Dow Approaches 30,0000 points: What’s the point?

[Austrian Economics]

The real cause of the great depression is not even talked about today. I believe it was central bank money printing goosing the late stages of the business cycle in the later part of the twenties. False economic signals were then provided causing people to buy assets especially stocks with more debt. Does that ever sound familiar. How on earth are economies that have been living on life support for more than a decade now going to provide growth to service this new debt? Have been taking profits from the vaccine hype lately myself.

The Great Depression arose as a result of the crippling debt overhang from World War One. Germany and Russia were bankrupt and economically ruined. Britain and France struggled throughout the 20s to reckon with their debts by conspiring with the U.S. Federal Reserve to artificially suppress interest rates. The collapse in interest rates, however, created an artificial economic boom which could not be sustained. Contrary to popular belief, the Depression did not actually end until 1947. It was in that year that interest rates began to rise as the rate of return of the marginal business finally got above the rate of interest and an economic recovery could begin.

[errolanderson]

The Great Depression arose as a result of the crippling debt overhang from World War One. Germany and Russia were bankrupt and economically ruined. Britain and France struggled throughout the 20s to reckon with their debts by conspiring with the U.S. Federal Reserve to artificially suppress interest rates. The collapse in interest rates, however, created an artificial economic boom which could not be sustained. Contrary to popular belief, the Depression did not actually end until 1947. It was in that year that interest rates began to rise as the rate of return of the marginal business finally got above the rate of interest and an economic recovery could begin.

And the back-slapping of central bankers that they are the ‘good ol boys’ can stop anytime now.

Central bankers and failing old school Keynes economics (at the end of a business cycle) are largely the problem creating massive deficit spending that creates no economy and a whole lot of longterm pain. This will drag global standard-of-livings into the gutter through the 2020s IMO).

[jazz]

That BMO guy disturbs me. How will Canada go on a bull run with 12% UE and set to rise, 2nd lockdown, all levels of govt budgets destroyed and our biggest export (oil) in the dumps.

[bucket]

That BMO guy disturbs me. How will Canada go on a bull run with 12% UE and set to rise, 2nd lockdown, all levels of govt budgets destroyed and our biggest export (oil) in the dumps.

I think agriculture will pull us through. ....look at what Russia has done ....from customer to competitor in my lifetime....

Gotta tell you. ...Putin has vision...


Canada's leaders ....not so much....

[jazz]

This was posted up on twitter today. If this is true and something similar applies in canada, then we are truly fd.

[macdon02]

Buy low, sell high

[biglentil]

Usd about to lose its 9x handle. Ugly for those that thought dollars are a safe haven.

[farmaholic]

The people who understand the value of money the most are those without any!

Although, I'm not saying those with it shouldn't worry about it's value or making it work as hard for them as possible.

[jazz]

Usd about to lose its 9x handle. Ugly for those that thought dollars are a safe haven.

Relative safe haven lentil. If the USD falters so will a lot of other currencies. All that matters is the spread.

[AlbertaFarmer5]

It would be interesting to see that USD chart overlaid with A chart showing the probability of a Biden win. Looks like a very good inverse relationship there. Read what you want into that observation.

[farming101]

The Euro which makes up over 50% of the USDX is enjoying a 30 month high against the USD, with a bit more room to rise yet.

[errolanderson]

This fact about says-it-all . . . . The U.S. money supply (M1) has now exploded by 55% since February.

35% of all U.S. dollars in-existence have been printed in just the past ten (10) months. And each massive injection triggers a reduced stimulus (money printing) response.

If flying at 30,000 feet and gauges were showing these types of vitals . . . start looking for the next airport real fast (IMO) . . . .

[helmsdale]

This fact about says-it-all . . . . The U.S. money supply (M1) has now exploded by 55% since February.

35% of all U.S. dollars in-existence have been printed in just the past ten (10) months. And each massive injection triggers a reduced stimulus (money printing) response.

And velocity of M1 is plumbing all time lows... what gives? Seems they can print it, but they cant make people spend it.

[shtferbrains]

So of that 35% recently printed how much of that went directly into purchasing shares to pump the market.

If so does the US Treasury have a big stake in the market today?

[errolanderson]

So of that 35% recently printed how much of that went directly into purchasing shares to pump the market.

If so does the US Treasury have a big stake in the market today?

The Fed now controls the stock market . . . that is why is the Dow is now 30,000 feet in-the-air but the plane now losing cabin pressure on failing stimulus. This is a Keynes economics meltdown in-progress (IMO).