It would be nice if the markets reflected the health of the economy but the stock exchange is being fueled by the Fed’s “easy money” policy. Brokers can borrow money at almost 0 % interest, buy short term securities, derivatives, and other financial instruments, make 2 to 5 percent profit, sell them and repay the Fed. Add to that the Fed is buying back 75% of the treasuries they issue to pump money into the economy and the markets are just gushing cash. Bernake keeps assuring congress that this isn’t an inflationary policy and if the markets are healthy and thriving it will keep interest rates low and stimulate housing and supposedly hiring. Unfortunately it isn’t doing much for unemployment and borrowing by small business is still restricted.
Amen.I use daily closings of the DOW Industrials to track the “economic health” of the USA….but I have suspected that this recent “rise” might be a “bubble” of inflated value due to the pumping of “new money” at $85 Billion a month….and today I find several articles saying just that!-USA TODAY’s 3/4 editorial and NYT’s 3/5 article “As Fears Recede, Dow Industrials Hit a Milestone”…and CNN Money had charts on Sunday or Monday showing the 2007 HIGH, just before the Recession hit…! Not a good omen, IMO.-Also IMO it is dishonest to print “dollars” without solid metal (gold, silver) backing….isn’t it only the “bubble” of fools accepting worhless paper on the connivance of spendthrift governments? Bailing out failed businesses just because they are “too big to fail” is not honest, either. Our “economy” is pure deception due to the Fed and silly presidents who get talked into actions that are unwise, IMO.
I believe it was Nixon who “officially” took us off the gold standard, even though we haven’t been tethered to it for a while. William Jennings Bryan ran on the “Gold Standard” and got beat, twice.
Gold hasn’t really increased its value in several thousand years.In ancient Rome, an ounce of gold would get you a really nice toga.Today, an ounce of gold will get you a really nice suit.
Unfortunately, our governor has decided to give us an income tax break by expanding sales taxes to services, and prohibit municipalities, (which have been hard hit by his previous tax changes) from adding to their tax base by freezing total sales tax percentages. When he gets done, the next governor will have a Bush-size mess to clean up, because the state may do well, but the cities will be desperate to just keep up with inflation.
JFK was the president that cut the paper dollar free from gold.The government artificially kept the price of 1 ounce of gold at $35 for a long time. When freed, it rose and is now over $1575 an ounce….showing the worthlessness of the paper dollar….value of both is shown by the gap in prices….-@neocon….the DOW is inflated by the “independent” Federal Reserve..which has been pouring $85 Billion each and every month into bonds….and doesn’t plan to stop!…. Monday the Fed Vice Chair Janet Yellen said the Fed must continue it aggressive purchasing of bonds “to stimulate the US economy and spur employment”…“since Feb. the Fed has more than tripled the size of its portfolio of assets to $2.861 Trillion….”The Fed is slated to continue until unemployment drops from the current 7.9% to 6.5%."(from Reuters, Wall St. Journal, and Washington Post sources in www.breitbart.com article by Wnton Hall 3/5/13)
Tigger: yes, it was "W"’s actions on intelligence that “got” bin Laden: safely across the border, and hiding in plain site in Pakistan! (for seven years)
Braindead: Thank you. As I said, Nixon “officially” cut us free. FDR confiscated gold to bolster the dollar, but never cut us free. As to W J Bryan, I was trying to remember an old cartoon from my elementary school history book, and probably got it wrong. And to Benghazi: a Presidential order wouldn’t have mattered, as the new government in Libya had placed a ban on contractors, which our illustrious State Department had been using for years instead of Marine Guards. And up until the day of the attack, there was no indication, to our ever vigilant spy services, that there was an attack planned. And Ambassador Stevens appears to have been against a heavier presence to show we were not attempting to be the big influence that got us in trouble in the Middle East to start!
Mickey 13 about 11 years ago
It would be nice if the markets reflected the health of the economy but the stock exchange is being fueled by the Fed’s “easy money” policy. Brokers can borrow money at almost 0 % interest, buy short term securities, derivatives, and other financial instruments, make 2 to 5 percent profit, sell them and repay the Fed. Add to that the Fed is buying back 75% of the treasuries they issue to pump money into the economy and the markets are just gushing cash. Bernake keeps assuring congress that this isn’t an inflationary policy and if the markets are healthy and thriving it will keep interest rates low and stimulate housing and supposedly hiring. Unfortunately it isn’t doing much for unemployment and borrowing by small business is still restricted.
disgustedtaxpayer about 11 years ago
Amen.I use daily closings of the DOW Industrials to track the “economic health” of the USA….but I have suspected that this recent “rise” might be a “bubble” of inflated value due to the pumping of “new money” at $85 Billion a month….and today I find several articles saying just that!-USA TODAY’s 3/4 editorial and NYT’s 3/5 article “As Fears Recede, Dow Industrials Hit a Milestone”…and CNN Money had charts on Sunday or Monday showing the 2007 HIGH, just before the Recession hit…! Not a good omen, IMO.-Also IMO it is dishonest to print “dollars” without solid metal (gold, silver) backing….isn’t it only the “bubble” of fools accepting worhless paper on the connivance of spendthrift governments? Bailing out failed businesses just because they are “too big to fail” is not honest, either. Our “economy” is pure deception due to the Fed and silly presidents who get talked into actions that are unwise, IMO.
edward thomas Premium Member about 11 years ago
I believe it was Nixon who “officially” took us off the gold standard, even though we haven’t been tethered to it for a while. William Jennings Bryan ran on the “Gold Standard” and got beat, twice.
Nebulous Premium Member about 11 years ago
Gold hasn’t really increased its value in several thousand years.In ancient Rome, an ounce of gold would get you a really nice toga.Today, an ounce of gold will get you a really nice suit.
rockngolfer about 11 years ago
The stock market does’t take inflation into account, but the current rise is still impressive.
edward thomas Premium Member about 11 years ago
King: Best post I’ve read in quite a while. I’ll be laughing all morning!
edward thomas Premium Member about 11 years ago
Unfortunately, our governor has decided to give us an income tax break by expanding sales taxes to services, and prohibit municipalities, (which have been hard hit by his previous tax changes) from adding to their tax base by freezing total sales tax percentages. When he gets done, the next governor will have a Bush-size mess to clean up, because the state may do well, but the cities will be desperate to just keep up with inflation.
disgustedtaxpayer about 11 years ago
JFK was the president that cut the paper dollar free from gold.The government artificially kept the price of 1 ounce of gold at $35 for a long time. When freed, it rose and is now over $1575 an ounce….showing the worthlessness of the paper dollar….value of both is shown by the gap in prices….-@neocon….the DOW is inflated by the “independent” Federal Reserve..which has been pouring $85 Billion each and every month into bonds….and doesn’t plan to stop!…. Monday the Fed Vice Chair Janet Yellen said the Fed must continue it aggressive purchasing of bonds “to stimulate the US economy and spur employment”…“since Feb. the Fed has more than tripled the size of its portfolio of assets to $2.861 Trillion….”The Fed is slated to continue until unemployment drops from the current 7.9% to 6.5%."(from Reuters, Wall St. Journal, and Washington Post sources in www.breitbart.com article by Wnton Hall 3/5/13)
Dtroutma about 11 years ago
Tigger: yes, it was "W"’s actions on intelligence that “got” bin Laden: safely across the border, and hiding in plain site in Pakistan! (for seven years)
edward thomas Premium Member about 11 years ago
Braindead: Thank you. As I said, Nixon “officially” cut us free. FDR confiscated gold to bolster the dollar, but never cut us free. As to W J Bryan, I was trying to remember an old cartoon from my elementary school history book, and probably got it wrong. And to Benghazi: a Presidential order wouldn’t have mattered, as the new government in Libya had placed a ban on contractors, which our illustrious State Department had been using for years instead of Marine Guards. And up until the day of the attack, there was no indication, to our ever vigilant spy services, that there was an attack planned. And Ambassador Stevens appears to have been against a heavier presence to show we were not attempting to be the big influence that got us in trouble in the Middle East to start!