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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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April 1, 2013

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GOLDEN YEARS
By Monty Pelerin

My generation, born during or near post World War II, has been quite fortunate.  Those of us lucky to have been born in the U.S. during this period hit a sweet spot of both place and history.  The economy thrived, standards of living soared and many avoided the numerous wars that dominated the Twentieth Century.  Today, the future does not look so bright.  Economies are stagnant, standards of living are declining and the threats of war increase.  Younger generations will have more difficult lives than my generation.

For the last half-century government has pretended that it can manage an economy.  Any slowdown brings the same reflex-action – expand liquidity and increase government spending.  This response, according to Austrian Economics, is the source of the boom-bust cycle that now characterizes modern economies.

Decades of Keynesian interventions to prevent the business cycle have succeeded in weakening economies around the world.  Each intervention was an attempt to prevent asset allocations from correcting.  In the attempt to prevent the corrections, government action added more imbalances.  Today, most developed economies are filled with distortions and unable to operate efficiently, grow or create wealth.

Trillions of dollars have been thrown at the current economic downturn over the last five years.  There has been no recovery, nor will there be until economies purge themselves of the distortions.  Cosmetics no longer work.  The world does not have enough lipstick to cover this economic pig.

The fact that currency is being depreciated around the world has implications that should not be ignored.  The risk of high inflation, perhaps hyperinflation, can destroy anyone on fixed income or who stands pat believing their savings is enough.  At the same time, the potential for an economic apocalypse has never seemed greater.  There have already been two 50% drops in stock market averages in the first decade of this century.