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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 20, 2010
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U-G-L-Y! Is the word that best describes what has been happening.
Suddenly the world is waking up to the idea that maybe the Greece problem is bigger than just Greece...  All of a sudden, people are thinking that maybe Europe's debt and growth crisis might just be a precursor to what will be happening in various degrees throughout the rest of the world and especially here in the USA. What may have finally awakened traders was that, even after the three year rescue plan was announced, two-year Greek debt was still yielding over 10%.  This was a clear sign that the markets do not believe that Greece can stick to its austerity measures. But more importantly, it is the beginning belief that the world’s artificially LOW interest rates can’t go any lower and that the RAPE of the public by their respective governments cannot go on much longer without sinking into the depths of HYPER-INFLATION. Besides, doing more of the same as what got you into trouble in the first place never works and never will!!

We are now witnessing how nearly impossible it is to put realistic austerity measures in place and how difficult it will be to put just the barest minimum of measures, which must be but the first of many rescue packages in place.  While Greece, because of its size, should be no problem, who is going to fund the rest of the PIGS’ bailouts.  And then there is the unthinkable, England, and sooner than anyone anticipates, the USA as well.


The primary reason we are seeing the US Dollar and Treasuries rally (safe haven buying) is due to the belief that Gold and Silver are not big enough to absorb all the safe haven seeking, panic buying. But we all (should) know that panic anything is never the right thing to do. Translated that means that the rush to be long Treasuries and the Dollar must surely in the end be the wrong thing to do. The buy commodity story, while not dead, is certainly going to come under tremendous pressure as it faces the impact of a weaker Europe, USA and a government induced slow-down in China; which by the way is the same cause as every other FED induced recession in American history.

Will we ever learn?


Are Greek Union’s rioting in the streets just the inevitable outcome and a precursor to a 100 year UNION led Socialization of economies all over the world including right here in the USA?   What will we do then?  Do not underestimate the extent of social unrest that could rip through Europe first, followed by the USA and then the rest of the WORLD, as some rationalization of Government employee must become part of any solution.

The standard belief is that “There really is only one solution: Cut spending and increase taxes.” This is, of course, wrong since it’s just more of the same Socialist solutions that over time have been proven never to work. What is really needed is a good dose of Capitalism; beginning with a Reaganesque-like treatment of the Air Traffic Controller strikers.

Our economy is diverse enough that we can side step this issue for a little while longer and comparatively speaking, we are in better shape than Europe is right now (only because we have the world’s only reserve currency). But how much longer will the world continue to accept our multiple printing of trillions of dollars of counterfeit money; especially given the ever increasing rate of Socialism and our ever increasing Deficits and Debt creation.

But make no mistake: We could be seeing our own future play out right now on the streets of Athens.

Bear markets begin unannounced, usually when optimism and positive headlines are prevailing.


As far as the US markets are concerned, the perennial wrong headed belief is that the real wild card is the employment report.  Economists were looking for a flat number, and anything that meaningfully deviates from that expectation (up or down) will lead to an explosive move. So naturally, the markets behaved exactly the opposite of what had been expected.

So far, the US equities market has proved to be extremely resilient and on a relative basis, US equities could outperform other global stock markets.  But remember that "outperformance" is a relative term -- don't confuse it with absolute returns.  If the global markets slide 40% and we only slide 20%, guess what? And that would only be because we can still print unlimited dollars; but again, for how much longer?

Although it’s possible we could see US interest rates go even lower (how much lower than zero can they possibly go), sooner or later reality does set in. Besides, how often must this low interest policy keep failing before Bernanke and Geithner wake up to the fact that ultra low rates and easy credit are the problem NOT the solution?
I’ve said it before and I’ll say it again: The chaos you’re seeing right now in Europe is a rare look into the future of what’s about to happen here in the United States — including...

  • Fiat paper money losing its value at a near-record pace — and likely to plunge dramatically lower, gutting the purchasing power of your dollars ...
  • Gold surging to $1,500 per ounce and beyond ...
  • Long-term interest rates rising and going through the roof ...
  • Key stock market sectors swinging wildly, as much as 5% and more per day ...