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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
November 26, 2012
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PASSED THE POINT OF NO RETURN

While the government’s deficit for the fiscal year ending September 30th was $1.1 trillion the yet-to-be-released unfunded liabilities will be even more astronomical.  We won’t know for certain because the Treasury postponed the release of the government’s budget figures until mid-January.  These are the numbers that are arrived at by using generally accepted accounting principles similar to corporations and businesses.  That number will likely be over $7 trillion.

The preposterous notion that a “grand compromise” between political parties will curb spending proves that you can’t believe anything coming from Washington.  We are governed by liars.  Already the social welfare advocates and special interests are lining up to thwart cuts to the costliest government programs.  The media can be counted on to pepper us with sob stories if anybody on the dole faces as much as the suggestion of a cut.

In the meantime spending continues its relentless growth.  Government costs for Medicare, student loans, food stamps, unemployment, veterans’ benefits, welfare subsidies and Social Security are running away.  Furthermore, the people who worry the least about budget deficits won the election.  No serious cuts are going to be made.  We may get some window dressing with a few highly publicized austerity measures, but the spending problem is so gargantuan it can’t be reined in.  Any spending cuts will be the equivalent of passing out band-aids at a guillotine.

Our Keynesian economists who create new money hand over fist have taught the rest of the world the same game.  When a problem arises foreigners also debase their currency with money printing.  All this hot money lurks like kindling ready to start an inflationary bonfire.  The government’s bills will be paid through money creation.  Consequently the savers will be ripped off by the hidden tax of inflation.

I’ve often thought about purchasing an annuity but then I think about inflation and forget the idea.  Now with the potential for runaway inflation so great I wonder how anyone could contemplate buying an annuity.  Do they not see the predicament we’re in?  People need inflation hedges, not assets the government can steal with a printing press.  Without inflation the government can’t pay for social programs.  That’s why the inflation will never be terminated.  Herein lies the single greatest financial threat you face.  Stay in paper and you indirectly pay for socialism.  Stay in silver and gold and you stop this hidden tax.