From Chris Mayer, Analyst, Bonner & Partners:

Almost no one understands how the modern fiat-based money system works. That’s why I recently sat down with uber-successful money manager Warren Mosler.

Mosler retired to St. Croix in the U.S. Virgin Islands over a decade ago. But from 1978 through 1997, his Illinois Income Investors fund was one of the top ranked in the world. Mosler’s secret? Exploiting other investors’ misunderstanding of the fiat money system.

In a recent edition of Bill Bonner’s Diary, we got Mosler’s take on what ultra-low interest rates mean for the global economy (You’ll find his comments in the “Portfolio Insight” at the bottom).

Now, we’ll talk about one of the trading ideas he likes best in this environment…

As we discussed in the Diary, Mosler believes that the world economy is on the edge of a deflationary recession. And central bankers’ zero-interest-rate policies (ZIRP)… and now…