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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

 

Condensed Articles

February 6, 2017

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A BULLISH CASE FOR GOLD

By Olivier Garret

(condensed)

Quantitative easing and drops in interest rates have never offset deflationary forces around the world. QE money went from the central banks to financial institutions, but did not enter the real economy. Today, over $50 trillion in cash is there waiting to be used. The banking system is laden with excess reserves sitting on the Fed’s balance sheet. If these reserves find the real economy, we will see a fast change. When the Fed realizes that inflation is back, it is likely to have already taken hold.

The Fed can raise interest rates fast. But here’s a catch. Americans can’t afford higher interest rates. The Fed holds nearly $20 trillion in debt. They can’t afford higher interest costs. Nor can its heavily indebted citizens: American households have $14.6 trillion in mortgage, student, auto, and credit card debt. Add to that another $13.4 trillion in U.S. business debt, and the problem of rising interest rates becomes clear. A more likely scenario is a gradual pace of rate hikes by the Fed, even if inflation runs hot. In that case, we will see negative real interest rates for some time. This is just the setting for investors to hold gold. Not only as insurance against the risk of financial collapse, but also as a tangible investment that will appreciate.