Author: Bill Bonner

Yesterday, we began our high-minded graduation speech to the Class of 2015. We explained how the young graduates were not only the most heavily indebted in history, but also the least likely to be able to pay their debts. Median wages have been going down since these graduates were about five years old… So have economic growth rates. Today, we continue the speech no one wants us to give… You are heirs to claptrap, nonsense, bogus theories, and trillions of dollars in debt. The systems, programs, and institutions your parents set up are mostly worthless scams. Worse, they produce outcomes … Continue reading →

Good and Bad News Today, we have bad news and good news. The good news is that there will be no 25-year recession. Nor will there be a depression that will last the rest of our lifetimes. The bad news: It will be much worse than that. On Monday, the Dow rose another 43 points. Gold seems to be working its way back to the $1,200 level, where it feels most comfortable. “A long depression” has been much discussed in the financial press. Several economists are predicting many years of sluggish or negative growth. It is the obvious consequence of … Continue reading →

Gualfin (“End of the Road”), Argentina Dear Diary, US stocks are still near their all-time highs. Gold is still clinging to the $1,200-an-ounce mark. So, let’s return to the examination of why the 21st century has been such a dud so far. Here’s a simple answer: There are too many zombies. $75,000 a Year from Uncle Sam First, a reader explains how to become a zombie: Follow these easy, proven 13 steps to financial well-being… 1. Don’t get married to her 2. Use your mom’s address to get mail sent to 3. Guy buys a house 4. Guy rents out … Continue reading →

Dear Diary, On Friday, the S&P 500 and the Nasdaq closed at record highs. It’s the first time both indexes have done so since December 31, 1999. Why such optimism? High profits, you say. But where do profits come from? Households have less money to spend than they did 15 years ago. And companies cannot make money just by selling things to each other. The only explanation is that customers – including the US government – continue to borrow and spend. Corporations borrow money to buy their own shares. Consumers borrow to buy products. Either way, the money comes “out … Continue reading →

Somehow, like it or not, the world turns. Today’s hegemon becomes tomorrow’salso-ran. Today’s reserve currency becomestomorrow’s toilet paper. Today’s cock o’ the walk becomes tomorrow’s dinner. Hey, we didn’t create this system. We don’t even especially like it. But that’s just the way it is. Whether you already have made a fortune, or are trying to build one, you need to be very careful about what currency… or currencies… your wealth is denominated in. The End of History? Governments were set up to take control. Ruling elites – by force of arms – established laws, protocols and armies to try … Continue reading →