She did not, however, explain how it was Fed money printing that has been fueling the stock market boom.
Joe Weisenthal is out with this chart reminding us what the stock market did in 1996, after then-Fed chair Alan Greenspan warned of irrational exuberance in the stock market:
To be clear, I do not necessarily believe that because of what occurred after Greenspan's comments that the same kind of boom will occur in the social media sector and the biotech sector. My point is that warnings from Fed chairs should not be taken too seriously. That said, what needs to be watched is money supply growth. As I have been reporting in the EPJ Daily Alert, money supply growth is slowing. If this trend continues, it is going to be a problem for a lot more than the social media and biotech sectors.
-RW
On Tuesday, July 15, 2014, Fed Chairman Jane Jellen spoke in Semiannual Monetary Policy Report To Congress, and stocks, commodities, bonds, and currencies all traded lower, evidencing the failure of fiat money.
ReplyDeleteDebt deflation is underway as Credit Investments, AGG, traded lower, as the Interest Rate on the US Ten Year Notes, ^TNX, traded higher from its Friday July 11, 2014, value of 2.52% to 2.55%; thus evidencing that the bond vigilantes are in control of Interest Rates worldwide.
Major World Currencies, DBV, were led lower by the Canadian Dollar, FXC; and Emerging Market Currencies, CEW, were led lower by the Brazilian Real, BZF.
On July 2, 2014, the failure of credit commenced as Aggregate Credit, AGG, traded lower in value.
On Monday, July 7, 2014, the destruction of fiat wealth commenced, as risk-on investing turned to risk-off investing, with World Stocks, ACWI, Nation Investment, EFA, Global Financials, IXG, and Yield Bearing Investments, DTN, all trading lower from rally highs, as investors fear that the monetary policies of the world central banks no longer stimulate investment gains nor global economic growth.
On Tuesday, July 15, 2014, the death of currencies commenced as is seen in the Commodity Currencies, CCX, such as the Canadian Dollar, FXC, the Euro, FXA, and the Australian Dollar, FXA, trading lower, on fear that the monetary policies of the world central banks have crossed the rubicon of sound monetary policy and have made money good investments bad.
One should not be invested in Equity Investments, Nation Investments, Banking Investments, Yield Bearing Investment, or Credit Investments, as the death of Sovereign Currencies, commenced on Tuesday July 15, 2014, after Janet Yellen spoke in Semiannual Monetary Policy Report To Congress.
Fiat Money, defined as the combination of Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, died on Tuesday July 15, 2014, as investors fear that the monetary policies have crossed the rubicon of sound monetary policies and have made money good investments bad.
It may be that Gold will be trading lower in value, as it does, one should be dollar cost averaging into the physical possession of gold bullion, as it is the only safe asset and will eventually be trading higher as all fiat assets trade lower in value. Gold is in the middle of an Elliott Wave 3 Up, these are the most dynamic and sweeping of all economic waves, as they move higher to their Elliott Wave 5 High.
One should not be invested in Equity Investments, Nation Investments, Banking Investments, Yield Bearing Investment, or Credit Investments, as the death of Sovereign Currencies, commenced on Tuesday July 15, 2014, after Janet Yellen spoke in Semiannual Monetary Policy Report To Congress.
Fiat Money, defined as the combination of Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, died on Tuesday July 15, 2014, as investors fear that the monetary policies have crossed the rubicon of sound monetary policies and have made money good investments bad.
Please consider that given that Fiat Wealth, That Is The Coinage Of The Banker Regime, Is Trading Lower In Value, The World Has Pivoted Into Kondratieff Winter.
The failure of credit, which occurred on July 2, 1014, and the death of currencies, which occurred on July 15, 2014, are dual extinction events, which will rapidly make the investor extinct.
The Bond Vigilantes, being in firm control of The Bow of Economic Sovereignty, that is the Benchmark Interest Rate, will be calling Interest Rates higher worldwide, introducing political coup d etats; out of which the new money, diktat money, defined as the mandates of regional leaders for regional security, stability, and sustainability, will underwrite regional fascism replacing today’s crony capitalism, socialism, and communism.
Inasmuch as destructionism is replacing inflationism, the economic future is one of global economic deflation, and rising headline price inflation.