• 308 days Will The ECB Continue To Hike Rates?
  • 308 days Forbes: Aramco Remains Largest Company In The Middle East
  • 310 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 710 days Could Crypto Overtake Traditional Investment?
  • 714 days Americans Still Quitting Jobs At Record Pace
  • 716 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 719 days Is The Dollar Too Strong?
  • 720 days Big Tech Disappoints Investors on Earnings Calls
  • 721 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 722 days China Is Quietly Trying To Distance Itself From Russia
  • 723 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 727 days Crypto Investors Won Big In 2021
  • 727 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 728 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 730 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 730 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 734 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 734 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 735 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 737 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

  1. Home
  2. Markets
  3. Other

A Financial Casino Versus A Nation

As time passes at the top of the largest and most "assisted" markets in history, the experiences from across the world only continue to widen further from the reality of the day-to-day lives and economic experiences on the ground.

On January 5th, I posted, "As India Destroys Cash, It Crushes People". If you have yet to read it, check it out and compare those comments and video with what is in this post.

India continues in crisis.

India Money Supply Chart 1

India Money Supply Chart 2

Monetary theory holds that the general price of goods and services is directly proportional to the amount of money in circulation, i.e. the money supply. The plunge in the money supply this year coincides with the removal of so much cash effective January 1st.

When a declaration is made where 85% of the currency in circulation across a nation of 1.3 billion people is banned in less than 2 months, is it any wonder that the money supply has plummeted?

India: Percentage of Total Cash Banned and Percentage of ConsumerTransactions in Cash

Jayant Bhandari's comments takes us from theory to daily life.

"I have yet to meet anyone in India — including anyone from the ranks of demonetization supporters — whose economic life has improved. People are still avoiding to go shopping. Businesses continue to fail. And food prices are still down by as much as 50% or more in many places, a sign that poor people are going hungry."

So what does the world outside India think of their economy, if looking through the eyes of its stock market?

India Nifty 50 Index Daily Chart

If even the Reserve Bank of India stated that the cash crisis was hurting their economy in December (and hundreds of millions of people), then what is it doing to them merely three months later?

India's Central Bank Says Cash Crisis Hurting the Economy, CNN Money, Dec 7 '16

As central banks seem focused on presenting the image of "happy stock market" rather than dealing with the growing massive problems on the ground from years of QE money madness.

Italian banks hold nearly a third of euro zone's bad loans: ECB, Reuters, Nov 29 '16

Dow Jones Italy Stock Index Daily Chart

I ask you, are the planners and titans of global banking more concerned about an image of financial happiness than real problems facing hundreds of millions of people?

Trusting in central planners and speed of light algorithms to make crowds happy and complacent continues feeding system - wide risk.

 


To be ready for the largest moves of capital in history, click here to join The Investor's Mind. A continuing stream of record - breaking stock prices and complacent readings is a highly dangerous combination.

 

Back to homepage

Leave a comment

Leave a comment