Bill Bonner

Bad policies…unnecessary wars…foolish theories — never go away. Like zombies, they rise up in the light of the full moon, and terrorize the world once again.

There’s a time for everything. The time to get into stocks is when prices are low, not when they are high. This is not exactly advanced geophysics, but when they are at epic lows there is more upside.

The two parties are doing something that China, Russia, Iran et al might like to do, but lack the means to do it. They’re bankrupting and impoverishing the USA.

A gamble is just a gamble; it could go either way. And who wants to bet against gold? It was the star performer for the last 26 years…and the most reliable performer since the Flood

At the present rate, the war would add about a half a trillion to the US deficit this year. If it goes on as long as the war in Afghanistan, it will add $10 trillion to the debt.

Real output is already very cheap in gold terms. Instead, the most likely correction will take place in the stock market itself, either because the dollar sinks or because stocks sink…or both.

We’ve seen what a sharp, sudden spike in interest rates (the availability of credit) does; businesses tighten up, employees are let go, spending goes down and GDP rates go from positive to negative.

We will soon get to see what effect a sudden uptick in oil prices will actually have. Will it send modern economies into recession? And when investors see it depressing corporate earnings?

The most remarkable thing about the bombing of Iran is the premise behind it. We’ll come back to that in a minute.

The US war strategy is still cloaked in confusion. But we think we know what Iran had up its sleeve. With only a tiny, largely dysfunctional military the country had almost no way to protect itself…