BALTIMORE – Good news for investors…

U.S. stocks went up again yesterday. This brought the Dow to within 60 points of the physiologically important 18,000-mark.

And grim news from our ranch in Argentina…

Here’s a report we got yesterday from our man on the scene:

The war with the originarios [the local indigenous people who believe they have a claim on the land] has settled down. The police were at the ranch for a couple weeks. Things were tense. But now it is so cold, everybody seems to have forgotten about it.

The temperature [in the high pasture] fell to 20 degrees below zero. The cattle have nothing more to eat. So, we made a deal with [a neighbor] down in the valley. We’ll drive the cattle down to his place. We’ll rent his pastures for 10,000 pesos per month.

It won’t be easy. We’ll have to take the cattle up over the pass and overnight them there. Then… down to the valley. The [cowboys] haven’t done this in more than 10 years. Jorge is coming back to help. It will be hard on them and the cows. Some of the cows won’t survive. But we have no choice. Otherwise, they will all die.

We’ve been eyeing a neighbor’s ranch. He has more water. We need it.

He has 75,000 acres. He wants to sell… but at 10 times as much, per acre, as we paid for our land. What to do? 

Bums and Bumblers

But in general, things are looking up south of the Rio Grande.

While America’s presidential contest comes down to a race between a huckster and a hack, Argentina, Peru, and Brazil have all chosen leaders who seem sane, sensible… and perhaps even honest.

South America has had enough of bums and bumblers. It is ready for better leadership. It appears to be getting it. Macri in Argentina. Kuczynski in Peru. Temer in Brazil.

Meanwhile, we’re connecting our dots; today we draw a line to some big ones.

The press notices that “populist” candidates are getting widespread support even when they don’t seem to deserve it.

Inquiring minds want to know why…

“I was on the right side of that issue [Brexit],” claimed Mr. Trump, speaking to an industrial-age crowd in Monessen, PA. “I was with the people. Hillary was with the elites.”

Voters seem to have a choice. Those who like the status quo can go with Ms. Clinton. Those who want a change can select Mr. Trump.

Then, the Deep State can continue calling the shots.

Creepy Money

Almost no one has noticed the role of the Deep State’s creepy money in creating BOTH Mr. Trump and Ms. Clinton.

And almost no one has noticed how it, more than anything else, caused Chinese capital investment to go wild… cut U.S. productivity… increased drug, alcohol, and suicide rates in Monessen and the rest of the U.S. heartland… and now brings the world economy to the brink of a historic crisis.

In 1971, President Nixon cut the last ties between the U.S. dollar and gold.

In doing so, he switched the U.S. – and the world – from money based on wealth to a new kind of money, based on debt.

This new money was “flexible.” The feds and their banking cronies could create almost as much of it as they wanted. The only trouble was, each dollar added to the world’s debt, not to its wealth.

King of Debt

The new money system was like a computer program with a built-in virus.

It would function reasonably well for 30 years. Then, the doomsday virus would be triggered. Here’s how it worked:

The insiders were first in line to get the new money. Everyone else had to either earn it from them… or borrow it from them. Gradually, wealth flowed from Main Street to Wall Street… and to the Deep State. The rich got richer. But the poor and middle-class struggled to keep up with student debt, auto debt, housing debt… and every other kind of debt the financial industry could put on them.

“I’m the king of debt,” boasts Mr. Trump. He made his money from leveraged real estate – which paid off as cheap credit raised asset prices.  “I made a fortune off of debt. It was good for me. But bad for the country.”

At least he seems to understand it. Ms. Clinton has no idea. Her entire career – and now her campaign for the White House – depends on the credit-financed, Deep State elite.

Ms. Clinton says the “king of debt” would bring a recession. (As though she wouldn’t.) She’s wrong; it will be much worse.

As debt mounted in the late 1990s, the system became more unstable. 

Stocks crashed in 2000. The feds came in with more credit. Stocks crashed again in 2008. Again, the feds came back… this time with the cheapest credit in history.

Now, the world owes more than $200 trillion – more than twice annual global economic output, and $60 trillion more than when the 2008 crisis struck.

Meanwhile, growth rates have stalled… and interest rates are already BELOW zero on more than $10 trillion in government bonds.

What will happen the next time stocks crash? What will happen when the economy goes into recession?

We don’t know. But this is something you can count on: We will find out.

Regards,

Signature

Bill

Further Reading: In Bill’s monthly letter, The Bill Bonner Letter, he continues to expose how the cronies behind the Deep State have pushed the world to the brink of an irreversible disaster. To find out how that disaster will unfold and, more important, how it’ll change your life forever, read on here.

Market Insight


BY CHRIS LOWE, EDITOR AT LARGE


Did you beat the Brexit panic?

If you owned gold and silver, as Bill has been recommending, you did.

As you can see, since the close on Thursday evening before news of the surprise Brexit vote hit the newswires, gold rose 6% and silver rose 11%.

That compares with a 1% fall for the S&P 500… a 6% fall for Europe’s equivalent of the Dow, the Euro Stoxx 50… and a 2% fall for world stocks, as measured by the MSCI World Index.


Featured Reads

Silver Hits Highest Level in Almost Two Years
Silver has surged to the highest price since September 2014, as investors speculated that central banks will need to continue supporting the global economy in the wake of the Brexit vote.

How to Turn Coming U.S. Crisis Into Profits
One crisis investing expert reveals how three investing greats turned market crises into profits. He also gives top advice for how investors can get rich right here in America.

The Massive Demographic Trend Nobody Is Talking About
Everyone knows that roughly 10,000 baby boomers turn 65 every day. That’s a heck of a lot of new retirees. But there’s an even bigger demographic trend at play in the U.S. that nobody’s talking about…


Mailbag

Did Bill answer the “universal question” in yesterday’s Diary, “When Government Controls ALL Wealth”?

You said it! With one sentence, you have answered the universal question: “What’s wrong?”

It deserves a bigger font: The ancient and sacred tether, connecting quality to wealth, effort to reward, has been severed.

— Larry K.

Profound! Every word that Bill utters – every time he writes!

— Jean K.

For some time now, the question has been floating around: Do Americans own anything?

If it’s not possible to pay for anything, and thereby own it, when tendering someone else’s promise to pay (Federal Reserve Notes), is it possible to own anything?

Then the question arises: Who backs the Federal Reserve’s promises to pay? Who is its creditor? When a federal crony buys and possesses something with Federal Reserve Notes (that don’t represent any actual wealth), do they own it?

These things, despite the name printed on them, are obligations of the United States. When this all comes apart, the government would like you to believe it will own everything… and we will all be their slaves.

I’m not so sure about that. But of course, if they can make us all believe it, then it might just as well be true.

— Mike R.

I love these emails and read them daily.

— Michael W.

The only thing missing at the end of "When Government Controls ALL Wealth" is the quote from the book Atlas Shrugged: “Who is John Galt?”

— Paul L.

In Case You Missed It…

Our colleagues at Agora Financial took to the streets of Baltimore to demonstrate how easy their newest investment strategy is.

In this entertaining video, they show two people with absolutely no investing experience how to make $127 in the market in less than three minutes.