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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.

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The Best of Jim Cook Archive

Commentary Of The Month
October 30, 2015
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By Raymond Matison

With its recent 2% devaluation of the yuan, China has now entered into the global currency war.  Countries with the ability to issue their own currency, including the U.S., have been participating in a currency war by devaluing their currency as a means to increase their exports and stimulate their economies.  As China’s currency has been pegged to the U.S.D., it had recently grown stronger as a byproduct of the dollar’s recent dramatic strength. The tie-in to the dollar’s value increased the Chinese yuan to a level that was hurting their exports.  The resulting devaluation was China’s attempt to correct this unwelcome currency appreciation. With QE, we have been attempting to devalue our own currency as a means to improve our exports.  Not to be outdone, the European Central Bank has been substantially increasing its money supply.  The largest and most outrageous example of intentional destruction in the value of its currency is Japan.

Currency expansion may seem like an ideal solution to a country trying to stimulate its exports, but it does create a financial loss to their trading partners.  For example, if the U.S. were to expand its currency by 10%, China’s Treasury holdings could be reduced by $100 billion – not an insignificant amount.  We are currently witnesses to a race to the bottom in a continuing global currency war.