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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

December 7, 2016

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A SUCKER’S RALLY

By David Stockman

(condensed)

This week has seen a political earthquake followed by a financial eruption. But don't be fooled. The Dow's 500-point surge amounts to a Sucker's Rally like no other; it was just a case of raging robo-machines determined to tag an all-time high on the charts.

Yet in the here and now, the great national nightmare has just begun. That's because the smirking incumbent who greeted the Donald in the Oval Office neglected to tell him about the giant stink bomb he and the odious former House Speaker, John Boehner, deposited on the front door of the U.S. Treasury Department back in October 2015.

In a word, the March expiration of the nation's $19.6 trillion debt ceiling will stop Donald Trump's ballyhooed First 100 Days cold in its tracks. The purported giant fiscal “stimulus” and Trump economic revival plan that the headline-sniffing algos got giddy on during the last two days will be DOA.

It will really dominate, fracture and paralyze the Imperial City during the Trump presidency. The irony, of course, is that this $20 trillion fiscal albatross has been almost entirely accumulated since 1981. So the ruling establishment that Trump unhorsed at the ballot box is gone, but not done. The dead hand of 30 years of feckless fiscal profligacy will smother his best intentions and efforts in a veritable fiscal death trap.

The de facto public debt today is $35 trillion. That is, there is another $10 trillion built in from current entitlement, defense, and domestic spending and tax policies, according to the CBO. Yet we did not even mention Donald Trump's ballyhooed stimulus program because that would come on top; it would take the national debt to $40 trillion or even more. Trump's fiscal nightmare would therefore require trillions more to fund his promises to slash taxes by $4 trillion, rebuild defense, pump more funding into veterans programs that already cost $150 billion per year, build the wall and enforce the borders and launch the biggest infrastructure program in American history. Needless to say, it’s not going to happen. This week's raging robo-traders will soon see that the letter of the day is not "S" for stimulus, but a giant "G" for gridlock. Or perhaps an even bigger triple letter called FCA or Fiscal Catastrophe Ahead.