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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 395.80+0.1%Dec 15 4:00 PM EST
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To: carranza2 who wrote (108883)12/10/2014 10:53:37 AM
From: Tommaso2 Recommendations

Recommended By
carranza2
geewiz

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Not long before he died, John Templeton called the stock markets "broken." Without a reliable measuring stick of value, one of the functions of money, it is impossible to judge what something is truly worth. This so-called quantitative easing has inflated stock values much above what happened back in the decade 1963-1973. Any effort in the direction of what Volcker did to rescue the dollar will cause a very large contraction in stock prices.

In the last few years I have been trying to think my way through what is happening in the world economy. I would rather read my way through, but I don't find anything that is reliable enough. One thing that has happened is a constant acceleration in productivity of just about everything, from soybeans to smart phones. We've had the Asian economies manufacturing incredible amounts of goods, paying very low wages and at the same time using increasingly productive machines to do so. In the United States, the efficiencies of large-scale farming are astonishing. As we see with grim clarity for those of us who had counted on higher oil prices, excess supply can drive down prices immediately even when there is a lot of money being created.

A very small-scale model--and probably a deceptive on--is what I recently observed in a big grocery store I visited. They had ordered too many bags of clams and the expiration date for their sale had arrived. They were being marked down at a rate of about 15% per hour.

I wish that there were an economist whose writings I could count on to guide me. Unfortunately, everyone who writes on the subject seems bent on proving a point more than elucidating a truth. It's almost as bad as German transcendental philosophy.
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