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

June 15, 2015

archive print

THE BOND BUBBLE WILL EXPLODE VIOLENTLY
By Michael Pento

(condensed)

Central banks are incapable of saving economies or creating growth. The only thing a central bank can do is create inflation. These market manipulators set forth on a journey seven years ago to save the world by engaging in massive monetary manipulation, euphemistically called Quantitative Easing (QE), and a zero interest rate policy known as ZIRP. All this easy money failed to create viable growth. The economy, held back by massive debt levels, clocked in at -0.7% for the first quarter due to a huge increase in the trade deficit during March. And the second half isn’t setting up to be much better either.

For the past seven years, investors didn't have to worry about credit risk because central banks were ready buyers regardless of a nation’s insolvent condition; as long as inflation was thought to remain quiescent. But here is a news flash – investors won't own sovereign debt if real interest rates plunge much further into negative territory. And neither will they accept negative real and nominal yields on fixed income if they can instead own precious metals, commodities, real estate, or any other hard asset. Seven years of interest rate suppression have created a powerful vacuum that could suck long-term interest rates higher in accelerated fashion. The only sure outcome is chaos on a global scale because central banks have never been able to extricate the economy from the bubbles it created. Such is the inevitable result of the massive and historic intervention of central banks into the sovereign debt market. In other words, bubbles never pop with impunity and the international bond bubble is certainly not going to be the exception. Therefore, no matter what happens to interest rates in the future you can be sure of one thing... the suffering will be immense.