Bill Bonner

Roll Out the Barrel

The real promise of gold is not just a rate cut or two...and not really ‘easier borrowing costs.’ Gold may be a good gamble now...but in the long run it is just a way not to lose money.

Off the Rails

The gold standard came into being in the 18th century. It got gassed in WWI. Then, after WWII, it was re-established, sort of. The dollar was made the key financial reserve. It was linked to gold.

Here Comes Trouble

There’s a big difference between having the best growth rates and having the worst. And if you don’t know which you have, you’re probably headed to trouble. Which is exactly where the US is headed.

Long Haul Gold

Gold is not an investment; it’s a place to put your money while you wait for a good investment to come along. It’s not a wealth creator; it’s a wealth preserver.

Home Improvement

The new money system distorted just about everything, leaving the world with a vast fake economy...and more than $300 trillion in debt. In the US alone total debt rose from about $1.5 trillion in 1971

It's a Trap

Thanks largely to the EZ money era wrought by America’s funny money, the world’s reserve currency, feds everywhere spend too much money. Economies adapted to the cash flow.

All Aboard

Tariffs are essentially a sales tax. And a sales tax — averaging maybe 15% — is going to reduce consumer purchasing power…and cut into sales and profits. That is, it will be downer.

Motoring Through France

When the stock market is low, bad news is expected; it does little damage. But at the top almost anything can cause a crash…while there is almost no ‘good news’ that will send stocks higher.

Groundrush

We humans fall off the ledge the day we are born. And every bubble. Every human life. Every empire. And every paper currency ends the same way.

Trade Under the Big Top

Saying is one thing. Doing is another. A trade deal, procured under duress, is not likely to be more valuable than intel gotten by torture.

'Make the Foreigners Pay'

With the tariffs, the Trump team is retesting the notion that central planning can do a better job of making trade decisions than individual buyers and sellers with skin in the game.

Day of Reckoning

Even in a consensual democracy, the yoke of a police state never entirely disappears, but it is light...and controlled by accepted rules. We all drive on the right...and get where we are going.

Crackpot Economics

Publisher’s Note: While Bill Bonner’s latest commentary focuses on U.S. policy, the implications stretch far beyond Washington. When the world’s largest economy begins manipulating trade…

Something for Nothing

The value of a pick-up truck doesn’t go down when you start the engine. ‘Ghost wealth,’ on the other hand, drives away on its own.

What Happens Next

It’s not hard for us to imagine what might happen if Donald Trump were to have direct control of Fed policy. He’s already said the Fed should cut rates by 300 basis points.

She Will Destroy Us All

As the ancients put it, no man ever born of woman ever survives. And none ever gets through his life without making mistakes. Vanity, hatred, envy — the sins to which flesh is heir — always show up.

Imperial Mountain

In the Great Depression, we went broke and stood in food lines. History – that tart – always gets what she wants. So what do we do now?

The Curious Case of Fake GDP

Fake growth produces high asset prices, increased sales and profits, and raises debt levels. It distorts the economy...uses up precious time and resources (capital!)...and actually makes us poorer.

Heart of Fiscal Darkness

We only know if things are worth doing when and if people — of their own free will and with their own real money — pay for them. Otherwise, the transaction is likely to be a scam or a mistake.

Interest Rates, Observed

Lower interest rates encourage borrowing. That’s the whole idea. Debt goes up. Spending goes up. The feds ‘print’ more money to cover their deficits. Prices rise further.