Author Archives: Bill Bonner

     

 

 

Better the Devil You Know?

We are providing around-the-clock nursing care to our invalid wife, who is back at home, with cracked ribs, unable to move. We are upstairs in the bedroom – the shutters closed against the heat (we have no air-conditioning) – taking a few minutes to update our Diary… but with nothing important to say.

 

2016_presidential_marathonEvery day, we look at the headlines, think about what is going on in the big wide world and try to connect a dot or two. It is probably the same in your life. You go about your business. You have work to do. Projects, goals, deadlines. Your priorities. Your investments. Your schedule. Your plan.

Cartoon by Ramirez

 

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Empty-Nesters

OUZILLY, France – Poor Donald Trump. He has had to apologize for hurt feelings. He has had to reshuffle his campaign team. He has been kicked so often by the press that he is starting to hide behind chairs, like a university president. Here at the Diary, we favor lost causes, diehards, and underdogs. “The Donald” may soon qualify on all three counts.

 

trumpsterUnderdog spotted! But is he really such a “lost cause?” He may not be, actually… in spite of his uncanny ability to occasionally put his foot in his mouth.

 

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The War on Moles

OUZILLY, France – The farther you get from the big city, or the international press… the closer you get to reality. The myth and claptrap disappears as distance shortens. Imagination gives way to fact.

 

mole2There’s a war on, and he’s the target! It had to happen one day; after the many highly successful wars instigated by governmental world improvers, such as the war on terror, the war on drugs, the war on poverty and so forth, it was high time that someone started the war on moles. Rejoice, citizens! Your lawns and gardens will be made safe too!

Photo via a-z-animals.com

 

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Introductory Remarks by PT:

At first we actually didn’t want to post this particular Diary entry, because we felt it was too “off topic” (although we do of course occasionally discuss off topic issues), but upon further reflection it struck us that it is actually quite interesting when considered in a broader context.

 

EU spending on ag

EU spending: most of the budget is spent on subsidizing agriculture (which represents less than 2% of total economic output). As is the case with all government spending, it has turned out to be a burden rather than a boon, even for those it is supposed to help – click to enlarge.

 

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Corrupt and Unsustainable

James has been a big help. Trying to get him to sleep at night, we have been telling him fantastic and unbelievable bedtime stories – full of grotesque monsters… evil maniacs… and events that couldn’t possibly be true (catch up here and here).

 

The CongressHe turned his head until his gaze came to rest on the barred windows of the main building. Finally, he spoke; as far as I was aware these were the first words he had uttered in more than five years. “Grotesque”, he whispered, in a raspy voice. “Grotesque… grotesque…” He turned back to look at me. “Grotesque”, he repeated. It seemed a perfectly reasonable thing to say, all things considered. [from Marb Storek’s famous autobiography, “Euthanasia of the Mind”]

 

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Fake Money, Fake Capital

OUZILLY, France – Little change in the markets on Monday. We are in the middle of vacation season. Who wants to think too much about the stock market? Not us! Yesterday, Republican presidential candidate Donald Trump promised to reform the U.S. tax system.

 

2016-Donald-Trump-Tax-Reform-Proposal-Individual-Income-TaxThis should actually even appeal to supporters of Bernie Sanders: the lowest income groups will be completely exempt from income and capital gains taxes under Trump’s plan. We expect to hear crickets from the socialists though. Oh, and below you will see why Trump only got $19,000 from hedge funds, while Hillary “we came, we saw, he died” Clinton got $48.5 million (crickets from assorted socialists so far). But who cares, Trump is Hitler, right?

 

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Confidence Gets a Boost

OUZILLY, France – Last week’s U.S. jobs report came in better than expected. Stocks rose to new records. As we laid out recently, a better jobs picture should lead the Fed to raise rates. This should cause canny investors to dump stocks.

 

stock-market-cartoons-3Canny investors at work (an old, but good one…)

Cartoon via Pension Pulse

 

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City of the Dead

PARIS – “We’ve never seen Paris so dead,” said the bookstore clerk. “The tourists don’t come because they think it is dangerous. And the locals have left for the month of August. There’s no one left. It feels kind of eerie.” You can see how dead the city is by looking at this photo:

 

P1090667Empty street in Paris…

Photo credit: fmh

 

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Surrounded by the Enemy

OUZILLY, France  –  Poor Christine! The IMF director and Parasitocrate Haute Gamme Ms. Lagarde recently learned that she must stand trial for corruption charges in France.

 

LagardeAfter the globalist cabal made the effort of raising the mummy of Nefertiti from the dead, she is suddenly dragged before a court for misdirecting a few 100 million euro in taxpayer moolah? That’s chump change, isn’t it? The whole affair is very strange. Perhaps the powers-that-be are unhappy with IMF’s discordant noises about the Greek bail-out and felt it was time to set another example so as to keep the troops in line. We’ll never know of course, but the charges against Ms. Lagarde do actually appear a bit far-fetched (or let us rather say: since when do high-ranking Deep State minions get charged for corruption? That’s almost unheard of…).

Cartoon by Steve Bell

 

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Right on the Money

OUZILLY, France – It is not often that you get investment advice from a presidential candidate. It is even rarer that you get good advice.

 

Donald Trump (L) speaks with Frank Zarb, former CEO of the Nasdaq Stock Market, before opening the Nasdaq Market September 20, 2005 in New York City.The Donald dispenses investment advice. “Better get out buddy, while the getting is still good”.

Photo credit: Michael Nagle / Getty Images

 

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Secular Stagnation

OUZILLY, France – Both our daughters have now arrived at our place in the French countryside. One brought a grandson, James, now 14 months old. He walks along unsteadily, big blue eyes studying everything around him.

 

kids-2Put to sleep by monetary lullaby! This is what children look like approximately five minutes into a rant on the Fed’s policy mistakes. It never fails!

Photo credit: Jack Weid

 

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Europe Under Attack?

VIENNA – We are in Vienna, the home of some of the world’s greatest economists. We will come back to that in a minute. First, it was here where Jan Sobieski, the elected king of Poland, beat back a Muslim attack on Europe.

 

atak-husarii-stanisc582aw-kaczor-batowskiWinged Polish Hussars at the Battle of Vienna in 1683. 57,000 soldiers of the “Holy Roman Empire”, led by Count Ernst Rudiger Von Staremberg of Austria,  Charles V (the Duke of Lorraine), Leopold I (the Holy Roman Emperor) and Polish king Jan Sobieski III, fought against 120,000 Janissaries and Tartars led by the Ottoman grand vizier Kara Mustafa Pasha. It was the second time the Ottomans had attacked Vienna (the first siege of Vienna took place in 1529 under Suleiman the Magnificent – the first siege actually turned the tide and marked the beginning decline of Ottoman power. The second siege was a final attempt by the Ottoman Empire to reassert itself. Luckily it failed as well).

Painting by Stanisław Kaczor Batowski

 

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