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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 Richard Russell
April 9, 2009
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Debt, debt, everywhere, and nobody knows how to fix it. Check this out. The US national debt is now 11.03 trillion. In case you forgot, a trillion is a thousand billion. One year ago the national debt was 9.383 trillion. That means that during the last year we've added 1.652 trillion dollars to the US national debt. Interest must be paid on the debt. We are now COMPOUNDING the national debt at a terrifying, unsustainable rate. As I see it, we are compounding ourselves into national bankruptcy. That or we are in the process of destroying our beloved dollar.

On top of the above, it now requires six dollars of debt to produce one dollar of Gross Domestic Product. But despite our growing debt, our GDP is actually declining. This is tantamount to running up the down escalator. In the end, faith in the dollar must collapse. The dollar, the world's reserve currency, is our "secret weapon." We need materials and goods from overseas. Easy, we can print the dollars to pay for those materials, and our kindly overseas creditors accept our "home-made" dollars in payment. It's a great racket. And it will continue to be -- as long as the dollar is accepted as safe and fair payment. But I have to wonder, how long can this go on? Not forever, in my thinking..

Today I read this in the Financial Times, "China and Argentina in Currency Swap." China, which is pushing to end the dominance of the dollar as a worldwide reserve, has agreed to a renminbi 70 billion dollar swap with Argentina that will allow it to receive renminbi instead of dollars for its exports to the Latin American Countries."

"Beijing has signed $95 billion of deals since December with Malaysia, South Korea, Hong Kong, Belarus, Indonesia and now Argentina in an attempt to unblock trade financing that has been severely curtailed by this crisis."

Russell comment -- China doesn't want a lot more of the US dollars, and would prefer to deal with other currencies.

And I ask myself, could this be the beginning of the battle to take away the reserve status of the dollar?

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