The inability of democratic assemblies to carry out what seems to be a clear mandate of the people will inevitably cause dissatisfaction with democratic institutions. Parliaments come to be regarded as ineffective “talking shops,” unable or incompetent to carry out the tasks for which they have been chosen. The conviction grows that if efficient planning is to be done, the direction must be “taken out of politics” and placed in the hands of experts – permanent officials or independent autonomous bodies.

— Friedrich Hayek

AIKEN, South Carolina – Last night, we sat on the porch of the old Willcox Hotel.

The sky was clear. The temperature was perfect.

The sun sank in the West… just as it should.

But today, we’re leaving town. Saying goodbye to Aiken.

Probably not a moment too soon. We’ve heard the local sheriff has collected a posse of architects and is looking for us…

Bumpy, Lumpy, and Slumpy

U.S. stocks were flat yesterday. But the world was bumpy, lumpy, and slumpy.

No matter. We’re going to look on the bright side. The cup is half full! The news is full of commentary on the U.S. presidential primaries.

We watch like a prairie dog staring at a train crash: We have no idea of what is going on, but we can’t take our eyes off it. The smoke. The twisted metal. The luggage and bodies flying through the air.

Photo sent in yesterday by Diary reader William O.

The Great Hope of the Republican Establishment was junior Florida senator Marco Rubio. But now, poor Rubio is trailing frontrunner Donald Trump by 20 points in his home state.

This comes after, in the March 6 debate, New Jersey governor Chris Christie ripped Rubio apart. In front of the world, he exposed the simple gears of a puppet, mindlessly mouthing his lines as if they were on a cue card.

But a puppet for whom? Who is pulling the strings?

Zombies vs. Cronies

U.S. elections used to be simpler. They were battles between zombies and cronies.

Traditionally, Democrats represent the zombies – the little guys who want more little payoffs and bribes.

Republicans are supposed to represent the cronies – fewer in number but with more money – looking for tax breaks, contracts, subsidies, and ways to keep the zombies in their place…

For Republicans, government was a devil at home but an angel abroad. For Democrats, it was the other way around. In their minds, the feds did nothing but good at home; it was abroad that they made a mess of things.

But politics is fluid. Both parties appeal to popular myths in an effort to lock-in the marginal voter. They move around, like wrestlers circling each other… each looking for an opportunity to get a purchase on his opponent.

Gay rights? Prayer in school? Abortion on demand?

Voters get worked up – convinced that they and they alone must have the one indisputable last word on the subject.

Shadow Government

And while the cultural conservatives were at war with the cultural liberals… the Deep State grew.

It didn’t matter which party was in power… more and more of our lives, and our money, came under the control of the insiders, the permanent government that actually runs things – the “shadow government” that rules no matter who is in power.  

The zombies get more food stamps, drugs, and retirement benefits. The cronies get more special deals and favors… including the biggest scam in world history, a money system that shifts trillions in real wealth to the financial industry and its clients.

Today, it’s hard to tell the two parties apart. Hillary, the Democrat, seems to want to prove that she has the cojones to be president. Trump, the Republican, seems to want to draw in the working class by promising to stop competition from abroad.

The little guys are moving to Trump. The fat cats – especially on Wall Street – are casting their lot with Clinton.

Go figure…

But it’s still early. Anything could happen.

Clinton is plainly the most obvious choice of the Deep State insiders. She and her husband played a major role in helping it get where it is today. They support globalization, the Fed, Wall Street, and the Pentagon. Hillary can be counted on: If elected, she will deliver more of the same.

As for Donald Trump, no one is sure what he’ll do… probably not even The Donald himself.  Word on the street is that he may intend to shake things up.

Donald Trump is apparently not in the Deep State’s pocket. But if that is true, there are people – on the edges of the Internet – who worry that he may soon be in its sight.

Around the World Wide Web, you’ll find comments such as: “Donald Trump better beef up his security. Or he’ll end up like JFK.”

Donald’s Biggest Deal

We don’t know. But we find it hard to imagine that The Donald hasn’t already made a deal with the “powers that be.”

His career was forged in the white heat of the building trade – with mafia-run unions, along with banks and regulators in Las Vegas and New York hammering him.

He denies it. But he depends on all of them – the government, the banks, and the system of Bubble Finance – to keep his fortune intact.

He knows how important they are. And he knows how they operate.

Donald claims to be one of the greatest dealmakers in history. It is hard to imagine that he hasn’t made the most important deal of his life.




Further Reading: You won’t read about it on the news. But behind the scenes, the Deep State has been scrambling to avoid an even bigger crisis than the one that hit in 2008.

It has nothing to do with stocks… or bonds… or international currency markets. And when it strikes, it could bring down the entire monetary system. To learn more about the coming monetary catastrophe… and the steps you can take to protect yourself, follow this link.

Market Insight


Commodities are starting to show signs of life.

Today’s chart is of the CRB Commodity Index.

It tracks futures prices for 19 of the most commonly traded commodities – things like aluminum, copper, crude oil, gold, and silver.

From the peak in April 2011 to its trough in December 2015, the CRB Index fell 56%.

But as you can see from today’s chart, it just broke its downtrend… and is up 4% so far in 2016.

Featured Reads

It’s Official: Central Banks Are Increasing Inequality
A report released by the Bank for International Settlements – the bank for central banks – says central banks’ policy of pushing up stock prices is a “key driver of inequality.”

Commodities Guru Puts Gold Naysayers in Their Place
Some folks won’t buy gold, no matter how high it goes. But one commodities guru says you should forget the anti-gold propaganda. And he’s debunked seven of the most common anti-gold myths.

Time to Buy Oil Stocks?
According to the International Energy Agency, oil prices may have bottomed. That’s because non-OPEC supply… as well as supply from within OPEC… is shrinking.


Another politically charged mailbag today… following yesterday’s issue on the GOP’s identity crisis, “Republicans for Hillary.”

The unrest in the country is real. The established politicians both Republicans and Democrats have used their offices as ATM machines and the populous is enraged. 

Look at the Trump turnouts and the small Hillary turnouts. The establishment is panicked that someone is threatening to take away their perks. (Maybe a few perp walks are in order.)

— Dale R.

Trump might be the answer to our debt problem. He has a lot of experience with bankruptcies, to which it looks like we’re headed.

— Danny D.

Thank you for your emails and monthly letter. I enjoy your style – writing and thinking. With regard to the Republican primaries, isn’t Ted Cruz an old-style Republican who favors sound money and aggressive measures to balance an aggressively oversized federal budget?

I believe he warrants support.

— Tony B.

You should really look more into John Kasich – he is pretty common-sensical about most things. Your ongoing comments do not seem to apply to him…

— Bob P.

I would vote for the local dog catcher for president before Hillary. Even myself. But I do not want the job. I would get impeached. By executive order, I would balance the budget by stop funding all the waste (by my consideration) and expect ALL government workers to do their jobs…

I might even ask Donald Trump to be my running mate. We would have so much fun managing this GREAT COUNTRY together.

— Bob W.

“Republicans” are showing their true colors. They aren’t Republicans. They are sellouts who have joined the liberal trashing of America.

— Stephen W.

Any Republican threatening to switch is not a true Republican. They are a RINO and afraid of losing the power they have with the establishment. They are the “Ins” now… and are afraid they’ll end up the “Outs.” Shame on them.

If they elect Hillary, they will really be the “Outs.”

— Harlen P.

Trump will be the best thing to happen to this country since the Mayflower! Even ole George Washington. I’m still mad at him for how he handled the Whiskey Rebellion!

— John T.

In Case You Missed It…

Our colleagues at Casey Research just produced a short film about how you can turn economic turmoil into profits.

In this short video, Casey’s experts explain how investing legends like Rothschild, Buffett, and Templeton used crises to make vast fortunes. And how you can use the same techniques to build your wealth…

Watch here now.