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Elite Mind, Mob Emotion

How all republics degrade and die. Like the US...

"The REAL question is whether the new dictatorship is one of the right or the left. I think the left is the bigger danger," reports Bill Bonner in his Diary of a Rogue Economist.

A friend, who prefers to remain anonymous, had asked us to imagine what would happen if there were a disputed result in the next presidential election.

Could the American Republic survive?

Here at the Diary, we think the American Republic is already largely a fiction. Congress blabs. The president distracts. The Deep State rules.

But our friend was talking about a more serious breach of decorum – a change not just of substance, but of style.

"You know that woman in the Bronx, Ms.Ocasio-Cortez? She was an activist, like Obama, selected by a liberal group that was looking for a candidate," continued our friend. "She applied for the job. They chose her because she presents well, I guess.

"She's a socialist. Who would have thought that self-described socialists would be elected in the US? But it looks like there will be more and more of them.

"The liberals are becoming more radical. It's as if they learned nothing from the experience of the Soviet Union. They want to do it all over again – here.

"These people are gaining ground. And they're ruthless. They are so sure they're right about everything. And they hate Trump and everything he stands for...whatever that is.

"The next presidential election could be close – with two sides that haven't been so far apart since Lincoln faced Douglas in 1860. Typically, the loser accepts the verdict and life goes on. But in the next election, neither side may be willing to accept a loss. Then what?"

We don't know "then what?" any better than anyone else. But we would like to take a moment to put it in perspective.

Over time, all democratic republics degrade and degenerate.

Time, scale, and distance separate the people who are supposed to be the geniuses running the system from the actual information they need to do it.

The common man can never take the time to understand international capital flows, trade policy particulars, or the real risks to national security. More and more, he relies on his elites – permanent, professional experts who guide and shape government policies (aka the Deep State).

Not having any direct knowledge of the issues leaves the masses dependent on personalities...on public impressions...and on the charisma of showmen.

They are easy prey to fantasies and myths, believing that hobgoblins are out to get them and fairies have pots of gold with their names on them.

The Republic may begin with someone like Jefferson, who read Homer in the original Greek. But it ends up with someone like Trump, who doesn't read at all.

It may begin the game operating on principles...laid out in a sacred charter. But it gets carried out on a stretcher at the end, pursued by ambulance-chasing lawyers, lobbyists, and two-bit chislers.

The Republic may be designed by the mind, but it ends up as a foul product of mob emotion.

Americans shouldn't feel bad about it. They held it together fairly well for more than 200 years.

But corruption gradually works its way from the skin to the bone...and then to the heart. The cronies – the military-industrial-Big-Pharma-Wall-Street complex – find more ways to take advantage of the system...through regulations, trade deals, tax angles, subsidies, contracts, and other finagles.

Zombies, the great masses dependent on succor from the government, use the weight of their numbers to insist on more "benefits" – based on the illusion that someone else, somewhere else, at some time in the future will somehow pay for them.

As time goes by, the costs mount up. Debt grows heavier. Expenses rise faster than income. (In the US, debt has increased four times faster than GDP since 2000). The system approaches insolvency.

But by then, the special interests have run their roots deeply into the governmental edifice.

One group insists on its farm subsidies. Another claims that without more money, the Russians will invade. And still another, made up of 100 million retirees, says it needs more pills.

Each claim may be absurd on its own merits, but once the roots are entwined with the stone, they can't be pulled out without bringing down the whole wall.

Inevitably, a financial crisis arrives. One faction of Deep Staters takes on emergency powers – suspending the few residual protections and rights still enjoyed by the citizens.

Another faction, seeing its supply lines threatened, challenges it. It ends up in a bloody fight.

"We could have a real civil war in the US. Just imagine that the vote is close. Congress could be completely deadlocked and dysfunctional...It almost is already. A disputed election could go to the Supreme Court. And then the justices that Trump has put in place could side with the president.

"What would the hardcore leftists do? Most likely, they'd take to the streets. There would be a few demonstrations...some bombings...some assassinations. And then a clampdown.

"Or it could go the other way. Suppose Trump loses, but by a small margin. Then, he claims it is 'fake news'. He refuses to leave the White House. The leftists raise Hell. Some people die. Trump calls out the army and declares martial law. Do the generals support him? Or do they back the socialists?"

Again, we don't know how the Republic ends. We don't know what end is in store for us, either. But we're pretty sure there is one.

New York Times best-selling finance author Bill Bonner founded The Agora, a worldwide community for private researchers and publishers, in 1979. Financial analysts within the group exposed and predicted some of the world's biggest shifts since, starting with the fall of the Soviet Union back in the late 1980s, to the collapse of the Dot Com (2000) and then mortgage finance (2008) bubbles, and the election of President Trump (2016). Sharing his personal thoughts and opinions each day from 1999 in the globally successful Daily Reckoning and then his Diary of a Rogue Economist, Bonner now makes his views and ideas available alongside analysis from a small hand-picked team of specialists through Bonner Private Research.

See full archive of Bill Bonner articles

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