Dow Nears Record… Yipee
January 28, 2013 by Bob Livingston
The Dow is nearing its record closing high of 14,164.53 set on Oct. 9, 2007. The recovery of President Barack Obama is well on its way.
Or maybe not. The psychopathic storytellers are claiming the housing market is improving. But in reality housing starts are still bumping along right where they’ve been since 2009.
(source: St. Louis Fed)
And despite (or because of) massive money printing, real gross domestic product (GDP) is lower than it’s ever been in history, as the chart below from the St. Louis Fed shows.
(Source: St. Louis Fed)
In truth, we are now in the midst of the worst recovery ever. The Fed’s money printing policies have propped up the market — as they were designed to do — but have not done anything to right the ship of economy. Or, as Tyler Durden of Zerohedge.com writes: “[I]t is only the worst recovery ever for anyone unlucky enough to still rely on such Old Normal concepts as the “economy” to feed, clothe and provide shelter for themselves. For those lucky 1% of the US population whose entire wealth is in financial assets (and who once again managed to avoid a tax hike on carried interest or any actual financial assets), times have almost never been so good.”
Remember, the stock market is not a marker to use to determine a strong economy. The current policies of QE to infinity and deficit spending continue to transfer wealth from the people to the 1 percent.
According to Shadowstats.com, using generally accepted accounting principles (GAAP), the 2012 consolidated financial statements of the U.S. government showed a $6.9 trillion deficit, up from $4.6 trillion in 2011. Total U.S. obligations — including unfunded liabilities like Social Security and Medicare — are about $88 trillion, or nearly six times the total GDP. Real unemployment remains above 14 percent.
Sales of gold and silver tell the real story of the recovery.