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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
June 22, 2016
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STAGFLATION

By Joshua Rodriguez

Most people have heard the terms inflation and deflation, but stagflation is a term that doesn't come up very often. Stagflation is defined as follows... “Persistent high inflation combined with high unemployment and stagnant demand in a country's economy.” Based on that definition, you can imagine that stagflation isn't a good thing by any means. Think about it, when inflation is high, prices are high. However, when demand is low and prices are high, sales fall apart. Now, combine this all with high rates of unemployment and what we could be looking at as the result of stagflation is an economic collapse.

In the 1970's, stagflation was a signal of economic hardships to come and the price of gold made it up to $800 per ounce, which back then, represented a massive gain in the value of the precious metal. We also saw stagflation in late 2007 and 2008, and we all know what happened then. This was another time when the market collapsed, economies around the world went backwards, and gold climbed substantially!

When it comes to inflation, we are definitely seeing high levels, especially given the low consumer demand. Economists have been boasting of low unemployment rates in the United States for some time. However, the workforce participation rate is just over 60%. This means that nearly 40% of the United States population is unemployed. The bottom line is that what we're seeing here is indeed stagflation.