| By Bill Bonner, Chairman, Bonner & Partners What, me worry? – Alfred E. Newman RANCHO SANTANA, NICARAGUA – We’re here on the Pacific Riviera waiting out the collapse of the American Empire. And we’re going to make the jolly most of it. Yesterday, we got in a helicopter to take a look at the coast. “This country has been in a serious depression for the last three years,” said our man on the scene. “The economy turned down in 2017. It’s been going down ever since. The International Monetary Fund says it contracted 5.7% last year. “A lot of landowners are giving up. They bought in the boom years. Now they just want out.” We decided to have a look. And what did we find? More in a minute… Teetering on the Edge Meanwhile, Humpty is still teetering. But he hasn’t fallen yet. In fact, yesterday, he managed to scoot himself a little more solidly onto the wall. At the end of the business day, the Dow was up 1,173 points. Not bad. But what does it mean? That the C virus is nothing to worry about? That record debt levels… with deficits “as far as the eye can see” … are nothing to worry about? That Joe Biden is nothing to worry about? What’s to fear from Joe Biden? He’s a known known. A hack politician. If elected, he wouldn’t change much of anything. Same goofball programs. Same dumbbell policies. Same Deep State running the show. He would probably end the foolish import taxes on Chinese goods. That would be a plus. But there’s no way he would do what needs doing – balancing the budget and liquidating the Federal Reserve. Nope. Sleepy Joe is an honest politician. He’s been bought; he’ll stay bought. But the C virus? Who’s got it in his pocket? | Recommended Link | | Only 6 people in the world have seen THIS… You could be number 7 Locked away in Teeka Tiwari’s home is a special list. On it, are the names of five tiny cryptos. For reasons you’ll soon understand, Teeka believes $500 in each could make you up to $5 million richer… in as little as 10 months. Only 6 people in the entire world have seen this list. For a chance to learn how to be number 7… | | | -- | State of Emergency A report yesterday told us that the Coronavirus is 30 times more deadly than the Hong Kong Flu of 1969. Instead of killing 0.1% of those who get it, it carries off 3%. This is about the same as the Spanish Flu of 1918. That epidemic was first spotted at an army base in Kansas in January. It took a summer holiday and then came back, nastier than ever, in the fall. By the time it left, 675,000 Americans were dead… and 50 million worldwide. A similar tally today would mean 2.1 million Americans will die. [Amazing 17-second Video Reveals Key to Tech Fortune…] Ol’ Humpty is already having a hard time staying on the wall. And the virus won’t make it any easier. The risk is not the C virus itself, it’s what happens when people try to avoid it. Nobody wants to die. And many of us have “compromised immune systems.” We’ll stay away from the planes, bars, and conventions that once knew us. California has declared a state of emergency. Italy has closed its schools. Ford, GM, the United Automobile Workers labor union, and Apple have restricted travel. More Trouble Afoot “Oil consumption just fell off a cliff,” reports CNN Business. Greeters at Walmart might prefer to take a month off, too. So might the Homeland Security agents take a break from riffling through passengers’ underwear (they know it is a waste of time). But everybody who stays home cuts into the “more” that a debt-soaked economy depends on. Companies need more sales, not less. Consumers need more income, not less. The feds need more tax revenue, not less. The Financial Times: According to the Institute of International Finance, a trade group, the ratio of global debt to gross domestic product hit an all-time high of over 322 per cent in the third quarter of 2019, with total debt reaching close to $253tn. The implication, if the virus continues to spread, is that any fragilities in the financial system have the potential to trigger a new debt crisis. Corporate debt rose some $6 trillion over the last 10 years. They service debt with income, not with higher stock prices. [New 5G Device Revealed to Public for First Time] Already, 12% of U.S. corporations do not earn enough to make their debt payments. Low rates from the Fed help keep these zombies alive – devouring resources and making the world a poorer place. Debtors need income. And income is what the C virus threatens. JPMorgan tracks global Purchasing Manager Indexes. This tells us how much buying the corporate sector is doing. It just registered its biggest drop since 2009. And guess what? U.S. workers need income too. They can’t stay home. Some 34 million workers don’t have “sick leave.” They only get paid if they show up. Every day they stay home cuts into their income… and their spending, which further cuts into corporate revenues. There’s more trouble afoot, in other words. Meanwhile… | Recommended Link | | Coronavirus Causes Gold Fever: Here's What Happened Last Time… In 2001, gold was just $272 an ounce. By 2011, it had charged up to $1,896. What kickstarted this decade-long rally? SARS. If history repeats itself, gold could easily double or triple from here. But as you’ll soon discover, the coronavirus isn’t the only force driving gold higher… | | | -- | Gringo Prices We trip along the coast, sans souci. There’s a lot of beautiful coastline between Rancho Santana and the Costa Rica border. And some bargains. “They were selling these houses a couple of years ago for $350,000,” said our guide, pointing to some modern-looking houses near San Juan del Sur. “Now, they’re going for $250,000.” The bigger parcels, too, have been marked down. We were flying over a large valley with about 3,000 acres, including nearly a kilometer of ocean frontage. “The owner wanted $20 million for this. Last week, he called to tell me he’d take $14.” Still a lot more than it is worth, we thought. Reading our mind, he continued… “Of course, that’s the gringo price. A lot of property changes hands at lower prices. But they’re not going to sell to you at those low prices.” The farm, where we are moving our animal operations, cost us about $1,000 an acre. The locals probably would have paid $500. We can get cheaper land in West Virginia. But not with a view of the Pacific Ocean. And, in case of a deep, global depression we could probably live comfortably in either place. But wait… news flash… This morning investors woke up and came to their senses. Stocks are dropping again. As we go to press, the Dow is down 700 points. People are wringing their hands… they’re pacing nervously… they’re sweating… and putting on their masks… What to do?! Buy? Sell? Move to Nicaragua? Stay tuned… Regards, Bill MARKET INSIGHT: DON’T COUNT ON THE FED’S RATE CUT TO STOP THE BLEEDING By Houston Molnar, Analyst, Bonner & Partners The Federal Reserve cut interest rates by 0.5% on Tuesday, as stocks fell 9% from their all-time high set two weeks ago. It was the first emergency rate cut since the financial crisis. The last emergency rate cut happened in October 2008, when stocks were also falling. But as you can see from today’s chart, the 0.5% rate cut in 2008 did little to soften the blow… 
Just like the last crisis, Tuesday’s rate cut does not guarantee we’ve seen the bottom of this correction. – Houston Molnar Like what you’re reading? Send your thoughts to feedback@bonnerandpartners.com. FEATURED READS How Coronavirus Is Shaking World Economies
Check out these charts for an in-depth look at what the coronavirus is doing to the world economy… Hogs: An Overlooked Commodities Investment
Commodities expert Doug Casey says, “You’ve got to be bullish on hogs.” Read on to learn what he expects in the future for the hog market… and his favorite way to play it today… MAILBAG Mixed bag today, with Dear Readers discussing the stock market, President Trump, and corruption in the Swamp… I trade the market during the day, picking up a few pennies here and there. I don’t have to tell you how ridiculous this market is, up 1,200 points one day, down 600, up 1,000, etc. What gets me is, after 10 years of a bull market, advisers/brokers are still telling people to jump in. I have someone call me every day the market is up because all the idiot talking heads on CNBC say they should be in the market. They don’t want to listen because they have FOMO, or fear of missing out. Well, go ahead and jump in and see what happens in a month or two. Yes, you might make a few bucks here and there, but the risk is far too great and eventually you will wind up losing. Just look at the bond bubble, stock bubble, economy, etc. “Yeah but the market’s up and my broker says I’m missing out.” Go ahead. Jump in and don’t complain to me when you lose your shirt. – Frank G. Amusing how some claim the President lies, divides, bows down to our enemies, on and on. What they really don’t like is that he got elected! – Ted T. Always enjoy reading Bill Bonner. Great insight delivered with biting, but spot-on wit. Keep up the good work. As Benjamin Franklin is believed to have said, “We need a revolution every 200 years or so. After that time men and governments become corrupt.” I’ll keep saying it – the Swamp is too infested to be drained… it has to be burned. – John P. Is a revolution what America needs right now, like John believes? Are you also feeling the FOMO that Frank describes, or have you found better places to put your money than the stock market? Write us at feedback@bonnerandpartners.com. IN CASE YOU MISSED IT… 3 MAGA tech stocks every American should own Investing opportunities seem to be dwindling in the stock market… But do you know how to profit? The nation’s top tech investor, Jeff Brown, just named the 3 MAGA tech stocks every American should own this year – for maximum gains. He says one of them will be the #1 tech stock of 2020. Click here to find out more. 
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