Investment Rarities Incorporated
History |  Q & A  |  Endorsements  |  Portfolios  | Flatware | Gold Coins  |  Silver Coins  |  Contact |  Home


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.

..Read More »

The Best of Jim Cook Archive

Commentary Of The Month
September 26, 2013
archive print


By John Williams

The United States faces a likely hyperinflationary depression before the end of 2014.  The ultimate, complete debasement of the U.S. dollar became inevitable in recent decades, when those controlling the U.S. government—both sides of the aisle—deliberately took on Federal debt and obligations that never could be satisfied through normal fiscal operations.
Creating, spending, guaranteeing, loaning and giving away whatever money was needed, the U.S. government and central bank moved to prevent the collapse of the U.S. financial system, which included bailing out major institutions.  When systemic collapse was avoided five years ago, effectively by pushing it into the future, none of the underlying issues that fueled the crisis were resolved.  The U.S. economy has not recovered and appears to be resuming its contraction.  The U.S. banking system remains under severe financial stress, as would appear to have been confirmed by the Federal Reserve’s decision not to cut back on its quantitative-easing program.

The markets have begun to focus, again, on troubling underlying reality tied to Fed activity and the government’s fiscal circumstance, while other major dollar fundamentals—the economy and political stability—have turned increasingly negative.  In combination, these factors suggest a rapidly approaching day-of-reckoning for the dollar.

The first big myth was that the Federal Reserve would extricate itself from its quantitative easing, due to the improving economy.  That story appears now to have been confirmed as nothing more than jawboning.  While the cash-based deficit for fiscal 2013 will be lower than in 2012, thanks to some one-time factors and accounting gimmicks, that will not be true for the generally accepted accounting principles (GAAP)-based deficit that ran at an uncontrollable annual pace of $6.6 trillion in 2012. 

The unfolding fiscal catastrophe, in combination with the Fed’s direct monetization of Treasury debt, eventually will savage the U.S. dollar’s exchange rate, boosting oil and gasoline prices, and boosting money supply growth and domestic U.S. inflation.  Relative market tranquility has given way to mounting instabilities, and extreme market turmoil likely looms, despite the tactics of delay by the politicians and ongoing obfuscation by the Federal Reserve. 

This should become increasingly evident as the disgruntled global markets begin to move sustainably against the U.S. dollar.  A dollar-selling panic is likely this year with its effects and aftershocks setting hyperinflation into action in 2014.