And the Balloon is Fully Inflated

14 Dec

So, now that the Fed is theoretically announcing the impending rise in interest rates, (looks like Wednsday), the Dow, across many sectors, finds itself losing value. Hmm.

Because, the market, historically, has been, an expression of at least 2 things. First is the value of the bricks, mortar and inventory of the entity. Second, there is the value forward, the buy and hope element, that a stock bought will increase in value.

But in this Brave New World of financial manipulations, there has been a third element.

As the Fed has introduced more and more money into the economy, sans the Volker required increase in wealth, (the charter of the Fed, to add dollars as value is created), those smart fellas on K Street traded, via stocks, attempting to harness the fluctuation, yesterdays dollars for todays.

If $1.00 is a buck today, and 100 bucks exist in the system, and the Fed prints 10 more bucks, the stock you bought yesterday for a buck, is now worth a $buck.10. The bricks didn’t change, the mortar is still the same and the inventory, well, it will cost more, because yesterdays dollar has been reduced in value by 10%.

And the fellas on Wall Street know it. The regular easing by the Fed, introducing more dollars while the economy was stagnant, has caused inflation. “They” won’t tell you. You go to the grocery store. You know it.

The real crime is that our leaders hold up this “improving” Stock Market, it’s recovery from the greatest recession of our life time to record highs, as proof of the wisdom of their stewardship.

What it really is, is yet another revelation of our government’s abuse of facts to assuage our fears and lead our fellow lemmings to the cliff.

The Fed is gonna raise interest rates. That is good news. Now, your gonna have to make your own bucks.

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