Prepare for the Great Electronics Pillaging

Who Will Fix This Mess? [Gilder's Daily Prophecy] August 27, 2021 [UNSUBSCRIBE]( | [ARCHIVES]( George Gilder: “Do NOT buy bitcoin until you’ve seen this.” [man with bitcoin]( believes something bigger – and potentially more lucrative – than bitcoin is emerging as we speak. It could ultimately generate trillions of dollars. And George recently went on camera to discuss his top stocks to buy to tap into that trillion-dollar potential. [Check the footage out HERE while you can.]( [Warning] Do you enjoy receiving Gilder's Daily Prophecy? Please [Click Here Now]( so we know to continue sending you Gilder's Daily Prophecy for free! Prepare for the Great Electronics Pillaging [Jeffrey Tucker]Dear Daily Prophecy Reader, Before we get started today I wanted to tell you about a special opportunity from our business partners. Be sure to mark your calendar today! On Tuesday, August 31 @ 8:00 p.m. Eastern, our Publisher is making a MAJOR announcement about a simple change that could help you increase your gains up to 3-fold on George’s recommendations. No options or leverage needed. You buy the same stocks at the same time… but with this change your returns can be dramatically higher. [You DO NOT want to miss this](. We look back at the late 1970’s. We marvel at how policy makers could have been so stupid. The price of everything was soaring. Price controls meant shortages in a range of goods. Everyone was blaming everyone else. The only institution that somehow evaded blame was the actual source of the problem: the Fed. Paul Volcker knew this all along, so when he took power, he clamped down on the money printing and let interest rise, causing recession but preparing the way for the biggest economic boom in history. Part of that economic boom was an incredible and globally benevolent fall in the price of consumer electronics, software, and digital everything. Between 1984 and1996, the computer chip changed the world, ever more useful and ever more ubiquitous. Incredibly — though we take it all for granted now — the prices of those chips fell dramatically after the invention of the web browser, the GPS, and the app economy. This is despite the arduous production process and high-cost barriers to even entering the production market. Here is the long-run picture of the manufacturing industry. Prices industry-wide fell by nearly half. [Producer Price Index by Industry] The benevolence to humanity is hard to overstate. Our cars became smart, safe, and reliable in ways that were inconceivable in previous periods. They were filled with microchips. So too our homes. The personal computer became a household device, turning our dining room tables into information generating miracles, while our appliances assisted us with security, entertainment, and health. Those who believe that a rising standard of living comes with inflation — and that industry cannot survive a relentless deflation — are refuted by these data. The prices of everything were never lower even as the profits and returns to companies in these sectors boomed. Deflation in these industries was not a disaster, but rather the opposite. The markets for products expanded to the point that last year’s luxury goods became next year’s commonly owned tool. Even now, it is something of a marvel that smartphones are in the hands of nearly everyone. It’s Over This quarter-century trend in falling prices of chips and consumer electronics is now coming to an end. The world’s largest chip manufacturer, Taiwan Semiconductor Manufacturing, has announced a 20% increase in prices for all purchasers. This hits Microsoft, Apple, Tesla, General Motors, and every manufacturer of home appliances and many products used daily in supply chains all over the world. These increases in costs will be passed on to everyone insofar as it can happen. It’s a big reversal, and there are a number of reasons why it is happening. The lockdowns of last year smashed supply chains and sent chip manufacturers scrambling for new markets for their products. They turned from production destined for the US and focussed on Asian markets mostly centered not on cars and large-scale capital goods but rather consumer goods. US car manufacturers cancelled all orders pending the reopening of the economy, stupidly believing that they could get back in line at a moment’s notice. It didn’t happen. Now we see Toyota and GM closing factories simply because there is no point in cranking out cars without final components. I had a sense of foreboding six months ago at this news that cars were being shipped to consumers without GPS technology and with a literal reversion to analog technology in operations like cruise control and speedometers. This is going backwards in time! It’s not yet Cuba — we’ve got a long way to go before that arrives — but it is a seriously bad omen for any manufacturer to eschew 20 years of technological progress in favor of what had come before. So yes, there are particular and possibly transitory factors driving up the price of chips. There are also monetary factors adding fuel to the fire. It took from WWII until 2013 for the M2 measure of money supply to reach $10 trillion – and only 7 years for that to double to $20 trillion. Most of that doubling took place since 2020 when the Fed brainlessly decided that its monetary alchemy would need to work as a substitute for actual production. Inflation will take other forms. With “shrinkflation” packaging gets ever smaller in the hope of disguising to consumers what is happening. Housing prices are already soaring but other services will come with very sneaky ways of getting you to open your wallet. As just one example, you might be able to rent a truck at a low price of $20 but you will be charged one dollar per mile plus double the price of gasoline for every drop you use, plus as many other dribs and drabs you need along the way. They will get their money one way or another, making enterprise seem sneaky and devious. [No more banks. No more accountants. No more Wall Street?]( One small change? to find out how one simple change to the way you invest could help you boost the returns by as much as 3-times? [If so, you need to check this out.]( Three Founders publisher, Doug Hill just made a shocking discovery that could help you achieve that goal… Without using options… leverage… or any other investing gimmicks! And on Tuesday, August 31 @ 8:00 p.m. Eastern – during a FREE online training event, [Turning Point 2021]( – he’s going to walk you through EXACTLY how it works. If you want to see how this change works for yourself… [CLICK HERE NOW.]( [New Federal Rule could change America forever.]( Who Is to Blame? As with the 1970’s, everyone is going to be looking for whom to blame. No question that the ultimate offending policy here is the lockdowns. That’s what changed everything. Production was stopped. Workers were forcibly unemployed. Whole factories went dark for fear of a virus with a 99.98% survival rate and an average age fatality at or above the average life span. Amazing to be sure! It was this policy that opened the floodgates to fiscal and monetary despotism that is driving inflation today and will continue to vex us for years. Who Or What Will Fix This Hot Mess? Now to a profound question: is there anyone in a position to be in power who actually knows something about economics who can be sufficiently influential to begin to repair the problem? My worry is that there is not. In the late 1970’s, there developed an influential Team B that became Team A. They were under the influence of George Gilder, and rallied around tax cuts, sound money, fiscal discipline, and free trade. They thought with and governed with an intellectually coherent plan. These days, not so much. Most people under the age of 40 who have come from prestigious colleges are today under the influence of woke ideology — or, if they are not, they are already marginalized or have been canceled by the brutality of social-media censorship. A ray of hope here is the brain trust gradually gathering around Ron DeSantis of Florida. Maybe that can go somewhere but we are talking about two and a half years from now. As for the Fed, I’m not seeing anyone with influence in those circles who has a dedication to sound money. Meanwhile, Bitcoin and other cryptos just keep moving from success to success. The entire crypto-token sector is now worth an incredible $2 trillion. Will these tokens become a viable replacement for the dollar? In some sectors yes, and others no. In the meantime, mark my words: the Biden administration will not hesitate even one instant in imposing price controls. On what? Everything. But they won’t call them that. They will call them anti-gouging restrictions. There will be national, across-the-board rules about how much sellers can increase prices over a certain time period, and investigations and prosecutions of those who either don’t comply or sneak in price increases in other ways. If these efforts succeed, the result will be shortages. My conclusion for today: it is time to upgrade your computers, smartphones, security cameras, and cars. Wait a year from now and you could be paying 20% plus more than you pay today. Regards, [Jeffrey Tucker] Jeffrey Tucker REVEALED: Tesla’s New Secret Project (Hint: It’s NOT EV’S, Space Rockets, or Solar Tech) Take a close look at this unusual satellite photo… [Map]( It reveals a secret project location… 40 miles south of Houston, Texas… Where Tesla is quietly building a game-changing technology… That is a part of a $100 trillion disruption… And a new ground floor opportunity (that Bloomberg says) will grow an exponential 12,100% over the coming years… What exactly is Tesla working on? [The details of this mysterious reveal will blow you away.]( ***Free of Charge – No Sign-Up Required*** The #1 Ticker Symbol for this new 12,100% tech boom. (It’s a little-known company that’s only 1/600th the size of Tesla) Hurry: this disruptive tech story is moving fast. 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