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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

March 3, 2016

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NOT WITHOUT CONSEQUENCES

By M. N. Gordon

(condensed)

The Federal Reserve quadrupled its balance sheet following the 2008 financial crisis, yet consumer prices hardly budged. Obviously, the effects of these policies have shown up in certain assets like U.S. stocks.  That’s not to say they won’t still show up in consumer prices.  They most definitely will. The point is no one really knows when consumer prices will rapidly rise.  The longer the Fed can seemingly get away with their efforts to inflate in perpetuity, the greater the disaster that awaits us.

During an economic boom, puffed up with the Fed’s cheap credit, madmen get rich.  They borrow money at an artificial discount and place big bets on rising asset prices. They don’t care they are placing those bets within a dangerous seismic zone.  The rewards are too great.  Eventually asset bubbles always exhaust themselves.  Price movements reverse.  They stop inflating and they start deflating. The risk taking beneficiaries of the expansion are exposed.  Ask U.S. oil shale producers.  Just 18 months ago they were raking in cash hand over fist.  Lenders were tripping over themselves to extend credit for fracked wells. But how quickly things change.  North American oil-and-gas producers are losing nearly $2 billion every week at current prices. Several more slips like this and ‘the big one’ could rupture at any moment.