Investment Rarities Incorporated
History |  Q & A  |  Endorsements  |  Portfolios  | Flatware | Gold Coins  |  Silver Coins  |  Contact |  Home

Products

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.

..Read More »

The Best of Jim Cook Archive

 
Best of Aubie Baltin
April 7, 2010
archive print

There has not been any sustainable recovery in private sector demand and there won't be for some years to come. Furthermore, there is nothing that can be done about it. Empirical evidence, over the centuries, teaches that major economies cannot generate growth by devaluing their currencies (printing Fiat Money) and trying to export their way out of trouble,

The other massive delusion that is buoying markets is that governments can keep pumping/printing and borrowing for a long enough time to compensate for the slump in demand from the private sector while at the same time, promising but will unsuccessfully attempt to cut back spending and pay back debt. Time limits on this strategy are drawing near as Greece will soon demonstrate, and give or take a few months, so will the rest of the PIGS as well as the United Kingdom.  At best, give or take a few quarters, so will be the case for the US. The only way out is the implementation of Free Market Capitalist solutions.  The problem is that there does not seem to be any Free Market Capitalist Economists left; at least none that any government will listen to.
THE DILEMMA OF THE FED
In terms of stated objectives of maintaining stable prices and full employment, the Federal Reserve Bank (FED) has been a horrible failure. However, the FED has been a raving success in terms of its unstated goals—that is to privatize profits while socializing risk, even as it pretends to be looking after the “Folks”. It's bad enough that a fascist government has evolved to protect the rich and powerful at the expense of the middle class. But do these sinister forces have even bigger goals in mind than the rape and pillage of Americans? Is the Ideal of national sovereignty largely a thing of the past and being replaced by One World Government objectives in co-operation with huge corporate interests aligned with the IMF and World Bank that are now dictating the policies that national leaders are to follow?

The conclusion is inevitable; the bubble must burst. The longer we are forced to wait, the bigger the bubble will be and the more destructive the bursting process will be. The last time, the FED bailed out Wall Street and the Banks but this time, while it is possible to bail out Greece, who is big enough to bailout England and the US?

WHAT IS HAPPENING ON MAIN STREET?

The latest reports show that new home sales dropped 11.2% after expectations of a 3.5% gain and consumer confidence also declined significantly. This drop in consumer confidence may be a starting point for all that I have been expecting. There is some sign of wavering in people's certainty that a self-sustaining recovery is under way. As I have stated many times, this is a phantom recovery brought about mostly by massive propaganda, stock, bond and Gold market manipulation and accounting Chicanery. Comparing today’s accounting gimmickry and engineered earnings to the last two years of ultra depressed low earnings does NOT indicate robust profits.  The massive amount of government money printing has mostly gone to Wall Street and the BIG BANKS, while next to nothing has filtered down to the man in the street.

 

THE DEBT BUBBLES

Governments around the world are continuing to run massive budget deficits and interest rates are close to zero. The markets don’t seem to be worried about the enormous explosion in government debt, because they figure it will just mean that governments will have to keep interest rates at historic lows while they continue to pour liquidity into the banking system so that they can stay on life support. Governments aren't going to let their own debt bubbles implode, are they?

WHAT KIND OF BOND MARKET IS IT WHEN BONDS PAY ZERO INTEREST RATES, IF NOT A MANIPULATED MARKET?  AND HOW LONG CAN THAT LAST? MORE IMPORTANTLY, WHAT HAPPENS NEXT?