Charts We Have Recently Pondered
We
come across a large number of charts every day, and below we show a few
stock market related ones that we have found especially interesting.
First a chart that was recently published by John Hussman.
It shows the total value of US equities and bonds divided by GDP.
Although one might object that GDP is a somewhat arbitrary choice for
the purpose of this comparison, the chart nevertheless is testament to
the economy's increasing 'financialization', which in turn is a direct
consequence of decades of massive monetary inflation. Inflation spreads
from its point of origin throughout the economy, but there are 'inner
circles' that profit from it, as they are the earliest receivers of
newly created money. Their profit comes to the detriment of later
receivers, who find the purchasing power of their incomes diminished.
In
the innermost circles we naturally find the government and the banking
cartel, hence the 'financialization' effect. The financial sector
becomes ever bigger, and represents an ever larger share of corporate
profits. His happens notwithstanding interruptions like the 2008 crisis,
as the largest financial firms as a rule are always bailed out when
things go seriously wrong. That is what the banking cartel was set up
for after all!
US Markets
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