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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
September 18, 2014
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BLAME THE CENTRAL BANKS

By Chris Martenson

The current bubbles in equities and bonds raging in major markets across the globe are no accident. They are the intentional results of policy. Therefore, when they burst, the carnage will be the very predictable result of some terribly shortsighted decision-making.

Blame should be laid with the central banks. They were the "experts" who decided to confront the excesses of decades past with easier monetary policies. Nobody can forever borrow at a faster rate than their income is growing (no matter how large that entity may be). The Fed, the ECB, the BoJ and the BoE have conveniently overlooked that fact and then claimed that the cure is identical to the disease.  If the problem is debt then the solution is even more debt.

If central banks were doctors, they would prescribe alcohol to the alcoholic. The Fed and its ilk made the decisions that gave us the first two bubbles of the new millennium. Instead of being met at the gates with torches and pitchforks they have been granted greater powers, and zero blame. Now they’ve given us a third and, I suspect, final bubble. The effects of this bursting bubble will be so horrendous that a hundred years might pass before people will again be in the mood to speculate on fantasy wealth.

And yes, the investing public also bears a portion of the responsibility for playing along with the central banks. Some have consoled themselves with stories about how this time is different, and many have ignored warning signs as they've enjoyed stock market and bond gains fueled by seemingly limitless liquidity. The amount of debt globally has soared to $100 trillion since the first signs of the financial crisis. Given the excesses of the stock and bond markets this next bursting bubble will be far worse. Countries will fail, fortunes and dreams will be shattered, and people will lose their jobs.