The Stock Markets will soon find themselves in a completely different, completely contrasting environment
The financial markets, and in particular the Stock Markets, are currently weighing themselves in absolute safety. This impression is at least conveyed by a glance at the respective charts. In view of the constantly rising sensitive as well as latent unemployment figures the behaviour of the stock market players seems irrational. Normal common sense can no longer comprehend it. I.e. in Germany alone we are currently registering 11.6 million short-time workers.
One reason for this can of course be the lack of alternatives, i.e. the lack of investment opportunities (also known as “TINA“). Seen from a different angle, a completely different facet reveals itself. It reveals the real weakness of the current phase. The markets are on drugs! The drug has a name we all know: Money!
The role of the Central Banks
Money which is floated uncontrolled and almost criminally by the respective central banks onto the obviously blissful financial markets.
The insane shower of money or blessing takes on the function of a curtain that denies the view of the real stage. That this “beautiful” game cannot be played endlessly was already discovered by a Chinese emperor in 1401. When the monetary system collapsed completely, he was forced to make a decision. History repeats itself and so the outcome of this sick phase is already certain today. Additional water is poured on the mills by the imploding tax revenues, due to the current dramatically worsening recession.
The Stock Markets will soon find themselves in a completely different, completely contrasting environment. The question is what flair this atmosphere will then give off. In this respect, it should be completely undisputed that the so-called economic stimulus package will clearly miss its intrinsically involved effect. With a little luck, of course. This completely hasty and senseless measure could reverse its effect and add fuel to the fire of the disastrous environment.
A glance at the chart of the Eurostoxx banking sector reveals the disaster. As a result of the current political situation, most banks are systemically relevant and must be rescued at all costs. Even the software “Elwave”, which is slightly optimistic in its own right, is somewhat more sceptical about the future in this respect, as the chart shows. Money and value are two completely different things. You can press the money button as often as you like. If no value is created, the paper money falls back to its natural paper value, no matter how large the printed number is.
According to the great economic doctrines, the stock markets will inevitably lead to a gigantic correction of biblical proportions. At least according to the textbooks. Perhaps we are currently at a turning point. Its promotions speak a completely different language. The great nations, above all Russia; China and the USA have been increasing their Gold stocks for years.
This fact points to the introduction of a completely new monetary system, the Gold standard. This step alone could prevent the otherwise ultimate massacre on the financial markets. There will still be victims in the course of this, such as our beloved Euro, for example. Let us hope for a quick end and not for an endless infirmity.