Investment Rarities Incorporated
History |  Q & A  |  Endorsements  |  Portfolios  | Flatware | Gold Coins  |  Silver Coins  |  Contact |  Home


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.

..Read More »

The Best of Jim Cook Archive

Best of Bill Buckler
April 13, 2010
archive print

Here is a direct quote from Bloomberg on April 2 reporting another jump in Treasury 10-year rates:

“Treasury 10-year note yields rose to the highest level since last June after a government report showed the US added the most jobs in three years last month, bolstering expectations the economic recovery is sustainable. ...The data supports the idea of a sustainable recovery going forward.”

If higher yields for Treasury debt paper is a sign of a “sustainable recovery”, why is the Fed insistent on keeping its Fed Funds rate between 0.00-0.25 percent “for an extended period”? Why did Bernanke’s predecessor, Alan Greenspan, single out rising longer-term US Treasury rates as being the “canary in the coal mine” recently? Why is Mr. Bernanke himself insisting that record low (Fed mandated) interest rates are still needed to rev up the economic recovery and will have to stay in place until the recovery “matures”? Why is nobody in the mainstream US media asking any of these obvious questions?

The last question is rhetorical. The questions are not being asked because nobody wants them answered.

The rationale for all this is simple. Any slackening in demand for U.S. government debt is said to be an indicator that “risk appetite” is increasing. A sign that risk appetite is increasing is a sign of an increased willingness to borrow and spend by the “private” sector. Such an increased willingness is a pre-requisite for economic recovery because, as everybody “knows”, economic recovery is a natural consequence of increased consumption (through borrowing and spending). In modern economic orthodoxy, consumption drives economic “growth”. After all, 70 percent of U.S. GDP is composed of “consumption”.

Getting back to the REAL world, is the past record of U.S. government fiscal probity better than that of the Greek government? Clearly not. The U.S. Treasury has not run a genuine budget surplus since 1960. Its official “debt to the penny” has increased by nearly 50 percent since the start of the GFC in early 2007.

More recently, the Greek government has made GENUINE (if reluctant) spending cuts while facing the wrath of their people. The US government has passed the biggest piece of financial legislation in generations – Mr. Obama’s “health plan”. This plan is officially costed at just under $U.S. 1 TRILLION. It will, assuming it is carried to full fruition (a large assumption), cost many times that. The way back to financial viability for Greece is said to be less government spending. The same path for the U.S. (and the UK and Japan etc.) requires more government spending. That’s the official line.



Ó 2009 – The Privateer

(reproduced with permission)


Delivery via email

Trial: 5 issues (once only)

Six-Month: 12 issues

Annual: 25 issues

Two-Year: 50 issues

Subscribe at