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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
April 3, 2012
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It took the U.S., the world's largest debtor nation, more than 200 years for its own debt to reach $1 trillion. In the past four years alone, this debt has soared by over $5 trillion to reach a grand total of $15.5 trillion. The U.S. is currently running deficits approaching $2 trillion per year, which means this number will only keep growing. The U.S. has no way to pay this debt off - not without making major cuts that would lead to DEPRESSION and revolt. When you consider that millions of baby boomers are now the fastest growing and largest segment of our economy: Are reaching retirement age and will be drawing on Social Security, the debt levels will continue to grow even faster than they have in the past four years. 
 
If you look at U.S. total debt, the U.S. is now at about a 400% debt to GDP ratio. Morgan Stanley says there's "no historical precedent" for an economy that goes over 250% of its debt to GDP ratio without a crisis and huge galloping inflation. 
 
So when will it become time to pay the piper? When will this all come crumbling down? I don't know. For now, politicians will continue to do what they're doing. They'll continue to patch things up by printing more money to pay for expenses, including paying the interest on their loans. They'll continue to sell their debt to any nation that can afford and is stupid enough to buy it.  But mostly they will be monetizing their own Debt.
 
Most people think that China is the number one holder of U.S. debt and Japan number two. Those people are wrong. The number one spot belongs to the FED - by more than half a trillion dollars and growing daily.  In the long run, all of this money printing and cheap money will devalue the dollar against all other currencies – BUT especially against the purchasing power of gold.

While gold and silver have recently experienced a selloff, It undoubtly represents the last and best GOLD buying opportunities. In the big scheme of things; I am sticking with my prediction that gold will be above $2500 and silver above $50 before the year is over.