Uncle GreeenCancer has interrupted his pumping lately
a careful look shows the major stock averages have been tightly correlated with the Fed-controlled money supply for several years
he has stalled the money growth since early March
ergo, stocks stalled also
talk about a managed economy, managed stock market !!!
sooner or later, the pumping of printed semi-worthless money will not matter
the cancer in the USdollar currency lies in its creation from nothing
the sickness is showing itself now as
- an economy that is attempting to reflate a scarred bubble
- debts weighing on every crevice and corner imaginable
- a stock market that will not get on its feet squarely
- absence of profits as price deflation dominates corporations
- dollars under every feckin rock throughout the world
- entire small economies worldwide built upon the same sand of dollar-based USTBonds
- perverse signals in every developing economy whereby health is determined by how much the local currency is destroyed
the Federal Reserve actions simply wont matter before long
we will muddle along, unless and until the USdollar dives
but dont be fooled
the Fed cannot rescue indefinitely
they can execute temporary fixes
but their fix is what caused the problem in the first place, so over time their fix diminishes in its potency
this is sad to watch unfold
it represents the failure of uncontrolled Keynesian fiat currency-based economy management
what I find most ironic is the parallel between the Soviet Union run by its Politburo controlling their economy...
with the United States run by its Federal Reserve controlling the dollar, money supply, gold, interest rates, and increasingly failing to influence the stock market, and even recently attempting to control public confidence
both the Soviet and US systems fail
since captalism is the foundation debauched, corrupted, distorted, and mangled by the Federal Reserve...
it will only take longer for the US to decline
(Ravi Batra is right on target!!!)
what I find most perverse and ludicrous is the USdollar attempting to serve the role of gold as a store of value
gold has worked well for 1000's of years
but another ironic parallel is evident:
the Soviets falsely assumed the identity of Russians
the dollar is falsely assuming the identity of gold
/ jim |
