| By Bill Bonner, Chairman, Bonner & Partners SALTA, ARGENTINA – Yesterday brought more excitement… and the first hint of the debacle ahead. The World Health Organization declared the coronavirus a pandemic. It’s Public Enemy #1 in the bug world. As for the stock market, Warren Buffett said it was the damndest thing he had ever seen, “a big one-two punch.” | Recommended Link | | Bill Bonner’s Diary Readers: Time Sensitive Teeka Tiwari is conducting a historic online cryptocurrency training event (on Wednesday, March 18, at 8:00 PM ET). He’s flying to a secret location to investigate his top 5 cryptos for 2020. And for the first time ever, Diary readers are invited to join him on the journey – for FREE. When you and Teeka arrive at your destination, you will have the chance to learn the names of his top 5 cryptos for 2020. NOTE: These are some of the tiniest cryptos Teeka’s ever recommended. They also have the biggest profit potential… Teeka believes a $500 investment in each could potentially make you $5 million richer, in as little as 10 months from today. | | | -- | Advice for a Crisis Our old friend Chris Mayer described what was happening back in Maryland: I live in the suburbs of Washington, D.C. The virus is spreading here. My son’s university is switching to online classes only. Spring break starts next week, and the university is telling its students not to plan on coming back until at least April 10. My middle brother has been exposed to the virus and is in quarantine, working from home. (He is not showing signs of sickness yet). Already, conferences in New York have been cancelled or postponed. The Amtrak service I use to get to NYC has been halted because of lack of demand. My travel plans are all in doubt. Will Warren [Buffett] and Charlie [Munger] hold their annual meeting in Omaha this year? Tens of thousands of people from all over the world would cram together in an arena in Omaha and pack into restaurants and hotels. Should two elderly legends expose themselves to this kind of risk? It seems unlikely to me that the show will go on… [Amazing 17-second Video Reveals Key to Tech Fortune…] Chris went on to give us his investment advice for a crisis situation: Thomas Phelps, the author of classic 100 to 1 in the Stock Market (which inspired me to write my own book, 100 Baggers, updating his idea), summed up his approach with the phrase “buy right and sit tight.” That works for us. We‘re sitting on gold. And we’re going to sit tight until the price goes so high you can buy the Dow for 5 ounces or less. But a lot of people either didn’t buy right or don’t want to sit tight. Off to Argentina Once again, yesterday, we watched the tape as we made our way down to Argentina. People were selling heavily, knocking another 1,465 points off the Dow. While we were en route, the Argentine president, by executive order, imposed a 14-day quarantine on visitors coming from America, Europe, and China. Fortunately for us, we weren’t coming directly from the U.S.; we’ve been in Nicaragua for the last month. But imagine what this does to the tourist industry. And business travel. Who’s going to go anywhere if he risks being confined to a hotel room for two weeks? [New 5G Device Revealed to Public for First Time] We got to the airport in Salta at midnight. Our man on the scene had left the pickup truck for us, with the keys under the floor mat. “Don’t steal another pickup,” he advised, kidding us about a misadventure two years ago. Compromised Immune System Back in the U.S., the drama is playing out as expected. Mr. Market is taking asset prices down to more reasonable levels. Mr. Jackass Meddler is trying to stop him with, what else, stimulus! And what does he have to stimulate with? Only more fake money… the same stuff that compromised the U.S. economy’s immune system in the first place. From CNBC: Fed Boosts Money It’s Providing to Banks in Overnight Repo Lending to $175 Billion The Federal Reserve is again increasing the amount of money it’s providing to banks for overnight borrowing, raising the top level now to $175 billion. In an announcement Wednesday afternoon, the New York Fed said it would boost the top level it provides in overnight operations to at least $175 billion from the $150 billion level it had just set Monday. But it’s not just the Fed that is swinging into action. Donald Trump proposed to reduce payroll taxes to zero until after the election. He was thinking out of the box! But it would blow out the federal budget completely. Even his neutered pet Republicans couldn’t swallow that. | Recommended Link | | A stock market crash does NOT have to mean financial instability No one wants to experience the devastating effects of a stock market crash… But when bad things happen… There are people who prosper… And you could be one of them. Millionaire trader Jeff Clark is known for saying “2008 was one of the best years of my career.” Because the fact is – if you can see a crash coming early enough – you could make tens of thousands of dollars, over and over again, as it transpires. Jeff Clark knows because he’s done it. | | | -- | The Big Save Mr. Trump also told the nation that he had something real exciting up his sleeve and he would announce it on Tuesday. The day came and went, with nothing from POTUS, which led a lot of people to think he didn’t really have anything at all. Then, yesterday, he addressed the nation… … and all hell broke loose again, with the Dow futures down the limit. Bloomberg: Trump’s error-laden “foreign virus” speech has investors spooked. Gamblers were counting on another Big Save from the feds. But the smart money is beginning to realize that the Big Save this time is not going to be like the Big Save in 2000 or 2008. Bloomberg: $50 Trillion in Question as U.S. Treasury Liquidity Dries Up Coronavirus-induced market mayhem has pushed so much liquidity out of U.S. Treasuries that the true value of more than $50 trillion in assets around the globe is in doubt. This time, the scam – adding more fake money to the system – won’t be so easy. And the fake money itself will begin to give way… ….bringing a whole new level of disaster. Stay tuned… Regards, Bill Like what you’re reading? Send your thoughts to feedback@bonnerandpartners.com. FEATURED READS Economic Consequence of COVID-19? Experts Say Rolling Recessions
As the U.S. tries to prepare for the worst, economists say a recession – and maybe more than one – is likely. According to Forbes, quarantines and travel restrictions will probably be more damaging than the virus itself… U.S. Coronavirus Outbreak Is About to Get Much Worse
Bill’s colleague Tom Dyson, editor of Postcards From the Fringe, has been analyzing the stock market and U.S. economy in the wake of the coronavirus outbreak. And like Bill, Tom thinks things are about to get a lot worse… MAILBAG Today, Dear Readers continue their discussions on the coronavirus and President Trump… Bill Bonner nails it over and over again. The economy’s immune system has been weakened by interest rates held too low for too long by too powerful central planners. Contrary to its much-touted resilience, debt and leverage have embrittled the financial system. A bubble in search of a pin. If it hadn’t been coronavirus, it would have been something else. The only hope the problem will ever get better is through shining light on it, and Bill so eloquently shines it in in just the right spots.Keep up the good work, Bill! – Bill T. I don’t like Trump because he is a liar. He can’t be trusted. He has the whole USA bamboozled over the virus. I agree with you, it’s the bubble finance show at its finest. What he will do is blame it all on the virus and its obvious implications. And he will look like a hero for dealing with it with various forms of aid. Although the virus is causing a real disruption, there are still major structural problems in the financial system that he is not dealing with. However, the real problem is fear. It only makes sense to induce fear and therefore let Trump introduce financial measures to help the economy so he can get re-elected under the guise of fixing economic problems due to the coronavirus. It’s complete B.S. – Brian C. Bill, your daily missive is always a welcome addition to my inbox, but almost as interesting as your thoughts are the reader comments, particularly when you have the temerity to criticize Trump. As a European, I am always amazed by the trust and loyalty that Americans grant to their president and government. Unfortunately, Europeans have learned through bad experience that governments do not always act in the best interests of its citizens, and the presumption that the U.S. is somehow different is a brave one. All citizens have a duty to have a healthy cynicism towards any act by the government, especially when it tries to accrue greater powers, usually under the guise of an “emergency” (wait for the “Coronavirus Emergency Powers Act”). Keep on questioning those in power, it is your civic duty! – James S. I agree that we should watch what Trump does. Everything he does is about politics. He isn’t capable of doing what is truly good for the majority of the country. Draining the swamp? You must be kidding. He is the swamp. Ask any of the decent people who have tried to serve in his administration, who after telling the emperor he had no clothes, were shown the door. He scoffs at the rule of law and is allowed to do so by the sycophant, apologist, milk toast Republicans in Congress. – Hugh M. Is it a citizen’s duty to have “healthy cynicism” towards their government, as James believes? Is everything Trump does about politics, like Hugh says? Write us at feedback@bonnerandpartners.com. IN CASE YOU MISSED IT… Silicon Valley Genius Makes Next Big Tech Prediction Angel investor Jeff Brown has put his money into 130 tech startups… And he’s profited on 93% of them. In three of the last four years, he picked the No. 1 Tech Stock on the S&P 500… before it went up. Now, he’s found a new opportunity. A company that makes the tiny device critical to every single new 5G phone. Apple is expected to release their phone on or around Sept. 22. When they do, shares in this tiny devicemaker could soar. Find out all the details before it’s too late. 
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