Govt spending cuts and the economy

[Vol Horn 4 Life]

3/1 - sequestration starts mandating spending cuts
3/14 - Dow ends with 10 day run of success while S&P at near record highs

Coincidence? Humm, maybe there's something to this fiscal responsibility thing........

How long until Obama flip flops again and takes credit for the cuts instead of blaming the other party? Hell, it won't be long before he starts calling himself the Reagan of the democrat party.

 

[Musburger]

Right now, the equity markets are basically a function of monetary policy. In other words, the central banks of the world through Quantitative Easing (money printing) are lifting the equity markets. In 2013, the best performing stock market has been the Japanese Nikkei. Currently, the Japan has turned from a country with net exports to a net importer. Real wages are falling, and youth unemployment is high. But because of currency debasement, the markets are up...for now. Ditto for Europe. Greece is a basket case, Italy, Portugal, and Spain are on the verge of civil unrest with astronomically high unemployment. And the stock markets are surging.

Do not confuse stock market performance with economic performance. The US and other countries are increasingly turning over their respective economies to central planning. The rule of law is slowly disintegrating. Austerity (job losses, pay cuts, benefit decreases) is offset with money printing.

 

[AustinBat]

Hey, the national debt is no big problem. Keep printing that money!

 

[Roger35]

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