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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
December 7, 2016
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By Graham Summers

The biggest problem for the financial markets is not stocks nor is it the economy. It’s the Bond Bubble. Globally the bond bubble is now over $199 trillion in size.  This is a systemic issue. Once the bond bubble became large enough, governments themselves are at risk of being insolvent. At that point, there are only three options: stop spending as much money, increase revenues and make the debt loads easier to service. Governments and politicians will never stop spending because it is political suicide (the minute someone pushes for a budget cut the media and political opponents begin attacking the candidate for being “heartless”).

There are two primary ways to make debt more serviceable: lower interest rates, and inflation. We’ve already had lower rates for seven years. Central banks have been at ZIRP if not NIRP for years. It has allowed governments and corporations to make the bond bubble even larger. Which leaves only one option: inflation.

In the last 12 months every central bank has made major admissions that they want inflation and are willing to do anything to create it. In the U.S., five of the six inflationary metrics the Fed uses to measure inflation have all reached their targets. The Fed still refuses to raise rates.  In Japan and Europe, central banks are already spending a record amount of QE per month – $180 billion per month. And both central banks have just announced that they will fail to hit their inflationary goals (setting the stage for even more aggressive monetary policies). Inflation is coming. And the biggest opportunities will be in the precious metals sectors, not stocks.