| By Bill Bonner, Chairman, Bonner & Partners BALTIMORE, MARYLAND – Last night we got the call from the hospital. “Dad… You’ve got a new grandson.” We hastened thither to meet Charlie. Facts of Life Life goes on. People collide. Genes… atoms… facts… and opinions, too. Republicans and Democrats. Bull markets, bear markets, booms and busts… Truth and lies. Trump and Romney. Sometimes the collisions are fruitful. Sometimes, they are disappointing. So, let’s go to the news. A headline from Bloomberg tells us what we already knew. The Federal Reserve has run into the reality of an Inflate-or-Die world. There’s no going back to “normalcy”: Powell Sees Low Rates, Crisis-Era Tools as Facts of Life for Fed | Recommended Link | | Mysterious trader discovers new way to make money… A mysterious trader discovered a new way to make money… Over 33 years ago. With this strategy… He made $100 million profit in one trade… He made $300 million profit in another that made the front page of The Wall Street Journal. And on Thursday, February 20th, at 8 p.m. EST he’s coming out of hiding to share the details on his strategy… That uses leverage to turn every $1,000 in to $30,000 long term… With defined and limited downside. Want to learn how to make BIG trades? Click below… | | | -- | The Fed knows that the phony boom depends on more and more phony money. Take the money away and the whole thing implodes. Them’s just the facts of life. The funny money enters the financial system as debt. It is lent out… increasing the amount of “liquidity”… but also increasing the amount of debt. Here’s Bloomberg again: Americans increased their borrowing for the 22nd straight quarter as more households took out loans to buy homes or refinance existing mortgages, according to a report released today from the Federal Reserve Bank of New York. Total U.S. household debt rose by $601 billion in the fourth quarter from a year earlier, or 1.4%, surpassing $14 trillion for the first time, the New York Fed’s quarterly household credit and debt report showed. That’s $1.5 trillion above the previous peak in the third quarter of 2008. Overall household debt is now 26.8% above the second-quarter 2013 trough. What a pity. The 21st century was meant to bring the U.S. to a level of perfection never before achieved by humans. So far it has been a dud. 21st-Century Dud When the clock ticked over to 12:01 on January 1, 2000 the world did not end. The dreaded Y2K bug turned out to be harmless. No computer failed. No vital service was suspended. The banks, the gas stations, the TV – everything still worked! This was a favorable omen… Like a red sky at night… it signaled a delightful century ahead. And why shouldn’t it be? The U.S. was now master of the entire earth – and much of space, too. Its warships could blast any sub, destroyer, or supertanker out of the water. Its corporations could beat out all competitors… or so it was thought. Its government… its markets… Hollywood and Burger King – everything about it was widely admired and emulated. All of this triumphal news was vouchsafed by the stock market, where the leading companies – the 30 Dow stocks – were worth more than any time in history. In nominal dollars, the Dow sat at 11,497 on January 1, 2000. In gold, it took 44 ounces to buy the Dow… more than 20 times more than it did 20 years ago. Life was good. But Americans expected technology to make it even gooder. Electronic communications, computers, and all the razzmatazz of the internet era were supposed to improve almost everything. Then, on March 11, 2000, the dot-coms collapsed. And people began to ask questions. We have access to much more information and entertainment. But what difference does it make? | Recommended Link | | Urgent: Before you cast your vote in November We’re not here to tell you who to vote for. That’s entirely up to you. But there’s an extremely urgent investment opportunity in the tech market… And it’s going to happen as a result of the 2020 election. That’s why, no matter who your favorite Presidential candidate is… You owe it to yourself and your family to find out about this huge profit potential. | | | -- | Overwhelmed by Information Getting older does not necessarily mean getting better. And every new technology is not necessarily an improvement. People got cable and Wi-Fi, along with electronic controls for their heat, air conditioning, and security. But they spent hours trying to “program” their new gadgets… and many more hours checking their Facebook updates. They switched from talking to each other to talking to Siri and Alexa. They stopped reading the newspaper and began to read the fake news online. They drove electric cars. But what was new? Thomas Edison unveiled his electric automobile, with an alkaline battery, in 1889, 114 years before Tesla was founded. And with their hand-held devices… laptops… and computer screens in front of them, they were overwhelmed by information… swamped by it; they were drowning in it. Hundreds of emails… thousands of messages… quadrillions of pixels and bytes. They couldn’t keep up with it. Investment writer James Davidson reports: More information has been accumulated in the past couple of years than in the previous 5,000 years of human history. According to a report from IBM, 90% of the data in the world today has been created in the last two years at a rate of 2.51 quadrillion bytes of data a day. More was not better. The GDP numbers were disappointing. Federal deficits were disappointing. Savings, capital investment, innovation, productivity, start-up, and wage-growth numbers were all disappointing. The Information Age was a disappointment. The War on Terror was a disappointment. Bush was disappointing. Obama was disappointing. And now MAGA? Another big disappointment. Stay tuned. Regards, Bill Like what you’re reading? Send your thoughts to feedback@bonnerandpartners.com. FEATURED READS World Health Organization Officially Names Coronavirus Disease
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Despite a growing economy, the U.S. deficit will hit $1 trillion, the first time since 2012. And Federal Reserve Chair Jay Powell says this level of debt is “unsustainable”… Beware of Cybercriminals Preying On Coronavirus Fears
Bonner & Partners tech expert Jeff Brown says scammers have found a new target: people afraid of the Coronavirus pandemic. Here’s how you can protect yourself online… MAILBAG Mixed opinions after some Dear Readers asked Bill to “temper the negativity”… I must thank Mr. Bonner for the rich historical/economic lessons he offers in his column. Very smart, sassy, and to the point. I appreciate the bigger picture he invites us into. And there are probably lots of course corrections needed to right our economy, or really drain the swamp. Yet, since I started subscribing, I have not sensed any generosity of spirit. He sees nothing to applaud. It’s all doomsday factualizing and negativizing numbers to prop up his end of the American empire. Where is his joy? Where is his positivity? Where, even, is his kindness? Much more light is needed in the mental atmosphere he is choosing to live in and share with the world. – Mark D. I don’t believe Mr. Bonner is being negative. I think he has the guts to call it as he sees it. I’d rather read the opinions of someone that has done the research and sees the issues for what they are, rather than a Pollyannaish whitewash over reality. Keep ’em coming, Bill. I enjoy your daily newsletter. – Tom D. While other Dear Readers weigh in on Bill’s Big Government focus in Monday’s essay, “Old, Fat, and Not Getting Any Smarter”… Trump may be the oldest elected, but at least he’s not a politician, like the temper-tantrum antics displayed by Nancy Pelosi in the recent State of the Union address. In my view, Pelosi should be put out to pasture because she’s a detriment to the Democrats. I’m a Democrat, even though I’m ashamed to admit it with the way Democrats tried to impeach Trump… not for a crime, but because they can’t beat him in the coming election. Trump has a lot of things wrong with him, but at least he’s trying to help the country. With the way politics are in Washington, one party controls the Senate, the other controls the House. It’s almost impossible to do anything positive for America. And I see the USA deteriorating down a rathole, slowly but inexorably. – Charles H. Trump is just another swamp creature, wearing the right mask at the right time to continue the facade that the empire is doing well. And the reasons empires fail? Does the following list look familiar? Antagonism between the branches of government… a decline in morals… political corruption… fast expansion… constant wars and heavy military spending… failing economy… unemployment of the working classes… decline of ethics and values… natural disasters… Welcome to America, otherwise known as modern-day Rome!! – Arthur S. Is Trump “just another swamp creature,” as Arthur believes? Or is he trying to help the country, like Charles says? Write us at feedback@bonnerandpartners.com. IN CASE YOU MISSED IT… Miracle technology for over 300 million Americans Every wireless rollout – from 2G to 4G – had a "Master Key" to unlock it for everyday use. These "Master Keys" made individuals rich. "2G Master key" soared: 17,600%. "3G Master Key" made: 364%. (Company got bought by Nokia before it surged higher) 4G Master Key gave: 17,672%. 5G Master Key's projected profit: 9,700%. One tiny company is about to roll out the "5G Master Key" to take 5G technology nationwide. See full details here. 
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