The U.S. is looking more and more like Argentina. From Bill Bonner at bonnerprivateresearch.com:
(Source: Getty Images)
Bill Bonner, reckoning today from Cherbourg, France…on our way back to Ireland for a baptism…
“This model of crooked politicians, crony businessmen, union leaders turning their backs on workers left us with this mess. In that context, we went from having a rich society to a poor one, where the only ones who prospered were from the damned political class.”
~ Javier Milei, candidate for president, Argentina
Guess what stock market is up 42% this year?
The S&P Merval in Argentina, of course. The inflation rate is over 100%. But these stock prices are quoted in dollars.
In other words, you would have made a lot more money in Argentine stocks than in US stocks.
Why? Investors put their money into stocks to avoid losing it to inflation. The result was a stock market boom.
Passes, Everything Breaks
Whatever else may happen, our guess is there will be an Argentine-style bull market in chaos and confusion in the years ahead. Things will go up that should go down…politicians who make things worse will claim to be creating a ‘new era of prosperity.’ Prices will rise…or fall…for no apparent reason.
What can you count on in such a topsy-turvy world?
What about Brazil with obscene wealth on one side of the wall and a comrades favela on the other side.
Coming soon to the FUSA?
Maybe historic cargo cult czars could use a trebuchet to deliver goods from the apparatchik side of the wall.
Let them eat…near worthless bonds?