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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
October 10, 2011
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The recent stress tests of European banks were “a joke,” according to Jim Chanos, the famous short seller betting against fatally flawed companies, currencies and banks. “The [stress] tests are a joke,” Chanos recently declared on Bloomberg TV. “The accounting is a joke and the markets are beginning to say, “No More!’” inferring that he would be short these banks right now if European regulators had not outlawed the practice last month.

The stress test “joke” is only one small sliver of the European and American games of make-believe. Central bankers and politicians throughout Europe are continuing to pretend that various insolvent banks and insolvent governments are in fine long as they get a little bit MORE help from the ECB and the FED.

But the financial markets are providing ample evidence to the contrary. The share prices of many European banks are plummeting, while the yields of many European government bonds are skyrocketing. Greek two-year government bond yields a whopping 134%! In other words, even if European banks can pass a contrived stress test, they are flunking the “Creditability test.” Many European banks, like many European governments, have erected such a fragile and precarious financial structure that bankruptcy seems inevitable, even without any additional stress.

A deepening crisis of some kind is certain: Fearing a repeat of ’08, the US Federal Reserve is springing into action, which pretty much guarantees a repeat. The Fed has launched “Operation Twist” — a scheme to buy up a bunch of the long-term Treasury Bonds to be paid for by selling short term Treasuries. Confused?
Don’t be. Operation Twist is simply Quantitative Easing but by a different name, which is simply the same old game of hiding creating money out of thin air. In my opinion, the Fed’s balance sheet will be growing exceedingly larger over the next few months. The Chubby Checker “Twist” is merely the next illogical step in their continued progression toward dollar debasement (raping the people). After the Twist, look for Operation Contort, Operation Zig-Zag, Operation Bait-and-Switch, Operation Capital Controls and ultimately resulting in  Operation Devalue.

The longer the Federal Reserve continues its misguided operations, the bleaker the prospects for the US Dollar. But the greenback is not the only paper currency at risk these days. The formerly stodgy, conservative Europeans are beginning to follow the American Central Banking Playbook.

The European Central Bank (ECB), in response to the sovereign debt crisis unfolding around the periphery of the Euro Zone, has embarked on a quantitative easing program of its own (sound familiar?)— Buying billions of Euros worth of Greek, Spanish and Italian government bonds in the open market. At the same time, the ECB is also part of a central banking cabal that is providing undisclosed quantities of short-term credit to European banks. And judging by recent headlines, the ECB is just getting warmed up.


If only the FED and the government would get out of the way, we’d have a quick Recession or even a mild Depression and let the Free Market get on with life. Instead, here we are nearly 5 years after the bubble popped, with 33 months of zero interest policy and trillions of dollars of wasted government “stimulus” spending and Fed money printing — still suffering from high and rising unemployment with no real economic growth prospects in sight.  We are facing a much bleaker outlook than if the governments had let the courts take care of the failing Banks, AIG, General Motors and Chrysler. And who knows how many SOLYNARO’S there are out there?


It seems that this total administration especially Bernanke and Geithner has never taken even an elementary course in economics and what is far worse, neither has anyone in the media or Wall Street.  How else can anyone explain the fact that we keep trying the same old tried and failed policies over and over again with nary a peep from the Media, combined with the incessant clamoring for more of the same out of Wall Street? So far, the only winners have been the Banks’ senior executives, but not the banks themselves, since every one of the big banks would be in bankruptcy if they had to follow accepted accounting standards.

Their problem seems to be one of ideology: They are all Keynesians. But they are not even that. They were only taught his first book and they never bothered to heed his warnings to FDR “or his follow up writings (which never became popular, don’t confuse with the facts) not to destroy capitalism.” J.M Keynes primary objective was to improve Capitalism by supplying demand (money) to Head Off or dampen Recessions: Caused by what Keynes thought were sudden short term fall offs in demand, which were regular recurring recessions, caused by central bank interference in the economy, NOT Capitalism. He never wanted to destroy Capitalism; like the Communists and modern day Socialists are bent on doing.

Let me remind you what Margret Thatcher said: “The trouble with Socialism is that you eventually run out of other people’s money”