Gary Tanashian: In the current policy and media stoked market environment, anything is possible. It’s the wonderful, magical world of hands-on policy making. 5 years after the financial crisis, but still not enjoying a ramping economy like the good old (and long gone) days of the last great secular bull market (RIP 2000)? Just sit back, relax and let the man in charge control the image.
“For the next hour, sit quietly and we will control all that you see and hear. We repeat: there is nothing wrong with your television set. You are about to participate in a great adventure. You are about to experience the awe and mystery which reaches from the inner mind to – The Outer Limits.”
What has been happening for the last year is that people have been obeying these instructions. Yes, the same herd that reviled “Helicopter Ben” (didn’t you just know in your gut that these taunts would come back to bite inflationists, commodity bulls and gold bugs?) in 2011 is now enthralled and awaiting the next chapter in the great adventure. ‘The stock bull is a reflection of an organic and healthy economy’ claim the politically biased or mentally challenged.
We have reviewed graphs in the past comparing the S&P 500 (NYSEARCA:SPY) to Monetary Base and other measures of monetary inflation. The cyclical stock bull out of March, 2009 has risen in lockstep with money supply. The current leg of the 13 year long (and counting) big picture stock consolidation per the graph above, has been dependent on money supply creation fueled by increases in the public debt. The stock market loves this policy and is dependent upon it.(...)Click here to continue reading the original ETFDailyNews.com article: The Federal Reserve’s Great Adventure In InflationYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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