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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 18, 2015

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MONETARY MADNESS

By Michael Pento

(condensed)

For years China bought into to the popular Keynesian myth that mindless government spending spawns sustainable long term growth. In order to fabricate a consumer class to rival the United States, the government built cities, bridges and airports with no viable productive value. Unfortunately, they are now reaping the downside of investing in non-productive assets: when the feckless spending ends you are left with non-productive assets, but still stuck with the debt that was used to erect them.

But this misallocation of capital has not only left empty cities, but empty pockets as well. Many of the loans used to finance idle construction will never get repaid; yet these banks continue to roll over these loans in the same manner as Japan’s 1990’s zombie banks.

The economies of the developed world have been living under the fantasy that if you can shove more credit upon debt-disabled consumers the economy will be saved from slow growth and deflation. Increasing the purchasing power of consumers is actually essential for true economic healing to occur, but that is anathema to those that currently hold sway.

Since the government’s mandated inflation and growth goals have not been achieved after seven years of unprecedented effort, I believe central banks will soon resort to completely circumnavigating the banking system and directly force credit onto the public sector. But that still won’t lead to economic nirvana…instead it will ensure that the economy will suffer through its first worldwide inflationary depression.