Fed Data Paints Murky Picture?
Updated Dec 2021
If the economic recovery were truly genuine, interest rates would not have remained at such low levels for so long, and the Fed would not have needed to support the stock market. Instead, corporations have resorted to the illegal use of stock buybacks, focusing solely on artificially boosting EPS by buying back shares. This fraudulent scheme allows for large payoffs with little work, and with low-interest rates, the incentive to borrow vast sums of money for these deceptive practices is stronger than ever. As a result, we should anticipate stock buybacks to reach unprecedented levels in the near future.
Unfortunately, the truth is that economic recovery is nothing but a bad joke, as illustrated by this one chart. The corporate world’s reliance on stock buybacks to inflate EPS is a clear indication that the economy is not as healthy as it appears on the surface.
The chart shows this entire economic recovery is nothing but a hoax.
Fed Data and Economic Recovery
This chart is straightforward to understand. When the economy is booming, the velocity of money increases and vice versa; this chart topped out in 2000 with a double top formation. We did get a small pop-up when Greenspan flooded the markets with money to create the housing bubble, but it put at a lower high. After that, it has been a downhill ride, which is why Gold prices have tanked. The money supply has increased, but the money is not moving. The masses do not have access to this money yet.
This is why we stated that if they really want to create a monstrous bubble, they need to put this money into the hands of the masses. Only the masses are foolish enough to take markets to levels you can only envision after smoking some illegal substance. This is why we are dead certain that the Fed will come out with another stimulus plan; this economic recovery is being held up by fiat money and nothing else.
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