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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


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January 21, 2013

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By Arnold Ahlert

In order to run deficits, someone must be willing to lend the nation money.  Most Americans assume the biggest “someone” is China or Japan.  Most Americans are dead wrong.  In 2009, foreign purchases of U.S. debt amounted to 6 percent of GDP.  The current percentage has fallen to 0.9 percent of GDP.  So who’s picking up the slack?  The Federal Reserve, which is buying a mind-blowing 61 percent of government debt issued by the Treasury Department.  “The Fed is in effect subsidizing U.S. government spending and borrowing via expansion of its balance sheet and massive purchases of Treasury bonds. This keeps Treasury interest rates abnormally low, camouflaging the true size of the budget deficit,” wrote Lawrence Goodman, former Treasury official.

The critical factor here is one that is rarely mentioned: the Fed is buying such large amounts of America’s debt because no one else wants it.  Yet in the process of doing so, it becomes necessary to print money to make those purchases.  Even the most economically illiterate politician knows that when you create more of something, each individual unit of that something is worth less.  Thus Ben Bernanke, with the blessings of this President and his spendthrift Democratic Party, is debasing the currency in order to maintain the fiction that trillion-dollar-plus annual deficits and $16 trillion-plus of national debt don’t matter.