Dow 20K … US Debt $20 Trillion … Trump and $15,000 Gold
By: GoldCore
GoldSeek.com
Friday, 27 January 2017
In case you’ve been hiding under a rock, the Dow Jones Industrial Average reached 20,000 earlier this week for the first time in its 132 year history to much media fanfare.
Since Trump’s election US market indicators, including the Dow have been ticking up – it has been labelled the Trump rally. This latest milestone is something that the new President is happy to take credit for. In fact, he tweeted ‘Great! #Dow20K’ in response.
He told ABC News that
“We just hit a record, and a number that’s never been hit before. So I was very honored by that … Now we have to go up, up, up …”
Trump’s senior advisor (and fellow advocate for a weaker dollar) Anthony Scaramucci took to Twitter to thank President Trump for bringing about the best stock-market performance after a presidential election win since 1900. UKIP Leader Nigel Farage agreed that this was thanks to the Donald and saw it has a ‘huge vote of confidence in @POTUS.’
Few commentators pointed out that this latest ‘bubblelicious’ Dow milestone of 20K comes at a time when the U.S. is drowning in a sea of red debt as debt levels continue to surge and will reach the even more important milestone of $20,000,000,000,000 (trillion) in the coming weeks. The digit two is in both and both have a lot of zeros but the latter is actually much more important than the former.
In value terms, the 20,000 milestone means very little. In fact, in real value terms (when priced in gold) the Dow isn’t much higher than when it first hit just 1,000 back in 1972.
Make America Great Again has to mean Make America have Value Again
The Dow has had an impressive performance since November 8th, it has climbed around 9.5%. The actions of Trump since both his election and inauguration (from tweets to signing Executive Orders) have driven positive market reactions … so far.
There is little doubt that since his inauguration the new President has worked hard to show that he will make good on his election promises. All of which come under the umbrella to ‘Make America Great Again.’ In turn, market activity does show signs of what Keynes would have called ‘animal spirits’ – the self-feeding frenzy in markets when confidence is high.
The Rest…HERE
