Rise of Student Loan Debt in America
Source: Federal Reserve.
And it's not just college loans that have soared.
Americans also have more than $1 trillion in credit card debt, and more than $1 trillion in auto loan debt—all record highs.
It's gotten so bad, 73% of Americans now die with debt... with an average total of more than $60,000!
Being in debt is an incredibly stressful way to live. You're in a hole and there is simply no way out. So it's no surprise that deaths by drugs and poisoning for the bottom 60% of American's population have doubled since the year 2000... and suicide rates have doubled as well over the same period.
This is incredibly sad—and it's unfathomable that this is happening in the greatest country on earth.
Unfortunately, the problem is going to get much, much worse.
You see, tens of millions of people in America are desperate. They have no way out. And sooner or later this hopelessness and desperation are going to lead to violent and radical politics.
And this enormous political powder keg is leading to THE biggest political event our country has seen in decades. I'll explain exactly what's going to play out in just a second.
But first, like I promised above...
I want to explain the secret reason why investors and the rich have become so much richer... while so many Americans have become trapped in a cycle of poverty...

The truth about America's wealth gap

The underlying economic problem in America today is that money no longer flows to everyone equally in the way that it used to.
That much is obvious, right? As our country has gotten richer than ever... the income disparity widens every year.
But most Americans don't understand why this is happening.
And here's the secret:
The real underlying cause of our wealth and income disparity in America is that wages are no longer connected to gains in productivity.
I know that sounds like economic doublespeak, but please stick with me...
When you understand this concept, you will be way ahead of 99% of the population, and it will also help you make a heck of a lot of money and avoid enormous losses.
So let me explain what it means. It's not complicated...
You see, back in the early part of the 20th century, economic gains were shared by both owners and workers.
Think about Henry Ford.
He got rich making the automobile affordable with the assembly line—a huge increase in productivity. And these gains in productivity flowed directly to Ford's employees. Ford made headlines across the nation when he more than doubled his minimum pay, overnight, in 1914.
But that doesn't happen anymore. Real wages have declined for most Americans, despite huge gains in productivity over the last several decades.
Look at this chart based on research from the Economic Policy Institute, which shows this problem clearly...

Productivity Growth vs. Income Growth

Productivity Growth vs. Income Growth What's going on here?
It's not that computers are destroying our jobs. Or that we've moved jobs overseas.
As you can see, back in Henry Ford's days and decades after, productivity—a measure of how efficient we are at producing goods and services—and income gains moved hand in hand.
But then, something happened. As the Economic Policy Institute States:
"From 1973 to 2016, net productivity rose 73.7 percent, while the hourly pay essentially stagnated—increasing only 12.5 percent over 43 years... This means although Americans are working more productively than ever, the fruits of their labors have primarily accrued to those at the top and to corporate profits, especially in recent years."
You'll notice that the divergence begins around 1971... the year President Nixon removed the U.S. dollar from gold.
Why is this important?
Because paper money printed out of thin air doesn't transmit gains in productivity like real, sound money should.
When money is sound and reliable, it doesn't lose value over time. In fact, quite the opposite—it buys more and more, because of increases in productivity and efficiency.
But the link between productivity and wages was permanently changed in the early 1970s when Nixon forever broke the link between our dollar and gold.
As a result, today our monetary system isn't sound or reliable.
Our politicians monkey around with the money supply constantly. They increase the amount of money by huge amounts, in response to demands from powerful groups—especially banks.
As a result, the things you need to live a regular life—such as gasoline, milk, housing, and medical care—constantly get more expensive. These prices go up, year after year, even when wages don't.
In other words, even though there's been an enormous amount of wealth created by our economy (look at all the huge new houses, condos, skyscrapers... and electronic cars), life for average Americans hasn't improved one bit. The average worker has gotten poorer.
Again: That's not because our economy hasn't gotten better.
Our economy has boomed through enormous increases in productivity—technologies like personal computers, cell phones, the Internet, RFID tags (for inventory control), gene sequencing, GPS, and fantastic increases to fuel efficiency.
You can see these gains in your everyday life.
But... on the other hand... everything you need to live and prosper—from food to housing, healthcare to cars and education—has gotten way, way more expensive.
Look at the price of a new Ford F-150 pickup truck, for example. It's the best-selling vehicle in America and has been for decades.

Price of a new Ford F-150 Since the 1960s

Price of a new Ford F-150 Since the 1960s
Source: NADA Guides via TheDrive.com
In 1969, a new truck was $2,500. But today a new F-150 costs about $30,000 for the base model. For an F-150 you'd actually want to drive, the cost is about $45,000. That's almost an entire year of after-tax wages for the average worker!
This all means some folks in America are doing great...
Look at the huge increase in the number of American billionaires. Look at how many more planes Boeing is selling... at the cars Ford and GM are selling all over the world... at the way our entertainment industry dominates movies around the world, and at the way our tech firms (Apple, Google, Facebook) rule the Internet.
That's been great for investors and for tech-savvy engineers.
But what about the average American?
These terrific gains haven't impacted most wage earners because the gains in productivity and technology didn't flow through our entire economy the way they should... the way they used to.
These gains in productivity, especially the improvements in technology, should have made our currency much stronger... and should have made everything you buy—from Ford trucks to milk—much cheaper.
But that's not what happened, as you know.
Instead, the cost of just about everything has always gone up. Way up.
That's because, no matter how big the gains in productivity are, the government—politicians and their minions at the Federal Reserve—have always created more money.
Sometimes they do it by creating a lot of new credit. And sometimes by simply printing trillions of new dollars out of thin air.
All of this new money ALWAYS causes prices to rise more than productivity.
And this is the big secret the corporate executives and politicians hope you never understand.
Because wages are no longer connected to gains in productivity... Over time... there's nothing the average American can do to stay ahead of inflation.
So most Americans have been forced to borrow—in a way that is unprecedented in our history...
U.S. consumers now have more than $13 trillion in total debt... the highest total ever, even more than was owed right before the crash in 2007... in order to pay for food, housing, cars, education, healthcare, and other basic expenses.
We owe a trillion dollars on our credit cards—which often have interest rates as high as 28%! We've borrowed a trillion dollars to buy new cars—which plummet in value the minute you drive off the lot. And we've racked up about $1.5 trillion for college diplomas with dubious worth.
The debt load for the working poor has nearly quadrupled in the past 20 years as a percentage of their income. And this debt can never, ever be repaid.
It's this system that dooms every average worker to poverty. And almost guarantees that the rich and the powerful will stay that way.
Simply working harder—or working smarter—isn't benefiting employees anymore. On the other hand, Americans who own assets and businesses have seen their wealth soar over the last 40 years.
And so we are left with the biggest income and wealth disparity in America in nearly 100 years.
For those who have taken on these incredible new debt loads, it's a very stressful way to live. So many Americans today are in a hole. They are extremely stressed out, and there is no way out.
And herein lies the problem.
This group is growing, and this stress and anger is building... ultimately fueling many of today's biggest issues...

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