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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.

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The Best of Jim Cook Archive

Best of Richard Russell
January 31, 2011
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The real news, the critically important news, centers around the US dollar. It's as if you are reading a report on a building you want to buy. The report tells you all about the heating system, the repairs to the roof, the condition of the wood floors, but the report leaves out the critical fact that the foundation of the house is crumbling.

So it's the dollar, the dollar, the dollar, that I'm directing my subscribers' attention to. If the dollar collapses, every investment you own will be adversely affected -- your home, your stocks, your insurance policies, your bonds, your 401K -- everything that is denominated in dollars.

The Russell advice -- swap your dollars for physical gold or CEF, GLD, or SGOL. In other words, do as China and Russia and many other nation are now doing -- get out of your dollar assets.

Remember, many leading nations want to eliminate the US dollar as the world's reserve currency. If this happens, it will be one of the worst financial catastrophes in US history.

I realize that what I've written above may seem outlandish to many subscribers. Outlandish? Then you tell me how the US is going to finance a national debt of $13.9 trillion (some say the real debt is over $50 trillion). The fact is that we now BORROW just to pay the interest on the national debt. Treasury is moving the debt to ever-shorter maturities, hoping that the current zero interest rates on short debt will ease the situation. But with bonds sinking, rates are now rising, so what's the answer?

The answer is that we're eating ourselves up alive through compounding interest on our debt.

There's only one way out that I can think of. The dollar amount of our national debt stays the same. But the item that we pay the debt off with -- is variable, and I mean the dollar. Thus, our government hopes to pay off the carrying charges of the debt with cheaper dollars -- MUCH cheaper dollars. Or we must borrow more, paying much higher rates to attract our creditors (assuming our creditors will continue to lend to us, even at higher rates).

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