THE "RALLY" IN THE DOLLAR IN THE FACE OF MASSIVE MONEY PRINTING HAS CONFUSED MANY PEOPLE...
THIS SHOULD NOT BE HAPPENING ACCORDING TO THEORY...
BUT CONSIDER:
AS ASSETS FALL... VIRTUAL DOLLARS ARE DISAPPEARING...EVAPORATING INTO THIN AIR...!!
WHEN YOU OWN STOCKS OR REAL ESTATE YOU CONSIDER THE "VALUE" OF THOSE ASSETS "AS IF" THEY WERE IN REAL DOLLARS... BUT THIS IS WRONG...THESE ASSETS ARE MERELY "EXPECATIONS" FOR DOLLARS...NOT REAL DOLLARS.....
EVERYONE KNOWS THE JOY OF SELLING A LOSER STOCK.. AND FINALLY HAVING "REAL DOLLARS" BACK IN THE BANK... RIGHT?
ALBEIT FEWER REAL DOLLARS THAN YOU HAD BEFORE YOU BOUGHT THE LOSER...
WELL, RIGHT NOW...THERE IS A SHORTAGE OF REAL DOLLARS... THE VEOLCITY OF THE MONEY THAT THE FED HAS PRINTED RECENTLY IS ALMOST ZERO... IT JUST SITS THERE NOT MOVING...
THIS DEAD BANK MONEY IS USED TO FINANCE THE SALES OF STOCKS AS PEOPLE FLOCK FROM "VIRTUAL" OR FAKE DOLLARS REPRESENTED IN BOGUS AND UNREALIZED ASSET VALUES....TO REAL DOLLARS IN THE BANK...
AT SOME POINT THE PRINTED MONEY WILL START TO FLOW INTO THE REAL ECONOMY AND CAUSE INFLATION... HOMAGE TO THAT "THEORY OF INFLATION" IS REFLECTED IN THE RISE OF GOLD RECENTLY...
BUT IN THE CURRENT ENVIRONMENT OF MASSIVE LIQUIDIATION...THE REAL DOLLAR WILL CONTINUE TO RISE AS VIRTUAL DOLLARS CONTINUE TO DISSAPEAR FROM BALANCE SHEETS...
THE VIRTUAL DOLLAR (ASSET VALUES) WILL CONTINUE TO FALL...EVEN AS THE REAL DOLLAR (CASH IN THE BANK) WILL RISE...ALONG WITH GOLD...
AS LONG AS REAL CASH IN THE BANK IS KING...
THOSE VIRTUAL DOLLARS REPRESENTED IN UNREALIZED ASSET VALUES WILL CONTINUE TO BE MERE PRETENDERS TO THE THRONE...!
THAT'S WERE WE ARE NOW...
