Silver Eagles Sold Out, But Silver Flash Crashes: U.S. Financial Markets Have Lost All Credibility
SilverDoctors.com
July 20, 2015
Submitted by PM Fund Manager Dave Kranzler, Investment Research Dynamics:
The Fed no longer has credibility, and you can see that. The divergence between the futures markets and the Fed’s own projections about what they’re going to do about interest rates—this is a huge problem,” he told CNBC’s “Squawk Box.” – Senator Pat Toomey on CNBC
Sorry Pat, the entire U.S. financial system has lost all credibility. While the economic condition of the United States continues to deteriorate rather quickly, the S&P 500 and Nasdaq continue to push insanely higher on a historically unprecedented tidal wave of printed money.
“Printed money” is electronic money that is created BOTH by the Fed’s electronic printing press AND the electronic printing press that creates debt certificates. Why the latter?Because debt behaves like money until that debt is repaid. Simply printing money to repay existing debt while printing enough to issue more debt is not the definition of “repayment.” This process in fact forces even more “printed” electronic money into the system.
This is why the broad measures of the stock market are moving higher despite deteriorating real economic fundamentals and it’s why housing prices have soared, despite mediocre transaction volume and a recent influx of supply. All of that printed money is going into paper financial assets. After all, with the financialization of mortgages, the housing market itself has become “financialized.” Just ask the Fed, it’s injected $1.7 trillion of printed money into the housing market via financialized mortgage paper.
The Rest…HERE
