Tuesday, February 25, 2014

How One Great Lie Spawned a National Debate

The other day, I was engaged in the usual back and forth banter with a friend of mine who thinks Obama is a great President and of course the default position is- "well even if he's not- it's George Bush's fault."

This is the liberal argument. We've all heard it. So this is nothing new.

Yesterday, Rick Santelli (on live television) pulled the trigger on the greatest lie ever told to the US public. That the economy is doing fine. This is the biggest crock of shit ever proffered forth as fact but why can't America see it? Why do they insist on telling us that everything is fine?

Why do we all argue ad nauseum about this?

Because the people in power, the rich and elite, corporate America, Congress and the President are all personally invested in the great lie. Every card carrying and faithful liberal in America is invested in the great lie.

Here is the great lie. If you conjure up 2 trillion dollars in stimulus, add 4 trillion dollars in QE programs, continue to offer zero interest rates to banks while delivering all of this excess cash to Wall St., corporate America, and the rich and elite- where is it going to go?

It's going to flow into the only investment in America with any kind of return. Equity markets. Equity markets are on the verge of tripling. The DJIA triples at 18, 900 from the March '09 low of 6300.

Do any of you honestly believe this is sustainable?

The make believe equity in the stock market is the same make believe equity every one had in their homes before that bubble burst.

If I was fully invested in this market right now- I'd sell every fucking thing I had in it and I'd run like I hit the lottery because I gotta tell ya- I never made 200% in 5 years on anything. That is a 40% annualized rate and the only way that can continue is if the FED conjures up another 6 trillion of so over the next 5 years. Then we might see DOW 33,000.

Remember when you make 40%- somebody has to lose 40%. It's the Frankenstein Government version of matter- matter cannot be created or destroyed. For you to win means someone else has to lose. I mean if you write covered calls on a stock, I buy them and call away your stock after I make 40%- that is how the economic matter principle works. So who are the counter parties- who is losing in this 6 trillion dollar experiment?  

Perhaps the FED will conjure up another 6 trillion after another 6 trillion and then we can have DOW 49,000. The truth is, it's all an illusion and none of us knows when this stupidity will end. But it will end. It has to.

Until then, we will have the great national debate from their side which is fully invested in the great lie and points to it every time they need an example- and the rest of us who understand that just because you conjure up a visual aid to help you with your argument- doesn't mean it's true.

Yesterday, Santelli while doing battle with the leftist media and Wall St sycophants, used the same argument that I have been using for 5 years.

If this economy is so fucking great, why does the FED keep pumping billions and trillions into it? Let's stop zero interest rates and QE right now- and see just how great this economy is. At that precise moment- everyone will lose their money, their equity will be wiped away, the left will be forced to admit they and theirs didn't solve anything and that nothing has changed.

We all pray for that moment because I am so sick of arguing with the leftists and everyone else invested in the great lie.

I can almost hear the howling now.


TurtleBurt said...

In case others missed Ricks epic rant,


Irish said...

I say the same thing to my friends.
It's not real

They just look at me

Unknown said...

When comparing the value of the S&P or DJIA use the value of the stocks priced in gold to remove the inflationary influence of printing money.
a sample quote " In terms of real money or other hard assets the US stock market has been on a decline since 2000 as indicated by the Dow/Gold ratio." (http://www.silverbearcafe.com/private/06.09/dowgold.html)
Other charts at http://www.macrotrends.net/1378/dow-to-gold-ratio-100-year-historical-chart

Unknown said...

DJIA priced in grams of gold; http://pricedingold.com/dow-jones-industrials/