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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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November 7, 2012

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THE UNFOLDING CRISIS
By John Williams

Faced with nothing but devil’s choices, the Fed has opted to try buying more time, kicking the proverbial can down the road, once more.  This time, however, the road is near its end, and that kicked can easily could come bouncing back off a barrier at the end of the road.  These actions are likely to lead to heavy global dumping of the U.S. dollar and dollar-denominated paper assets.

At such time as the program is enacted, global response likely will be taken out against the U.S. dollar and dollar-based paper assets.  This indeed is the stuff of which inflationary “end of the world as we know it” scenarios can be constructed.  These actions are suggestive of a deepening global systemic-solvency crisis.

The long-term fiscal solvency issues of the United States – where GAAP-based accounting shows annual deficits running in the $5 trillion range – are not being addressed, and the politicians currently running the government lack the political will to address those issues.  That circumstance initially suggested a hyperinflation crisis by the end of this decade, but federal government and Federal Reserve actions – in response to the systemic-solvency crisis of 2008 – accelerated the process, indicating a hyperinflation problem by no later than the end of 2014.  The continuing economic downturn is intensifying the fiscal and systemic-solvency problems, and public awareness of this should grow rapidly in the months ahead.

Neither economic nor systemic-solvency issues have been resolved by U.S. government or Federal Reserve actions.  With the economy weak enough to provide cover for further Fed accommodation to the still-struggling bank system, the next easing by the Fed – and it should follow as needed to support the banking system – likely will lead to a massive dollar-selling crisis, and that will begin the process of a rapid upturn in domestic consumer inflation.  A dollar-selling crisis, however, could begin at any time, triggered by any number of economic, sovereign-solvency or political issues.