Thursday, February 26, 2015

COTW: No Comfort in Hooverville

Unbelievably, the Dow Jones Index, the supposed barometer of prosperity is above 18,000! But the increasing stark dichotomy between the investor class and the plebians cannot be ignored. Even the business press is taking note:


Bloomberg's index is at a low, falling the most since May 2014 (red arrow). This chart below reflects the two different worlds: the world of wealth, indulgence, and political influence and the other of wage slavery, despair, and insignificance:


What this chart says is that Wall Street does not care about consumer ability to buy the products and services offerred by business. Stock prices go up when purchasing power goes down. So if demand is not driving the financial markets, what is? Answer: easy money doled out by the plutocrats' friends in government and inserted into the multiplier of the market casino. When the ending of QE3 was announced the S&P Index fell by 10%. So promptly the Fed announced QE4--problem solved. If you are a plutocrat living off your investment income, you want the rest of 'Merica to be poor because then the Fed will keep funding your wealth appreciation. The Dow Jones and all the other metrics troted out by the corporate shills are like flags being waved in our faces. They distract some of us from the widespread realization that the United States is on a downward economic trend.