This commentary begins with articles I dug up along with a portion of a sales letter sent to me by a financial advisory service.
“Here’s the truth, brothers and sisters, there’s plenty of money in the world. Plenty of money in this city… It’s just in the wrong hands!”
– Bill de Blasio, Mayor of New York City, January 2019
Of course Mayor de Blasio wants to move it out of business owners’ hands into the government’s “hands” and redistribute it, after the government workers get their percentage for themselves. I’m going to tell you where all this “newvo socialism” is going to take the middle class, the struggling, the smart, the poor and the rich. Just keep reading.
I’m taking you on a journey if you’re willing to ride along. This safari is likely to make you a lot more wealthy and stable over the next several years.
REFERENCES: “Where did Newdell GET all this stuff???”
I’m putting pieces together to make a whole concept so hang with me here.
America’s Socialist Revolution Has Officially Begun!
Simon Black // Stephen Newdell
February 19, 2019
Sovereign Valley Farm, Chile
On October 31, 1517, an obscure German theology professor put the finishing touches on a paper he had written about the current state of the Catholic Church, and sent it off to Archbishop Albert of Brandenberg for review.
The professor’s letter was polite and professional, with a formal tone that one might find in a modern academic work. It could hardly be described as revolutionary.
Yet within a few years, the professor would find himself excommunicated by the Pope, branded an outlaw and heretic and living in hiding under the protection of an army of followers.
His name, of course, was Martin Luther. And the publication of his famous paper, the 95 Theses, is often viewed as the start of the Protestant Reformation, one of the most important social movements in history.
The reformation was a European-wide rejection of Church authority. But its origins far predate Luther or his 95 Theses.
Mini revolts against the Church go back to the late 1300s, more than 150 years earlier.
But historians often focus on a single watershed moment to mark the beginning of a major movement or trend, even though there are always multiple events leading up to it.
For example, historians consider October 1929’s stock market crash as the start of the Great Depression, even though the London market had crashed in September, and the US market suffered a smaller crash in March.
Point is, there are always multiple, important events that could mark the beginning of a major trend or movement.
There’s a new major trend taking place right now in front of our very eyes– a modern Socialist Revolution.
People are storming into power and prominence with a belief system that bigger government, punitive taxes and nationalization of private industry will fix everything.
They find personal wealth utterly revolting, and they’ll stop at nothing to redistribute it.
We’ve been writing about this for years. But its no longer theory or conjecture. It’s happening. The revolution has begun.
There have been several watershed moments recently that future historians might view as the start of this modern Socialist Revolution… including possibly today with Bernie Sanders announcing his 2020 presidential bid.
But I think a less obvious choice would be when Amazon surrendered to the Socialists last week over its proposed headquarters in New York City.
Amazon’s expansion into New York would have brought 25,000 well-paying jobs to the city, plus state-of-the-art green construction, $10+ billion in tax revenue, land for a new school, a tech and art incubator, etc.
In exchange, the city government would give up some tax credits that were completely trivial by comparison.
But… the Socialists couldn’t keep their mouths shut.
They were disgusted that a behemoth like Amazon, headed by the richest man in the world, would receive any benefits whatsoever.
They couldn’t step back and realize that the deal was a WIN/WIN. Amazon wins. The city wins.
Socialists are only happy with a WIN/LOSE, i.e. they have to win at your expense… otherwise no deal.
So they whined and complained until Amazon walked away.
Here’s a perfect example of this WIN/LOSE mentality:
Before all the public outcry, Amazon’s proposed headquarters was within a designated “Opportunity Zone,” which meant that the company could have eventually been eligible for federal tax breaks on its $2.5 billion New York investment.
Socialists immediately lamented the gross injustice, claiming that Amazon shouldn’t receive any opportunity zone tax incentives that were “meant for the poor.”
We’ve talked about opportunity zones a few times in the past; the basic idea is that every governor across the US has designated certain portions of his/her state or territory as an “opportunity zone.”
To qualify as an opportunity zone, the area must have a poverty rate of at least 20% and a median household income level that’s at least 20% below the local average.
Federal law provides generous tax breaks for anyone who makes lucrative, long-term investments in opportunity zones– whether starting a business, redeveloping property, etc.
Talk about a win/win.
Opportunity zone investments mean that an underdeveloped community gets to enjoy more job prospects, safer neighborhoods, cleaner streets, greater economic activity, higher tax revenue, etc.
And in exchange for putting up all the money, taking all the risk and doing all the work, investors can enjoy tax free gains.
You’d think people would be happy and grateful that some investors are risking their capital and investing their time to improve the neighborhood.
But no. The Socialists just can’t keep their mouths shut. They can’t simply accept that they’re going to get a ton of benefit for free because someone else is going to take all the risk and do all the work.
Nope. They’re only happy if they get everything for free… while the investor gets absolutely nothing out of the deal. That’s a win/LOSE. And it’s the foundation of the Socialist mentality. What is YOUR incentive to invest and work 10, 12, even 16 hour days to build a business if these thieves insist when you finally earn it they should have 75% of it? (Not factoring in your sales and gas taxes and taxes you pay for employee benefits and so on.) You see they KILL the business from the start. Smart investors know that and so they walk away.
This is really/ultimately what killed big Steel companies in the US, and many electronics firms. They moved to where they have fewer taxes, such as The Philippines, China, Vietnam, Thailand….
I’ll never forget a documentary in which an age 50+ woman said, “My last day’s assignment was to help these Chinese men take my machine apart, pack it into a box, and I watched them load it onto a truck. They drove away with my job.”
This did not happen because the Chinese did it. This happened because OUR Socialists in Our government made the deal with China! Blame the US Government. They injured that woman and ruined what was left of her career, forcing her into early retirement at age 50 – 55 and now I might guess she’s a welfare recipient!
Many new college graduates don’t understand this. They accepted what they were taught! They think anyone who works and has a profit should give it all away. You live in a house, and they live in a cardboard box. Therefore YOU are Evil! (this is crazy!)
If a rich person or a large company derives any benefit whatsoever, they have to stop the deal at all costs, even if they screw themselves in the process. “All costs” might mean a lot of preliminary money spent on planning is wasted money! Don’t assume this happens in secret. These wealthy people have seminars and meetings and they talk to one another. “Don’t go to New York City to open a business. You’ll lose your shirt. Better to open in South Korea!” they’ll say.
So now Amazon has pulled out, and the Socialists get 100% of nothing. Everyone loses. And I’m sure the socialist kids who actually did this to themselves have no idea that they were instrumental in killing their own opportunity to have a decent job!
The socialist “community organizers: the likes of Barack Obama are insane enough to consider this a major victory. It’s as if they’re happy to screw themselves, as long as they think they can screw you even more. (his words, not mine.)
It reminds me of an old socialist joke from the Soviet days.
A Russian man one day stumbles across an old metal lantern. He picks it up and shines it, and a Genie pops out, saying “I am a Communist genie… so you only get one wish instead of three. Plus, I have to give your comrade neighbor twice as much as I give you.”
So the man thinks for a moment and says, “Then I wish for you to blind me in one eye.”
This is the essence of modern socialism that is taking over America: everybody loses. And the revolution has already begun.
London Breed (yes, that is a woman’s name) has become the Acting Mayor of San Francisco after Mayor Ed Lee died suddenly early on Tuesday morning. Breed is the President of the San Francisco Board of Supervisors and ascended to Acting Mayor upon Lee’s death according to the city charter. Here’s what we know about her.Dec 12, 2017
This is what Ms. Breed wrote in part about San Francisco, a city that appears to be on a course of self-destruction.
- Sanctuary City
When I served as Acting Mayor and the Trump administration threatened to arrest local officials for our sanctuary policies, I said, “I wouldn’t mind going to jail” to protect our immigrant communities. I support our sanctuary policies 100%.Immigrants must feel safe to report crimes, call the Fire Department, or serve as a witness, without fear of deportation or harassment. That makes all of us safer.
Aggressive Street Behavior & Mental Health Challenges
The national opioid crisis has not left San Francisco untouched. We’ve witnessed a heartbreaking explosion in opioid abuse, and a related rise in unacceptable street behavior. This epidemic is felt not only by those who are struggling with substance abuse, but by our neighbors, small businesses and children who encounter discarded needles on their doorsteps and in our parks.
At the same time, our mental health system has failed to help hundreds of people, who are now left to face their challenges alone, on the street.
I am working every day to improve our drug treatment and mental health practices. I introduced local legislation to work in concert with Senator Scott Wiener’s state legislation to improve our conservatorship laws and help those struggling with mental health and substance abuse.
Street behavior and mental health touch several important policy areas: public safety, homelessness, and public health. I outline my plans to address these policy areas and much more in my Homelessness Platform.
Ms. Breed also wrote, “I hate guns. I HATE GUNS.” So again, the gun holder had nothing to do with the gun killing someone. As if to say guns are made with artificial intelligence. They shoot people based on some sort of facial recognition or body language — something like that.
The Greatest Redistribution of Wealth in History
Crippling taxes, limits to private property ownership and the destruction of the dollar are coming… and that’s the best case
“The disparity of fortune between the rich and the poor had reached its height, so that the city seemed to be in a dangerous condition, and no other means for freeing it from disturbances… seemed possible but despotic power.”
– Plutarch, a Greek biographer, 594 B.C.
There’s a massive change happening right now around the world. And if you have assets of any kind (savings in the bank, a 401(k) or even a house), you need to read this message carefully.
Radical, socialist ideas are gripping the world today like I’ve never seen before.
And a rising crop of socialist politicians is angling for the US presidency in 2020 – people like Elizabeth Warren, Kamala Harris and Bernie Sanders.
These candidates (and potential candidates) are demonizing the rich. They’re out for blood. And they’re going to get it.
These are just some of the ideas floated by these politicians – 70% (or higher) progressive tax rates, annual penalties for having a certain amount of money, free healthcare, free education, etc…
But this problem isn’t just in the US… the same ideas are making waves in France, the UK and most other major economies around the world.
Before I share details on the scary legislations potentially coming (and the negative implications for your wealth and freedom), let’s discuss how we got here…
We’re at a Turning Point in History
Thanks to ten years of money printing and ultra-low interest rates, we’ve experienced a bubble in asset prices. Stocks, bonds, real estate, art, fine wine – basically every asset in the world – has seen its price rise astronomically.
And that’s made the people that own these assets incredibly rich.
In fact, since 2009 (when this giant monetary experiment got started) through 2017, the world’s billionaires’ wealth more than doubled – increasing from $3.4 trillion to $8.9 trillion.
And that number has only gotten higher today in 2019.
But here’s where the problem kicks in…
While the rich have been getting much, much richer, the combined wealth of the poorest half of the world – 3.8 billion people – fell by 11% just in the last year.
To put those numbers in perspective, the New York Times says the richest eight people on the planet have more wealth than the poorest 3.8 billion.
Wealth concentrating in the hands of the few is nothing new. It’s happened since the beginning of time. And it makes sense… a minority of the population possesses the most valuable skills. As a result, that same minority earns a majority of the wealth.
SN: My point here is, it’s happening again. The wealthy will open businesses elsewhere. The smart will open businesses elsewhere. The lazy or afraid, the poor, those who have no idea how to run their own business will depend upon government until they die of starvation.
But every, single time throughout history that the gap between rich and poor has gotten too wide, it corrects. And it always happens one of two ways…
- Either the government confiscates wealth via asset seizure and taxes and redistribute that cash, or…
- The poor come out with their pitchforks
I can’t tell you how we’ll see it play out this time around. But, make no mistake. This correction is coming… millennia of history prove that’s the case.
And there’s nothing you, any politician or billionaire, for that matter, can do to stop it.
Let me be clear… massively higher taxes are coming. We may even see limits to property ownership, capital controls and attempted regulations on where we can travel and live.
But there are still a number of steps you can take today to ensure your assets – and your freedom – will be safe and sound, regardless of how the 2020 elections turn out.
Also, the rise of socialism is only one of the major threats to your wealth I see in the world right now. I’ll share the other three in a moment (along with some solutions to protect yourself).
First I want to discuss why this increasing wealth disparity has led to an incredible, socialist backlash…
Why This Wealth Disparity Matters Today
Wealth disparity and the subsequent rise of socialism isn’t a new phenomenon…
It goes all the way back to the ancient Sumerians around 4,000 B.C.
Ancient record-keeping on stone slabs shows how the ruling, priest-king distributed the society’s goods amongst the people.
Socialism happened again in Babylonia in the mid 18th century B.C. when King Hammurabi forgave all his citizens’ debts… Then in Egypt in 323 BC and in China around 145 BC…
And again in Ancient Rome under Solon when he devalued the currency, forgave debts and raised taxes (with the rich paying 12x more in taxes than the poor).
Then the French Revolution in the late 1700’s…
France’s coffers were depleted. And decades of poor harvests, droughts and rising prices pushed the people to the brink.
The people revolted against poor, economic policies and overthrew the monarchy… ultimately beheading King Louis XVI and his wife, Marie Antoinette.
Then the Bolsheviks in Russia in 1917…
And even in the US with FDR’s New Deal (an unprecedented social relief program following the Great Depression) in the 1930’s…
Then again in the 1960’s with Lyndon B. Johnson’s financing of both the Vietnam War and his “Great Society”… you’ve got LBJ to thank for Medicare, Medicaid, food stamps and a whole host of other social programs.
And for the past 6,000 years, these uprisings always happen for the same reason…
Too much money concentrates in the hands of the few.
And the rest of society feels trapped, like they have no path to prosperity.
They see money thrown around by the government and the rich. They see stocks and real estate prices soar… but where is theirs?
When a huge swath of society doesn’t see a way out – when they lack mobility – they fight for change.
And today, the wealth gap is reaching a breaking point…
Socialism is Winning
Eventually, the strength in the numbers of the outraged “poor,” rivals that of the wealthy few…
And history shows that always leads to a turning point, when wealth is either redistributed through legislation or revolution.
Today, according to Gallup, 51% of 18-29 year-olds view socialism favorably (only 45% view capitalism positively – which is down from 68% just a few years ago).
And membership in the Democratic Socialists of America has soared 7x in just the last two years.
We saw this change in the tides play out in the 2018 Midterm elections, when the left took control of the House of Representatives – a record number of early voters turned out.
We’re also seeing incredibly socialist ideas from people like Bernie Sanders, Alexandra Ocasio-Cortez and Kamala Harris gain major traction with the voting public.
These people have had enough… they feel trapped… and they want to get theirs (only they feel the rich owe it to them).
Before moving on, I want to make an important point. I’m not making any political judgments. If you know me, you know I have LOTS of problems with both the left and the right.
I’m just trying to alert you to a major trend that is playing out in the world today. It doesn’t matter if the Republicans or the Democrats control the government… this rise of socialism is happening. And the eventual, economic consequences are inevitable.
Alright, so you’ve heard from this unnamed financial writer. If you read all of what he says he’s promoting investments. That’s not our issue here, but it points to something important.
Our issue here is to understand where this will lead, and considering readers would prefer I keep things short here it is in summary. Based upon reading many economists I believe we’ll see what’s left of the middle class nearly destroyed. The rich and government related rich are going to get A HUMONGOUSLY LOT RICHER, and the poor are going to continue to ask for more government services to rescue them from that filthy word “w.o.r.k!”
These poor socialist proletariat working class people are going to natter and complain and cry about anything that might allow a big company to come to their city, open industrial jobs, and give working class folks a chance to work and earn a living. We’ll end with more masses of people on welfare until, in one way or another, they are eliminated.
SN: My point here is, as I said before, this is happening again. The wealthy will open businesses elsewhere. The smart will move out of the US and open small businesses to survive elsewhere. The lazy or afraid, the poor, those who have no idea how to run their own business, will depend upon government until they die of starvation.
My advice is to avoid any investments that are promises to pay. Do something that you have 100% control over. Consider what people need and provide what they need. They need food, clothing, shelter, healthcare, education about how to make these things available to their community — and you should get into the flow of one of those. It could be a small cafe, or a business making bread or sauces or operate a small sandwich and pizza deli. Ideally it should be done in a place where the government isn’t going to ruin you, or you work on a cash basis only doing something people need done like carpentry or fixing appliances.
This may surprise you. Many Russian people have been trading and exchanging between many parties to get done what they need and feed themselves. This has been ongoing for many years.
I read a story about a Russian woman who needed electricity brought to a building but the power company said they needed “telephone poles” to string the wires. If she could somehow get the poles installed, they would install wires and power to her place. She ended up making several phone calls, arranging trades between others and herself and finally she got the telephone polls installed so she could have electricity.
In this crazy new world you will have to learn to think that way or you’ll die. And that’s where idiot people like Bernie Sanders and his brood are leading us.