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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

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 28, 2013

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GOLD RUSH
By Richard Russell

Nothing concentrates the mind as dramatically as seeing the purchasing power of one’s hard-earned income and savings being ruthlessly destroyed.  Ben Bernanke’s Federal Reserve is systematically shaving off the purchasing power of the dollar in the same way that you can peel the layers off an onion.  The U.S. has been in the process of constructing the greatest credit bubble in history.  The world has never seen anything like it.  This enormous bubble is now being attacked by the worldwide forces of deflation.  Fed Chairman Bernanke is terrified by the mere thought of deflation.  Bernanke will not stand for deflation.  He has said as much.  And he will attack deflation and crumbling asset prices with all the inflationary power at his command.

As the ocean of new dollars pours out of the computers of the Federal Reserve, the purchasing power of the dollar erodes.  It erodes slowly at first but as the river of dollars turn into an ocean,  slowly-rising inflation segues into a monster.  Finally, the crowd recognizes what is happening to their money.  The loaf of bread that cost a dollar last year suddenly costs four dollars.  The cup of coffee that cost a dollar last week goes on special today for two fifty.  The college tuition that cost four thousand dollars now costs sixteen thousand and there’s the extra for a dorm.  You’re suddenly paralyzed.  A light bulb in your head starts to glow.  And just as suddenly, the mad, frantic rush for gold is on.

No fiat money has lasted for as long as a century.  The U.S. has had prior experience with fiat money – the Civil War Greenbacks, the “Bills of Credit” of the original American colonies, the ill-fated Continentals.  None of these have survived, and neither will the Federal Reserve notes that we now refer to as “dollars.”

I dislike falling back on the morality argument, but consider this.  I may work a lifetime for five million dollars.  Yet some academic working for the Federal Reserve can press some keys on a computer and create ten billion dollars instantly without working up a sweat.  Is the ten billion dollars he creates moral money?  Did anyone work for the money?  Did anyone take a risk for the money?  Did anyone drop a bead of sweat for it?  No, then I claim it is immoral and actually evil money, and as such it is doomed.  The only power evil has is the power to destroy itself.  I affirm that the Federal Reserve note is doomed.  When the Federal Reserve note goes down the drain, all fiat money in the world will go down with it.  Today information travels around the world with the speed of NOW.  People around the planet will see that fiat money is a fantasy and a counterfeit fraud.

I’m reading a lot about silver and its huge short position.  I hear that silver shorts are bigger than the amount of physical silver that is readily available I wonder if silver starts to boom, whether that action wouldn’t rub off on gold?