Almost all Dow “gains” are due to inflation
This Mises article was sent to us by Jeff. It makes a very interesting connection between the increase in the Dow since 2000 and the increase in the CPI.
What do you think about today’s editorial with Rick?
Dollar dropping….time to slam gold!
CFS, you are smart guy. Where do you see the dollar in a year’s time? Do you believe it might strengthen if other currencies start crashing, or do you believe investors will pass on the dollar and head straight into gold and silver?
The dollar index is so dependent on the Euro, I really don’t know where it will be in a year.
Will England still be in the EU in a year? Probably, but I don’t see the Euro existing for another 5 years, free trade zone probably, but no unified currency. The UK was correct in not joining the single currency, but Scotland will probably break away from the UK. Portugal, Spain are basket cases. Portugal and Greece can be very grateful for all the infrastructure given to them by the rest of the EU, but will possibly be kicked out of the EU.
But then again maybe not, because the Council of Ministers is ideologically driven, not by economics and commonsense.
I know only that money will buy less goods and services.
thanks cfs, used this on today’s first editorial.
ditto on the Wiemer……..Inflation has been running close to 10% for years……the stock market gain should be inflationary adjusted, but, the masses can not do math, it is like rocket science…………………..what a joke………………………j……….
What are you talking about! There is no inflation. None whatsoever. Since I changed my diet and started eating Ipads(this is the one of the items the Fed uses to track inflation), my food bill has gone down dramatically. You must be one of those 1% who has burgers for dinner and eats an apple before going to bed. /sarc.
I do like apples……….organic of course……..no pesticides like ROUNDUP, which is a killer to human cells.
Well, it looks like 1322 is holding and time to go up a test a newer high………
Currently at $1307.
The moment I leave, ………and sneaky Yellen pushes the button, She must have the button tied to the flush handle on her toilet………
back up……….1315………
J, look again at gold…..how do you spell m-a-n-i-p-u-l-a-t-i-o-n?
Thanks Professor and Chris. Used you both in our first daily editorial.
Best
Gold was taken to the woodshed at about 10:15. To be honest, I don’t care. I think Gary is going to be proven correct again. Better to get the correction over with now so we can continue higher in short order.
Actually, it started right at 10am Eastern and was clearly reaction to some piece of “news” being served up as news. Whatever the reason, this is the start of the “Last Smash Job” that will take us down to $1224 for the Final Low.
M.A.D, I have been following your posts with great interest. I don’t believe gold will go down to $1224, but if it does I will be the first one to congratulate you. And I believe gold’s reaction was due because of the JOLTS report, which wasn’t too rosy in some respects.
Ok, Chris, I’m basing it on my interpretation of cycles and Elliott, backed by the two recent COT reports on gold and silver. It’s going to one last battle between the “CrimNakes” on one side and “The Backstop Boyz” on the other, and it’s going to be better than the “Rumble In The Jungle” or the “Thrilla’ in Manila” or Mike taking a bite out of Evander’s ear.
Wiemar style gains, baby! Just Wiemar all over again.