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Jim Cook



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
May 17, 2012
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"Asian economies are based on production and savings. Western economies are based on consumption and debt. What you are seeing is simply the reshuffling of wealth and capital and opportunity appropriately." In all my life, I have never perceived so many diverse, powerful events to the global financial system and economy. The total instability of the current monetary system is on the way to a grand disruption from unstoppable events. The USA is slowly but surely being isolated, alienating friend and foe alike. When you expand your economy by increasing your debt, there comes a point where you cannot keep up with the interest on the debt, let alone the debt itself. Paper currencies are promises to pay. Gold and silver are the
payment itself.

What people have to realize and I know this is in direct contrast to what CNBC would say about any of the five major banks, but they are all totally insolvent. They have never been more insolvent. The word insolvent means BROKE. Without the generosity of the Federal Accounting Standards Board, all the banks would be declared “Bankrupt” and in liquidation proceedings by now.  In addition, all the sovereign bonds are nothing more than JUNK bonds now with big red lights flashing warning signals. Nothing can stand alone any more without huge infusions of cash ($5 trillion in just the last two months). That’s TRILLION with a capital T. The whole European Market is crumbling and with it will also go the USA.

All the banks in France are now experiencing a huge outflow of capital pushing leverage levels to 100 to 1 plus.

Europe's entire banking system is a $46 trillion plus sewer of toxic debt: DEBT that is leveraged at 30 to 1 and still growing. Lehman was leveraged at 30 to 1 when it went under in 2008. Is the Fed going to produce another $46 trillion to bail out all of Europe? If they don’t what comes next? I wonder if anyone really understands the gravity of the situation the world is in. I just saw a video of the Obama Health Care Bill. It will cost at least one trillion more per year than is claimed by Congress. That is not my figuring, but that of the Congressional Budget office.

We are in the last innings of a very bad ball game. We are coping with the crash of a 30-year-long debt super-cycle and the aftermath of an unsustainable Treasury Bond Bubble.
Quantitative easing is making it worse by facilitating more public-sector borrowing and preventing debt liquidation in the private sector-very temporary non-sustainable measures at best and both are erroneous steps in my view. The Federal Government is not getting its financial house in order. We are on the edge of a crisis in the bond markets.


The Fed is destroying the capital market by pegging and manipulating the price of money and debt. Interest rates signal nothing anymore because it is totally manipulated.
The very idea of "Operation Twist" is an abomination.  Capital markets are at the heart all business and they are not working. Why? Because interest rates are being manipulated.  Savers are being crushed when we desperately need savings. The Federal Government continues borrowing even though it is broke. Wall Street is abrogating the Fed's monetary policy by borrowing overnight money at 10 basis points and investing it in 10-year Treasuries at a yield of 200 basis points, capturing the profit and laughing all the way to the bank. The Fed has become a captive of the traders and robots on Wall Street.

If we are in the final innings of a debt super-cycle, what is the catalyst that will end the game?

The likely catalyst is the EXPLOSION of the US Government Bond Market Bubble.  It is the heart of the fixed income market and therefore, the world's financial system.