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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

July 9, 2012

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BOND JUBILEE
By Jeff Nelson
(condensed)

Western investors currently hold only roughly 1/10th the amount of gold and silver that they have normally held on an historical basis.  In other words, at the point in time where Western investors should be choosing to hold more gold and silver than at any time in history they are instead holding less gold and silver than at any time in history.

Then there is the second opposite misallocation.  These zombie investors are not only loaded up with $trillions of our (worthless) paper currencies; they are also holding $10’s of trillions in bonds, issued by hopelessly insolvent Western debtors – and denominated in those same, dying fiat currencies.  Here clueless paper-holders must step back and take a look at history.

In the 1,000 years since China began humanity’s experiments with these worthless, paper (“fiat”)
currencies; the paper has a perfect record: it always goes to zero. Meanwhile, we are equally well-advanced along the road to another regular, economic event in our collective history: what I call a “bond-burning part” – where insolvent debtor governments simply erase all of those bond debts, leaving bond-holders with a big, fat nothing.

These bond-burning parties have more commonly been known throughout history as “debt jubilees”; one or more governments collectively or unilaterally decreeing that their bond debts no longer exist, and thus the “bonds” themselves become nothing but an inferior brand of toilet paper.  They are regular events in history, but naturally most Western readers are totally unfamiliar with this common (and inevitable) historical trend.

Our paper-pushing bankers have made sure that their servants in government and the media never let the Sheep know that both the bankers’ paper currencies and the bankers’ paper bonds always end up as worthless paper.  In fact, “debt jubilee” is a concept which literally dates back to Biblical times.  Back then they didn’t wait for the bankers to officially bankrupt nations before declaring a debt-jubilee.  Rather, they were scheduled events – every 25 or 50 years.

So we have our bankers telling us that both their paper bonds and paper currencies are “safe havens.”  Meanwhile, 1,000+ years of our own history tells us that both forms of paper are certain to end up totally worthless.  Obviously treating $10’s of trillions in worthless (Western) banker-paper as a “safe haven” represents a misallocation of capital on a scale at least an order of magnitude greater than anything else in our history.

For those deluded paper-holders who scoff at the idea of their precious paper becoming worthless “during their lifetime:” open your eyes.  In little more than 40 years since the gold standard was abolished and our currencies fully became “fiat currencies” they have already lost more than 75% of their value.  With “competitive devaluation” now our official monetary policy, that rate of dilution/destruction is increasing exponentially.
As for these equally worthless Western bonds, debt jubilee has already started.  What do readers think just happened in Greece?  One minute there was a stack of paper with a (nominal) value of $400 billion.  The next minute the stack of paper was worthless.  What happened in between?  Debt jubilee.

Understand that debt jubilee is now a mathematical certainty in the West.  Nearly three years of Europe’s “austerity” has shown that none of these debtors is even capable of reducing the size of their deficits – let alone ever approaching a balanced budget.  Absolute, empirical evidence that all of these Deadbeat Debtors are past the point of no return.

Across the Atlantic, it is common knowledge that the U.S. is even more fundamentally insolvent than Europe’s debtors.

Just as the money-printing of the bankers dwarfs all economic fundamentals today, the Flight out of Paper will dwarf all other fundamentals tomorrow.  Then there are the tiny, grossly under-owned financial Lifeboats in which our species has sought refuge in times of crisis for nearly 5,000 years: gold and silver.  On an average historical basis, investors have held between 5% and 10% of their financial assets in gold or silver, with that ratio tending to rise dramatically in times of crisis.

Yet today, as the clueless paper-lemmings charge toward the looming financial chasm ahead; gold and silver represent only about 1% of the average (lemming) portfolio.  What happens on the day when even the lowly lemming realizes that their precious paper is worthless – and only gold and silver remain as “safe havens?”  Picture a million elephants trying to squeeze through the eye of a needle, simultaneously.
 
The creators of all this worthless paper (our central banks) aren’t waiting for that stampede to begin.  They are already dumping their worthless paper for gold at the fastest rate in 50 years, and by the end of this year that will likely have escalated to the fastest rate in history, as the gold-buying by central banks continues to accelerate.

Then we have the Corporate Media duping the hordes of lemmings into continuing to hold this worthless, obsolete paper – so that the bankers can buy their gold first (and cheaper).  Indeed, the malevolent media propaganda machine has gone much further.  It has fraudulently referred to gold and silver as “bubbles,” despite never being so under-owned by Western investors in all of history.

Apart from shattering the lies of the media about a gold bubble with simple and obvious logic, the behavior of our central banks is an irrefutable rebuttal to the media’s propaganda.  It is this same media which hail these central bankers as the ultimate sages of our financial system, and their message is clear: dump your paper and buy gold (or silver).