| By Bill Bonner, Chairman, Bonner & Partners YOUGHAL, IRELAND – Yahoo Finance reports: Elizabeth Warren has a plan for everything. Some of those plans are expensive. With Warren emerging as a front-runner in the Democratic presidential contest, Yahoo Finance tallied the cost of her plans. Altogether, the Massachusetts senator’s agenda would require $4.2 trillion per year in new federal spending, and a like amount in new taxes, if she paid for everything without issuing new debt. The federal government currently spends about $4.4 trillion per year, so Warren’s plans would nearly double federal spending. How would Ms. Warren pay for all this new spending? So far, she’s proposed a wealth tax on rich people… and a 7% surtax on corporate revenue over $100 million. Of course, even as president, Ms. Warren wouldn’t be able to pass into law all of her fabulous plans. And even if she could, she would quickly realize that she needed a new plan to deal with the economic damage from the old plans. Still, under a Warren presidency, deficits and debt would almost certainly rise. Her advisors are telling her that she has the “fiscal space” to increase spending; no doubt, she would give it a go. But there’s no need to pick on the Massachusetts senator. The reality TV star from Queens has already crowded into the fiscal space – boosting spending and debt faster than any president in the last 50 years. And in the next crisis, he or Ms. Warren will do the same thing… Following the advice of Nobel laureates and jackass hacks, they will fill the space completely and spill out onto the sidewalk. | Recommended Link | | Forget Options: Here’s Where the REALLY Big Gains Are We’ve identified a group of stocks that are so small… they don’t offer options. Yet they’re some of the most explosive stocks on the market today – spiking 226%, 495%, even 1,000% or more – in a short amount of time. For a few days only, 36-year trader Jeff Clark is going to show you how to get in on these stocks right as they’re breaking out. | | | -- | Village Idiot Still, Ms. Warren is useful to us… in the way an idiot is useful to a village… to put things in perspective. No matter how bad things get… they could always be worse. That is the sort of thought that creeps into your brain in late October. The seasons are unrelenting. And at this time of the year, they get worse before they get better. Here in Ireland, the day’s high temperatures barely reach 50 degrees. Rain… clouds… fog… The golden leaves drop from the trees. The mist clings to the Blackwater River like an old man lingering over his morning tea... We keep a fire in the fireplace and a kettle at the ready. It is a delightful season, after all. But soon, it will get worse. The financial news, too, brings more and more clouds. Reuters: A steeper decline in global economic growth still more likely than a synchronised recovery, even as multiple central banks dole out rounds of monetary easing, according to economists polled by Reuters in recent weeks. While a reprieve from escalating U.S.-China trade tensions has pushed stocks back near record highs, a record $17 trillion (£13.22 trillion) of bonds have negative yields and a key market signal of U.S. recession is still flashing red. China is growing at the slowest pace in a quarter of a century. Germany’s manufacturing sector shrank for the 10th month in a row. And in the U.S., capital investment growth (which is what creates tomorrow’s prosperity) is now negative, after a brief boom following the tax cut. Transfer payments from the government exceed all the money paid in federal income taxes… and “social benefits” (aka government handouts) have now reached a record of 22% of disposable incomes. Commercial construction is 20% below its February 2018 peak. Industrial production, which rose at a 4% rate in 2018, is now going nowhere; the growth rate is zero. Manufacturing – measured by labor hours – is now falling. Angry Mobs But who cares? In America, the news is dominated by impeachment proceedings. In Europe, it’s Brexit at the top of the news reports. As near as we can tell, both are mostly distractions. But distractions from what? Most likely, the average person’s life and livelihood will be little affected by either Brexit or the impeachment of Donald Trump. Food, clothing, transportation, shelter, jobs, marriage, friendships… none of the things that really matter will change much. But suppose you were to lose your job? Or suppose your credit cards didn’t work? And your asset values – stocks, bonds, real estate – were cut in half? And suppose your cash – if you could get it – was losing value at a 50% rate… and the interest rate to refinance your mortgage was 40%... and the value of your Social Security checks was going down faster than the Consumer Price Index (CPI) adjustments could keep up with… …and the National Guard had been called out in Chicago… Cleveland… Baltimore… and Los Angeles, as angry mobs attacked banks… luxury stores… and the houses of rich people… | Recommended Link | Silicon Valley guru: “The first trillionaires will come from this” Is it possible for a lone investor to become a trillionaire? According to Silicon Valley experts… including a billionaire “Shark” from the popular business show… The answer is yes! All it takes is the right opportunity. And the new device you see above is expected to grow into a $15.7 trillion market. Better yet, only three companies dominate this technology. You can get in now for around $226. To see details of three stocks that could create a trillion dollars in wealth… | | | -- | Fools and Incompetents It hardly matters who is president. After all, we’ve had plenty of fools and incompetents in the White House; our civil society has gone on, apparently undamaged. And Britain was a tolerably decent place before it joined the EU… and will probably be fine after it leaves. Still, humans can make a mess of things from time to time. All it takes is fake money… fake knowledge… fake plans… fake wars… and synchronized, worldwide claptrap… Here’s our weekend advice to Dear Readers: Clean the furnace, stack firewood, buy gold. Regards, Bill FEATURED READS “The Wall Streeters Who Actually Like Elizabeth Warren”
Bill predicts that Elizabeth Warren will be the next U.S. president. Much of corporate America is not happy with this possibility. But here’s why some Wall Streeters are on board with a Warren presidency… SoftBank Stock Falls
On Wednesday, after SoftBank took over WeWork, Bill asked, “How long before SoftBank blows up too?” Not long, judging by its shares’ recent action… The Pin That May Burst the “Everything Bubble”
Bill believes we are living in a “Fin de Bubble” period. Now, Dan Denning, his coauthor on The Bonner-Denning Letter, shows how the flood of money into passive funds is helping pump the “everything bubble”… and why that bubble is about to pop. MAILBAG Bill isn’t a big fan of the Nobel Prize in economics… or its winners this year. Today, one Dear Reader takes it a step further… When Paul Krugman was awarded the Nobel Prize, any credibility the honor had remaining evaporated forever. More recent choices further fortify your conclusion. What a farce! – David M. While another adds a caveat… I take exception to your taking exception to the two Nobel Prize-winning economists reproducing. After all, children often do not follow in their parents’ footsteps. The children might turn into perfectly respectable bank robbers or prostitutes or something. And, according to rumors I’ve heard, if everybody stopped having children, the human species would soon die out. – Ralph L. Did Esther Duflo and Abhijit Banerjee’s work warrant a Nobel Prize? Or has the prize in economics lost whatever credibility it had, as David says? Write us at feedback@bonnerandpartners.com. IN CASE YOU MISSED IT… Until October 29th Only Get Jeff Clark’s 3 Favorite Trade Setups – Including Names and Tickers; Until October 29th at midnight, trading legend Jeff Clark is revealing: Why he’s actively recommending stocks for the first time in his career His system for finding the most explosive stocks (it’s already spotted gains as high as 600% in a matter of weeks) And his three favorite trade setups – including names and tickers. Details here. 
Like what you’re reading? Send your thoughts to feedback@bonnerandpartners.com. | 
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