A new era is breaking

[Bill Bonner’s Diary]( A New Era Is Breaking The current market turmoil tells me a new era is breaking… – Andy Kessler, author, “Inside View” [Bill Bonner] SAN MARTIN, ARGENTINA – A rider appeared in the distance, silhouetted by the setting sun on one of the hills that separated us from the house. He rode down the hill towards us as we rode toward him. It was Pablo, the young man who takes care of the cows. “You need to come back to the house,” he said, “the police are looking for you.” This did not sound good. We’ll come back to our adventures in Calchaqui Valley, where we are waiting out the C virus, in a moment. First, let’s look at the markets… Suicidal Money-Printing Yesterday, stocks recovered a little ground, following bi-partisan support for suicidal money-printing. The Dow finished more than 1,000 points higher. But this morning they are falling again, down the limit in futures trading. The proximate cause of yesterday’s bounce was obvious. Here’s The Wall Street Journal: The Trump administration said it backs a plan to send checks directly to Americans, likely within the next two weeks, as part of a stimulus plan to help households and businesses hit by the sudden economic slowdown triggered by the coronavirus pandemic. “We want to make sure Americans get money in their pockets quickly and small business owners have access to funds,” said Mr. Mnuchin. He also cited the needs of hotels and airlines. “We have an entire package that we’ll be laying out those details today.” And The Hill: Speaker Nancy Pelosi (D-Calif.) on Tuesday said House Democrats demand that any subsequent legislation to help mitigate the economic impact of the coronavirus pandemic include an expansion of emergency paid leave. The Senate is currently considering a House-passed bill to help prop up the economy amid the outbreak, but lawmakers in both chambers are already looking ahead to another stimulus package as markets remain volatile. And the president had given his command: Go bigly. Bloomberg… Steven Mnuchin had an ominous message for Senate Republicans gathered Tuesday in a marble-clad meeting room in the Russell office building: We need to pass a virus stimulus bill, or the U.S. could be looking at a 20 percent unemployment rate. Mnuchin said the fallout actually could be worse than the 2008 financial crisis, according to three people familiar with his remarks, and called for a package of more than $1 trillion that would include direct payments to everyday Americans. Recommended Link [Your Personal Invitation To “Board” Teeka’s Private Jet (Tonight at 8:00 PM ET)]( [image]( Tonight, at 8:00 PM ET, Teeka’s flying to a secret location to investigate his top 5 cryptos for 2020. And for the first time ever, YOU’RE invited to join. (And you’ll have a chance to learn their names) NOTE: These are some of the tiniest cryptos Teeka’s ever recommended. They also have the biggest profit potential… Teeka believes a $500 investment in each could potentially make you $5 million richer, in as little as 10 months from today. Regardless of which way Bitcoin moves next. Or how volatile cryptocurrencies get in 2020. [Click here to join Teeka on the journey of a lifetime – for FREE]( -- Helicopter Money It would be pointless to mention that it was “stimulus”, giveaways, free money, and fake interest rates that got us here in the first place. But now the Federal Reserve has cut its key rate down to a zero (despite a consumer price inflation rate over 2%) and ramped up its Repo Madness program. And the Trump Administration has now panicked, just like the Obama Team in 2009. Together, they are going to shower the nation with what used to be called, derisively, “helicopter money.” Like manna from heaven, it falls on the heads of the just as well as the unjust… but generally ends up in the pockets of scoundrels. Like Mnuchin himself, who pocketed millions from the bailout of ’08-’09. But now, there is no derision sharp enough to make the grifters bleed. They have the support of the Deep State, the press, Wall Street… and every dumbbell on every corner of Main Street America. It won’t be long before we have a guaranteed basic income, too. By then, we’ll have bailed out the airlines, the oil drillers, Boeing, hotels, casinos, corporate debt, speculators… and, of course, spared the president another embarrassing bankruptcy. Recommended Link [What’s Going On Inside This Building?]( [chart]( Inside this New Haven, CT, building… Silicon Valley’s top angel investor gave us a [sneak peek inside Apple’s new 5G iPhone]( And he showed us the critical device powering every 5G iPhone. By the end of the year, sales of these devices could go from $0 to $5.7 billion. One company makes the bulk of these devices. [And it could be the number one tech stock of 2020]( -- New Era Cure So far, everything is going according to plan. That is, if the plan is to leave the U.S. economy a godforsaken wreck. All our worst predictions… all our night terrors… all our “they couldn’t be that dumb” worries… all are coming to pass – and fast! But as Andy Kessler – author of The Wall Street Journal’s “Inside View” column – observes, a new era is breaking. And as bad as the bear market/virus attack/recession will be, the new era cure will be worse. Yes, they are dumber than even we could imagine. And the 2020 bailout won’t go like the 2008 bailout. A headline at Bloomberg this morning hints at the debacle ahead: Global Bonds Plunge Ahead of Debt Deluge From Pandemic Defense Yes, Dear Reader, this is a new era. Of course, it is also a very familiar old era… at least it is familiar here in Argentina. Here, the gaucho feds routinely spend too much… then borrow too much… then print too much… And then inflation goes through the roof… their bonds collapse… and the whole system blows up. In a nutshell, that is what is going to happen in the U.S., too. So make sure you keep some financial and social distance. Life is either a tragedy or a comedy. It will be more fun if you can laugh at it. Recommended Link [All this Hype about 5G is Pointless. Here’s Why]( [image]( By now you’ve heard big promises about 5G. 5G will make you rich… 5G will change your life… 5G will usher in the new Industrial Revolution. You’ve seen the Super Bowl commercials. And every one touting the next big 5G stock. But here’s the hard truth the pundits will never say… All the hype about 5G is useless. Without the technology of [this one tiny company]( there will be no 5G rollout across America. That’s why Facebook, Lockheed Martin, L3, Sprint, T-Mobile, China Satcom, and dozens of networks are banging on this company’s door. And for the first time, this tiny $8 company is about to roll out this long-awaited technology. To be one of the first to get in on this big stock market opportunity… [Check out this research briefing now]( -- Back on the Ranch Meanwhile… We rode back to the house at a trot. There on the porch was a group that included a policewoman, a doctor in hospital clothes… and a couple other women, one wearing a face mask. Another group crouched under a tree not far away. They were local men, a couple of whom we recognized as our own farm workers. “Hola… What can I do for you?” we asked as we dismounted in front of them. “How long have you been in Argentina? Do you realize that you’re supposed to be in quarantine?” To the last question, we had the perfect answer: “We couldn’t be more quarantined than we are here.” [Photo]Trotting back to the house [Photo]The old rugged cross We didn’t mention our sortie on Sunday up the valley. The team was polite. The fellow in hospital gear was bored. The policewoman remained steadfastly dour. And the nurse with the mask was cheerful. We remembered her from her visits to Gualfin. And she remembered us. She gave us a copy of the government decree, forcing us into quarantine. We signed it. She asked us to call her if we developed any symptoms of the disease. And then, they said goodbye. Each of them shook our hands, and the friendly nurse removed her mask to give us a kiss on the cheek. They picked up their things and headed back for the long walk to the footbridge and then over to the other side of the river. We turned our attention to the motley crew under the algaroba tree. “Hola… What’s up with you?” They approached. The leader then began to speak. But he had such a local accent that we could scarcely understand a word. He spoke. The others laughed. Including our own capataz (foreman), Antonio. Gradually, his meaning became clear. They had come from Cafayate to work on the screen doors, but one of the men in their group – upon hearing that foreigners might have the dreaded plague – refused to cross the river. “He must be loco,” said Pablo. “Well… if you guys will come to work tomorrow,” we threw them a bone, “we’ll keep our social distance. How’s that?” The next day three of the carpenters came to work. The fourth must have gone home. [Photo]The carpenters at work Regards, [signature] Bill Like what you’re reading? Send your thoughts to feedback@bonnerandpartners.com. [Chart]( FEATURED READS [U.S. Military Prepares to Step In to Care for America’s Sickest]( COVID-19 threatens the health and safety of American citizens, the U.S. military prepares to step in, offering its hospital ships for those who are sick with ailments other than the virus… so that hospitals on land can expend their resources to COVID-19 patients. [What Bear Markets Mean for Your Wealth]( Denning, coauthor of the Bonner-Denning Letter, analyzes the most damaging bear markets of the 20th century and puts them in perspective with what’s happening today. He encourages readers to look at the big picture, connect the dots, and create a plan… MAILBAG Today, Dear Readers continue their discussions on the coronavirus and President Trump… Bill, we’re on the same page mostly, but today? Grrrr! Boomers received big benefits from 1993 for years? Please tell me where, specifically. Government and the Deep State, Wall Street, banks maybe, but Boomers? Free lunch? Where? I’m 78 years old, spent 55 years in business, and put in a lot of hard work while taking government abuse, audits, and tax theft. Let me know how I screwed the millennials so I can feel better towards their 50%, plus ignorance and laziness. My only concession to those twits is the education system and parental guidance both failed them miserably. So now it’s time for them to WISE UP AND GET TO WORK. Jobs you say? Poor incomes (except tech area)? Great experience for them. I recommend two jobs, and for a short term of two or three years, three jobs. (My experience, not whining.) Tough times never last, tough people do! –Doug H. Hello Bill, Just a quick comment on your musings regarding Boomers. I suspect you were speaking in jest about getting what they deserve. I remember when my folks were young in the ’80s with two small kids. Both worked to support two young kids and pay bills. Their mortgage bill was massive, with double-digit interest rates. The house price appreciation during the Greenspan era did not cover the massive interest they paid over the life of their mortgage. When they got to retirement age, their savings earned nothing. They both had a good work ethic but they did not get any special boost to the fruits of their labor from the Federal Reserve. Luckily, my dad has a defined benefit pension, which is a thing of the past in the private sector. –Eric B. Hi Bill, I feel like I know you because I have been reading your observations for years. What strikes me today is that we are in similar boats. You are stuck in San Martín and I am stuck in Maury, France. I live in San Francisco but also lived in France for 12 years and would like to return “en permanence.” In following your writings, it inspired me to try to stay ahead of the herd. This is why I bought this house in France. By chance, my timing worked out well. I am in a little village in France and not in the U.S. right now. I don’t know if I may return to the U.S., but frankly, I have no desire. I wish all the best during your stay in San Martín and we shall see what happens after the storm blows through… – Stephen L. Is it time for millennials to “rise up and get to work,” as Doug believes? Write us at feedback@bonnerandpartners.com. IN CASE YOU MISSED IT… [Politicians love this dangerous law for investors]( A scary new political trend is taking over America… from college campuses… to even the U.S. Congress. It’s a radical “reform” of the U.S. dollar… meant to create a “fairer” and more “equal” society… Supporters claim this reform is necessary to solve “social and economic injustice.” But there’s a darker truth behind this trend. If you are an investor… own life insurance or annuities… or have substantial savings in an FDIC-insured bank account… [then you need to be aware of serious risks](. [Click here to see what you should do.]( [image]( [Bonner and Partners]( Bonner & Partners 55 NE 5th Avenue, Delray Beach, FL 33483 [www.bonnerandpartners.com]( [Share]( [FACEBOOK]( [Tweet]( [TWITTER]( This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. To stop receiving these emails, click [here](. Bonner & Partners welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-681-1765, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@bonnerandpartners.com). © 2020 Bonner & Partners, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Bonner & Partners. [Privacy Policy]( | [Terms of Use](