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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

 
Commentary Of The Month
April 22, 2015
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TAXING BANK DEPOSITS

By Simon Black

Several months ago, the government of Australia proposed to tax bank deposits up to $250,000 at a rate of 0.05% (5 basis points). Their idea was for the money to be invested in a rainy day Financial Stabilization Fund to insure against the unlikely event of a banking crisis or all-out collapse. And as of this morning, it looks like the levy might just pass and become law in Australia. All parties support the idea. Which means that Australia might just have a tax on bank deposits starting January 1, 2016.

If this can happen in Australia, is anyone foolish enough to think it can’t happen in the U.S. or Europe?  Australia has a sound and sturdy banking system. Based on their own numbers, U.S. banks are highly illiquid, still gambling away customer funds in trendy investment fads that will likely suffer an epic meltdown. Backing up this little scam is the FDIC, which itself is pitifully undercapitalized to support any significant problem in the banking system. Backing up the FDIC is the U.S. federal government, which is already drowning in more than $60 trillion in liabilities (based on the most recent GAO report). And supplying crack to the crackhead is the U.S. Federal Reserve, America’s central bank. With net capital just 1.26% of total assets, the Fed is so pitifully capitalized they make Lehman Brothers look like Berkshire Hathaway. So if the government of Australia is concerned that their well-capitalized banking system needs a safety net and wants to tax deposits for such purpose, how in the world can we possibly expect the U.S. and Europe, with all of their banking system risk, won’t do the same?