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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
May 29, 2017
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INFLATION TARGET

By Stefan Gleason

Since 2012, the core inflation rate has been running below the Fed’s 2% target. That has caused investors to grow complacent toward inflation risk. They seem to be operating under the assumption that 2% is a ceiling. That is a dangerous assumption – not only because of food and energy inflation not being properly accounted for, but also because even the official “core” number could rise well above the target for extended periods.

Inflation serves as a sort of hidden tax. It punishes savers and consumers as it rewards and bails out debtors – the biggest of all being the U.S. government. The temptation for Congress to rely on the Fed’s printing press to finance its otherwise unsustainable deficit spending is simply too great. Bonds and other dollar-denominated financial instruments are currently priced as if inflation won’t be a problem for the next three decades. Meanwhile, gold, silver, and other hard assets are selling at discounts because most investors aren’t concerned about inflation protection. They should be. Now is the time to be concerned. By the time rising inflation rates are a full-fledged economic reality, you can bet precious metals prices will be far higher than where they sit today.