With gold no longer an austerity anchor, the Fed and both aisles of government have brought America to this point – call in the Screw Worm!
Too, of greater concern is the “live” (trailing twelve months) price/earnings ratio of now 46.1x. Back when earnings were actually considered a core element in portfolio theory for valuing share prices, 11x to 15x was considered “acceptable” for a bull market.
From the sound money perspective, this dynamic is hardly accidental. Permanent militarization and fiat monetary expansion are deeply intertwined.
“We’re freaking doomed!” If you recognize that outburst you remember Mogambo and likely remember his total contempt for the federal reserve. How many economists will be leaving a parting message equally strong and important?
The bottom line is we should continue to be skeptical of government data. The people in power have a vested interest in making things seem better than they are.
Technical stock chart updates on $B, $IBM, $GDXJ, $JDST, $SQQQ and more.
Today the promises of Bretton Woods are fracturing on every front simultaneously. The US Navy cannot guarantee the Strait of Hormuz. US Treasuries, the foundational safe asset of the entire global financial architecture, now come with an asterisk...
