Let’s discover the reality of the Stock Market boom.
As you read every word of this report you will become stunned at what I reveal. First let’s hear from David Stockman.
He states “I have a newsflash. The Imperial City will soon descend into dysfunction and paralysis like never before. When the current Presidential campaign reaches the bottom of the gutter, America will be virtually ungovernable. So when the next financial crisis comes along, Washington’s response will be the very opposite of the panicked “stick save” which happened in September-October 2008.
Right now there are two crucial features to keep in mind. The first is that Donald Trump is quickly proving himself to be the most spectacular unguided missile ever to hit American politics. He’s run such a scorched earth campaign that even if Hillary wins, she’ll be bruised, battered, blooded and delegitimized in the eyes of a huge slice of the electorate.”
Well the election is over…and dysfunction and paralysis is quite possible…and President Trump is the wild card that causes much uncertainty. Still, it’s quite nice the way he shakes up progressives.
See full story on Hillary’s Just The Beginning Of Crooked – The Daily Reckoning
No Stock Market Rescue this Time
Let’s face it. Stock Market averages have soared so far past the stratosphere it’s enough to make you pass out from lack of oxygen. The crazy stock market investors believed a Hillary Clinton election saves the day. Believing in her is similar to believing the Devil will save your soul. You Master the Social Maze when you give up your childish faith in illusions. Now, Wall Street thinks Donald Trump saved the day.
Just take a look at the following NASDAQ chart.
Since the crash of 2008, averages have climbed out of sight. How can this be…when there’s been absolutely no real recovery. You’re intelligent enough to know what’s going on. It has to do with the Fed’s QE and ZIRP scams. We’re seeing an artificial boom. It’s not going to be pretty when the bubble bust arrives.
So maybe you think it’s the Fed to the rescue. You might not know it…Yellen and company are out of fire power. When they had it, they didn’t know what heck they were doing…and now they’ve shot their wad. Their Keynesian monetary policies practically destroyed the middle class…and the international economic environment. Now all these economic quacks have left in their arsenal…is one of those cap guns you might have played with when you were a kid. Of course, Yellen and the rest of the Fed swindlers won’t cause much harm with a impotent gun. Unfortunately, they’ve already dropped an economic atomic bomb…and it’s ready to explode on the stock market. Just imagine the carnage on the S&P, Dow Jones and NASDAQ.
The Mathematical Economist’s Solution
You may be asking…isn’t there some kind of mathematical formula or computer logic that could get us out of this mess? Absolutely not…and here’s the reason why from the book 7 Destructive Economic Illusions Conquered.
“Mathematical economists attempt to quantify human action in their equations, which is absurd. There is no way anyone can quantify an individual’s value system. You can say the person prefers A to B, but it’s impossible to measure the intensity of his preference for A over B. You might love your spouse more than you love your best friend. But can you honestly state you love your spouse 33.3% more than you love your best friend? Definitely not. As you can see, the use of mathematical equations to quantify cause and effect relationships in human action is nonsensical and meaningless.
Equations are quite useful in obtaining knowledge in an inductive science such as classical physics; but useless in discovering knowledge in the deductive sciences of praxeology and logic. Mathematical economists are only fooling themselves when they take a perfectly useful science and misuse it. The deductive science of mathematics efficiently does the job when adding up costs and prices. You know what amazes me and should amaze you? The mathematical economist uses his equations to justify interfering with market processes, obliterating the efficiency of the pricing system.”
As you can see…the mathematical economist thinks his equations represent human action. What a joke…and it’s not very funny…especially for unwary stock market participants.
Flying High with the PE Ratio
The stock market is accelerating out of control with the Shiller PE ratio of the S&P 500 as of Friday, February 24, 2017 is 29.29. Soon you will sense…something’s seriously out of whack. Let’s look at some historic PE Ratios.
- Mean: 16.70
- Min: 4.78
- Max: 44.19
The following chart demonstrates the S&P stock market is flying high minus a parachute…with free fall a strong probability. Take a look at the red dots. It could be one heck of a crash…with numerous economic fatalities.
You might think…shouldn’t the PE ratio scare investors into getting the heck out of the stock market and placing their money in safer places? Obviously, they’re under the spell of the Fed’s “magic” and the Trump effect. One of these days economic reality will expose the Fed as the Wizard of QEE…quack quantitative easing. Unlike the Wizard of Oz who turned out to be nothing more than a humbug…this Wizard is rather sinister.
The No Inflation Illusion
Keynesian economists, Central Bankers and Mainstream “journalists” point out: Since prices haven’t risen… there is really no inflation.
It’s time to discover the classical definition of inflation. It’s an increase in the quantity of money (money supply). Higher prices result from inflation…an increase in the money supply.
Soldiers of the Elite refer to inflation as a general price increase. You may wonder why they would confuse the issue. It has to do placing blame somewhere. These liars and propagandists can blame capitalists, greedy businessmen, entrepreneurs, speculators, wage earners, lack of savings, foreign trade…anything but the real culprits…who we know as Banksters and their quack monetary policies. For instance, the Fed’s Quantitative Easing (QE) scam and Zero Interest Rate Policy (ZIRP).
The Fed prevents consumers from enjoying lower prices. Instead it caters to the Elite and its Soldiers…which includes the financial establishment. Hey, the Fed is ripping you off…big time. Does that make you happy?
Here’s a scary example…similar to our current situation. The stock market bubble of the late 20’s didn’t coincide with rampant consumer price increases. Instead, the Fed’s inflationary money found it’s way to the stock market. Damn, the Federal Reserve System has been at its monetary debauchery since its creation in 1913.
Illusion: This Time it’s Different
Maybe you’re thinking…this time it’s different. Well, I have news for you. It isn’t. Economic Law doesn’t change with the times…although progressives and Keynesian economists try to make it so. Since they play their monetary games as Soldiers of the Elite, they will hand you any kind economic BS. Members of the Hive Mind Mentality are expected to suck it up…as if it were pure honey. It’s amazing since it smells more like….you know.
Here’s another excerpt from the book 7 Destructive Economic Illusions Conquered. “Politicians, altruists, do-gooders and world-improvers (Soldiers of the Elite) convinced the masses that anything goes in the arena of economic policy. Their blatant disregard of Economic Law guarantees our economy continues to sink into the abyss of economic collapse, or at best economic stagnation. Sometimes it seems as if we are experiencing a recovery. However, this is only a short-term interruption of the long-term trend.”
Fact: Our 8 years of stagnation has wandered into a deep economic abyss. A new President doesn’t change reality. The stock market is a dangerous place to play.
We can always wonder…what kind of damage a Trump missile will inflict on members of the Elite and their Soldiers…and their favorite casino Wall Street.
RA Meyer – The Objectivist Warrior Masters the Social Maze