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Dear Readers,

We are fast approaching the most important election of 2024, the American presidential election.

Now, you may or may not frequent social media from time to time, but if you do, I’m certain you’ve noticed something on X (formerly Twitter) often.

And it’s this. X’s owner, Elon Musk, has decided to push very heavily for the re-election of one Donald Trump for president.

And so, for better or worse, your X feed will now be full of Musk’s own tailored tweets designed to promote voting for Trump, and the reasons you should do it.

(You may not be a US citizen, nor eligible to vote in this election, but it appears this makes no difference to the X algorithm).

Now, it is Musk’s democratic right to decide whom he wants to vote for. Though arguably he shouldn’t use his position as the owner of one of the world’s largest social media platforms to tell everyone whom he’s supporting.

Whether or not you agree with that, the real question for me is this: why?

Why is Musk so into Trump and his policies? Why is it so important for him to see a Trump victory here?

Today, I will tell you why.

I will propose an idea that only someone who views the world via the lens of the real estate cycle could possibly understand.

The real reason for Musk’s support here is earth shattering! Quite literally.

And by the time you read this newsletter, it might perhaps plant a seed for a personal investment you and your family can buy and hold for the next 100 years.

Let’s look now at what Trump and Musk are really cooking up here.

Have you ever caught a rocket with chopsticks? 

I must start by giving credit where it’s due. Firstly, PSE co-founder Phil Anderson was the inspiration behind today’s newsletter.

To this day I’ve never met someone who can get directly to the heart of any issue he sees yet uses only a sentence or two to explain it. Secondly, it was this stupendous engineering feat that SpaceX managed to pull off earlier this month.

Source – BBC

By any measure, SpaceX has pulled off a truly astonishing achievement. I’m in awe of what’s being achieved by this company seemingly every month. They appear able to do the impossible and do it around 50% cheaper than their only other rival in this space, Boeing.

NASA can’t do this, the Chinese and Russians can’t do this either. In a moment, I’ll explain the geo-political leverage this could give the United States. But before I do that, have you asked yourself the following question as you read the headline above?

Is it coincidence that this happened right now, before the US presidential elections? Why go to an awful lot of effort and expense to showcase such technology now? You may think there’s nothing to it, both events are unrelated.

I beg to differ. And it comes down to Musk’s unwavering support of Trump. What is Musk really after here? What is it that Trump’s election could possibly provide for him and his plethora of companies?

We know Trump as an economic rent chaser thanks to his previous life as one of America’s most infamous property developers.

Hotels, casinos, you name it, Trump has at one time or another had his surname blazoned across them. Real estate remains one of the best ways to gain exposure to the economic rents that occur in society.

Trump borrowed billions to invest into prime real estate because he knew that, as a landlord, he can take full advantage of US tax laws to deduct the interest bill on his loans and leverage the rents he was receiving to borrow more.

It’s a concept any mum and dad real estate investor would be aware of. However, when he enacted the first new armed service to be included in the US Department of Defense (DoD) since 1947, the US Space Force, during his first term as president in 2019, we at PSE were intrigued.

Here was the first indication of how mankind would exploit natural resources beyond our atmosphere. And no different to terra ferma, provide a means whereby the US military could be used to protect those same gains, only in space.

This was one of the purposes of the Space Force: protect property “rights”.

You weren’t told this by the authorities of course, but face facts here. Isn’t this precisely how a former real estate mogul would view the riches on offer in outer space. Say, on a nearby asteroid?

A legal framework whereby the world’s biggest military would be compelled to defend such interests, whether government or private. The only thing left to do was work out just how it was feasible to not only mine in space, but bring those same resources safely back to earth?

And it simply wasn’t possible, until a spacecraft was caught by mechanical chopsticks this month.

And the potential forming of an alliance that could change the entire world as we know it.

A game of thrones?

If you’re the US president, you would quickly realize, in the game of near-peer competitors, that in certain instances you’ve been dealt a lousy hand. On the opposite side of the table, you would notice that your main rival China has a significant advantage.

China has spent vast resources ensuring it has a stranglehold over some of the most important supply chains in the modern world. I’m talking about access to critical strategic rare earth resources.

President Biden has tried to address this through the use of tariffs and providing the US State and Defense Departments with funds to buy into mainland and allied countries’ own critical mineral supply chains. But it’s simply not enough.

You can’t turn the supply of these resources on and off like a light switch, it can take up to a decade to bring online new discoveries. You need a way to up the stakes, go to an altogether new level to overcome these disadvantages.

It’s now that you notice Elon Musk pulling a chair up to the table.

Musk is an entrepreneur, so I don’t blame him here. He can see billions worth of taxpayer’s money being thrown around; why shouldn’t he do his best to ensure he gets most of it?

He just needs someone to get elected US president who understands just how incredibly lucrative the private capture of the economic rent can be.

Say, a former real estate mogul?

It’s all just too convenient to not be true if you ask me. Via SpaceX, the US can achieve something that neither of its chief rivals in Russia or China can match. It can send things into space and get them back again. However, SpaceX isn’t an inner space mining company.

It doesn’t have the means to mine itself. However, it actually doesn’t need to.

Source – space.com

AstroForge undertook an earlier mission using one of SpaceX’s rockets back in April 2023, though the mission wasn’t a success due to technical issues. This was due to mission control being unable to activate its refinery module once in space.

But the 2025 launch will accelerate the technology to a point where actual mining missions will be carried out. It’s only a question of when, not if.

Is this the vision that Trump and Musk are planning here? The ability to successfully mine near-earth asteroids and then successfully (and cheaply) bring them back to earth would completely undermine decades of Chinese efforts to corner the rare earth markets.

It would count for nothing. They cannot respond in kind right now. But then again, neither can the US government. SpaceX is a private company. Musk is well aware the US government badly needs his tech today.

What Musk would really want in return is a legal framework that allows him to claim ownership of as many of these valuable near-earth asteroids as possible. Regardless of who actually ends up mining on them.

One which could then compel the US military to help protect said assets from being taken by someone else. But at the same time enforce his rights to the rent these asteroids would produce via mining them. You know that by another name – a government granted license.

Having a sitting president on your side could certainly see such laws enacted. Meanwhile Trump himself can ensure he is given pre-IPO shares when the inevitable SpaceX public listing is announced.

For both men, the fruits of this alliance are clear. Let me ensure it’s as much in your mind here too.

Successful mining of near-earth asteroids would make both men trillionaires. The first in history. In fact, they would make billions a night whilst they slept while robotic miners would work unheard and unseen mining the riches these asteroids possess.

Now you tell me. Is the payoff here worth sending out hundreds of posts on a social media platform to posters across America making sure they know who to vote for?

An idea about how you can play this.

I’m sure you haven’t missed the fact the world is very quickly re-arming itself. Tensions rising everywhere, current conflict zones expanding, not decreasing or cooling off.

It’s a well-known recipe for the biggest weapons manufacturers to cash in. Now, I will not judge those who choose, or don’t choose, to invest their scarce capital into listed defense companies. My wife works for one, hence my stance!

I will, however, say one thing about those who do. Stop wasting your time investing in Raytheon, Lockheed Martin and Boeing. The best defense companies on earth right now are owned by one man.

Elon Musk.

Controversial? Actually, no. China has been at the forefront of merging civilian and military technology breakthroughs to benefit both. Well, the US can do the same can’t they?

Do you think Ukraine, now one of the world’s most advanced operators of armed drones and their doctrine of use, could have possibly become a world leader in this field without Starlink?

That’s right, a satellite system designed to provide global high-speed internet anywhere. Oh, you thought it was “just” for civilian use? Wrong.

Already the US military is deeply involved in working with the company to provide low earth orbit on-demand satellite coverage in the event of a war, say, in the Pacific.

You must accept that the next evolution of warfare is heading into space. And the world’s leading space technology company right now just so happens to meet everything that both civilian and military customers could want.

So, my advice to you is this. Keep a keen eye out for any news in the near future that Starlink or SpaceX is about to go IPO prior to listing on the US stock markets. Then hold your shares for the next century.

But also do this.

Learn the history of the real estate cycle. Once you do, you’ll understand what the economic rent is, and why the society you and I must live in today has been shaped by the privatization of something which is natural and should be free for all.

But is instead leveraged via mortgages by the banks and held by the minority. However, having said that, there is no harm in you doing precisely the same thing with your own investments.

And in turn capturing those same gains yourself. So, become our latest Boom Bust Bulletin (BBB) member and begin your education today.

The hidden order of the economy, its unique timing, and how to best take advantage of such knowledge can be yours each month. It can help you see the world in a manner no-one else can. Because you’ll place land at the centre of your research.

Can you see how the exact same understanding of the world is giving guys like Musk and Trump their tickets to become trillionaires?

This is the next great investment theme of the 21st century. Once the public truly understands the riches involved, they will pile in.

You can use the knowledge the BBB will teach you to help find those companies most exposed to capturing the rent, and protecting those same profits via the exclusive granting of a government granted licence.

That’s the edge such knowledge can grant you. Do you think paying $4USD a month is worth the outlay if it gives you the chance to be early on this type of opportunity?

Source – Live Science

“Why havent we mined it?” A good question.

If Musk and Trump get their way next month, the question becomes academic.

It’s time for you to learn why that is, and how you can get a slice of the returns.

Sign up now.

Best wishes,
Darren J Wilson
and your Property Sharemarket Economics Team

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This content is not personal or general advice. If you are in doubt as to how to apply or even should be applying the content in this document to your own personal situation, we recommend you seek professional financial advice. Feel free to forward this email to any other person whom you think should read it.