| By Bill Bonner, Chairman, Bonner & Partners GOLDEN, COLORADO – The coronavirus infected stock markets last week. On Friday, the Dow sneezed and ended the day down 603 points. This morning, Bloomberg has the update: China’s central bank will inject more than $21 billion of liquidity in seeking to avert a potential sell-off from the coronavirus outbreak, and the U.S. is ready to redirect flights with passengers from China. “Liquidity” is another word for “inflation.” We have our eyes on it, because more of it is headed our way… | Recommended Link | | FREE REPORT: 6 Big Predictions: Your Blueprint For Making A Fortune In 2020 The legendary investor who predicted (and profited from) the 2008 market crash, the bottom of the housing market, the crypto boom, the crypto bust, and gold at $1,500 just released his 6 big predictions for 2020. Right now, claim this FREE report and see E.B. Tucker's biggest predictions for 2020. And on Wednesday, February 5th, watch as legendary investor E.B. Tucker details an entirely new way to see an extra $121k a year using a secret investment 99.99% of Americans have never heard of. | | | -- | Beautiful Jackassery A revolution needs its thinkers as well as its executioners. They identify enemies. They justify more intervention. They reassure the mob. After all, they know what they’re doing! People need explanations for the strange phenomena fake money brings. They need bogus “solutions” to the problems it causes. Cutting off the fake money is not an option… so they invent theories that permit them to do even stranger and more harmful things. Cometh economist Stephanie Kelton. She advises Bernie Sanders. Watching a beautiful woman is a pleasure, even when she is talking nonsense. But her line of talk is so nonsensical we couldn’t watch her very long, even if she were stark naked. “We’ve increased spending and now we have $1 trillion budget deficits,” she pointed out on TV last week. “But we’ve seen none of the bad things that traditional economists expected. No crowding out. No spike in interest rates. No inflation.” Nothing bad has happened yet, she believes. And from this she extrapolates that nothing bad is likely to happen… | Recommended Link | | Why did CNBC ignore this paper? (shocking Buffett revelation) A Wall Street legend has just made a rather large discovery… For the past several months, he’s been tracking Warren Buffett’s top 25 holdings… And what he found was surprising, to say the least: 21 of Buffett’s favorite companies are going “all in” on a hot new technology… To the tune of $1.7 billion! This is remarkable because Buffett is notoriously “anti technology.” (In fact, he once joked about shooting down the Wright Brothers’ first plane at Kitty Hawk!) So, what is this new technology? And why are America’s biggest companies all in a race to implement it? To get the full story, watch this stunning new presentation… What is Buffett’s Big Bet? | | | -- | Lost Highway As we saw last week, Rudolf von Havenstein might have said the same thing in 1920… or Arthur Burns in 1970… or Hugo Chavez in 2001. No one rings a bell at the end of a bull market… or at the beginning of an inflationary disaster. And once you’re on that lost highway… why not put on some speed? Ms. Kelton says the politicians could add another $500 billion to the deficit, no problem. And she could be right. You never know when the problems will appear. She’s right about one thing, though. MMT – Modern Monetary Theory – is sure to be a hit. In an interview with The Globe Post, Ms. Kelton explained it: …a country like the U.S. doesn’t need to tax or borrow in order to get the currency in order to spend. So, it’s never about whether you can afford a program in financial terms. You always can. It’s about whether spending to fund your program will cause an inflation problem. That can happen if you’re trying to do big ambitious stuff and the economy doesn’t have the people and the machines, the factories or the concrete and the steel to absorb that spending. Then you could trigger an inflation problem and MMT recognizes that it’s our real resources that are constrained not our financial resources. A pity she doesn’t connect the dots. It is the real resources that impose the limits. Money merely represents them… | Recommended Link | | Sell Stocks Now: The Ultra-Rich Are Getting Out Fast With President Trump being impeached… The U.S.-China trade war rattling the markets… And the U.S. Government $22 trillion in debt… Do you believe we can continue this “Endless Bull Market”? If you want to know what’s really going on, there’s only one thing to do… Look at what the ultra-wealthy are doing with their money… And they’re getting out fast. To protect your wealth – and grow richer in the future, watch this urgent video now. | | | -- | Distorted Picture Markets use money – prices – to tell us when real things are cheap or when they’re dear. That information signals when we should speed up – buying, investing, hiring – or slow down. Printing more “money” just distorts the picture. It tricks people into thinking that they have more time and resources to work with. But Ms. Kelton doesn’t worry about it. Just add “liquidity,” load up the wagon with debt… and race along until the wheels fall off: The government can always pay its bills and spend more on other things at the same time. Remember, it can’t run out of money. We should balance the economy not the budget. And right now we have a myriad of imbalances in our economy. We have an infrastructure deficit. We have a deficit in healthcare, massive income and wealth disparity, I could go on and on. No need to go on and on for us. We already have the picture. And it’s a familiar one… Tinted Glasses Ms. Kelton thinks she knows what people need. They shouldn’t be allowed to decide for themselves, by spending their own money in their own way. Instead, the feds should cover the “deficits,” as she sees them. How? By printing money. And what about inflation? As long as the economy is operating below “capacity,” she believes consumer prices won’t rise. As long as there are empty seats at the Jack-in-the-Box, in other words, the feds should try to fill them by printing money. Ms. Kelton thinks of government spending – even of the fake money it prints – is a form of output. As the government prints more and more, she believes, the Jack-in-the-Box fills up. When it is full, diners are then competing for seats… prices rise… and then the feds should back off. “We need new lenses [to view economic matters],” she claimed. “And I could give those lenses to a Republican or to a Democrat. They should work for them both.” And get this: Ms. Kelton says that when the feds “invest” in education, roads, and infrastructure, they might be able to spend almost an infinite amount of money, because the spending increases the “carrying capacity” of the economy. The feds spend, the carrying capacity grows, and they can spend more! Whee! Yes, inflation is always and everywhere a rip-off. And both Republicans and Democrats are looking for ways to do more of it. MMT gives them the tinted glasses they need. Regards, Bill Like what you’re reading? Send your thoughts to feedback@bonnerandpartners.com. INVESTING INSIGHT: 800%+ GAINS IN LESS THAN A YEAR WITH “OMEGA SHARES” Maria’s Note: Maria Bonaventura here, managing editor of the Diary. Longtime readers know Bill is a self-described “fuddy duddy” when it comes to investing. But for Dear Readers so inclined, colleague E.B. Tucker uncovered an opportunity – outside of stocks – with the potential for double- and triple-digit gains in a matter of months…
By E.B. Tucker, Editor, Strategic Trader 842% in less than a year. That’s the top gain that one group of investors is sitting on right now. And it’s not the only triple-digit gain they’ve seen. Two others have doubled or more in the past 10 months… It’s an impressive record. But I’ll understand if you’re skeptical about getting these kinds of returns on stocks in such a short period of time. Except, these are not stock returns. Nor are they cryptocurrencies, options, bonds, or ETFs. They’re an entirely different kind of security that most investors don’t know about. I call them “Omega Shares.” And it’s not unusual to see double- and triple-digit gains in a short time span when investing in these securities… The company tied to that 842% gain is called Purple Innovation (PRPL). It’s an online mattress retailer that’s making money hand-over-fist by shaking up the mattress business. Keep in mind, I’m not recommending that you buy Purple Innovation stock now. The time to buy was last year. But while I believe it’s too late to get into this company now, it’s a great example of the power of “Omega Shares”… Thanks to its innovative business model, Purple Innovation has been doing well. Its stock has doubled since late February of last year. It went from $5.59 a share to above $12. Take a look: 
Not too shabby. For regular investors, a 125% gain in less than a year is pretty satisfying. But you shouldn’t have to settle for “pretty satisfying” returns. We can do better than that. Check out the next chart… 
Purple Innovation’s “Omega Shares” have climbed over 800% in the past year – more than six times the gain of the regular stock shares. And there’s another benefit to Omega Shares that you need to know about… Omega Shares offer a way to profit without breaking the bank. It only takes a little bit of money to capitalize. When I first recommended Purple Innovation “Omega Shares,” they cost 19 cents, compared to the regular share price of $5.59. So, if you bought 100 regular shares of Purple Innovation, you were in the hole for $559. But if you bought 100 “Omega Shares”… that only cost you about $19 – a difference of $540. Now, these securities have typically been off-limits to normal investors. But I unlocked a “back door” that gives you access to them. I’ll tell you everything you need to know in my Explosive Profits Summit on Wednesday, February 5 at 8 p.m. ET. I’ll even give away one of my top picks for “Omega Shares” for free, giving you a head start on capturing these eye-opening gains yourself. Click right here to sign up – I’ll see you there. – E.B. Tucker FEATURED READS Baby Boomers Have Socialism… Why Not Millennials?
Bernie Sanders is rising in the Democratic primary polls. And millennials in favor of his proposed policies argue today’s government structure for older adults – Medicare and Social Security – already support the socialist agenda… U.S. Farm Bankruptcies Increased in 2019
The American Farm Bureau Federation says family farm bankruptcies were almost 20% higher in 2019 than they were in the previous year. And the latest numbers, while below historical highs, show results not seen since the Great Recession… The Secret to "Lazy" Investing
Financial industry expert E.B. Tucker has made huge gains in multiple arenas by researching, purchasing, and then sitting back to watch the action… and you can, too… MAILBAG Today, Dear Readers reflect on past essays and Bill’s extensive writing on monetary inflation… I’ve been reading your Diary since the last presidential election. I saw that you were in Golden, CO. I live in the Denver area and am very happy you are enjoying this part of the country. I hope the snow yesterday wasn’t too much of a drag. I believe I recall a post you made in the summer of 2017 in which you were inventing the coming newspaper headlines for the year. While they did not come true at the time, they were quite humorous. But the last headline always struck with me: Bill Bonner’s Diary: “Told you so!” When this all does fall apart and everyone starts shaking their heads on CNBC, Fox News Business, and all the other media outlets start to wonder how they could have missed all of this, I beg you please to just make this sentence the only thing you post when everything goes to hell. It will be a most satisfying day to see such a post. So appreciative of someone who not only connects the dots but does so with the grace and style in which you do. Continue your great work sir, and thank you. – Justin S. Fiat money and the inflation inherent in its use is always theft. Or would you call it taxation, or the script of military conquest? Might you look upon it as a way to divide those in power or control from those who are not? (I have to work for the money that buys my daily bread while someone else prints the money for his.) There are so many social ills associated with fiat paper money, the monetary component of inflation is almost an aside, a simple consequence we need to explain away. If the people truly understood the system then we would soon have the last effect of paper money, which I suppose is the fear living in the back of the mind of anyone who can see it. – Mike R. How long have you been reading the Diary? What topics would you like to see Bill cover in the coming months? Write us at feedback@bonnerandpartners.com. IN CASE YOU MISSED IT… 1.9 billion 5G smartphones by 2023. This tiny company stands to profit. Lately, it seems that everyone is talking about 5G technology… But, does anyone really know what it is? 5G will provide users more coverage at a faster rate, especially for power-hungry streaming content like 4k video and VR… Yet 5G is still in its infancy. If you don’t know which companies stand to benefit – like Silicon Valley executive and angel investor Jeff Brown does – then you’re going to get left behind. Three years ago, Jeff predicted Nvidia would be the number one tech stock of that year. Investors had a chance to make 10 times their money on Nvidia. Now he’s singled out one company that makes the device to power the 5G revolution… Taking this breakthrough technology from $0 to $100 billion in a matter of months. Discover details here. 
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