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

Products

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.

..Read More »

The Best of Jim Cook Archive

 
Best of Howard Ruff
November 22, 2011
archive print

As the economy continues to erode, people are losing confidence in paper money. This will continue as we watch outrageous amounts of money continue to be printed. It wasn’t too long ago that financial planners would never suggest physical metals as a part of your portfolio. Now it is likely that they will suggest that you buy some physical gold, which is a dramatic change. As this happens, it will drive gold and silver prices higher.

For the same 60-day period, silver hit a high of $41.40 and a low of $28.16. It is currently trading around 35. Silver will move up (percentage wise) more that gold as the bull market continues.

Economic growth is impossible given the massive amount of bad debt that has accumulated over the years.

Government thought they could spend their way out of the problem. We know that will not work. But it is probably according to plan as they push their socialistic agenda forward.

We have been in a stagnating, deflating economy as the money is printed and the debt load grows daily. But price inflation is heating up as you can see each time you go to the grocery store.

Benefits paid to a vast majority will only grow as the baby boomers come on board. Money will continue to be printed and borrowed, and runaway inflation will make the Carter days look like a walk in the park.

Not only is our national government broke. State and local governments are on the same path. They don’t have the power to print money; that’s only a federal government privilege. So state and local governments have to deal more with reality. Some have declared bankruptcy and more will follow suit.

Unemployment numbers are reportedly going down. It reminds me of an account who was interviewed for a job. The employer asked him the total 2+2. The accountant responded, “What do you want it to be?”

All the problems will be very positive for silver and gold. As our currency continues to erode, they will become the only stores of value until another currency emerges.

Hyman Minsky (1919-1996) was a prominent member of the post-Keynesian school of economics. His studies concluded that if speculation in the financial systems lasted too long, they would collapse in crisis. His theory has become known as the "Minsky Moment."

It refers to the moment when over-indebted investors are forced to sell their investments to make good on their loans causing sharp declines in the markets and demands for cash that can force central bankers to lend a hand.

I haven’t done enough research to know if the Minsky Moment is valid. But the moment to be a real Maverick Investor is here.