Depressionary Boxes – Long-Term View
CIGA Eric

The dance within the depressionary box continues…

U.S. Large Cap Total Return Index (LCSTRI); S&P 500 Total Return Index: Nominal Stock Prices

U.S. Large Cap Total Return Index (LCSTRI); S&P 500 Total Return Index to Gold Ratio: Real Stock Prices

This is not a forecast or opinion but rather a simply review of history. History reminds us that devaluation cannot, will not, restore economic prosperity. It invariably produces unpleasant economic consequences regardless of the original intentions. The devaluation of the dollar, all fiat money, walks a fine line between order and chaos.

The constant barrage of MOPE ensures that if history repeats, it will do so without warning. Look no further than the Weimar Republic for an illustration of unpleasant economic consequences of aggressive devaluation.

Weimar Republic (1919-1933) Hyperinflation: German Mark and German Stock Index 1925-1935

Weimar Republic (1919-1933) Hyperinflation: German Stock Index and German Stock Index to Gold Ratio 1925-1935

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Jim,

Exactly what you said. Global QE will not end:

Australian Finance Minister Says More Stimulus Needed

G-7 Finance Chiefs Vow to Keep Economic Stimulus Even as Budget Gaps Widen

Best regards,
CIGA Christopher

Next In Line For A Bailout: Social Security
CIGA Eric

A report from the Congressional Budget Office shows that for the first time in 25 years, Social Security is taking in less in taxes than it is spending on benefits.

The signs of stress are building.

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