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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 Jim Cook
February 28, 2011
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GOVERNMENT GOLD

In 1998 Alan Greenspan warned, in congressional testimony that “Central Banks stand ready to lease gold in increasing quantities should the price rise.”  Mr. Greenspan’s libertarian background made him more attuned to the role of gold than the present monetary authorities.  A case can easily be made that gold’s rise is a reflection of the dollar’s fall.  That might have been cause for alarm in the past, but little evidence exists that it’s a great concern of recent administrations or current Fed governors.  It’s more like, “Gold went up, so what?”

However, should that change, and it might if dollar dumping becomes a problem, the U.S. could quite easily impact the gold price.  Central Banks around the world hold approximately 20% of the above ground gold supply.  The U.S. owns a big chunk of that.  Any mention of selling off a piece of the national patrimony would damage the gold price. (It’s surprising that our loony leftists haven’t been stumping to sell our gold to fund welfare programs.)  Quite simply, governments have the wherewithal to suppress gold if they wish.

It’s a different story with silver.  No government owns a significant quantity of silver.  No entity can throw a big amount of silver on the market and capsize the price.  Furthermore, with a near shortage situation in silver not even a government is stupid enough to short a bunch.  Gold could be shut down while silver remains free.  I suspect there will be a price conflagration ahead in silver.  It’s comforting to know that no government stockpile exists to douse the flames.