Why the country would have been better off with Bernie

[Bill Bonner's Diary]( Why the Country Would Have Been Better Off With Bernie By Bill Bonner, Chairman, Bonner & Partners [Bill Bonner] GUALFIN, ARGENTINA – The Dow fluttered yesterday. The Nasdaq, too. Our guess is that the smart money is pulling out first. Paul Tudor Jones, Ray Dalio, Bill Gross – many Wall Street giants have already announced that they are turning bearish. The rest of the smart money keeps its mouth shut… and wonders when to sell. Recommended Link [After Three Decades of Secrecy, BIG Announcement from Former MBA College Dean Changes Everything?]( [image]( Almost NO ONE knows this millionaire’s moneymaking method exists. A secret so lucrative, it drew the attention of 12 of the world’s biggest financial institutions and CNBC. But when it comes to what Wall Street or the Mainstream Media wants… This living legend couldn’t care less! He’s kept his lips sealed for 35 years. But today, everything changes… [Click here for the full story]( -- Fed to the Rescue All markets go up and down. That’s how they discover prices – always guessing… always adjusting… over-optimistic one day, full of gloom and doom the next. But there’s something different about this market. The Dow has gone up from 1,000 in 1982… to more than 24,000 today. Three times the market has tried to correct – in 1987, in 2000, and in 2008. And three times the Fed has “come to the rescue” with more cash and credit, slashing interest rates and goosing up stock and bond prices through so-called “quantitative easing” programs. And the next time the market tries to correct… which could happen any day… the Fed will want to cut rates again to stimulate the flow of more cash and credit. [As we’ve explained](, understanding Fed policy moves is as easy as 1, 2, 3. Mistake #1: Leave rates too low for too long. Mistake #2: Raise rates to try to “normalize” things. Mistake #3: Drop rates in a panic. Now, the Fed is making Mistake #2 again. After 30-plus years of adding to its balance sheet (by buying bonds), it has now begun a program of quantitative tightening, effectively selling bonds (or simply letting them expire). By the end of this year, it is scheduled to be offloading bonds at a rate of $600 billion annually, which is sure to set the stage for Mistake #3 again. Recommended Link [NOW PLAYING: Free Replay of Teeka’s Emergency Broadcast]( [image]( Over 40,000 people RSVP’d to watch Teeka’s cryptocurrency emergency briefing. He shares some details on his top pick… and reveals his investment strategy in a way he’s never revealed it before. I’m talking about the exact strategy that’s helped him deliver rare and exceptional gains of 582%, 1,643%, 2,050%, and more. We’re removing the briefing from our website this week… [Click here to watch it now]( -- Cards on the Table Over the last couple of days, we’ve been laying our own cards on the table. We want dear readers to see what we’re holding – including the jokers. Yes, in addition to the fairly standard jacks of stock prices, queens of GDP growth rates, and kings of inflation, we have two cards that most people have never seen. First, as we set before you [yesterday](, we think the government is not what people think. Second, neither is the money. Often, when we explain what we see happening, people say, “Oh… they’d never let that happen.” Or, “If they did that, we’d vote them out of office.” Lies (especially those we tell ourselves) are always more pleasing than the truth. And myth always trumps reality. The myth is that the government of the U.S. operates by, for, and of “the people.” It is supposed to make choices that suit the peace and prosperity of the nation; it would never go along with a multitrillion-dollar rip-off of the average voter… or permit a catastrophic meltdown in the economy. After all, that is what an elite is for: to manage complex systems that require real expertise. Well, we have bad news. Over the last 30 years, maybe longer, Washington has been taken over by an incompetent and increasingly parasitic elite. Now, we have a government by, for, and of the insiders who control it. Naturally, they use their influence to shift more and more real wealth and power to themselves. The most recent examples: - The Pentagon and its cronies just got an extra $700 billion over the next 10 years. (When the real shooting starts, we predict all this money will just get in the way.) - The steel industry – famous for putting one over on gullible politicians – paid for trade advisor Peter Navarro’s silly Death by China documentary, funneling the money through a “non-profit.” It turned out to be one of the best investments steel company Nucor ever made. Donald Trump saw the video and asked Navarro to advise him. What was his advice? To put tariffs on imported steel, handing Nucor a windfall profit. - The tax cut is supposed to return money to the people who earn it. What it really does is shift the burden of wasteful government spending from the present generation of taxpayers (some of whom make campaign contributions) to the general public and the future. Now, spending will be financed by debt… to be paid by someone, sometime, somehow… The Democrats, Republicans, and every other malingerer, chiseler, flimflam fast talker, and goofball win-lose guy scored a major victory when they got Team Trump to join with Democrats Pelosi and Schumer to lift the debt ceiling and propose a budget that avoids any need for tough negotiations, compromises, or cuts. Federal debt has been going up at a rate of $200 billion a month for the last six months. It hit a staggering $21 trillion just five days ago. Recommended Link [The EXACT Date Gold Soars to $10,000]( [image]( By March 31, a new law will take effect that changes everything about the price of gold. Overnight, it will impact: - 1.3 BILLION People - 82 Billionaires - And 24,000 TONS of Gold Within a matter of hours, we’ll see a buying frenzy that sparks an ascent to $10,000 gold. But you must take action now, and specifically on one obscure gold trade. [Click here for the full story]( -- Lefty Scalawag Bernie Sanders is, of course, a lefty scalawag. But if he were in the White House, it would be a different story. Republicans would have to dig around in the bottom of their desk drawers to find their old principles. They’d rediscover the virtue of debt ceilings. And spending cuts. Maybe even balanced budgets. The Republicans could then stop the liberal giveaways. And Sanders and his allies (using the veto!) would stop the Republicans’ boondoggles. As it is, everybody is for everything… all are happy to spend someone else’s (borrowed) money. They’re all on board – in the plush first-class section, of course – drinking martinis, slapping each other on the back… …and enjoying the ride to financial Hell! More tomorrow… including Joker #2… Regards, [signature] Bill MARKET INSIGHT: FAANGS ARE EATING UP THE NASDAQ By Joe Withrow, Head of Research, Bonner & Partners [Joe Withrow] The top five U.S. tech stocks are eating up the Nasdaq. Today’s chart tracks five of the largest tech stocks by market value, the so-called FAANGs – Facebook, Apple, Amazon, Netflix, and Google. And it compares them to the total market value of the remaining Nasdaq stocks. [Chart] As you can see, the FAANGs now account for more than one-quarter of the entire index. That’s up from one-fifth in 2015. – Joe Withrow FEATURED READS [More Tariffs Are Coming](President Trump recently announced that he would impose tariffs on imported steel and aluminum. Bill has already shown [why these tariffs won’t Make America Great Again](. Now, the situation could get much worse. [The Tech Backlash Is Here](Late last year, Bill Bonner Letter coauthor Dan Denning [warned readers]( that big technology companies like Facebook are not your friends. Now, in the wake of a massive data breach, the tech backlash is here. [Beware of These Crypto Scams](Investors are still fascinated by the cryptocurrency world. But with new markets come dangers. Here are three red flags to look for before you buy any crypto asset. MAILBAG In the mailbag, Bill’s [solution to solve inequality]( is a hit… What a lovely and entertaining essay! And a good writer, too! Thank you. – Locke M. I loved this piece. Hilarious! And point well made! Thank you. – Prasanna C. I enjoy reading your daily articles, although I often disagree with your conclusions. I think Thomas Jefferson had it right when he said, “When we get piled upon one another in large cities, as in Europe, we shall become as corrupt as Europe.” Having lived in Chicago, and now living in a very rural area, I can attest to that. – Charles S. I think “How to Permanently Solve Inequality” is one of your best daily letters in quite a while. Although I’m surprised you left out of it what you have pointed out in previous letters: that many urban-suburban dwellers are heavily dependent on the fake-money system (probably more than rural folk). And you wrote that almost all innovation and invention has been urban-based, which I doubt. Many folks in their small-town garages, so to speak, and in colleges/universities in small, flyover college towns, have made significant contributions. – Frank W. The “How to Permanently Solve Inequality” essay is wonderful. Brilliant. I literally laughed out loud at your “solution.” I’m sure you will receive a lot of heat from your “dear readers” on the subject. So I’m already wondering how we can force them to read more of everything they seem to want to disagree with that you say. Also, I’m wondering how I must be deficient in some way, because you have never offended me yet. Never. Please try harder. I also am not sure where you would put me to solve the inequality. Would it be based on where I am now or where I’ve been? I’ve had an interesting life. My résumé is nine pages long: airline mechanic, recording engineer/producer, inventor, machinist, bus boy, DJ, salesman… I started and owned multiple businesses. I survived the ‘60s drug era for some strange reason of which I am not aware. I’m a Navy Vietnam veteran and was an Afghanistan civilian contractor. I’ve lived most of my life in suburban areas. But we recently got rid of our mortgage (sold the house) and have moved onto a friend’s property, where we live in our RV. So if you use the major part of my life, you would likely put me where I am now. I like it. Because now, we’re raising chickens and playing around with cryptocurrencies, and it’s a heck of a lot more peaceful here than in the cities. I want to thank you for your Diary and I am asking that you actually charge me twice the normal rate. It’s that good. Heck, I’ll even pay triple! – Scott S. Editor’s Note: Bill and his team are happy to hear that dear readers are enjoying the Diary. While we appreciate the reader’s offer to pay for Bill’s daily insights, Diary remains a free-to-read daily publication. IN CASE YOU MISSED IT… The next crash is coming, but it may not be an accident this time… That’s what Dan Denning, Bill’s coauthor on The Bill Bonner Letter, wrote to us recently. Dan believes an unseen group right here in America may actually be helping to push the country towards financial disaster. You’ll be shocked to learn why. [Details here.]( [image]( [Bonner and Partners]( © Bonner & Partners 55 NE 5th Avenue, Suite 100, Delray Beach, FL 33483 www.bonnerandpartners.com This e-mail was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Customer Service Bonner & Partners welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact us, call Toll Free: (800) 681-1765, International: (443) 353-4462, Mon-Fri: 9am-7pm or email us [here](mailto:feedback@bonnerandpartners.com). Having trouble getting your e-mails? Add us to your address book. Get Instructions [here](… © 2018 Bonner & Partners, 55 NE 5th Avenue Suite 100, Delray Beach, FL 33483, USA. All rights reserved. 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