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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

September 8, 2016

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OBAMA MAY HAVE FINALLY DESTROYED AMERICA’S #1 ADVANTAGE

By Simon Black

(condensed)

In July 1944, just weeks after the successful Allied invasion of Normandy, hundreds of delegates from around the world gathered in Bretton Woods, New Hampshire to determine the future of the global financial system. The vision was simple: America would be the center of the universe, and every other nation would revolve around the U.S. This arrangement ultimately led to the U.S. dollar being the world’s dominant reserve currency which it still remains today.

Whenever a Brazilian merchant pays a Korean supplier, that deal is negotiated and settled in U.S. dollars. Oil. Coffee. Steel. Aircraft. Countless commodities and products across the planet change hands in U.S. dollars, so nearly every major commercial bank, central bank, multi-national corporation, and sovereign government must hold and be able to transact in U.S. dollars. This system provides a huge incentive for the rest of the world to hold trillions of dollars’ worth of U.S. assets – typically deposits in the U.S. banking system, or U.S. government bonds.

It’s what makes U.S. government debt the most popular “investment” in the world, why U.S. government bonds are considered extremely liquid “cash equivalents.” As long as this system continues, the U.S. government can continue to go deeper into debt without suffering serious consequences. Just imagine being totally broke… yet every time you want to borrow money there’s a crowd of delighted lenders eager to replenish your wallet with fresh funds.

This may be the U.S. government’s #1 advantage right now. You’d think that they would be eternally grateful and take care to never abuse this incredible privilege. But no… not these guys. In fact, they’ve done the exact opposite. Over the last eight years the U.S. government has gone out of its way to eliminate as much of this benefit and alienate as many allies as possible.

Ripple, a block chain-style protocol that’s funded by Google Ventures (among others), is now being utilized by international banks to send and receive transactions directly. Banks don’t have to use the U.S. banking system anymore; they can send real-time payments internationally using the Ripple protocol. Two months ago a Canadian financial services company sent the first-ever institutional cross-border payment to a German bank. This isn’t some wild theory or conjecture. It’s actually happening.

Just this morning a group of 15 banks in Japan signed up to start using Ripple, and dozens of banks plan to use the protocol within the next six months. The technology is cheaper. Faster. Superior. And it doesn’t come with any U.S. government strings attached. So it seems Uncle Sam may have finally shot himself in the foot for the last time.