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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 Bill Buckler
July 6, 2011
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Mr Bernanke is all in favour of “long term” steps being made to curb US government deficit spending. That means he doesn’t want anything done NOW. That might choke off what the Fed still insists is a “recovery”. Mr Bernanke is not alone in this. A certain Nobel prize winning economist who now writes “op-ed” pieces for the New York Times is untiring in his calls for yet more “stimulus”. Two weeks ago, his calls were echoed by Larry Summers - who used to be the Chairman of Mr Obama’s Council of Economic Advisors. Mr Summers covered the other major bases of the establishment press – the Washington Post and the (London) Financial Times with a plea to avoid a “lost decade” by spending more borrowed money. “The greatest threat to a nation’s creditworthiness is a sustained period of slow growth”, intoned Mr Summers. “The central irony of financial crisis is that while it is caused by too much confidence, borrowing and lending and spending, it is resolved only by increases in confidence borrowing and lending, and spending!” That has always been the case in Mr Summers’ experience. He knows of no other way to manage an economy. There isn’t one. And that’s the current problem.

In The Strictest Confidence:

This is how the Wikipedia describes a “confidence trick”:

“A confidence trick is an attempt to defraud a person or group by gaining their confidence. A confidence artist is an individual working alone or in concert with others who exploits characteristics of the human psyche such as greed, both dishonesty and honesty, vanity, compassion, credulity, irresponsibility and the thought of trying to get something of value for nothing or for something far less valuable.”

Could any definition better describe the workings of modern government? Consider the apocalyptic future painted by monetary and financial “authorities” of all shapes and sizes in the event that “confidence” in the monetary and financial system should be lost. Consider Mr Summers’ use of the phrase “too much confidence” in his plea for more stimulus. Consider the Fed’s continual harping on the importance of “inflationary expectations” in their framing of their monetary policies.

It would be an heroic effort to list the confidence TRICKS which have been put over by the US
government (and all the rest) in order to retain what government officials like to call “confidence”. This is an insidious process. This past century has seen every succeeding generation swallowing government policies that their forbears would have contemptuously rejected as insufferable nonsense.

Forty years ago, Harry Browne published a book called “How You Can Profit from the Coming
Devaluation”. This is how he started chapter twelve;: “THIRTY-FIVE HUNDRED DOLLARS FOR A VOLKSWAGEN. That’s an outrage! Can you imagine being asked to pay $3,500 for a Volkswagen?

In 1970, that question seemed laughable because the price was so high. Today it seems much more laughable because the price is so low. Unravel the “progress” of the financial system in the intervening four decades and you will see how inevitable the current situation has long been. Unfortunately, the vast majority of people don’t bother - then or now. Sad, because in this particular book, Harry Browne penned the best basic explanation of the process of debauching a money that your Captain has ever read. . .

The US is nearing the “put up or shut up” time it has been delaying for so long. If the Fed DOES confine their Treasury buying to the proceeds of their “balance book” starting on July 1 and the US government has not managed to agree on any means of cutting borrowing or spending, “somebody” is going to have to fill the breach. Whoever that “somebody” is, they are going to have to be willing to buy Treasury debt at current rates - the lowest in US history. If they cannot, or will not, then a default choice appears. The US government will HAVE to cut borrowing and spending and the Fed will HAVE to let rates rise. If they do these things, the US economy will fall into the recession/depression that they dread. If they don’t do them, the US Dollar will not stand the strain and the resultant downturn will be deeper still.


.Ó 2009 – The Privateer

(reproduced with permission)


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