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
July 29, 2009
archive print

Over the fiscal year ending on September 30, the Obama administration plans to borrow $US 1.84 TRILLION to cover a US budget of $US 3.45 TRILLION. That says it all. Even if China was to plow its entire foreign exchange fund into the US Treasury, it would only cover the US fiscal deficit for this year, leaving next to nothing for the US to borrow from China NEXT year. Of course, this is not going to happen. China is
not going to lend the US a sum that large. What this example does do, though, is to prove that all the rest of the world cannot save the US by lending it more money.

What it also proves is that either the world crisis hits later this year as the US literally goes broke - or that it hits next year because the US has no place left to go except to the printing press inside the Fed.

The Fast Approaching US Dollar Crisis:

As already stated, China holds an estimated 70 percent of its $US 2.13 TRILLION of currency reserves in US Dollar assets, mainly US government bonds. That is about
$US 1.45 TRILLION and that is why China has repeatedly asked for
assurances from the US that it will not try to inflate itself (by printing US Dollars) out of the crisis. The US itself is on the horns of a dilemma. If it tries to balance its fiscal budget with spending cuts, it sends the US economy into a depression. If it
does not, then the Treasury has to keep borrowing to fund the budget deficit, adding to its debts to the point where ALL lenders simply give up. When that happens, the US Treasury will have to go over to the Fed's printer.

The Chinese know all this. That is why there are proliferating rumours in the background that China will offer the US Yuan bonds - which would at least remove the currency risk for China. The US Dollar can then fall without affecting China, since it will be repaid in Yuan. But any move in that direction would prompt the MANY other nations which have lent to the US Treasury to demand that their loans to the US be made in their own national currencies. That will destroy the US Dollar as a reserve currency.

All it will take to bring this about is that the China/US talks in Washington break up in mutual anger.

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