Our favorite stock indices are up nicely so far this year. Investors are reaping the reward of risking capital. Investors have employed skills. Ain’t we all smart?
I won’t go over the litany of bogus government data that the financial networks repeat endlessly. The truth is that the indices are up this year because Ben Bernanke’s Federal Reserve and Mario Draghi’s ECB have pushed them there. In so doing, they have pushed priced of everything higher. Readers may have noticed that gasoline and food prices are rising almost daily. This is the power of money creation. Sure, the goal of the central bankers is to enrich their big banker friends. Of course they have to create a financial crisis and then solve the same crisis by manifesting money from thin air of which they then ‘lend’ to bankers and gooberments alike. All participants are glad to accept the apple from the serpent as they deceive the populace into thinking the new money will benefit all. But even a US Congressperson would eventually recognize that this is nothing but a con if the central banks only gave money to big banksters. So, the central bankers splatter money everywhere including the stock casinos.
Most investors are so busy deluding themselves as to their investment prowess that they fail to recognize that the true fuel to their wellbeing is getting stolen right out from under their noses. That is, as long as the casino keeps registering gains. This is the strategy of the central bankers. They keep investors fooled with stock gains.
True stock gains should reflect reality. There are winners and losers and investors should profit from knowledge of both. Winners are more valuable than losers. But what happens when value gets stripped out of the equation? What happens when all stocks are simply chips on the roulette wheel? Who determines the value of the chips? The central bankers do. Yet, investors still believe in the game.
I would like to enter the chart below into our consciousness. This is Exhibit A in the argument that all value has been lost in what used to be a market. The chart shows two indexes with year-to-date performance. The gold line is the Dow Jones Industrials and while it has done well this year, the other line in the chart has done better. What does the other line represent? I think most readers will be shocked to learn that the line representing the better of the gains is actually a Greece ETF - the ATG. Yes, the Greek indexes have outperformed the Dow so far this year. Still feeling smart?
Neither line represents true value, Both are merely prices and prices can be manipulated by the people that dispense the currency. Greece is likely entering a depression.Their economy is in ruin and their leaders have surrendered to ECB control. For perspective, Greece just agreed to harsh economic austerity measures in exchange for another $130 billion in loans. The Greek GDP is only about $300 billion.This is the second loan of such amount in the last year. In other words, this would be like the US needing about $13 trillion in bailout money as its GDP is around $15 trillion. This kind of economic destruction will not cease until the central bankers are recognized by the common man as the great Andrew Jackson recognized them - as ‘a den of vipers and thieves’.
Anyway, the chart tells the story. If we were all so smart, we would have had our money in Greece since the bankers are working hard to sell their lies on economic solutions. Yes, it is nice to see the Dow up this year. But, it doesn’t mean a thing and worse, the gains can dissipate in the blink of a central banker paper jam! Ain’t we all so smart?
YTD - ATG in red/black, DJIA in gold
Chart courtesy StockCharts.com
Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article. Advisory services offered through BMF Investments, Inc.