tag:blogger.com,1999:blog-1592992209402300549.post2015749940492248686..comments2024-03-29T09:08:47.702-04:00Comments on The Silicon Graybeard: Trashing the DollarSiGraybeardhttp://www.blogger.com/profile/00280583031339062059noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-1592992209402300549.post-68127265196788273402017-07-28T14:29:40.963-04:002017-07-28T14:29:40.963-04:00Can it wait awhile. I'm about to go to Canada...Can it wait awhile. I'm about to go to Canada in my 10 mgp motorhome with a 55 gal tank. It costs me $200 Canadian to fill up, more as I get into the Northern Territories. Right now that is $150 or so American. Still not cheap but... Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-91487458694208141492017-07-28T10:42:35.067-04:002017-07-28T10:42:35.067-04:00The stock market will continue to go up (with occa...<i>The stock market will continue to go up (with occasional dips) as long as people keep putting money into their retirement accounts. More money chasing the (relatively) same stocks means the price of those stocks go up. </i> <br /><br />That's partly true. There are also foreign banks taking the QE money the other central banks create out of thin air and putting it into our stock market. In the first six months of this year, the Bank of Japan, the Bank of England, the European Central Bank, and other central banks were adding to the world’s cash at a combined rate of about $250 billion a month. Much of that $1.5 Trillion ended up bidding up US stock market prices. It's not just US fund managers. <br /><br />The deep question is whether the Keynesian money printers can really defy all of the other aspects of economics empirically observed for all of recorded history. They've created trillions of dollars but zero wealth, because money is not wealth. <br /><br />As for "<i>Forever, or until more people are taking money out of the market than there are putting money back into it.</i>" Think about the impact of high frequency trading. All it takes is for some freak event to trigger pattern recognition and those millisecond trading algorithms can drain the market before any real human can see it. <br /><br />Sometimes bubbles grow until they hit a pin. <br />SiGraybeardhttps://www.blogger.com/profile/00280583031339062059noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-8986610873222831452017-07-28T09:43:19.221-04:002017-07-28T09:43:19.221-04:00The stock market will continue to go up (with occa...The stock market will continue to go up (with occasional dips) as long as people keep putting money into their retirement accounts. More money chasing the (relatively) same stocks means the price of those stocks go up. Forever, or until more people are taking money out of the market than there are putting money back into it.<br /><br />The actual valuations simply don't matter. The money goes into the mutual funds every two weeks, and they are obligated to spend it buying stocks and bonds. So they do. Which raises the prices.<br /><br />Supply and demand. In this case, too much money chasing a limited number of stocks.McChuckhttps://www.blogger.com/profile/10243337792601085456noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-5424578252309753622017-07-28T05:05:08.665-04:002017-07-28T05:05:08.665-04:00If you tinker with the dollar, you can make import...If you tinker with the dollar, you can make imports subsidize exports, or visa-versa. You can make savers subsidize lenders, or visa-versa. You cannot make everything go up at once. "Balance of trade" is misleading, all trades are bidirectional and things move in both directions.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-87356776019183344522017-07-27T22:19:13.720-04:002017-07-27T22:19:13.720-04:00The Dow Jones Industrials hit an all time high tod...The Dow Jones Industrials hit an all time high today.LLhttps://www.blogger.com/profile/05538854359365988863noreply@blogger.comtag:blogger.com,1999:blog-1592992209402300549.post-13535893675412048572017-07-27T22:01:02.219-04:002017-07-27T22:01:02.219-04:00I recommend reading the Hussman Fund report. Very ...I recommend reading the Hussman Fund report. Very interesting.Mr. Bhttps://www.blogger.com/profile/11922709713625073557noreply@blogger.com