Dice Have No Memory: Big Bets and Bad Economics from Paris to the Pampas
Right now, Congress, the Fed, and the Treasury are all gambling with your future and your money. And it's contagious. Economies around the globe are suffering from the biggest multitrillion-dollar bets ever wagered on big governments and miraculous financial interventions in pretend "free markets."
One man saw it all coming and told his readers well in advance of today's crisis. Bill Bonner reports on the true health and well-being of the world's largest economy to over half a million readers each day in The Daily Reckoning. His newsletter is to the mainstream financial press what the Gnostic Gospels are to the King James Bible.
Back in 2000, Bill Bonner sounded like a prophet crying in the wilderness. While everyone scrambled to purchase shares of the latest and hottest dot-com, Bill announced his Trade of the Decade: Sell dollars, buy gold. Back in 2000, you could get an ounce for around $264. Today, you could pay as much as $1,400 for that same ounce. Finally, some of Bonner's best pronouncements, predictions, and profitable analysis are collected in one place.
Dice Have No Memory gather's Bonner's richest insights from August 1999 through November 2010 to form a chronological narrative of economics in America.
Here's a fraction of what you'll find inside:
*Gold says "I Told You So"
*Three out of Four Economists Are Wrong
*Imperial Overstretch Marks
*Why Debt Does Matter
*Economic Zombies Shuffle Towards Bankruptcy
Bonner's Dice Have No Memory offers elegies for economists, tips for investors, tirades against wasteful warfare past and present, and practical guides to modern finance with graceful prose, well-earned intelligence, and riotous irreverence. Bill Bonner's common sense genius rips the window dressing off modern finance - a world normally populated by misguided do-gooders, corrupt politicians, and big bankers empowered by dubious "mathematical" truths. The investing game is rigged, just like Monte Carlo.
Instead of giving you magic formulas, this archcontrarian teaches you how to think clearly. And Dice Have No Memory gives today's investor the next moves he should make...before it's too late.
Bonner’s comments are his bemused and skeptical attitude toward the everyday market and his ability to evaluate the daily nonsense in the clear light of his own values. I find that not many can do that. He is willing to stand apart from the crowd and point out that the emperor is, well, ah, er, naked.” —John “I thoroughly enjoy your Daily Reckoning and have quite unabashedly become addicted to your mental agility. You fall into the category of Mencken and Buckley and other essayists for whom I
front porches, no rocking chairs, and no screens in the windows—no shutters. The old folks are almost all dead. No one speaks the local dialect anymore, except a few diehard watermen and unreconstructed tobacco farmers. And even the church seems to have been amalgamated into the general faith of America’s great religion—where the greatest sin is being intolerant and the greatest virtue is recycling. We are happy here on the other side of the globe. And then, when the wind comes off the Atlantic,
along could belly-up to the credit bar and imbibe almost as much as it wanted. Trillions of dollars worth of capital were raised . . . spent . . . and have now disappeared. What’s left are IOUs, stocks, bank loans, and bonds. The quality of these debt instruments is falling rapidly. “The junk bond market is suffering through its worst funk since at least 1990,” reports the Boston Globe. “The market is cheap,” according to Fred Cavanaugh, director of high-yield assets at John Hancock Mutual
on—those who sold the company’s stock: “When I find a short-seller, I want to tear his heart out and eat it before his eyes while he’s still alive.” The day after, Merrill Lynch ceased to be an investment bank; it was taken over by the Bank of America. And the following day, the Fed bailed out American International Group Inc. in return for an 80 percent stake. But by the middle of September, the financial authorities—who saw no evil nor heard any—were on the case. On September 18 the UK
But it is the question itself that is most revealing. Were monetary systems permanent and immutable, there would be no need for them. The present financial system could sit there as unchanging as a harbor light—a sturdy guide to the prudent and a warning to the reckless. Instead, monetary regimes come and go, like the lanterns of Cornish pirates, luring ships onto the rocks to be looted. The financial history of Argentina is instructive as well as entertaining. There, hardly a single generation