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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
July 7, 2017
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HUBRIS

By Egon von Greyerz

Hubris is a deadly sin. It is an arrogance and conceit of the highest degree that eventually leads to failure. As we reach the final stages of the current economic cycle, hubris is prevalent everywhere. Central bankers believe that they can continue to create wealth by printing and borrowing money. Since it has worked so well for 100 years in this latest cycle, why can’t it continue?

Throughout history, governments have attempted to set aside the natural laws of sound money by manipulating the financial system using criminal methods like counterfeiting and creating money out of thin air. With their hubris, they believe they can get away with their evil deeds. Long term, no one has ever got away with creating a system based on fake money, unlimited debt, zero or negative cost of money with the government and the bankers being the main beneficiaries. They will not succeed this time either.

Sadly, governments learn virtually nothing from the past. Everyone believes it is different today. Why otherwise would the world create $2.5 quadrillion in debts and liabilities that can never be repaid nor financed as interest rates rise? In the next year or so we will see much higher inflation and interest rates as well as a crashing dollar. This will be a vicious cycle that will feed on itself. Higher rates will put enormous pressure on governments, consumers and corporations. We know that none of these groups can ever repay their debt but as rates go up, they will not even be able to finance the debt. Our friendly central bankers will stand by and print unlimited amounts of worthless fiat money. But this time it won’t work. The printed money will not save the system but only create inflation leading to hyperinflation and eventually a collapse of the financial system.