Investment Rarities Incorporated
History |  Q & A  |  Endorsements  |  Portfolios  | Flatware | Gold Coins  |  Silver Coins  |  Contact |  Home

Products

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.

..Read More »

The Best of Jim Cook Archive

 

Condensed Articles

March 29, 2013

archive print

BAILING OUT THE WORLD
Zero Hedge

In the week ended February 27, or the week in which Europe went into a brief tailspin following the shocking defeat of Bersani in the Italian elections, the Fed injected a record $99 billion of excess reserves into foreign banks.

The total change in the Fed’s excess reserves, proves once more that the Fed continues to fund European banks with hundreds of billions in cash on a week-by-week basis.  And what is perhaps most important, is that of the $250 billion in new reserves created under QE, all of it has gone to foreign (read European) banks.

It may anger Americans to learn that by the time the Fed is done with QE, all of the newly created cash will have gone to mostly European banks.  Because with every passing week, new reserves created by the Fed in exchange for monetizing the U.S. deficit, end up as cash solely at European banks: a sad reality we have seen non-stop since the advent of QE2 when U.S. bank cash balances remained relatively flat in the $800 billion range, and every incremental dollar went straight to Europe.

What is critical is to give the impression that Italian and Spanish sovereign risk is contained.  Is it possible that the Fed, in all its generosity, transferred over several hundred billion to these same Italian banks, courtesy of the cover provided by QE, so that the same Italian banks may monetize Italian bank bonds?  And the same for Spain.  Any wonder then that we got news of how flyingly great Spanish and Italian bond auction were in the past week?

Finally, when USD cash hits well over $1.5 trillion and the Fed is directly providing tens of billions in interest payment to European banks, some Americans may be quite angry with that development.  But for now, everyone is blissfully unaware and even if they were aware, nobody cares.  Why just look at the Dow Jones Industrial Average:  how can one possibly allege that all is not well with the world…