The FED is only propping up the market letting the extremely wealthy cash out of the investment market. That is why quantitative easing is going to bail out mortgage backed securities. This was where the $16 trillion found in the last FED audit went. Who knows how much has actually been paid out? It is not going into any manufacturing to boost employment etc. It is going to cash out wealthy investors that got in too deep with unsecured investments.... keeping bankers out of court.
The central banks are all buying up unprecedented amounts of gold while dumping Treasury Notes like hot potatoes for whatever they can get on the market in South America (real estate, PM's stocks etc) to avoid attention. Why would central banks invest in gold, commodities and real estate as opposed to more securities and currency?
At this point all investors in the world have washed their hands of US Treasuries yet the government is borrowing and bailing out at full steam. The FED is printing currency out of thin air and buying them all as the lender of last resort. Like I said, the big money is moving out of our system. FOLLOW THE MONEY
To put it in layman's terms. The Titanic has a gapping 165ft long hole in the side and is sinking. The wealthy are grabbing everything they can and getting into the lifeboats. The lower classes are being fed disinformation and told bailing with teacups is going to save the ship. They are told it is an optical allusion the ship is sinking. We are told the FED and government have big plans to save the ship but the wealthy keep loading up in lifeboats with all their ill gotten gains. What's wrong with this picture?
Quiz: Test Your "Income" Tax IQ!
"No man escapes when freedom fails; The best men rot in filthy jails. And those that cried 'Appease! Appease!' Are hanged by those they tried to please." Author Unknown
I cannot even figure out howJews figure in with the S&P, I feel more stupid by the day sometimes ....
So, back on topic, the idea that hyperinflation will destroy the stock market is absolutely asinine, but I think most people know that.
The stock market does not care what happens to the dollar. It's mostly irrelevant, since when you invest in a business you're trading dollars for the productive capacity of that business. If in the meantime the dollar falls in value, or we start using marbles and buckskins and currency, the stock market won't care. A productive business in dollars is just as productive in gold, or silver, or buckskins and marbles.
Companies are not only a bet against currency, but also a bet on their productivity. Fact is, people will always want to buy goods and services regardless of what the currency does or what the currency even is, so a bet on a company is, in my opinion, the best bet one can make.
???The stock market does not care what happens to the dollar. It's mostly irrelevant, since when you invest in a business you're trading dollars for the productive capacity of that business. If in the meantime the dollar falls in value, or we start using marbles and buckskins and currency, the stock market won't care. A productive business in dollars is just as productive in gold, or silver, or buckskins and marbles.
all business operates in dollars. all consumers buy their goods/services with dollars.
if you are buying goods with beaver skins next year that is because their was a collapse of the dollar. no business survives when their accounts are worthless and people can't buy anything because their accounts are worthless.
"The easy confidence with which I know another man's religion is folly teaches me to suspect that my own is also." ~ Mark Twain.I saw that the State was half-witted, that it was timid as a lone woman with her silver spoons, and that it did not know its friends from its foes, and I lost all remaining respect for it, and pitied it."
--Henry David Thoreau