Why a Rising Dow Jones Industrial Stock Market Average is Not a Sign of Economic Recovery

Our Current Economic Condition is a “Symptom” of a much bigger problem. Until the problem is addressed the symptom will not go away. Bailouts only address some of the symptoms and never address the real root cause of the impending total Economic Collapse. The cause is DEBT! Plain and simple, black and white, it doesn’t get any clearer. There is simply so much debt that it can not be repaid! And the cause of debt is our current fractional reserve banking system where money is created out of nothing. The Federal Reserve has got to go!

When you have a mortgage, a car loan, student loans, etc. and your life is based around trying to repay these loans as the dollar weakens and your opportunity to earn diminishes you reach a point of collapse. You reach a point of non recovery. You become bankrupt.

When the Federal Government needs to pay it’s loans it comes to you and TAKES from you, then when that is not enough they simply print money! Money that has an attached debt that must in turn be repaid to the Federal Reserve which is a Non-Government institution owned by private bankers. When those loans come due more money is printed devaluing the existing money. Your dollars are worth less you suffer. The Government simply says “All is well” all we have to do is print more money and spend more money and this will “boost” the economy. But the real effect of these actions is it DESTROYS the economy and enslaves a people to the banks. The Economic Damn is severely leaking and you can not stick your finger in it any longer to plug the holes. It’s got to be rebuilt! And the only way to rebuild the economy is to tear down the damn and start new again.

Our currency is backed by nothing put promises that can not be fulfilled. It’s time once again to institute the Gold Standard where our money is backed by something. It’s time to end the perpetual debt cycle where the cost of homes is so astronomically high that people can not afford them. It’s time to quit feeding the Wealthy Banking Elite with perpetual interest payments.

It’s not time because I say it’s time, it’s time because the SYSTEM HAS FAILED and can not be revived. No amount of borrowed money can repay the existing debt. Any attempted to revive our economy by treating symptoms will fail. The big Economic Heart Attack is just around the corner.

Why is a Stock Market Rise Not a Sign of Economic Recovery?

First you must understand what the Dow Jones Industrial average really comprises.

The Dow Jones Industrial Average is A price-weighted average of 30 actively traded blue-chip stocks.

The following 30 stocks make up the current DJIA.

1. 3M
2. Alcoa
3. American Express (Received Bailout Money)
4. AT&T
5. Bank of America (Received Bailout Money)
6. Boeing
7. Caterpiller
8. Chevron Corporation
9. Cisco Systems
10. Coca Cola
11. Dupont
12. ExxonMobil
13. General Electric
14. Hewlet-Packard
15. The Home Depot
16. Intel
17. IBM
18. Johnson & Johnson (Announced Laying off 8,000 in October)
19. JPMorgan Chase (Received Bailout Money)
20. Kraft Foods
21. McDonalds
22. Merck
23. Microsoft
24. Pfizer
25. Procter & Gamble
26. Traveler
27. United Technologies Corporation
28. Verizon communications
29. Wal-Mart
30. Walt Disney

The following 30 stocks make up the DJIA as of February 1995:

1. Allied Signal
2. Alcoa
3. American Express
4. A T & T
5. Bethlehem Steel
6. Boeing
7. Caterpillar
8. Chevron
9. Coca Cola
10. Disney
11. Dupont
12. Exxon
13. General Electric
14. General Motors
15. Goodyear
16. IBM
17. International Paper
18. Kodak
19. McDonalds
20. Merck
21. 3M
22. JP Morgan
23. Philip Morris
24. Proctor Gamble
25. Sears
26. Texaco
27. Union Carbide
28. United Tech
29. Walt Disney
30. Westinghouse

Notice anything about the current list and the 1995 list? Lots of change! These are the “Blue Chip” stocks remember – the largest and highest performing companies. And these stalwarts of the economy are as subject to change as smaller companies. “Stocks Jump after G-20 pledge to Aid Economies” we are mislead into believing that somehow this is “Good” for the World Economies. Big business is not the savior of the economic world – people are!

Think about this for a moment. If your Uncle, Sister, Brother, Friend or whomever hands you $20 and says you do not have to pay this back then are you better off? The answer is probably yes, unless they really do expect a favor in return.

But when the Government hands you money (But not really directly to you) are you better off? The answer is a RESOUNDING NO! Why? Because of 2 reasons.

1. The Government does not produce anything so the money they hand you is either taken by borrowing or printing money. The first will have to be paid back at a later date, the latter is inflationary and will raise the cost of goods devaluing the dollar and making your existing purchasing power lower.
2. Stimulus money is woefully mismanaged and ripe for corruption. The parties who should receive the bulk of the money almost never do as it is merely funneled right back to the coffers of the Wealthy Banking Elite. This is by design as bailouts are not intended to benefit those in need. Bailouts are public relation ploys to try and trick the public into believing everything is going to be fine when in fact things are going to get much worse.

You can not pay debt with debt, and when you try you drive up the cost of living for everyone. You prolong the misery and you postpone the ultimate collapse of the entire system which is on it’s way.

Here is what Happens When Bailouts are Extended

Stock investors like a weaker dollar because it helps U.S. exporters by making their goods cheaper to overseas buyers and giving the companies a boost when they convert profits from abroad to dollars

That’s a bold statement. How does a weaker dollar benefit you as an American Citizen? It doesn’t. It’s backwards logic. When the dollar is weaker you can purchase less. It’s called Inflation. It’s the direct result of Federal Reserve Policy. This is Proof that a short term Stock Market rise of the DJIA is NOT good for the American People and not an indicator of a recovery.

The U.S. dollar index, which measures the greenback against a basket of foreign currencies, fell more than 1 percent to its lowest level of the year. The index began sliding for the past eight months since major stock indicators bounced off 12-year lows. Investors, although they've been basing most of their buy or sell decisions on the economy, have also been following a pattern of funneling money into stocks when the dollar weakens and pulling it out when the currency rises.

So as the dollar weakens the stock market rises and your money is worth less. As the dollar rises they investors pull back out and stock fall. What is accomplished is nothing. It’s just a paper shuffle.

How are Stock Prices Determined

Stock prices are not reflective of the true value of a Corporations Assets. Instead stock prices are a reflection of what investors “think” a company is worth based on Assets, Performance, and projections. In short, stock prices are speculative pieces of paper with no real backing. This is why a company like General Motor can plummet from a worth of $60 Billion to nothing in a matter of a few years. The stock value is perceived and not real.

The Problem with Our “Economy” is the Federal Reserve System

The truth is coming to light. The Federal Reserve/Central Bank Debt model has reached it’s limit. There is now so much debt that it can not be repaid. The Federal Reserve is nothing more than a money funnel from the American People to the Wealthy Banking Elite. The Economy is not going to recover because there is simply too much debt to sustain a recovery. There is too much imaginary money in circulation. The American Dollar is backed by nothing more than a promise.

It’s time to Abolish the Federal Reserve and put American Tax Payer Dollars back to work for the people. It’s time to reinstitute a “Gold Standard” for our currency. It’s time to rid the American People of the pestilence of Bankers.

Or you can just sit back and pretend like the Bailouts are going to somehow work. While you are at it you can enjoy Pro Wrestling and pretend like it’s real. And take the money you have left, if you have any left, and invest it in Easter Bunny, Inc. Then just sit back and hope for that bunny to lay you a golden egg.

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