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.

Now to the masses this will cause confusion, the market is up, things must be good right? Well not if you ask Gallup. Gallup polls Presidential races where over 100 million people show up to the polls, they are usually off by about 1% from what the actual result is. We say this because we trust Gallup over the Bureau of Labor Statistics (BLS) or what we like to call the ministry of information.

The BLS for decades has been nothing more than a tool of Keynesian propaganda, the latest info from the BLS says that unemployment is dropping. However, according to Gallup, real unemployment is 19%, this is everyone who wants a full time job but doesn't have one.

ShadowStats.com also puts the real unemployment number around 20%. So, two private companies that earn profits for being accurate are saying unemployment is 2.5X higher than what the government is reporting.

Looking at the Dow Jones, the nominal gain is an illusion, just as the BLS employment gains are an illusion. This bothers FutureMoneyTrends.com <

http://click.icptrack.com/icp/relay.php?r=30896451&msgid=193845&act=70I4&c=740151&destination=http%3A%2F%2FFutureMoneyTrends.com > greatly because millions will make life altering decisions based off of pure propaganda coordinated by the bankers, government, and media. Careers, degrees, the location of where people live, will all be altered as the propaganda machine is giving everyone the thumbs up on the economy.

Tomorrow, FutureMoneyTrends.com <

http://click.icptrack.com/icp/relay.php?r=30896451&msgid=193845&act=70I4&c=740151&destination=http%3A%2F%2FFutureMoneyTrends.com > will be sharing a company with our members that has been making a lot of news as they make gains in the classified ads market. Though we look at this company only as a day trade, the underlining trend is good for this company as they are trying to capitalize on what we believe will cater to the new economy. Barter, buying used, and shopping from home, look for our new day trading idea in the morning.

From our friends over at ZeroHedge.com

Here is Why The Dow Just Passed 13,000

Wondering why the DJIA just passed 13K again? Wonder no more: as the chart below shows it is entirely due to the nearly $7 trillion pumped by global central banks into the world stock markets just in the past 4 years. As Sean Corrigan from Diapason notes, the aggregate global central bank balance sheet has doubled in four years, after doubling in the 5 years before that. We would add that with the entire centrally planned ponzi scheme hell bent on preserving the illusion of nominal gains, global liquidity is now fungibly sloshing from one market to another with absolutely zero resistance whatsoever. At this rate, it should double again in 3 years, then 2, and so on. Will the Dow hit 52K in 5 years in that case? Why most certainly. Just ask any remaining citizens of the Weimar Republic. They know all too well about exponential stock market rises. They also know absolutely everything about the self-delusion that comes with chasing NOMINAL numbers. Oh, and before we forget, expressed in spot gold price, the central bank aggregate tally has moved from being the equivalent of 10 billion oz of gold, to just 8 billion. Guess what is 20% under priced.

https://staticapp.icpsc.com/icp/loadimage.php/mogile/740151/23431b9507ce2cacbb49ff4970ba9651/image/png >

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