In Jim Cook's Archive


“Continued inflation inevitably leads to catastrophe.” Ludwig von Mises, Economist

“The devastation and the havoc that the runaway inflation causes among the populace is enormous. The relatively fixed-income groups are wiped out…society reverts to a state of virtual barter and complete impoverishment.” Murray Rothbard, Economist

A country that does what America does to its money must suffer a terrible fall.  We are stuck in the greatest predicament in history.  Nobody sees it in Washington or Wall Street and the media is oblivious.  A great crisis is upon us and we are reacting to it as we did with past problems, print up more money and hope the crisis goes away.  This time it won’t go away because our economic sins are too great.

Nothing other than capitalism creates prosperity on earth but we are replacing it with government initiatives that assure failure.  The Feds control our money and in my opinion they are well on their way to ruining it.  If any of us could truly comprehend the extent of our debt and our massive financial liabilities that person would quake with fear.  The monetary authorities see no way out but to continue to do horrible things to our money.  It’s so serious that the repercussions will destroy all paper wealth.  Those who listen to the politicians and the money managers will be ruined.  Only tangible assets will survive.

At some point it will dawn on the populace that prices are going to keep rising because the central bank and the Treasury are going to persist in creating new money. More and more people will decide to spend the money rather than hold it because they know they can get goods cheaper today than they can tomorrow.  Suddenly there’s a rush to buy things.

Runaway inflation hits hard and fast.  Prices explode.  From $5.00 gasoline on Sunday to $10 on Monday and $25 on Tuesday.  That’s when most people become fearful.  But for them it’s too late.  Because on Wednesday gas is $100 a gallon and a loaf of bread, $75.00.  It gets worse, gas goes to $500 a gallon and the next day add a zero.  In effect, the dollar has lost all its purchasing power in ten days.  A million dollars in savings that once provided a financial cushion buys nothing.

Annuities, savings, money markets and bonds have quite suddenly lost all value.  Along with the dollar they are worthless.  The government’s social security checks and other payments effectively bounce.  They buy nothing.  Washington’s politicians and the Treasury announce a new currency.  However, it’s too late for the millions of savers and investors who relied on paper.  They lost everything.

You may think all of this sounds farfetched.  From my perspective I think it’s inevitable.  Years ago much smarter economists than me wrote about the certainty of such an event.  It’s terribly unwise not to have a liquid tangible asset in your possession.  I believe silver has everything you would want in an asset to protect, preserve and grow your wealth.  Furthermore, I’ve been right about silver for a decade and my 1999 novel, Full Faith & Credit, predicted the financial crisis with uncanny accuracy.  I’m telling you now what I believe has a strong chance of happening.  I hope you listen – think what happens if I’m right and you did nothing.  Remember that at a certain point silver and gold will be unavailable because of panic buying.  You need to be early and not a minute late.

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