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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

August 25, 2016

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BERNANKE’S BOGUS THESIS

By Graham Summers

(condensed)

Ben Bernanke believes the Great Depression was caused by the Federal Reserve not doing enough. He never bothers to point out that the Fed actually expanded its balance sheet by 300% at that time bringing its balance sheet to 25% of U.S. GDP which by the way is even larger relative to GDP than the Fed’s balance sheet is now. This is the dark secret of the Great Depression: the Fed printed its brains out fighting deflation. It failed miserably to generate GDP growth. Instead it eventually created inflation and a stock market bubble. From the market bottom in 1932, to its peak in 1937, the Dow rose 387%. Then, in 1937, as CPI exploded higher to 3.6%, the Fed hiked rates, and the bubble burst losing 50% of its value in a single year.

Again, during the Great Depression the Fed printed a ton of money, growing its balance sheet exponentially, resulting in a stock market bubble during a weak economic recovery, ultimately leading to inflation, which caused the Fed to raise rates resulting in the bubble bursting. Sound familiar? The Fed has literally repeated the same thing since 2008. And it will end the same way: with this bubble imploding.