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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
November 2, 2015
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By Mark J. Lundeen

Eventually, this market will resume the crash it began in October 2007. This is a safe assumption since the root cause of the crash of 2007, mountains of unserviceable debt created by an out-of-control banking system, has never been allowed to resolve itself as happened during the 1930’s.  Using the roaring 1920’s as an analogy for the inflationary Greenspan and Bernanke Feds, the inflation of the 1920’s didn’t fully deflate until the Dow Jones reached its April 1942 lows. 

But allowing the market to find its own level was a solution to the mortgage crisis our best and brightest did not even consider.  Instead “policy makers” of the 21st century doubled down on all their losing bets in the mortgage and derivative markets, reflating the financial markets with even more reckless money creation.   This certainly can’t go on forever, but who knows when it will end? Until it does there’s more risk than reward in holding stocks and bonds.  Holding gold and silver bullion seems the safe play. Why would that be?  Gold and silver (held in one’s own possession) have no counterparty risk, something today’s overleveraged economies and markets are pregnant with.  Overleveraged economies struggling with excessive debt are now a global phenomenon. 

No financial market today is an island separated by wide oceans from financial crisis in faraway lands.  The banking system is a global organization that has bound retail investors’ assets and savings as well as pension funds and insurance companies’ reserves to distant markets via the multi-hundred-trillion-dollar derivative market.  Now, forty-four years after Washington defaulted on the Bretton Woods Monetary Accords’ $35 an ounce gold peg, market values have been inflated farbeyond the point of no return.