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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (53555)	10/23/2013 12:31:48 PM
From: ggersh	Read Replies (2) \| Respond to of 71453

The bar keeps getting set lower and GS keeps raising the PE multiple, it's all on autopilot, and the autopilot is broken. -g/nfg- How much longer can earnings grow as revenues top out and start declining?

To: Real Man who wrote (53555)	10/23/2013 4:22:37 PM
From: John	1 Recommendation Recommended By ggersh Read Replies (3) \| Respond to of 71453

It's a bizarre situation where the money is (seemingly) kept in hands of the relative few who control the equity and bond markets. How many people in the entire world own stocks and bonds? If I had to guess, I would think the number is below 5%. As for QE[infinity], it is is obviously intended to keep the equity and bond markets artificially afloat. Imagine playing the game of monopoly with scores of other people. You're the man who owns and controls the bank and monopoly money. Now, imagine a twist on the game where you are able to print as much new monopoly money as you want for yourself and a couple of your friends in the game. Everyone else is at the mercy of your rules and what you and your close circle of friends elect to give them in exchange for specific favors. Another twist on the analogy of the stock and bond markets is the game of Roulette. In Roulette, the martingale scheme (like all schemes) is commonly used, but it mathematically doomed to failure over time. It is simply impossible to always double one's bet and win due to (a) the finite size of one's bankroll, and (b) the house limit. Central banks "legally" overcome both limitations in real life by literally having an infinite bankroll and no house limit. They can print fiat currency to infinity and buy stocks and bonds for themselves and their closest enablers through infinity. The big question is when does the confidence in the fiat currency break down? Is it a slow erosion process over time or will it be sudden and catastrophic? In considering this question, we have to remember that the problem is relative, because all governments and central banks in the world are doing the same; promising to give citizens something tomorrow for our time, labor, and confidence today. The process is deeply flawed and seemingly doomed to fail, but when? Or, are people really so ignorant that it will never fail? Will 1 trillion [insert currency here] simply be viewed as 1 by future generations as the beat goes on?