Fed Data Paints Murky Picture?
If the recovery was real, interest rates would not be held low for so long and the Fed would need to support the stock market. After it stopped the corporate world stepped in via the illegal usage of Stock buybacks. Now instead of trying to improve the bottom line, they focus on simply buying back more shares and in doing so artificially boosting the EPS. It’s a perfect scam, no work and big pay; and as interest rates are low, the incentive to borrow large sums of money to do these dirty deeds is larger than ever. Hence expect stock buybacks to surge to levels that will appear insane one day. However, here is one chart that clearly illustrates that the economic recovery is nothing but a bad joke.
Here is the chart that shows this entire economic recovery is nothing but a hoax.
Fed Data and Economic Recovery
This chart is very easy 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 in a lower high. After that, it has been nothing but a downhill ride, and this 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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