STOCK MARKET CHIMERA

Man, can you spare some change? Considering the point that the market is more about emotions than true monetary policy, let's recall just a few of the most obvious factors...

If the stock market was declining but you were getting nice wage increases wouldn’t you feel that the economy was better off? And the opposite is also true. The health of the stock market is a result of wages in America, not the cause of wages.

The value of a company is supposed to increase over time if its profits increase over time. How do profits increase when consumers have stagnating wage growth? They can’t. But, if we have wage growth even with the Dow declining our increased ability to spend will cause higher profits which will cause higher stock prices.

If our wages are declining and the Dow is increasing it’s because the companies are cutting costs either by layoffs, or some other point-shaving financial voodoo on the books. While that’s fine in the short term, in the long term it leads to a a depressed stock market.

Another stress point weakening our country is the massive debt that we all carry. Does anyone know anybody under 30 who is suffering under a college loan? A car loan and maybe a house loan? What about credit cards? The average college graduate has $7500 in credit card debt when graduating. Granted, a lot of this is from people not being able to say no, but it’s also a societal peneomenon. The point is that roughly 70% of the economy is predicated on consumer spending and you have to wonder when consumers will simply run out of steam, and pack it in for the simpler lifestyle revolution.

The job of the Fed is to manage the economy, but unfortunately it usually does a piss poor job of it. The conspiracy theorist in al of us says that the Fed exists to serve Wall Street because otherwise why wouldn’t it have been disbanded by now?

Greenspan talks about the Fed’s role, here.

FINANCIAL COLLAPSE IN THE WORKS?

Industrial freshness in oil rich Qatar

The ME state of Qatar has upped its share in the London Stock Exchange to nearly 24 per cent, giving the gulf state and its neighbour Dubai a controlling stake of nearly 52 per cent.

The Islamofanatics (sic!) are nothing if not superb Machiavellian practitioners of black intrigue. What better way to drop the equivalent of an electromagnetic pulse on an entire economy than with the weapon of stock exchange ownership? This is from the same playbook as the Dubai ports deal. Go after Western critical strategic non-military assets, control them and then put the economic squeeze on us. They did it with oil and they are using that as an example for further exploitation; but now they will use economic force to propagate Islam.

The bureaucrats in London, Washington, and New York should set aside their copies of Adam Smith and think about what is happening here. This litany of incidents were major direct attacks on our nations' financial systems in an area where we have no line of defense. Once economic control has shifted into "enemy" hands, Washington becomes irrelevant.

The Secretary of the Treasury and the Chief of Economic Advisors should be revolting against this stealth takeover of Western markets. They should forget about this globalism crap and throw out Queensbury rules, returning to WWII economic controls on enemy assets. The Islamofanatics only abiding rule of engagement is doing whatever it takes to win, to establish a world caliphate. They cannot win with a direct confrontation against a carrier group or an infantry division, but they can win with an economic ax threatening Wall Street which could easily slam into and paralyze the country's economic backbone. Only teeth-gnashing Marxists can cheer at this news. Make no mistake. They are cheering.

However, it is also true that Muslims owning a stock exchange is not the end of the system, not yet anyhow. What exchange ownership can control is which company to list or unlist. But even here there's a ball & chain of regulation to abide since all exchanges operate by local laws. I understand that a "Stock Exchange" is simply a trading space. Remember the Dick Grasso scandal? In fact, an exchange is a company by itself. If one falters or grows unstable or unfriendly there is always market space for another trading space company to spring into place, although by most accounts, the London Exchange is arguably the centerpiece of global trading.

Dubai has control of the Nasdaq also. The Saudi's are "playing" around with the US dollar. They have their tentacles in our media, they control the oil and now this. Now, where did I put all those "The End is Near" signs I rescued from a dumpster oh so many years ago?

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