Our Higher Purpose

In a small democracy, people can see for themselves what is worthwhile and what is not. They see the mayor in a fancy new car with a fancy new girlfriend and they ask questions.

Source: Getty Images

Wendesday, August 28^th, 2024 

Bill Bonner, writing today from Poitou, France 

Here’s the latest from the Financial Times: 

 
Top defence contractors poised for $52bn cash bonanza as orders soar 

The largest aerospace and defence companies are set to rake in record levels of cash over the next three years as they benefit from a surge in government orders for new weapons amid rising geopolitical tensions. 

The leading 15 defence contractors are forecast to log free cash flow of $52bn in 2026, according to analysis by Vertical Research Partners for the FT — almost double their combined cash flow at the end of 2021.  

Our message today: Inflation, at its root, is a political phenomenon. The more the feds spend, the more they need to ‘print.’ And always for a ‘good reason.’ They think they have a good reason now. A $50 trillion national debt... and inflation... will follow. 

All over the world, governments are ‘gunning up.’  

Oceania (aka The West) is buying weapons. Yonhap News: 

Trump demands NATO allies spend at least 3 percent of GDP on defense 

Republican presidential candidate Donald Trump on Monday called on member countries of the North Atlantic Treaty Organization (NATO) to spend at least 3 percent of their gross domestic product (GDP) on their defense, calling the current 2 percent guideline "the steal of the century." 

The former president's remarks added to speculation that should he return to the White House, he could put pressure on South Korea to increase its financial contributions to the stationing of the 28,500-strong U.S. Forces Korea (USFK). 

The rest of the world, anticipating trouble, is lining up behind the BRICS, forming new alliances, strengthening old ones, and buying weapons. The New York Times: 

China and Russia are not formal allies, meaning they have not committed to defend each other with military support. But the two countries are close strategic partners, a relationship that deepened during the war in Ukraine as Russia became increasingly isolated from many other countries. Chinese officials have said the current relationship is at a “historic high.” The partnership is fueled by a shared goal of trying to weaken American power and influence. 

Individuals do not buy tanks from General Dynamics... or fighter planes from Boeing. The buyers are the feds. US feds. Chinese feds. Russian feds. French feds. War is the feds’ bottom-line business.  

One war is already underway on the Eurasian steppes... where Russia and the Ukraine battle it out.  Red lines are crossed…and the war threatens to spin out of control at any minute.  

Another war on the Eastern Mediterranean littoral pits Israel against its neighbors. The Israelis appear to be attempting to liquidate the Palestinian presence within what they consider their ‘homeland.’ The US backs them up. 

And then, there’s China. The idea — much encouraged by the firepower industry — seems to be to make China into another ‘enemy’ thereby justifying even more ‘gunning up.’  Why spend so much money spent on guns?  

In a small democracy — say the size of a small town — people can see for themselves what is worthwhile and what is not. They see the mayor in a fancy new car... with a fancy new girlfriend... and they begin to ask questions.

But in a government the size of the USA, the typical voter is hopelessly adrift... blown this way and that by the winds of a gassy media... and carried along by the currents of relentless propaganda. He’s never met a defense contractor... never been to the Ukraine... and only seen politicians on TV. And thanks to the electronic media, his brain is washed clean every day.  

The elites — who control the government — pretend to have a better use for our money — a ‘higher purpose’ — to save the planet... to stimulate the economy... to succor the poor... to heal the sick ... or protect the country! 

They are all mostly just ways to redistribute wealth to powerful insiders. But thanks to the credit money system, the voter never feels the hands that pick his pocket. Instead, the real costs are deferred and disguised — in higher consumer prices, a lower standard of living... occasionally, mass death...  

And the higher purpose always turns out to be an illusion, a mirage... and a swindle. 

Regards, 

Bill Bonner