Betting on an unborn racehorse

[Bill Bonner’s Diary]( Betting on an Unborn Racehorse By Bill Bonner Friday, December 10, 2021 Tell me, friend, when did Saruman The Wise abandon reason for madness? – Gandalf, Lord of the Rings [Bill Bonner] YOUGHAL, IRELAND – The Federal Reserve keeps “printing” money – at the rate of about $3 billion per day – and lending it to member banks at a real (inflation-adjusted) rate of MINUS 6%. Not surprisingly, the hustlers are out in force, figuring out new ways to get their hands on it. Bloomberg reported in November: [Solar-powered vehicle maker] Sono has racked up about 108.8 million euros ($123 million) in losses since its inception in 2016. When key investors balked at putting in more money roughly two years ago, co-CEOs and co-founders Laurin Hahn and Jona Christians turned to crowdfunding. There was a hitch in that strategy: since March of last year, Sono has been unable to access about 5 million euros from PayPal. The online payment company froze its account, citing risks related to unexpectedly high transaction volume. Sono says it started the process of fighting this as of mid-August. Without any proceeds from this week’s IPO, Sono estimates it would have been insolvent by next month or shortly thereafter. It expects to lose money for the foreseeable future and continue relying on external financing to stay in business. But the IPO went forward on November 17 at $15 per share and Sono (SEV) briefly got a market value of $1.8 billion… And it’s not the only company in FantasyLand drawing in big bucks. [Featured: The Truth Behind the Global Chip Shortage]( Last month, Bloomberg reported that companies have taken in a record $600 billion in IPOs so far this year. That’s up from $235 billion in 2019 and $370 billion in 2020. Prior to this, the record stood at about $420 billion… in 2007. Recommended Link [Welcome to an empire of debt]( [image]( Our credit system is currently sitting at $68 trillion. It’s the largest debt ceiling in the history of the world – in fact, it’s more than twice the value of every single home in America put together. It’s the most crucial part of our economy. And despite stagnant wages and rising costs, America still appears to be getting richer and richer (at least on paper). And there’s the problem… This massive credit system is about to collapse. But this system has a dark secret about where they’re going to get money to pay off this massive debt. This will affect EVERY American citizen! [Click here before it’s too late.]( -- Trump’s Non-runner And yesterday, we showed how the Trump SPAC deal is likely to be a flop. The general rule is that when someone buys a business he doesn’t know from a person who does know it, the buyer exchanges money for wisdom. If he pays a low enough price, and if he has enough capital and tenacity, he may survive long enough for his newfound wisdom to pay off. Otherwise, he might just as well bet on a racehorse that hasn’t even been born yet. Recommended Link [Under Biden’s tax plan, your side hustle could be taxed]( [ad_img]( President Biden’s tax plan is aimed at catching tax dodgers… But hiring 87,000 new IRS employees could put added scrutiny on everyone’s accounts. You know that little side hustle you have to keep a few extra bucks in your pocket…With all those eyes on Americans’ bank accounts, those extra dollars could disappear… Or worse, be taxed. Financial pioneer Teeka Tiwari has created [a short video]( that reveals how a new move by bank regulators will allow banks across America to offer a new type of account that could help individuals grow their money faster. [Click here and get all the details now.]( -- In the Trump deal, investors – with no knowledge of the business – are paying the Trump team, which has no knowledge of the business, either. The new business comes out like a newborn colt, all wet and wobbly. And when Team Trump put a political hack in charge of his training, the odds of his winning the Kentucky Derby went to near zero. The fates looked on and smiled. “This is politics… not business,” they said to themselves. Recommended Link [Billionaires, Tech Giants, And Wall Street Call This NEW Technology: “The Metaverse”]( [image]( Jeff Brown here and after 30-years as a tech insider…after calling the #1 Returning Tech Stock 4-times over… I can say with confidence, Metaverse technologies give me the same feeling I had before I recommended Bitcoin and it shot up 27,000%… Tesla before it surged 1,400%… and NVIDIA before it spiked 3,000%… We are on the cusp of a $33 trillion technology mega-convergence that will shake up the world. Yahoo Finance says this is… [“Big Tech’s latest obsession”]( The CEO of the tech giant, NVIDIA, says, “[The Metaverse] is where we will create the future and transform how the world's biggest industries operate” And The World Economic Forum calls it an “Eye-opening disruption” [Grab my #1 FREE stock pick]( in “The Metaverse” …and discover how this technology will impact your day-to-day life… and why the world’s biggest tech leaders are “all-in”! [Click here to grab all the details before it's too late.]( -- Pie in the Sky What we figure is that, in this market, the pie in the sky is now much more valuable than the meat and potatoes on the table. Yes, when liquidity flows… even the wise abandon reason for madness… …and the lightest objects – like empty heads and dead bodies – float to the surface. Here’s LRT Capital Management: Through December 1, the S&P 500 index is down only -4.07% from it’s all-time high, while the small-cap index, Russell 2000, is down -12.08%. However, these numbers do not give the full picture of the market decline that has occurred over the past several weeks. A small group of stocks, primarily mega-cap tech shares, have supported the market, while most stocks have been declining for several weeks now. The disproportionately large impact that mega-cap companies can have on market capitalization-weighted indexes has effectively hidden this fact, so while the S&P500 has only declined by approximately 4%, the average stock in the index is down -15.5% through December 1. Amazon sells for 68 times earnings. Tesla sells for 328 times earnings. And DWAC (Trump’s SPAC) sells for an infinite multiple of earnings… because it has no earnings. [Featured: (Why America Is Failing) — 1,000+ Pages of Evidence Collected]( At those prices, it is almost impossible for an investor to come out ahead. Regards, [signature] Bill --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Betting on an unborn racehorse). --------------------------------------------------------------- FEATURED READ [There’s Good News for Gold]( trader Jeff Clark explains why the new year will be good for gold, and shows investors what he’s seeing in the markets that indicates this trend… MAILBAG Dear Readers open up about immigrating to America… economic corruption… and reaching the point of total collapse… as Bill has been writing about ([here]( [here]( [here]( and [here]( I was fortunate to migrate to this America in 1969 from Brazil. I am a closet economist. I've seen the same evil socialist/communist fools promise the people riches by stating they will take from the rich. The reality is that they ALWAYS run out of other people's money. The next step in the implosion is money printing, which always devalues the money through inflation. I remember my dad hurrying from getting his paycheck to convert the soon to be devalued Brazilian reals to something else (dollars, gold, etc). Once the money supply is thoroughly debased, then they all end up like Venezuela or worse. What always amazes me is the combination of extreme ignorance and arrogance combined in these evil fools. They always believe, or at least extol, that they can make a never before successful system work this time. – Marco C. I receive many newsletters, but yours is the only one I read in full as soon as it arrives. But I don’t believe that we are going to get to the point of total collapse as you have laid out. That is, not unless the Keynesians at the Fed and the Leftists in charge of the fiscal side are able to keep the ball rolling with MMT for another two to three years. – Prentice J. Do humans tend to take the lazy, easy way out? Half of Americans are on some sort of government assistance, as is half the world population. They are taking the only way out they know due to lack of reasoning, intelligence or just think they are getting over on others that support their sorry souls. For most of the world, it is their nature, but not us all, as you and I know, God has given us precious little time to make a difference, and we make every moment as productive as if it was our last. – Steven L. Is the problem with socialism/communism that they always run out of other people’s money, as Marco writes? Are humans naturally lazy, as Steven writes? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Betting on an unborn racehorse). IN CASE YOU MISSED IT… [Holy Cow, Only $19!]( “Hi, my name is Jeff Clark. For the past 36 years, I’ve helped people from all walks of life make money in the markets. Retired stockbrokers… presidents of companies… people with almost no financial experience… and everything in between. But I haven’t done it the usual way… My method is different. It’s unlike anything you’ve probably ever seen before. [We’re unveiling it right now for just $19.]( That’s the lowest price my publisher has EVER offered for a trading research service… And it won’t be available for long. [Watch a ‘10-second live demo’ of this method]( to see how it works." [Watch now!]( [image]( --------------------------------------------------------------- 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]( [How to Earn Free Bitcoin]( [image]( [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [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. 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