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Is the Stock Market Really going up?

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The Central Bank Illusion of a Rising Stock Market

Once again, it is time for CNBC fans to get out their party hats, the Dow has broken through 13,000!!! My goodness, what an incredible nominal gain for those who invested in the Dow 5 years ago, wait a minute, scratch that because those that invested 5 years ago are still down. Yes it is true, the Dow has been nominally rising overall since March 2009, but this is mainly due to central planners printing like a Kincos employee of the month on steroids. Gold five years ago was $650 per ounce, today it was trading for around $1,750, a fiat gain of 170%. Oil was trading for around $60 a barrel the last time the Dow crossed the 13,000 mark, today it broke $106, for a fiat gain of 76%.

No matter how you look at the Dow Jones, in real terms, its ugly priced in stuff, the Dow is down. Priced in fiat currency that has been pumped into the economy by the trillions, the Dow Jones is up. It really is that simple, we are in a currency crisis and the result of central planners devaluing the currencies they are responsible for has given the illusion of a robust stock market.


Written by opinionoregon

February 21, 2012 at 9:16 pm

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