The federal government is coming for your Airline Points…
James Hickman

The US Department of Transportation clearly has a lot on its plate.

America’s infrastructure is not in great shape. The American Society of Civil Engineers (ASCE) grades America’s roads, bridges, and public transportation a C- overall.

In fact 42% of US bridges are at least 50 years old, and nearly 7.5% are considered structurally deficient. 43% of public roads are rated as mediocre or poor.

Then there’s the sorry state of US railways, many of which are considered ancient by industry standards. And despite the “High Speed Ground Transportation Act” being passed SIX DECADES AGO in 1965, the amount of high-speed rail in the US is pitifully low.

There are also seemingly constant problems with US air traffic, especially at major airports.

But what has US Transportation Secretary Pete Buttigieg done thus far during his tenure to address these challenges?

Well, after Congress handed him an astonishing $1 TRILLION to fix America’s crumbling infrastructure, he’s managed to spend $7.5 billion to build a grand total of seven electric vehicle charging stations across the country. Clearly that’s money well spent.

But now Secretary Pete has shifted his gaze to America’s biggest transportation problem.

It’s not highways. Or bridges. Or even electric charging stations.

Secretary Pete is now devoting precious taxpayer resources to regulating airline points… as in the frequent flier miles and other reward points that you get whenever you fly with a major airline or even sign up for a new credit card.

Last week, the government announced that Secretary Pete has “sent letters to American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines ordering them to provide records and submit reports with detailed information about their rewards programs, practices, and policies.”

First of all, what do credit card reward point have anything to do with infrastructure? And second, even if we want to accept Pete’s bird-brained logic, how could anyone possibly argue that airline miles should be anywhere near the Department’s top priorities?

Yet Secretary Pete is fixed in his duty. He claims that:

“…points systems like frequent flyer miles and credit card rewards have become such a meaningful part of our economy that many Americans view their rewards points balances as part of their savings… But unlike a traditional savings account, these rewards are controlled by a company that can unilaterally change their value.”

What an interesting point of view. Airline points are a form of savings that is controlled by a company which can unilaterally change its value.

Gee where might I have seen that before….

OH, I remember! Like how the Federal Reserve can unilaterally inflate the value of the dollar, i.e. the actual form of savings that people all over the world use? Or, even better, how the US government can destroy the value of the dollar through its reckless and irresponsible deficit spending?

It is utterly hilarious (though simultaneously pathetic) that Secretary Pete has no concept of this irony.

This is the guy who has spent $7.5 billion dollars on building seven electric vehicle charging stations, an average cost of more than $1 billion per charging station.

Guess what, Pete? Your staggering waste of taxpayer money has contributed to the decline in value of the US dollar. But, sure, keep going after those airline points, bro.

If you thought airline points were declining in value now, just wait to see how worthless they become once Pete starts regulating these programs. How many segments will you have to fly in economy class to rack up enough points for that family vacation to Key West next year? Pete will decide. It’s genius.

Sadly this is not an isolated issue within the Department of Transportation. Agencies all over the federal government have abandoned their core missions and are instead focused on their leftist agenda.

The Federal Trade Commission, for example, exists to protect consumers from monopolies. Instead they’re busy suing grocery store chains over “greed” and made-up threats to unions.

The US Committee on Foreign Investment exists to ensure that state secrets and strategic technology don’t fall into the hands of America’s adversaries. But this same agency is now killing a deal for US Steel to be acquired by a Japanese company (i.e. one of America’s biggest allies) because the labor unions don’t like it.

The list goes on and on. The State Department is handing out money to America’s sworn enemy in Afghanistan. The Treasury Department is setting up banking systems that fund terrorism.

Everything the government is doing is the exact opposite of what is needed to address THE largest threat to America— its massive debts.

They spend like drunken sailors and focus their efforts on destroying the economy… instead of allowing it to flourish and generate much-needed tax revenue.

And that’s why, even though America’s problems are still fixable, I highly doubt anyone in charge will use the rapidly closing window of opportunity to address them.

That’s why it makes so much sense to have a Plan B.

Simon Black, as James Hickman is more commonly known, is the Founder of Sovereign Research.

He is an international investor, entrepreneur, and a free man. His daily e-letter, Sovereign Letters, draws on his life, business and travel experiences to help readers gain more freedom, more opportunity, and more prosperity.

Hickman is a lifelong entrepreneur and investor that’s traveled to more than 120 countries on all seven continents. In addition, he’s started, invested in, or acquired businesses all over the world.

He is a graduate of the United States Military Academy at West Point and served in the US Army as an intelligence officer during Operation Enduring Freedom and Operation Iraqi Freedom.

Hickman founded a South America-based agriculture company that has become one of the leading producers in its industry. A few years ago, he acquired a prominent retail brand in Australia, purchasing the business from the former 1980s era rock star who founded it.

His other business ventures have included starting a boutique, private investment bank that boasts some of the highest levels of liquidity and solvency in the world, and investing in companies from Colombia to Uzbekistan. He also serves on numerous Boards of Directors, and previously served as Chairman of company listed on a major stock exchange.

Writing under the pen name Simon Black, he has also written extensively on business incorporation and tax residency establishment in Puerto Rico, and is a proponent of investing in gold and silver as a hedge against inflation.

He is a also a prolific writer on topics ranging from second residency and citizenship, Golden Visas and portfolio diversification, to estate and retirement planning, asset protection, tax optimization and US Opportunity Zones.

 

www.sovereignman.com