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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
July 1, 2010
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FED’S DIM RECOVERY OUTLOOK:

The Federal Reserve struck a more cautious tone about the strength of the U.S. economic recovery, indicating Europe's debt crisis poses a risk to US growth. The Fed in a 9-1 decision retained its pledge to hold rates at record-low levels for an "extended period." Doing so, they say, will energize the rebound. That would be funny if it was not so damaging to our country and economy. They act as if their zero interest rate policy has been working. Basically, all the Fed is trying to do is blame someone else for their failure. Statistics don’t lie, but liars use statistics and that is exactly what has been going on for quite some time. Don’t they realize that reporting erroneous #’s only buys time until the revisions come in?

STIMULUS OR AUSTERITY:
OBAMA, GEITHER & SUMMERS’ G20 AGENDA

Engagement with the G8-20 has been the only component of the Administration's strategy to even attempt to defuse the global financial crisis and encourage economic recovery. Once again, Obama and his flunkies are looking to place blame. Their contention that stronger growth with solid job creation here in the U.S. depends on an expanding global economy is pure nonsense. Exports represent less than 15% of our economy, so how much growth from the rest of the world is required to make a meaningful difference, especially when Europe is embarking on an opposite austerity program. To even attempt to convince the majority of the more solid countries to pass a new Stimulus Bill is simply pie in the sky thinking. Besides, the ECB is, unlike our FED, truly independent and would certainly not go along with any new Inflationary Currency weakening stimulus. In all the years that we have had G8-20 meetings, not once have they ever agreed on anything meaningful and there are no more reasons today than at any time in the past to come up with anything meaningful this time either. This is exactly what the markets are telling us.
Question: If our economy is so strong and growth is accelerating, why do we need a new Stimulus Bill? And by the way, were any of you surprised that the GDP numbers are being revised downwards?
The very same people (Bernanke, Geithner, Wall Street, the Media and all their Economists) who have consistently shown themselves to be untrustworthy are looking more and more like the clowns that they really are; when they try to convince us that paper money is less risky than Gold and Silver. That statement alone illustrates their complete lack of credibility and understanding of risk and reward, as they contend that any austerity in the USA will lead to a “very rough second half”: Especially in terms of the jobs market.

But can they all be that stupid? Some must be just paid shills and/or blind ideologues of the political class. They refuse to see that the path this Government is on: By using simple math in conjunction with the bullish continuation patterns of Gold and Silver bullion, which have minimum targets of $1850 and $35 respectively (and that’s in the relatively short run) GOLD is shouting loud and clear at them, but I guess “None are as Deaf and Blind as those who refuse to Hear or See”. We, on the other hand, must learn to trust our own common sense and then maintain the courage of our convictions. (Using Stops along the way just in case we are wrong.)

 Does anyone really believe that a 3% Yuan appreciation against the US Dollar will make a meaningful difference: When empirical evidence tells us that quite the opposite is true?

FINANCIAL REGULATIONS

Government regulations have NEVER solved any of the problems they were designed to fix and this time will be NO different. This is especially true when the major problems that overhang the financial systems of the world, such as Derivatives, FMN and FRE are not even being addressed. Neither are the two major direct causes of the Financial Crisis: The Community Reinvestment Act and the gutting of Glass Steagall. Sarbanes Oxley, their last attempt at reform, only succeeded in pushing 50% of New Foreign Company listings and underwriting business offshore to London, Hong Kong and Frankfurt.  The effect of their short sighted regulations, which are really nothing more than an attempt to vilify and blame Wall Street for their own failures, will accelerate “OUT SOURCING” like you can not even imagine. But what will end up being even worse is that it will hamstring the growth of “Small Business”. Last but far from least is how can a 3000 Page Bill Be Good for anything else besides causing more harm than Good?