Fake Economics Always Destroys Real Estate and Energy Wealth

January 08, 2026

Dear Reader,

Let me explain something about markets that politicians will never tell you.

  • The Pattern: Fake economics—whether EV subsidies, rent control, or government-run utilities—always fails when political winds shift

  • The Real Estate Trap: Rent control doesn't create affordable housing—it destroys it by scaring away investors, preventing maintenance, and creating shortages

  • The Smart Money Move: While politicians manipulate markets with subsidies and price controls, wealthy investors avoid fake markets and focus on assets 

  • Hidden inside the Big Beautiful Bill are new carve-outs that could slash your tax bill, multiply your income, and protect your family's wealth. Donald Trump and I wrote the only book that shows you exactly how. Click here to claim your copy!

Free markets are Nature's way of satisfying buyers and sellers. It's beautiful. Simple. Efficient. Fake economics? That's what happens when politicians screw around with this process to force behavior that wouldn't normally happen.

And it always—always—ends badly for investors who don't see it coming. In fact, I wrote a book about it, FAKE, How The Lies are Making the Poor and Middle Class Poorer.

The EV Disaster Unfolding Right Now

Perfect example: electric vehicles.

The taxpayer subsidy for EVs is expiring. And guess what? Dealers and manufacturers are drowning in unsellable inventory.

Why? Because the demand was fake. Created by government subsidies, not real market forces.

When the government props up a market with taxpayer money, what happens when the subsidy ends? The market collapses.

This is textbook fake economics. When your business depends on government sponsorship instead of real profitability, you're one political wind shift away from disaster.

I saw the same thing in solar panel companies a decade ago. Solyndra, anyone? Half a billion in taxpayer money. Bankrupt.

The pattern repeats. Over and over.

What Happened to California's Power Grid

Here in Northern California, we've got Pacific Gas & Electric—PG&E. A regulated monopoly.

When something goes wrong—fires from faulty wires, power outages—everyone demands the utility fix it "on their own" without raising rates.

Here's the problem: Unlike government, businesses can't print money. Their only source of funds? Customers.

After a recent San Francisco blackout, politicians started calling for the city to take over the electrical grid. As if politicians and bureaucrats have some magic ability to run power systems better than engineers.

They point to Los Angeles, where the Department of Water and Power runs the show. But that only worked because LADWP built the first large-scale hydroelectric system as a byproduct of the aqueduct bringing water from the eastern Sierras.

They had geography and timing on their side. Not genius government management.

Government-run utilities sound great until the politics change. Then infrastructure crumbles because there's no profit motive to maintain it efficiently.

The Rent Control Con That Destroys Housing

Housing is essential. More essential than almost anything except food and water.

Houses don't grow on trees. They're expensive to build. Land is finite—nobody's making more of it.

Supply and demand should control this. Except when politicians get involved.

I watched it happen in Berkeley. The renter population grew. They voted in rent control.

What happened? Exactly what any logical person would predict.

Students graduated, got high-paying jobs, moved to suburbs—but kept their cheap rent-controlled apartments for storage. Or to house their difficult teenage kids.

New students? They had to live farther and farther from campus because there was no available housing they could afford near the university.

Bottom line: Pro-tenant, anti-landlord laws scare away investors. This creates housing shortages. Buildings deteriorate because landlords can't afford maintenance when rent is frozen below market rates.

I've seen the same pattern in New York City, San Francisco, and every other city that tries rent control. It always fails. Always.

Why? Because you can't force supply and demand. You can only distort it temporarily—until reality reasserts itself.

The Energy and Real Estate Connection

Smart investors understand something crucial: fake markets are temporary. Free markets are permanent.

In energy, this means avoiding businesses that depend on subsidies. Instead, invest in baseload power—natural gas, nuclear, geothermal—that works regardless of political fashion.

In real estate, it means avoiding rent-controlled markets. Buy in areas where supply and demand still work. Where landlords can actually make money maintaining properties. Where property rights are still respected.

Or better yet, focus on commercial real estate, industrial properties, and owner-occupied housing markets where rent control doesn't apply.

What This Means for Your Wealth

Here's the lesson: When politicians create fake markets—whether through subsidies, price controls, or mandates—there's temporary opportunity for some. But long-term disaster for most.

The wealthy understand this. They avoid fake markets or time their exits before the collapse.

The middle class? They get stuck holding assets that were only valuable because of government intervention.

When the intervention ends—and it always ends—their wealth evaporates.

Look at what's happening right now:

EV inventory piling up as subsidies expire.

Rent-controlled cities with housing shortages.

Government-run utilities with crumbling infrastructure.

It's the same pattern. Different industries. Same outcome.

Free markets reward investors who understand supply and demand. Fake markets punish everyone except the politicians who created them—and they're spending your money anyway.

Choose wisely.

Kiyosaki Unsensored

P.S. STOP! Don't You DARE Buy Gold Right Now.

I don't care if gold is at $4,500. I don't care if everyone says it's going to $5,000. If you buy gold now, you're making a costly mistake. There's a smarter play that could hand you 11X the profits. But the window closes on December 10th when a government meeting changes everything.