money printing
by
Adam Taggart
by
Adam Taggart
by
Chris Martenson
Executive Summary
- Beware the coming reduction in global central bank money printing
- The full-blown ecological emergency
- Uncovering the hidden downside risks to the markets
- Steps to take now
If you have not yet read Part 1: Are You Infuriated Yet?available free to all readers, please click here to read it first.
I keep circling back to the financial markets because they are the chief signaling agent for most people. As long as the markets are doing okay, people’s attention wanders away from our predicaments and towards believing in the dominant "all is fine" narrative.
But, with the crystal-clear connection we see between asset prices and central bank money printing, prices in today's “markets” are really a creation of monetary policy. As a result, the signals the markets send us increasingly have no bearing on actual reality.
Here’s a good example: McDonalds' stock is hitting new high after new high. This is a function of both the ever-rising markets but also of the company's own internal accounting hocus-pocus.
This chart explains much:
(Source)
The red line tells us that MCD’s revenues are down a stunning 15% since 2014. The green line tells us that their stock price is UP an even more stunning 65% over the same time period.
Meanwhile total debt of MCD’s has mushroomed from $14 billion to $29 billion, while total assets have shrunk. Yet MCD's stock price has risen handsomely.
The critical insight this is telling us about today's markets is…
It’s High Time For Action
PREVIEW by Chris MartensonExecutive Summary
- Beware the coming reduction in global central bank money printing
- The full-blown ecological emergency
- Uncovering the hidden downside risks to the markets
- Steps to take now
If you have not yet read Part 1: Are You Infuriated Yet?available free to all readers, please click here to read it first.
I keep circling back to the financial markets because they are the chief signaling agent for most people. As long as the markets are doing okay, people’s attention wanders away from our predicaments and towards believing in the dominant "all is fine" narrative.
But, with the crystal-clear connection we see between asset prices and central bank money printing, prices in today's “markets” are really a creation of monetary policy. As a result, the signals the markets send us increasingly have no bearing on actual reality.
Here’s a good example: McDonalds' stock is hitting new high after new high. This is a function of both the ever-rising markets but also of the company's own internal accounting hocus-pocus.
This chart explains much:
(Source)
The red line tells us that MCD’s revenues are down a stunning 15% since 2014. The green line tells us that their stock price is UP an even more stunning 65% over the same time period.
Meanwhile total debt of MCD’s has mushroomed from $14 billion to $29 billion, while total assets have shrunk. Yet MCD's stock price has risen handsomely.
The critical insight this is telling us about today's markets is…
by
Adam Taggart
One of the most perplexing mysteries to us is that right as the Federal Reserve embarked on QE3 — which was a huge, enormous, $85 billion a month experiment — commodities began a multiyear decline within two weeks of that announcement. Concurrently, the world’s central banks plunged the world into steeply negative real interest rates, a condition that has almost always resulted in booming commodity prices — but not this time. Today, the ratio between commodity prices and equities is at one of, if not the most, extreme points in history.
To explain that gap, we talk this week with Brien Lundin, publisher of Gold Newsletter and producer of the New Orleans Investment Conference (where Chris and Adam are speaking on Oct 25-28):
Brien Lundin: If They Don’t Want You To Own It, You Probably Should
by Adam TaggartOne of the most perplexing mysteries to us is that right as the Federal Reserve embarked on QE3 — which was a huge, enormous, $85 billion a month experiment — commodities began a multiyear decline within two weeks of that announcement. Concurrently, the world’s central banks plunged the world into steeply negative real interest rates, a condition that has almost always resulted in booming commodity prices — but not this time. Today, the ratio between commodity prices and equities is at one of, if not the most, extreme points in history.
To explain that gap, we talk this week with Brien Lundin, publisher of Gold Newsletter and producer of the New Orleans Investment Conference (where Chris and Adam are speaking on Oct 25-28):
by
Adam Taggart
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