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
August 13, 2010
archive print

As the Austrian economists, notably Ludwig von Mises, never tired of pointing out, government interference with the processes of the free market does not work. To quote Mises from his short book, Planned Chaos - “...interventionist measures are doomed to failure. This means that the interventionist measures must needs result in conditions which from the point of view of their own advocates are more unsatisfactory than the previous state of affairs they were designed to alter.” (Emphasis by the author)

That would be true if improving the standard of living of everyone was genuinely the goal of those who covet the power to interfere with the markets. But that is NOT their goal. If it was, they would long since have given up on the idea that they can “run” an economy. If it was, they would NOT cling so tenaciously to the power to force everyone to abide by their edicts - ultimately at the point of a gun.

Interventionism does “work” - very well - for those who aspire to or who already have and do not want to give up political POWER. In fact, it is a prerequisite for gaining such power in the first place. In short, what “works” for people in their everyday lives interacting with others does NOT “work” for a government which wants to dictate how people go about living their everyday lives.

Equating truth with that which “works” is the bulwark behind all the unprecedented “policies” that governments have introduced since the GFC began. These are all said to be still “working”, since the system as we know it has not yet collapsed. Yet the measures are getting more desperate by the day.  .  .

While Mr Geithner is out there prospecting for “green shoots”, his colleagues over at the US central bank are not quite so sure. The minutes of the June FOMC meeting included the ominous statement that - “The committee would need to consider whether further policy stimulus might become appropriate if the outlook were to worsen appreciably”. Of course, the outlook HAS worsened appreciably since that meeting. To judge just how much it has worsened, one could do worse than to look at measures now being urged by some of Mr. Bernanke’s fellow Fed Governors.

Foremost amongst these is the one proposed by St Louis Reserve Bank President, James Bullard. Mr Bullard is warning of a “Japanese-style” outcome if the Fed persists with its present policies and does no more in the way of “further policy stimulus”. Mr Bullard’s solution, should it become necessary, is another round of Fed quantitative easing. Remember that pragmatically, truth (in this case an effective economic policy) is that which works. Mr Bullard has now swung to the position that the first round of quantitative easing didn’t work. If it had, the US would not now be facing (in his words) a Japanese-style outcome. Mr Bullard’s solution? If at first you don’t succeed, try, try again!

It is true that Mr Bullard is facing opposition within the Fed itself. Dallas Fed President Richard Fisher stated that another bout of monetary policy of that nature would be pushing on an (already limp) string. So it would be. But until some other “truth” is invented, Treasury debt monetisation is already there.



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