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Jim Cook



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 23, 2012

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By Michael Snyder, Editor

Greece is still drowning in debt and completely dependent on outside aid to avoid bankruptcy.  Meanwhile, things in Spain and Italy are rapidly getting worse.  Right now the ingredients for a “perfect storm” are developing in Europe.  Government spending is being slashed all across the continent, ECB monetary policy is very tight, new regulations and deteriorating economic conditions are causing major banks to cut back on lending and there is panic in the air.

Unless something dramatic changes, things are going to continue to get worse.  Right now, the unemployment rate in Greece is about 22 percent.  Businesses continue to shut down at a staggering rate and suicides are spiking.  So far this month, about 500 million euros a day have been pulled out of Greek banks.  The entire Greek banking system is on the verge of collapse.  Meanwhile, the Greek government is still running up more debt.  It is being projected that the Greek budget deficit will be about 7 percent of GDP this year.

Unfortunately, it looks like things are going to continue to get worse in Greece for quite some time.  And the rest of Europe is heading into a very bleak economic future as well.  At the moment, unemployment in the eurozone is at a record high.  Most analysts expect it to go even higher.

To say that Spain has an unemployment problem would be a massive understatement.  The unemployment rate in Spain is even higher than in the unemployment rate in Greece.  In fact, unemployment in Spain is the highest that it has ever been since the introduction of the euro.  The Spanish banking system is a complete and total disaster at this point.  The Spanish government has already asked for a 100 billion euro bailout for its banks.  But that might not be nearly enough.  Spain is facing a housing collapse similar to what the United States went through back in 2008 and 2009.  Right now, home prices in Spain are absolutely collapsing… “Fundamentals point to a further 25 pc decline,” said Standard & Poor’s in a report on Thursday.  It may take another four years to clear a glut of one million homes left from the building boom.  Meanwhile, money is being pulled out of banks in Spain at a very alarming rate.  As panic spreads we are seeing slow motion bank runs all over Europe. Over the past few months massive amounts of money have been moved from troubled nations to “safe havens” such as Switzerland and Germany.

The situation in Europe is very grim.  Greece is going to need bailouts for as far as the eye can see.  Spain is almost certainly going to need a huge bailout.  Italy is almost certainly going to need a huge bailout.  Ireland and Portugal look like they are going to need more money.  France is increasingly looking vulnerable, and Francois Hollande appears to have no real solutions up his sleeve.  Every few weeks there are headlines that declare that “Europe has been saved” but things just keep getting worse.

The governor of the Bank of England, Mervyn King, said the following a few weeks ago…“Our biggest trading partner is tearing itself apart with no obvious solution.”  And that is the truth.  There is no obvious solution to the problems in Europe.  The politicians could kick the can down the road for a while longer, but in the end there will be no avoiding the pain that is coming.  The equation for what is happening in Europe that I have shared before still applies…Brutal austerity + toxic levels of government debt + rising bond yields + a lack of confidence in the financial system + banks that are massively overleveraged + a massive credit crunch = A financial implosion of historic proportions.

We are watching a slow-motion financial train wreck that is absolutely unprecedented happen right in front of our eyes and our politicians are powerless to stop it.  Sadly, it is not only Greece that is doomed.  The truth is that all of Europe is doomed, and when Europe falls the entire globe is going to feel it.  So get ready for the hard times that are coming.  The pain is going to be immense and most people are not even going to see it coming.