83% of Stock Market Rally is a Function of the Printing Press
Submitted by Gnome DeGuerre on Tue, 03/16/2010 - 22:23
in
Check out this graph...
http://troyjgrice.blogspot.com/2010/03/s-500-is-paper-bull.html





















Not really
It's all electronic..It's not even paper..
No doubt
...But "Printing Press" resonates better than "digital analogues" or "keystroke entry"
http://goldsteinrepublic.com
...
"money" creation.
I urge you guys to go on to
I urge you guys to go on to youtube and find Lindsey Williams. In October and in a recent update, Williams said that the stock market would keep going up. He said that oil would stay between 70 and 80.00$ per barrel (even tho its over 81.00 right now). He said that in a year to year in a half war would start in the middle east and go world wide. Look at the articles coming out
about the US weapons build up in diego garcia.. He also said silver and Gold are the only things you can rely on. Many people think Williams is an old koot..
I would rethink that position. Everything he predicted in October of 09 is coming to fruition.
“Defiance of God’s Law will eventually bring havoc to a society.” - Dr. Ron Paul
Thanks
I will check it out.
"First they ignore you, then they laugh at you, then they attack you, then you win!"
GANDHI
funny business
All the ads on TV say to pour more of your money into the markets. The Dow is so manipulated by automatic trading, and plunge influence, that they may be right. One thing the government will control with a keen eye, is the Dow. That's the barometer of the American investment attitude. If not for the "funny business" where would the market be? We'll probably never know.
alan laney
Yes!
False-Growth.
Value is less, price is more. It is the definition of inflation.
It could be said that the change in stock prices today are really just a measure of the grand theft perpetrated by the cabal that is the corrupt Federal Reserve Corporation.
Ron Paul / Rand Paul ...The Taxpayers' Best Friends!
RESTORE AMERICA NOW
AN APPEAL TO HEAVEN - Washington's Cruisers
http://www3.villanova.edu/centennial/js1g.htm
Leave Us Alone and Bring the Troops Home
Funny that inflation shows up in stock prices first!
I have seen evidence that the Fed and/or Treasury is propping up the rally in stock prices lately. This is evidenced by the fact that the usual buyers were not doing the buying, so it is someone else and likely the Fed, according to a Moneynews.com report I saw. Also, another report showed that almost all of the rally has been between closing and opening of the stock market, i.e. if you look at the DJIA or S&P during the hours they are open, the indexs are almost flat. I don't remember that source, except that it was from one of the gold and silver commodities sites. The speculation was that the Fed is buying future contracts, overnight for some reason. My understanding of all this is not deep - basically what I've stated here. The gist of both of these articles, by two different authors, is that the Fed is behind the rally, and if I recall properly it is being accomplished on low volume, making it easier to do. I now recall the first article was by Biderman, though a female Moneynews.com columnist cited him. If this is interesting to anyone, I can probably track down my sources.
The revelation in this item submitted by Vanilla Gorilla puzzles me, because though I believe it, I wonder why priice inflation is showing up in the stock market before it is showing up as dramatically elsewhere? Howevr, just as I am writing this I am realizing that maybe it is for the reason I explained in the first paragraph. I thought the printed money was being held by the bank, who are not lending at this point, but maybe alot of it is going into the stock market in one form or another. I hope someone with finacial markets and or Fed/Treasury savvy will chime in.
Inflation
I think your last paragraph begs the $2trillion question: "When will the consumer price increases show up?
http://goldsteinrepublic.com
I've been trying, but
I've been trying, but failing, to get an unambiguous answer. Every piece of data raises more questions. Is the stock market rally due to dollar devaluation, or due to manipulation that also happens to coincide with the printing of money? Is the strength of the dollar deflationary, or due to weakness of other currencies? Is the price of gold due to devaluation of the dollar, or a reflection of relative strength of the dollar compared to other currencies, or manipulated? Is credit expanding or contracting. Is credit expansion/contraction more important than the amount of money printed, by sheer size? How much of the printed money is being held by banks, waiting for the economy to improve? What is real and what is Memorex?
In reading opposing viewpoints, I have come up with my own question - can we be experiencing a deflationary depression while at the same time seeing some inflationary impact of money printing, government debt creation and low interest rates? What if we are in a deflationary trend, but wild printing of money and government spending and zero interest rates, which are trying to counteract deflation, are only having successes in certain areas of the economy? Maybe they have targeted the stock market for psychological reasons. One bad sign I saw is that besides increased unemployment, we have wage deflation.
It seems we, except the smartest among us, may not know until all the signals start lining up and then become hard to argue with. In the meantime, it seems that even if the economy is still contracting, the endgame may likely be inflation. But that is in the way of a consensus, and how good are the consensus makers at predicting anything?
it already is in food..
it already is in food..
“Defiance of God’s Law will eventually bring havoc to a society.” - Dr. Ron Paul
Interesting comparison
and it could be a correct assumption.