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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

Commentary Of The Month
May 17, 2016
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By ETM Analytics

China is not as economically secure as it seems. Convulsions in its financial markets have heightened global investor risk aversion and have added volatility in recent quarters. The size and reach of a country such as China confer on its domestic economy enormous influence over the global economy. Because China is so critical to the international system, Beijing's debt, rightly or wrongly, is the world's problem to share.

Those who have been paying attention know that officially, growth is slowing; unofficially, it may have stopped altogether. It's clear that the Chinese economy is in a cyclical downturn. Growth is weak, and markets are volatile. But is it clear that the downturn will turn into a meltdown? The Chinese are not hanging around to find out. Capital has started to flee China. Nearly $1 trillion is believed to have left the country in 2015, with the rate of outflow accelerating in the final quarters. Much of that money has found its way to foreign real estate markets. In one stark anecdote, the National Bank of Canada says buyers from China accounted for one-third of all purchases in Vancouver's housing market in 2015.

Instead of getting rid of debt, China has taken on more. A lot could go wrong if China stumbles. A disorderly Chinese financial crisis and yuan devaluation would show that the stability of the monetary and financial system remains unresolved, potentially prompting global market panic and a rush into safe-haven assets such as gold. It may be China's debt, but it's everyone's problem.