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Karl Denninger: Just Trash The Dollar And It's All Good....

• Market-ticker.denninger.org/
 
Chart is the SPX, white line is the dollar by comparison. That's where the ramp the last month has come from. That's an OVERT currency devaluation - 7%. And what's the SPX change? About 10%. Oil? Oh, it's up 17%. Hope you like much more expensive gas and.... this winter.... heating oil. What percentage of your assets are in stocks? Now about that oil price... it's in your food, not just your gas tank and heating oil tank, and for most people of middle-class means, they spend far more as a percentage of their income on fuel in all forms and food than they have in stocks. So for most people, this is a huge net lose. CNBS, of course, is talking about how should we continue to do this, it could drive the SPX back to the April highs. However, doing so takes the dollar back to the 2007/08 lows - historic lows below which there is literally no floor, and which would likely drive oil well north of $100 again, right into the time when those with "less resource" cannot afford it - winter heating season. Never mind what happened the last time Bernanke did this. He cranked up commodities through the same crap with the dollar and triggered the worst of the slowdown economically in terms of its impact on ordinary people, because energy and commodity prices ramped. Oh, you say you don't care because you heat with natural gas? Well that's not immune either - it's up 13% in the last month. Say thanks to your government, which is once again trying to distract you from the massive fraud and games in the financial sector - including your foreclosure that was probably illegal. Remember that they did the same damn thing in 2007 and early 2008, and also remember that last time it didn't work and instead of producing "stability" and a "rescue" we instead got an economic, stock market and banking system collapse out of it. Their method of distraction this time? Starve and freeze 'ya, while the very wealthy chuckle as their stock prices go up. (Never mind that priced in dollars when adjusted for the debasement, they're not actually going up at all.... and your salary sure as hell hasn't gone up 7% in the last month either. Incidentally a 7% monthly rate compounded over the year implies a 225% annualized inflation rate, which is the gain you'd have to have in your salary to keep pace with this crap.) Still think this is all "orderly" eh?

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