Thursday, June 09, 2016

Dear Stock Market…
[Cliff Küle keeps bringing you the analysts that warn about record high values that are subject to fall, but almost every analyst keeps missing our point: the measuring instrument, 'money' is being trashed. Previous valuations throughout history were based on a currency that was like an elastic band that wasn't being 'stretched' as much. Get It? Comparing today's valuation metrics to those of yesteryear is DISHONEST. We don't have HONEST money, as the Constitution requires. America has 'elastic' currency controlled by a very privileged monopoly that the Founding Fathers would never have accepted.]
You have to love Thad Beversdorf's linguistic ability.....
Dear Stock Market, I need you to pull your head out of your ass. You are paying record valuations in the face of the identical earnings deterioration we saw heading into the financial crisis. The growth you are pricing in simply cannot be realized. Real incomes are the same level they were in 1990. But the real S&P price level is 3x higher today. What’s that? Population growth is the key to earnings growth you say, because we know credit and welfare are beyond sustainable levels at all time record highs? The problem with that is population growth is at 100 year lows. And so if Income, Population, Credit and Welfare have flatlined for the foreseeable future (which is clearly showing up in the collapsing current earnings growth rates) from whence is the record growth being priced into the market going to be realized? Robots or Refugees? Signed,
- Dead Money.  
LINK HERE to the letter
When the Federal Reserve was being established in 1913 the claim was that it would help the country to have a more 'elastic' currency. We say that was a big load of OBFUSCATING MAGNILOQUENCE (ie. bulls--t). How many Americans understood the term 'elastic' in terms of the currency in 1913? How many understand it now? Our regular readers understand that the 'elasticity' of the U.S. $ is being stretched to the point where it could kill the system .. the Federal Reserve System that has covertly been fighting against a Free Market System for more than 100 years!

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