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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

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 Howard Ruff
September 11, 2012
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INVESTMENTS: FLAWS OF CONVENTIONAL WISDOM

One of the biggest arguments used against gold has been that it doesn’t pay interest. That argument has not been valid for some time since we have enjoyed zero interest on
short-term cash deposits and not much better on longer-term deposits. Gold and silver have gone up every year of this millennium, and buying them rather than holding on to
too much cash makes a lot of sense.

An upside breakout in gold above the $1680-$1700 level will be a clear indicator that previous highs established in September 2011 will be tested and very likely broken.
The bull market in precious metals is far from over. Gold has passed through $1680, ending the day at $1695. As gold moves higher, silver will do even better.

 The debt crisis is still in full swing. It will show signs of improvement here and there, but long-term the U.S. economy will have a tough fight to recover, no matter who wins the
November election. Governments around the globe will continue the only tactical plan they know – print money. As currencies begin to fall into ruin, gold and silver will move into the stratosphere as that reality finally hits the public. 
Keynesian Failure

Not even Keynesian economists intended that deficits would continue indefinitely. It is a failed theory that might have worked in the ‘30s at the beginning of the debt cycle. But
we are now near the end of the ever-inflating debt bubble that could burst at any moment. Politicians have become addicted to 'big' government and spending. No one
could have predicted the effect on governments, as greedy candidates seek for power by constantly stimulating deficit spending to win the popular vote.

The national debt just passed $16 trillion and at this rate it will reach $20 trillion within two or three years. If every man, woman and child in America sent $50,000 to the IRS,
there’s a good chance government could return to solvency.

Recent reports indicate that current yearly tax revenues are $2.1 trillion. But government spends $3.8 billion, leaving a gap of $1.6 trillion. Obama is proposing budget cuts of $38 million, which seems like a lot, but let’s bring the numbers down to
something understandable.

If your family has an annual income of just over $22,000 but spends $38,500, you would have a short-fall of $16,500 that you would have to put on a credit card. You wouldn’t have the benefit of the government printing presses, so you eventually you would have
to file bankruptcy.

Conventional Wisdom Is Wrong
Conventional wisdom still insists on being 'right' so they don’t have to acknowledge that the failed policies of the politicians have brought us to this brink of destruction. The debt bubble will collapse which will be devastating for the economy, but good for gold and silver. For some time I have encouraged you to buy silver at current prices and below. Its volatility may have caused some to give up on it, but you should be buying more, not
selling.