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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 31, 2014

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BUBBLE TROUBLE
By Michael Pento

(condensed)

The United States – along with the rest of the developed world – are facing an entirely new paradigm. Namely, such onerous and record debt levels have now reached a point where government revenue will become woefully insufficient once interest rates normalize. Therefore, the developed world must choose the manner in which they will default on the debt.  Central banks will be forced to either monetize mountains of debt, or allow a deflationary depression to wipe out the economy. 

With bond yields already at historic lows, brought about artificially by massive central bank manipulation of bond prices, the next time a recession occurs it is much more likely we will have a debt crisis due to a lack of revenue available to service government debt. 

A true fiscal crisis always leads to sovereign default – either through inflation, a debt restructuring or both. Another recession similar to the Debt Crisis of 2008 will most likely bring down both stock and bond prices. Only this collapse in bond prices may not be caused by inflation right away, but instead will be the result of a severe revenue dearth due to a collapsing economy.