Back to school – part II

[Bill Bonner’s Diary]( Back to School – Part II By Bill Bonner Tuesday, May 19, 2020 – Week 10 of the Quarantine There are decades when nothing happens. And there are weeks when decades happen. – Vladimir Lenin, former premier of the Soviet Union [Bill Bonner] Yesterday, we examined our theory that, “No pure-paper money has ever survived a complete interest rate cycle.” Now, we’re putting it to the test… again! Our hypothesis is that all the damage done by COVID-19… and by the [government’s disastrous Universal Lockdown]( is only prelude. The economy has been shrunk. Thirty-six million jobs have been lost. Industrial production and manufacturing output have been hit hard. Retail spending saw a record drop for the month of April. Manufacturing never recovered from the crisis of 2008-2009. That left the leisure and hospitality sectors responsible for almost all the growth over the last 10 years. And now, all things related to leisure, tourism, and hospitality – [the only lifeboat available]( to the working classes after manufacturing sank – have been torpedoed by the feds. Recommended Link [Biggest money-making idea in 20 years]( [image]( On Wednesday, May 20th, a huge new trading recommendation will be released. Two partners at Legacy Research have already invested more than $130,000 apiece. And a senior analyst has put $1 MILLION into it. But don’t worry: You still have massive upside potential if you [get the full details on how to invest by May 20th at 8 p.m. ET.]( Normally, it costs up to $1,550 to access this kind of detail. But because of the huge potential of this opportunity, we’re waiving any registration fee to hear the details. Instead, [you can learn more here, free of charge.]( [Click here]( -- Where This Leads But all of that is just the warm-up act… like second-string entertainers preparing the audience for the real tragedy to come. Yes, as dumb as it was to shut down the whole economy, it is even dumber to pretend that you can replace real economic losses with empty, worthless paper money. We’re running out of metaphors to describe it. The old standards – printing money “out the wazoo”… “to beat the band”… “like nobody’s business” – just don’t seem up to the challenge. The wild money-printing began, you’ll recall, back on September 17, 2019. That was when the big banks discovered that they needed more cash to buy the government’s bonds. The Federal Reserve stepped into the overnight funding markets with their [Repo Madness program](. In the weeks since then, buying bonds with fake money, they’ve added $3 trillion in new money to the U.S. financial system. [In an era of disease, this “new cure” could be one of the most powerful medical technologies of our time.]( And everybody knows where this is leading. Corporate debt issuance, for example, is expected to double this year. CEOs (already deep in debt) are getting money at the lowest rates in history… while bond buyers know they can expect to unload this trash onto the feds at higher prices. And in the middle of the worst economic crisis in at least 90 years, speculators are bidding up stocks to levels ordinarily only seen at the top of a boom. Crazy? You bet… But they’re counting on the feds’ money-printing to drive them even higher. But let’s backtrack and look at how we got here… Recommended Link [Urgent Message From America’s Most Formidable Investor (Ignore at Your Own Peril)]( [image]( The Japanese police consider Jeff Brown a deadly weapon – thanks to his black belt in an ancient form of karate. Even in the investing arena… Having Jeff in your corner can be dangerously lucrative. He called the top stock on the S&P 500 three out of the last four years. And some of his recent biotech plays turned out to be big winners – with gains like 432%, 332%, and 1,620% to date. But right now, Jeff is tracking another urgent situation bigger than any of these. It has all the ingredients to be bigger than anything else in his successful three-decade career. More importantly, it’s set to play out in just a few weeks – as soon as July 1st. If you miss it, don’t say you haven’t been warned. [Do NOT miss this]( -- How We Got Here After World War II, interest rates were bouncing off a generational bottom. Thereafter, they rose for about 36 years. America’s paper money system began on August 15, 1971. The whole fake-money scam probably would have blown up in the 1980s, but for then Fed chair Paul Volcker. [Amazing 17-second Video Reveals Key to Tech Fortune…]( In a rare display of courage and fortitude – for a public official – he forced the dollar to act AS THOUGH it were real money. That is, while inflation and interest rates rose to double-digit levels in 1980, he put the Fed’s key lending rate up to 20%. This caused a recession. But it saved the fake-dollar system. This “save” by Volcker gave the dollar a longer lifespan than expected… and led people to think that the dollar was a reliable currency for the long-term. If ever there were another crisis, they said to themselves, there would surely be another stiff-necked public servant like Volcker to set it straight. Recommended Link [How Jeff Bezos Made 6,206% on TINY Niche of Tech Stocks…]( [image]( There is a secret class of tech stocks that go public almost every week… They are TINY. And the media all but IGNORES them. But Jeff Bezos knows their secret. In fact, he made 6,206% on one of these tiny tech IPO stocks. Today, America’s top angel investor reveals his No. 1 small-tech IPO stock. [See the pick here…]( -- “New” Dollar But now, we’re 49 years into the fake-money system. The printing presses are running hot. [Yesterday]( we saw that the interest rate cycle lasts about 60 years. It takes one generation to learn… and another to forget, we summarized. The last high (in yields) was in 1981. The next high should be around 2040. And somewhere in the middle – about now – the trend should shift from falling rates to rising rates. In other words, rising rates are on the way. And before that trend ends – in another top in the interest rate cycle… we should see much higher rates of inflation… perhaps even hyperinflation. Then, in order to escape the financial catastrophe, the feds will probably introduce a “new” dollar… perhaps backed by gold… perhaps some form of digital currency. Who knows? Formula for Disaster Now, we have passed the point of no return, with no Volcker in sight. And the Trump/Fauci Depression is just coming into view. Necessity is the mother of invention… but it is also the deadbeat dad of catastrophic mischief. Their backs to the wall, people are ready to do almost anything… no matter how idiotic or preposterous… Already, barely half of all Americans are working. And no one – neither Democrats nor Republicans – has any plan to deal with it other than printing up more fake money to “replace” the losses they caused and to “stimulate” the economy to return to “normal.” This is a formula for disaster. You’d have to have a Ph.D in economics not to see it. Stay tuned… Regards, [signature] Bill P.S. Our colleague and friend Tom Dyson has taken all of his money and invested it in the one asset that he believes will be safe from the coming catastrophe – gold. On Wednesday night at 8 p.m. ET, he’s going to tell us all about how he’s going to make this strategy work for him… and his family… for years to come. We’ll be joining Tom on the line. We’re eager to hear what he has to say. Perhaps you should, too – Tom believes that what he has to tell us could change our lives. [Click here to reserve your spot.]( Like what you’re reading? Send your thoughts to feedback@rogueeconomics.com. FEATURED READS [This Gold Strategy Can Protect Your Wealth for Generations]( Regular Diary readers know that Bill is a goldbug. But our editor isn’t the only fan of the yellow metal here at Rogue Economics. Right now, our world-traveling colleague, Tom Dyson, is “all in” on gold. In fact, he has put almost $1 million of his own money into a strategy that you can now utilize to protect your wealth. Tom’s special broadcast is tomorrow at 8 p.m. [Learn more here]( [Crash 2020: You Can Use Options to Protect Your Portfolio]( So far during the coronavirus crisis, options trader Jeff Clark has made 270% in one trade alone. And he has an impressive track record of predicting and profiting from times of crisis – including Black Monday in 1987, the tech crash of 2001, and the Great Recession of 2008. Want to know his secret? [Click here](. MAILBAG Two Dear Readers share their C-virus stories today… Personally, I think this whole reaction is way overdone. Yes, I say this even with the death of my hubby 12 days ago. He was not feeling well for two weeks and refused to go to the doctor. It was the Coronavirus. We (me and all our contacts) were tested and are all negative. And nobody from church got the Corona. Why did he succumb? He was still recovering from cancer surgery two years prior and was stubborn about taking his vitamins. Yes, he ate well and exercised regularly, as do I. After my own experience with cervical cancer many years ago, I take my vitamins. I would recommend that everyone take Vitamin C and about 5,000 IUs of vitamin D3 daily. I think this vitamin regimen is the secret to my health. I truly believe a healthy body will fight off the worst that nature throws at us. That means good nutrition, lots of vigorous exercise, no sugar, natural oils (no canola, margarine, etc.), and loving relationships with people and pets. I am 74 and haven’t had a cold or flu in at least 20 years. – Florence L. Bill: I really look forward to your articles. I am a psychiatrist and my practice is busy. One of my patients is an internist at a local hospital outside of Philadelphia, and people are getting furloughed. This lockdown is madness. The government is treating us like we are zoo animals and they are not particularly skilled keepers. – Brian B. Meanwhile, others reflect on Bill’s three-part C-virus series, “[Six Feet Apart… Or Six Feet Under]( You can also catch up on parts [one]( and [two](... This is the best commentary on the current crisis that I’ve read! – Hugh S. So, I’ll be printing this one out (and have already), to pass out to friends of all political persuasions. I love it when Bill’s writings don’t force me to think about taking an internal “side”... just force me to think. That’s what I miss from most of the media, and lately from Mr. Bonner. – Dana H. I loved the latest from the always philosophic Mr. Bonner. Life IS risky, we make dangerous choices every day. To choose is human… and we are not zoo animals. Even if you don’t believe in that hard-won logic, there is no data to support that zoo animals are living longer, so why would you choose to be one? Don’t ever lose your unique and wonderful perspective, Mr. Bonner. – Sydney A. Does current dialogue force you to take a side, as Dana says? Is the U.S. government treating its citizens like zoo animals, as Brian and Sydney believe? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… [Please Join Us in Honoring Bill Bonner on May 20]( Friends, I’m writing today about our beloved Bill Bonner. Bill – a legend of our business… a New York Times best-selling economist who has won so many hearts – will make a major announcement. On May 20th, he’ll be broadcasting from his secluded ranch in Argentina. I don't want to say too much here… But if you’ve enjoyed Bill’s work – his diaries… his contrarian take on finance… his investment ideas dating back to 1978 – [please let Bill know if you can join him, right here](. -Maria Bonaventura Managing Editor, Rogue Economics --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. [image]( [The Ultimate Guide to Taking Back Your Privacy]( [image]( [The Three Best Gold Coin Deals on the Market Today]( [image]( [The Trader’s Guide to Technical Analysis]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Share]( [FACEBOOK]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. 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