Posted on 12/24/2014 7:33:03 AM PST by SeekAndFind
“Kaboom! Dow 18K” is the headline atop the Drudge Report.
It links to a story on the Bloomberg wire reporting that the Dow Jones Industrial Average “rallied past 18,000 for the first time, after data showed the world’s largest economy grew at the fastest pace since 2003 last quarter.” By 4 p.m. the Dow had gained 64.73 points and hit 18,024, while Standard and Poor’s 500 Index hit a record 2,082.17 and the American economy was expanding at an annualized 5% in the third quarter as, the Bloomberg noted, “consumers and businesses spent more than was previously estimated.”
What the story failed to note is that the value of the Dow — that is, its worth in ounces of gold — is nowhere near a record. This can be glimpsed in the charts that are kept by pricedingold.com. The chart illuminates that even with the kurrent kaboom, the current value of the Dow, at just under 450 ounces of gold, is below where it was at the start of the Obama administration, when it was near 350 ounces, and way down from its record of 1,400 ounces part way through 1999. The value of the Dow has certainly been trending upward in recent months, the chart of pricededgold.com suggests. It ducked under 200 ounces of gold at one point during the Great Recession.
It is, however, nowhere near a record. We note this not in the spirit of parceling out stock market tips (the only suggestion we’ve ever made to investors is “never take financial advice from a newspaperman”). Rather we are interested in the principles of political economy — in the regulation of the value of the dollar by Congress in the spirit in which the Founders intended.
(Excerpt) Read more at nysun.com ...
What is the DOW level Adjusted for inflation since 2008?..................
1,243
What is the DOWs adjusted level when taking out all the obama taxpayer bailouts and stimulus money?
For real?...............
“Daddy says if you read it in the Sun, it’s so...”
As a wise man once said, “The Stock Market is NOT the economy!”...............
It’s a casino for the uber riche..............
That's a perfect example of how you can cherry-pick statistics to reach any conclusion that you want.
I suppose that if gold were not so high, the author would have replaced "ounces of gold" with "barrels of oil", or some such thing.
*
The Dow = taxpayers monthly bailouts.
Bttt.
5.56mm
Oh, one more thing, 1.2 trillion from the Fed.
5.56mm
The communists Democrats are doing everything they can to lie about our economy in an effort to keep Americans in the dark as long as they can. Their only effort is to kill America and rebuild into a dictatorship. They are making it.
When all the bailouts and confusion ends America will experience a crash that will make the big crash of 32 look like a cake walk. Millions of Americans will parish.
It's a perfectly valid comparison.
Gold is often used as a benchmark and is much, much more accurate than the jury-rigged government inflation statistics. Oil wouldn't make a good comparison as its price is so affected by supply -- as we're seeing now.
Did I mention that GDP is now calculated differently? Much has been included in the numbers, such as intellectual property.
Yep, this isn’t your father’s GDP.
5.56mm
You are not following the Gruber line. You are a Divergent!!!!!
You are a Divergent!!!!!...............
Bingo! I noticed that too. Why not valued in silver, or board feet of lumber? Because that isn’t what they’re hyping today?
to see the real market situation, you need to change from a dilutable unit of measure (the dollar) into a non-dilutable unit (gold)
why is gold non-dilutable? because they aren't making much more of it.
source: link
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