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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

 
Best of Aubie Baltin
MArch 9, 2011
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WORLD INFLATION

Just as in the USA, British INFLATION is being masked by their government as the figures in the UK as well as internationally under estimate real inflation. Increasingly, many economists are concerned that official statistics are misleading and hide the true increase in the cost of living. But they cannot hide the increases in food prices.  A double-digit jump in food prices pushed China's January – CPI to 4.9%, driven by the 10.3% jump in food costs. The Chinese inflation data appears to be even more misleading and manipulated than that in western economies as their reported Producer Price Index rose to 6.9%.

All governments are attempting to manage consumer’s perceptions regarding the significant increase in the cost of living as their fiat currencies are steadily being debased. But they can’t hide the increases in the cost of FOOD. And now fuel?

China joined India, Indonesia, Thailand and South Korea in boosting interest rates as Asian policymakers sought to cool the economies that are supposed to be leading the rest of the world to recovery., Despite three interest rate hikes and six increases to the bank reserve requirement, China's January inflation numbers continued to show uncomfortable increases amid rapidly rising wages, and a DANGEROUS 10.3% increase in the cost of food. Additionally, the Chinese government also revealed that it had been quietly dumping U.S. Treasury Bonds over the last two months and hinted that more selling is on the way.

Largest bond fund cuts US government holdings (Financial Times
In January, PIMCO (the world’s largest bond fund) sharply cut its exposure to US government-related debt, before US bond yields rose this month to their highest level in almost a year.
It has been such a very long time since we have had even a 2 day selloff that the possibility of a selloff has vanished from the collectivist mindset. Professional hucksters happily saw the markets rise persisting way out into the indefinite future so that a 20% up move for 2011 is a sure thing. Naturally fundamental reasons are coming out of the woodwork to try and rationalize the current sentiment.

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." ~ Ludwig Von Mises