“The Long and Winding Road to Bankruptcy”
By Bill Bonner
BALTIMORE, MARYLAND – “What next? CNBC: “Stocks ended lower Tuesday after the Centers for Disease Control told Reuters that a traveler from China was diagnosed with the first U.S. case of coronavirus, in Seattle. The Dow closed down 152 points after falling as much as 200 points. The S&P 500 shed nearly 0.3%, while the Nasdaq dipped 0.2%. Shares of casino and hotel companies Wynn Resorts and Las Vegas Sands fell more than 6% and 5%, respectively, amid fears that the coronavirus outbreak in China would dent international travel.”
A virus! Could a microscopic bug be the “pin” this bubble has been looking for? Who knows. But something will pop it sooner or later…
The Day the World Ended: We’ve been calling September 17, 2019 “the day the world ended.” On that day, a spike in short-term lending rates – in the “repo” market – threatened the U.S. government’s deficit spending… and blew the doors off the Federal Reserve’s “normalization” policies. The Fed has been adding some $100 billion per month to the nation’s money supply since then. (Paid-up readers of The Bonner-Denning Letter can look for more on that in our January issue, out this evening.)
Of course, we are exaggerating the finality of the situation for dramatic effect. The world goes on. But it’s not the same world. And the new world will probably be a lot less agreeable than the old one. And the disagreeableness of it will increase greatly when the bubble blows up. Then, prices won’t be rising; they’ll be falling – hard. Prices of financial assets, in particular. That is when the printing presses will really get rolling. The Fed will have to inflate even more aggressively to stop the market from falling.
But today we’re not looking at the future. We’re recalling the past. We’re not looking beyond the end of the world, in other words. We’re looking at when it began. As we’ll see, there’s more than one way to go broke…
Remember the ’70s? “This reminds me of the early ’70s,” said an old-timer yesterday. Do you remember what happened, Dear Reader? We do. We were out of college, out of the Navy… and just entering the workforce. If we recall correctly, we earned barely $120 a week as a roofer’s helper. It wasn’t much money. But it was only temporary, until we found a real job.
And life back then wasn’t so expensive. With $120 you could buy three whole ounces of gold. Or, you could invest in stocks; with seven weeks’ worth of wages, assuming we spent nothing, we could buy all 30 of the Dow stocks. Gold was the better bet. Over the next 10 years, the Dow went nowhere. In 1981, it was about where we found it in 1971. But wait…
The old money was gone. In its place was new money, a new dollar from which the gold link had been removed. Now it was called a “Federal Reserve note,” meaning that it was a liability – a debt – owed to you by the central bank. Most people barely noticed the difference. The new dollars looked almost exactly like the old ones. They spent like the old ones, too. What difference did it make if the foreigners could no longer redeem them for gold as promised?
Well, it made a difference to the Arabs. Oil producers noticed that getting new dollars for their oil was not the same as getting old dollars. The price of gold rose from $35 in 1970 to over $100 in 1973. Arab exporters were still taking $3 for a barrel of oil. In real terms, their incomes had been cut by two-thirds. In October of 1973, OPEC announced an embargo on exports. The ostensible reason was to target nations supporting Israel in the Yom Kippur War. The hidden motive was to get the price of oil back to where it had been when the dollar was still real money.
Naturally, the feds reacted unwisely. They imposed price controls; rather than ration gasoline with higher prices, they rationed it by wasting everyone’s time. We had begun a new job by then, in Washington, about a 30-mile drive from home. Gas lines had formed. In order to get the gas we needed, we got up at 4 a.m. to get in position, sleeping in our truck until the station opened…
The Great Inflation: The first oil shock set off the Great Inflation. The Consumer Price Index was at about 4% in early ’73. By 1975, it rose to a peak of 10%, eased off, and then rose again to end the decade at 14%. People blamed the Arabs. But the real price of oil – in gold – merely went back to 1970 levels, before the new money was put in place. And the real villains weren’t in Riyadh. They were in Washington.
As for investors, they thought they went nowhere in the ’70s. But that was just another illusion caused by the new dollars. In real money, they lost 92% of their stock market wealth. Prices held steady in nominal, new dollars. But in old-dollar terms, they collapsed.
So what do you think? What would you tell the young man just starting out today? Buy stocks? Or buy gold? Or let’s put the question another way. Are the feds likely to inflate more or less than in the 1970s? To be followed up…”
Source:
http://coyoteprime-runningcauseicantfly.blogspot.com/2020/01/the-long-and-winding-road-to-bankruptcy.html
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https://www.youtube.com/watch?v=uFVjsC0IXJY MYSTERIOUS SIGHTING OF A UFO IN MISSISSAUGA ONTARIO 1-19-2020 we do not need oil!
PLANE GETS SURPRISE VISIT BY 2 UFOS AS IT LEAVES AIRPORT IN THE UK https://www.youtube.com/watch?v=eXHbUpbcdgw
no oil needed Zeropointenergy
Ufo https://www.youtube.com/watch?v=IKG1q7EEYng
IS THIS The Best UFO Footage Ever? https://www.youtube.com/watch?v=WC0-NaUEsyo INCREDIBLE UFO CAPTURED ON FILM OVER W.SYDNEY AUSTRAILIA 7-3-2019 https://www.youtube.com/watch?v=vSCZcpc98Jk Incredible UFO 2019 https://www.youtube.com/watch?v=Bk2z6QHsRjQ Huge UFO Hovering Over Lake Erie STUNS Viewers Online! 2019 https://www.youtube.com/watch?v=MCcQ3wVW0FM how many times does the us military go back and forth to the Moon on tax payers money???
Disc shaped UFO footage that appeared in a secluded regions in china https://www.youtube.com/watch?v=sjmaLDGs8b0 China goes back and forth to the moon also and explores space
2019-08-05 Amazing UFO in Kurdistan, Iraq https://www.youtube.com/watch?v=OfuPChs8IOU are the us military showing off tax payers money ????
Zeropointenergy
$6 TRILLION just to keep the sinking Titanic afloat…
Federal Reserve Admits It Pumped More than $6 Trillion to Wall Street in Recent Six Week Period https://t.co/p7RGrp7Gq4 pic.twitter.com/EGuwjLdRpP
“Leaked” footage: UN discuss UFO pyramid over the Pentagon https://www.youtube.com/watch?v=gUbWJBWbbXk mac 90 thousand hour UFO CAPTURED AT AN INCREDIBLE SPEED OVER MANHATTAN 7-18-2018 https://www.youtube.com/watch?v=LHtxrtzRnow AMAZING UFO FOOTAGE OVER PAMPANGA,PHILIPPINES 1-10-2020 https://www.youtube.com/watch?v=g2K113txzYc love zero point energy no wars if Trump releases it! Ufo mothership over a house!! extreme close up video! https://www.youtube.com/watch?v=vHi499WzzF0 UFO Caught Doing Incredible Movements Over Small Town https://www.youtube.com/watch?v=QLY8XW24738 UFO Seen over Mountain Area | Video 2019 https://www.youtube.com/watch?v=IHXMwediPeY
are the Deep hoen State doing interstellar trade behind the Worlds back I think they are!
GENUINE ET SHIP FOOTAGE! ARCTURIAN LIGHTSHIPS CAPTURED ON VIDEO 6-23-2016 https://www.youtube.com/watch?v=EMRwA3aHwDw
#UFO #ALIENS #IRAN LIVE!!! https://www.youtube.com/watch?v=d9V0OSldtrM UFO OVER IRANIAN PROTESTS https://www.youtube.com/watch?v=egoZmZhAr4U UFO Sighting – Iran | Video Footage – 2019 https://www.youtube.com/watch?v=pQRFR8hAeRs UFO Sighting – Multiple Orbs Caught over Forest Area | Video https://www.youtube.com/watch?v=mur1JS4ESe8
#UFO #ORB SEEN OVER THE OCEAN 2019!!! https://www.youtube.com/watch?v=KjI8ir-IaFM INCREDIBLE UFO FOOTAGE CAPTURED OVER NITEROI BRAZIL ON 7-17-2019 https://www.youtube.com/watch?v=KPd0XbpqPwc UFO Sighting – UFO Takes off at Supersonic Speed | Video https://www.youtube.com/watch?v=2gOTfP3mbro new zero point energy bus UFO Caught Moving Slowly Over California | Video Footage https://www.youtube.com/watch?v=8-45Hz6Fsls
Jan 23, 2020, Cylinder UFO Flying Over City | 2020 no need for electric cars https://www.youtube.com/watch?v=wOrLisPq_3g
Incredible UFO Spotted in South France – Video Footage https://www.youtube.com/watch?v=7mciTMvbijg Unbelievable UFO Sighting in Copenhagen, Denmark – Video https://www.youtube.com/watch?v=NszOtEAPx4Y
Insane UFO Sighting in South Africa | Real Footage https://www.youtube.com/watch?v=qR3B29mibe8 Insane UFO Sighting in Stuttgart , Germany | Video Footage https://www.youtube.com/watch?v=kcVLHqP_tTU Area 51 UFO Landing – Video | Incredible Footage https://www.youtube.com/watch?v=PeAFagkunYg
Zeropointenergy
UFOs were being developed in Area 51 after World War II https://www.youtube.com/watch?v=1xdZnonW10E oil is now worth 5 cents a bbl After World War II, UFOs were being developed in a facility called S4 in Area 51.
It is produced by being taught reverse engineering from extraterrestrial intelligent life forms! now declassified
https://www.blacklistednews.com/article/76066/pentagon-racks-up-35-trillion-in-accounting-changes-in-a.html