Monday, June 10, 2013

The Weekly Outlook - $DJIA $SPX $NDX ~ Nothing Can Be Done?

*****When markets will not react to news and economic data in a historic fashion, you know there's some major manipulation going on. When that happens, predictability goes out the window and possibllities arise which normally would not be considered. That is what's been happening realistically in the markets for several years and it will not soon, if ever, change.

The world has now become used to the idea that all problems can be fixed by one government or another, patched by one international monetary regulatory agency or another, to make you believe that all is possible and no one will suffer the consequence. All make believe except to those who pay at the real markets: food, gasoline, heating oil, transportation, sales taxes, value added taxes etc. Evidence of the rising is all around at the entertainment venues and restaurants. They are not as crowded, and tickets are more likely to be had at a discount, even for free. Promotions last longer too, or some previously successful events are cancelled for lack of attendance. People are voting with their dollars in other ways too but not often where it really counts.

One does not have to look very far to have seen the creeping inflation which is getting harder and harder to hide by monetary policy manipulations, hence now they are beginning to hedge. Of course those of us who have been keeping an eye on the money markets and the real markets could not help but see the dollar being more and more diluted and consumer necessity prices more and more inflated. If you cannot see it, you have not been shopping or paying your own bills. Unfortunately, once this type of manipulation takes place, nothing can be done. Everyone blames everyone else for greed and wants more for themselves in form of wages, taxes or bonuses, all the while ignoring their own hand in the creation.

We all create our own reality, whether we do it directly or indirectly in a voting booth, it takes courage to face what we have created but the sooner we do, the sooner we can learn from the mistakes and correct them. Doing nothing will only prolong the inevitable, although your children won't know it.

What does it take? Price too high, don't buy, which is easier said yet it's how it's done. Don't demand that raise, it contributes to diluting the dollars you get and inflating prices you are willing to pay with your seemingly more income.  Unfortunately it would take a large number of people to create the consensus since everyone is in pursuit of the imaginary wealth. Hence yesterdays millionaires are today's billionaires and there are more millionaires than ever, but it's still not enough. Caution about who's got the wealth and reminder about what is wealth falls on deaf ears, but let's not get crazy with that because "yesterday" $25k would have been enough to live very comfortably and today, well, $250k is not enough to the same group.

One thing is for certain, inflation eventually will take more bite than gives love and, in the longer term, it's what robs one of real wealth and puts us into slavery.

Comes Love by Stacey Kent on Grooveshark

Happy Trading, Living and Dancing

The Weekly Outlook - $DJIA $SPX $NDX

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