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 16, 2012
archive print

Today, their consensus of optimism is the most optimistic on both the economy and stock market since 1999. Well it seems that once again they all will have gotten it all wrong. It is possible that the market may yet have a 1000 point rally breaking out to a new all time high triggering the BIGGEST BULL TRAP IN HISTORY.  It will be based on the euphoria of hope and optimism surrounding Obama’s trillions of re-election  dollars raised as well as new stimulus packages going into November;  but realization will set in that the country's economic sharp left turn towards Socialism will not work. Both the economy and stock market will turn down and crash, either just before or just after the election. The financial media and their guests have become so fraught with nonsense that I can no longer tolerate watching the news.

 A headline in a recent issue of Barron's asked, "Is GOLD in a Bubble?" No wonder they could NOT recognize the Stock, Real Estate or Commodities Bubbles and especially now the BOND BUBBLE - they don't know what a bubble is. Bubbles by their very nature require a great deal of overextension and irrational exuberance. Does anyone borrow money to buy cash or GOLD? Does anyone have too much GOLD or cash? Without being over leveraged there can be no margin calls or forced liquidations, which is part and parcel of every Bubble/crash. Also there can be "No Greater Fool Theory” in play when you are dealing with just cash.

The Federal Reserve is propping up the entire U.S. economy by buying 61% (soon to be increasing) of the government debt issued by the Treasury Department, says Lawrence Goodman, a former Treasury official and current president of the Center for Financial Stability. He warns that if the situation is not "normalized" the whole economy risks a complete collapse.

At the same time, the central banks of the US, Euro zone, China, Japan, and England have increased the size of their collective balance sheets by $7 trillion.  Presto…An unprecedented $12 trillion in new money has been created out of thin air! Rising inflation (created by central bank money printing that never seems to stop) is the greatest threat to America over the next 24 months.”