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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

 
Essay Of The Month
June 9, 2017
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GROWTH MIRAGE

By Victor Davis Hanson

Moody’s Investors Service downgraded China’s credit rating recently to A1 from Aa3. The rationale being that it expects the financial strength of the economy to erode, as GDP growth slows and debt levels continue to pile up.

The Chinese government is in a very difficult position. For years their economy was fueled by borrowing and printing money for the purpose of building unproductive fixed assets that do little in the way of generating sustainable GDP growth. And now China’s economic activity is expected to drop to 6.6% in 2017, according to the IMF, as the government attempts to reign in soaring prices in the real estate sector. The country’s debt has already reached 250% of GDP.

But the mirage of sustainable growth in China is being perpetuated by increasing the debt load and digging more holes, with the hopes of keeping the citizens placated and the current regime in power. However, adding to the tally of dollar-based loans at this precarious juncture is nothing short of insane. Central banks continue to hold the fragile global economy together by monetizing debt and propping up asset bubbles in record proportions. Therefore, they will ultimately engender unprecedented currency, equity, bond and economic chaos worldwide.