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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 30, 2014
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ECONOMIC OUTLOOK DARKENS

By Alasdair Macleod

Many decades of Keynesian-inspired economic and monetary corruption have left advanced economies with a legacy of debt and low savings. In a nutshell, that is the problem which is driving us into another financial crisis. This nearly happened in 2008. Six years later, monetary medicine is still being applied globally in unprecedented quantities.
We have forgotten that before Keynes told us to borrow to spend, debt was only taken on by entrepreneurs and businesses for very specific purposes as a last and not a first resort, and certainly not for everyday consumption. People produce things so that they can buy other things. Keynes replaced this logic with a different story: there's no need to make things in order to spend, so long as the state ensures you have the money available. Understanding Keynes' mistake is the key to changing course away from repetitive cycles of economic destruction. Instead of printing money and encouraging borrowing, people should instead be encouraged to save, only spending what they can truly afford.

After six years of monetary and tax policies that could not have been better designed to destroy savings and the savings ethic, you'd think governments might have learned some sort of lesson. They are having none of it.  If anything the destruction, even confiscation of savings, and the creation of yet more money are set to accelerate in a futile attempt to buy off the inevitable. And bond yields are telling us to batten down the hatches for the next crisis: it could be worse than 2008.