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A short -- 'WE ARE SO SCREWED' -- editorial -
Headlines, Wall Street Journal, Saturday, 7/28/2012
(underline emphasis added)
Yesterday, 7/27/2012, the S&P 500 jumped 1.84% and the Dow Jones Industrial Average reclaimed the 13,000 level, apparently in anticipation of the Fed printing MORE FREE MONEY!
Many otherwise-intelligent people don't seem to realize that some major parts of an economy can be monetarily inflating, in real terms, while other parts can simultaneously be deflating or stagnating. For example, the U.S. housing sector has been deflating since the 2008 crash and now seems to be in stagnation. On the other hand, our stock market has been 'recovering' (inflating) quite well since the crash, happily using with the essentially 'free' money being handed out by Ben Bernanke and the Fed. Company earning have been increasing while feeding off the essentially 'free' Fed money being pumped into other areas of the inflating domestic and world economies.
One can have 'inflation' in a stock market just as one can have 'inflation' in the price of bread, cars or other consumer goods. The stock market loves money! However, don't be fooled into thinking that somehow a rising stock market automatically signals a healthy or recovering economy.
If all it takes is a 24/7 high-speed money printing press to produce a healthy economy, countries like Zimbabwe should be the envy of the world!
Zimbabwe: Best Performing Stock Market in 2007?
Ludwig von Mises Institute
John Paul Koning
4/10/2007
http://mises.org/daily/2532
Zimbabwe, admittedly, is not an accurate 'economic model' for the U.S.A. However, Obama, Bernanke and the other controlling members of their current 'fascist fiefdom' do seem to be taking us down that same, tired, old, disastrous, borrow and print money, economic path followed in past years by many other developed but failing countries such as Argentina.
Headlines, Wall Street Journal, Saturday, 7/28/2012
Weak Economy Heads Lower
Markets Jump as European Leaders Vow to Protect Euro; Flagging Recovery Could Spur Fed
Markets Jump as European Leaders Vow to Protect Euro; Flagging Recovery Could Spur Fed
(underline emphasis added)
Yesterday, 7/27/2012, the S&P 500 jumped 1.84% and the Dow Jones Industrial Average reclaimed the 13,000 level, apparently in anticipation of the Fed printing MORE FREE MONEY!
Many otherwise-intelligent people don't seem to realize that some major parts of an economy can be monetarily inflating, in real terms, while other parts can simultaneously be deflating or stagnating. For example, the U.S. housing sector has been deflating since the 2008 crash and now seems to be in stagnation. On the other hand, our stock market has been 'recovering' (inflating) quite well since the crash, happily using with the essentially 'free' money being handed out by Ben Bernanke and the Fed. Company earning have been increasing while feeding off the essentially 'free' Fed money being pumped into other areas of the inflating domestic and world economies.
One can have 'inflation' in a stock market just as one can have 'inflation' in the price of bread, cars or other consumer goods. The stock market loves money! However, don't be fooled into thinking that somehow a rising stock market automatically signals a healthy or recovering economy.
If all it takes is a 24/7 high-speed money printing press to produce a healthy economy, countries like Zimbabwe should be the envy of the world!
Zimbabwe: Best Performing Stock Market in 2007?
Ludwig von Mises Institute
John Paul Koning
4/10/2007
http://mises.org/daily/2532
Zimbabwe, admittedly, is not an accurate 'economic model' for the U.S.A. However, Obama, Bernanke and the other controlling members of their current 'fascist fiefdom' do seem to be taking us down that same, tired, old, disastrous, borrow and print money, economic path followed in past years by many other developed but failing countries such as Argentina.
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