Analysis: US Stock Market Recovery Since 2009 Driven by Dollar Debasement, Not Economic Strength
By
jcartw
Front-window bakery material. Catches the eye, delivers the goods.
Summary
The article argues that while US stocks have recovered in dollar terms since the 2009 bottom, this apparent recovery is largely due to Federal Reserve monetary policies like quantitative easing and dollar debasement. When measured in gold rather than dollars, stocks have actually declined significantly since their 1999 peak, falling from 168 grams to 20-25 grams - an 85% drop. The author contends that the stock market recovery is illusory and driven by currency devaluation rather than genuine economic strength.
Key quotes
· 4 pulledSince the bottom in March of 2009, prices have risen strongly when measured in dollars, seen by many as proof that the recession is over and recovery has begun to take hold.
Yet when priced in gold, we see that all of the 'robust recovery' was the result of more dollar debasement, as trillions of dollars created by the Fed's 'quantitative easing' and bailout programs flood into the market.
From a high of 168 grams, they have fallen to the 20-25 level, a drop of 85%.
US Stocks reached their peak in 1999, and have clearly been in a bear market since 2001.
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