Tag Archives: QEI

Today the Dow broke a record and will likely finish the day with a record high. Some thoughts on a Fed driven rally.

Many of us have watched the climb of the stock market since March of 2009 with a general sense of of unease.  We’ve watched our central bank, the Federal Reserve, do all that it could/can to move shares up. Every time the markets faltered the Fed came to the rescue and dumped piles of cash on Wall Street. Check out this chart of the correlation between the Fed’s printing efforts of the past few years and performance of the S&P.

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The Current Currency War (Infographic)

The major economic players of the world are in the midst of devaluing their currencies, or attempting to. The goal is to increase competitiveness of exports and boost domestic economic activity especially in manufacturing. One of the problems is that this sort of thing often results in price inflation, often damaging inflation and societal disruption. The last big currency war happened in the 1930s.

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The Third Stage of Economic Grief

Bill Fleckenstein explains that the reason the economy doesn’t feel like it’s recovering is because it’s not. The rise in asset prices and bonds is purely a creation of central banks printing with unprecedented abandon. Like the tech bubble and the housing bubble, the current Fed driven asset inflation will end badly. But when it ends this time the scale will be much larger.

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