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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 21, 2016

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EMPTY BUILDINGS

By Michael Pento

(condensed)

A little over six months ago the owners of the Baha Mar, a $3.5 billion Bahamian resort, filed for bankruptcy. Shoddy construction from the China State Construction Company led to delays resulting from leaking plumbing, porous Chinese concrete and large cracks at critical stress points. The doomed project even led to the death of two Chinese workers. Although the building is 97% complete, the structural deficiencies make it uninhabitable. Given the Chinese proclivity to build ghost towns, it makes you wonder if their construction crews are accustomed to erecting buildings that are never intended to be occupied.

Most troubling is the financial crisis in China that will unravel with the unwinding of the country’s $30 trillion credit bubble.  At the World Economic Forum in Davos, Harvard professor Ken Rogoff described China’s credit bubble as the “Last big domino to fall as the global debt supercycle unwinds.”

Eventually, the despots in Beijing will lose control of their banking system and exchange rate, causing capital to flee at a pace that is beyond the ability of their currency reserves. While significant capital reserves may afford them a few more months at the helm of their currency; it is only a matter of time before their entire economy is exposed to be as hollow as their vacant cities and the Communist house of cards collapses.

But this isn’t just a Chinese problem. Global government suppression of interest rates, along with massive new debt issuance has resulted in an unprecedented misallocation of capital. This, along with a humongous debt overhang that cannot be serviced at a free-market interest rate, has virtually guaranteed a global recession of historic proportions…one which governments have largely become impotent to rectify.