Fed Reserve is deep deep shit, money creation NOT working
they are simultaneously attempting to manage three things:
1. provide better interest rate envmt for corporate earnings, by lowering rates
2. not flood the system with too many printed dollars, so as to forestall a dollar decline out of control
3. provide magical liquidity that props up the stock market
it appears to me that they are failing on all critical fronts
lower rates arent helping corp earnings since business sucks, business investment is slow as molasses
printed dollars arent the problem so much as low shorterm rates, which are poorly competitive to EuroBonds
the stock market is suffering from multiple problems, like valuation, corruption, momentum of bears, lost foreign participation, exaggerated earnings, ladidadida
but here is a great article that explains in highlevel detail some crystal-clear points
the back pages make the point clearly
for the first time, increased MZM money supply is failing to aid the stock market, as it has been in the last several months
MZM is rising, and S&P is falling
hasnt happened for a long time
gold-eagle.com
/ jim |
