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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 William Histed
November 25,2008
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AOne Generation Back To Gold

And Silver As Money


There is so much on TV anymore, and so many chanels that it has become a commodities business, not a franchise business.

I surf channels and landed on Bloomberg TV one day in October. I was doing some work as the TV was on and I heard the most fascinating prediction by a "guest" who the show credited with having had the most accurate predictions of the economy over the past 20 years.

This man was from England and while most of us do not put much faith in "forecasters," economic or weather, what he said was amazing.

"We are one generation from using gold and silver again as money," he stated of the world's economy. There are some well-known people, such as Thedore Butler who don't see silver necessarily as being used as official money again. But if a future world holds the collapse of world paper currencies, it will be the market place and public that will determine what "money" is.

In the absence of acceptance of "official" fiat money, even cigarettes (not a good example) and liquor have been accepted as unofficial "money."

I was started that an establishment financial media as Bloomberg TV would have this Englishman on, no matter how accurate he has been, especially when he predicts we are nearing the end of the paper money blizzard.

He stated that you cannot trust the world paper banking cartel or governments long term with a printing press.

He believes it is possible the central bankers and governments can keep their game going just a little while longer, but in a generation or so, maybe sooner, the house of cards will collapse.

The tremendous paper mill of fancy documents that the central bankers and governments are now underway printing is fantastic. Of course, much "money creation" is simply blimps on computers anymore, or new "credit" being offered.

I have a customer who "retired" to Florida 20 years ago from the North. This man thought he was set for life with a retirement check from Westinghouse of $600 a month, plus Social Security. Today, his mobile home lot rent is $500 a month, not counting utilities.

You can see what the central bankers and their government friends have done to our "money."

Where is the federal "bail out" for someone such as this?

No one that I know of is getting federal bail outs for the destruction of the paper dollar in the past decades. What is deceiving, the "number" of paper dollars may be constant, or event slightly greater due to "indexing." But what those paper dollars buy today is a fraction of what they were once worth.

The late Jerome Smith was ridiculed by some for his predictions of a "currency collapse" more than 20 years ago. But it all depends on what you mean by a "collapse."

I can state a pretty good case that the U.S. dollar has indeed "collapsed" in value since the days when Mr. Smith's book was a good seller. It's still around, and by accepted figures, the Federal Reserve Bank admits the paper "money supply" has been increased by some 400 percent in the past 20 years.

I know 25 years ago when I was just starting out on my own, I rented a very nice older apartment for $90 a month. I bought a new car then for $6,000. A chicken dinner at the L and K Restaurant was $3.50. It sure seems the dollar has "collapsed" to me.

I was a kid reporter back then on one of the nation's largest newspaper and TV' chains. An ice cream cone was 20 cents. A candy bar was still 15 cents. I remember buying a Christmas turkey for 29 cents a pound.

Inflation, especially in the United States, has been cleverly disguised. In the "everything for a dollar store," I find most items made with in very low wage countries as China, Mexico, Malaysia, etc. If everything in the "dollar stores," or for that matter the big box stores had to be made in Chicago or Detroit, to sell for $1.00, the packages would be greatly reduced in size or the items could not be sold. Such stores would be largely empty.

The massive importation of everyday goods into the United States has not been by accident. Same with the massive influx of undocumented workers. All of this has disguised the true inflation rate.

Productivity increases have been an unintended friend for the inflators as well.  With computers, improved technology and the increased productivity they allow, we become more prosperous. Can you imagine what we would have if we had a stable dollar?

It is going to be interesting to see how the inflators in government and the central banks deal with the coming "graying of America." It is also happening in Europe and other places.

Money is SUPPOSED to be hard to get. It is SUPPOSED to have great value. The loose money policies of the world's "bankers" and governments have now been made quite obvious to most everyone.

And what they are doing now is EXACTLY what they did to get us in the last bubble caused by virtually "free' money.

By November 1st, the Federal Reserve Bank is now lending member banks "money" at 1 percent per year interest. This is a tiny fraction of the real inflation rate. It is now getting close to Japan, whose central bankers lend money out at 0 percent interest.

The next step will be for the Central Bankers to pay member bankers to borrow money from them.

All of this is aimed at propping up the world stock markets, to keep the corrupt credit system going for a while longer, to keep the real estate prices at or near their inflated paper money levels.

I have kicked myself several times for not getting the name of the economist in England that Bloomber TV says has the best track record in economic forecasting. One generation, at the most, from going back to the world using gold and silver as the money standard.

The more I see that this world avalanche of newly printed "money" is backed by nothing else but more paper promises, the more I think this old chap may be right.