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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
June 13, 2011
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I see major Financial Tornados heading towards both America and Europe. By far, the most compelling reason to own Gold these days is the explosive eventual price tag of the global credit crisis. “The Piper must always get Paid.” Most analysts and investors fail to appreciate just how much counterfeit cash governments around the world have been and are continuing to print. Governments have boxed themselves into a corner with their zero interest rate policies; so much so that they can see no alternative solutions of getting their countries out of their quagmire except to continue, like lemmings, marching to and over the low interest, easy credit, cliff.

We've all heard about the sovereign debt problems across the pond. While several European countries - Greece, Portugal, Ireland with Spain and Italy not far behind - risk defaulting on their sovereign debt. But this list of possible “sovereign debtors” is not limited to economies in the Euro zone. It also includes the U.S. (especially the States) and the U.K.

The only way these countries know how to survive the financial crisis is to print more money and the creation of SDRS does not amount to any real or meaningful change.  But the day of financial reckoning will come when all these governments are forced to start draining the excess liquidity from their economies in a last ditch attempt to shore up their currencies. That day could arrive for the dollar sooner than we think. The Federal Reserve's second round of Quantitative Easing (QE2) comes to an end in June. When that happens, I'm convinced we'll get QE3 and suffer the worst inflation since the 1970s thanks to five plus years of unorthodox Federal Reserve monetary operations. It's going to be pretty interesting to see how the Fed unloads $2.8+ trillion worth of securities from its balance sheet without triggering a major bond and stock market crash.

Ongoing monster-sized fiscal imbalances in the U.S. and in other countries around the world will lead to some sort of currency crisis. That crisis will make the one in 2008-2009 look like a cocktail party by comparison.