Tuesday, March 16, 2010

S&P 500 Is A Paper Bull!

I think the graph below speaks for itself.  But in case it's not clear, the graph compares the "Monetary Base" which is the narrowest definition of money supply vs the S&P 500 weekly closes since 1/1/09.  The conclusion I draw is that the "recovery", at least as it is defined by the stock market, is illusory and 83% a function of the PRINTING PRESS!



Krugman and his Phlogistonomics

Peter Schiff drills the Keynesian...

http://www.youtube.com/watch?v=11WlFlO_mDg&feature=player_embedded

Keynesianomics explained:

consumption creates profit
profit creates production
production creates income
income creates consumption

Any physicist would instantly recognize this goofy-ass theory as "perpetual motion machine" nonsense

The real way economics works...

CONSUMPTION comes from CAPITAL
CAPITAL comes from INVESTMENT
INVESTMENT comes from SAVINGS
SAVINGS comes from DEFERRED CONSUMPTION

Try this on the next Keynesian clown you come across and watch them flop around trying to make sense of it.