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A Dollar-Devaluation Adjusted Market Has Barely Moved Above Its 2009 Lows

Tyler Durden's picture


While nominal stocks will soon be reaching for new all time highs, very much in the spirit of the Zimbabwe stock market, all of these so-called price levels (and the associated "wealth effect") are increasingly irrelevant as they continue to come solely at the expense of ongoing global currency devaluation, whose only alternative is the purchasing of hard currencies such as gold and silver. Which is why when expressed in terms of gold, it may be surprising to some that the stock market has barely moved from its generational lows recorded in March 2009. In other words, over the past two years there has been no real growth in asset values, as it has all come at the expense of every central bank's ongoing, and accelerating, debasement of its currency.


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Mon, 11/08/2010 - 13:28 | 708490 hedgeless_horseman
hedgeless_horseman's picture

Peak wealth preservation.

Mon, 11/08/2010 - 13:29 | 708496 Dick Darlington
Dick Darlington's picture

JCT has clearly not seen this chart. I guess Timmah and Benron are smooth talker coz JCT was clearly convinced that no one is trying to devalue their currencies. LOL!

Mon, 11/08/2010 - 13:30 | 708500 SheepDog-One
SheepDog-One's picture

Speechless, bitchez! What can ya say and wheres Robo...lets have some stock boner charts of the day!

Mon, 11/08/2010 - 14:32 | 708824 FEDbuster
FEDbuster's picture

You won't see that chart on CNBS.  Boooo Yaaaa!

Mon, 11/08/2010 - 13:30 | 708505 tictawk
tictawk's picture

This chart looks very much like the weekly Banking index chart


Mon, 11/08/2010 - 13:31 | 708512 ZeroPower
ZeroPower's picture

Still, whether you put your money in gold or stocks, youre almost guaranteed a return thanks to QE2 (and further incarnations).

Mon, 11/08/2010 - 13:34 | 708532 SheepDog-One
SheepDog-One's picture

Hmmm.. well Im thinking a bit more down the road past just putting money in stocks to keep it about even. Buying cases of Jack Daniels. I'll soon be happy to take 1 oz gold coins for 325 mil bottles of old no.7.  They want to play money games? I'll beat them outside of their world big time.

Mon, 11/08/2010 - 13:38 | 708559 ZeroPower
ZeroPower's picture

1oz for a 325ml bottle?
Unless i missed something, ive GOT to see your DCF for how you value good 'ol Jack!

Mon, 11/08/2010 - 20:20 | 710016 SheepDog-One
SheepDog-One's picture

You miss the point entirely! Its not how I value Jack Daniels...its how someone who loves to drink and there hasnt been a drop around for a couple weeks.

Mon, 11/08/2010 - 13:32 | 708523 Fortunes Favor
Fortunes Favor's picture

A paradigmatic shift is occuring in the precious metals arena. Understanding and awareness will be required for those wishing to enjoy the parabolic price moves higher in the coming months...

Mon, 11/08/2010 - 13:33 | 708524 Cleanclog
Cleanclog's picture

CNBC says gold too inelastic a system for a global system. Plus there is not enough gold.  Exactly!

But NOT if the currency is PEGGED to gold or something else.

Mon, 11/08/2010 - 13:36 | 708539 Ratscam
Ratscam's picture

Enough gold at USD 500'000 an ounce!

Mon, 11/08/2010 - 13:37 | 708542 SheepDog-One
SheepDog-One's picture

No, they mean theres not enough gold to allow banksters $144 billion bonuses!

Go to gold standard is fine with me, but remember USA's gold reserves are about $200 billion or so? 

USA credit generations get ready for big lifestyle downgrades.

Mon, 11/08/2010 - 13:36 | 708544 Teaser
Teaser's picture

there is plenty of gold.  If only one ounce of gold existed on the whole planet there would be plenty of gold.  Old debunked argument.  CNBC, never failing to show their stupidity.

Mon, 11/08/2010 - 13:33 | 708526 Obama2012
Obama2012's picture

disaster bitchez! now im cool

my nominal dollars still buy food. my 401k is lookin a lot better than when bush collapsed the economy. would you people rather have deflation and go through another depression?(yea i bet you would tough internet guy)

the fed will pull the excesses when the time is right and we'll be better off. you'll be thanking this crew in 5 years that your tea party kooks weren't allowed to destroy america.

Mon, 11/08/2010 - 13:35 | 708535 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

stop.  it wasn't just bush.  and ah, obama eats at the kids table. 

Mon, 11/08/2010 - 13:37 | 708549 Teaser
Teaser's picture

stop feeding the trolls.

Mon, 11/08/2010 - 13:55 | 708649 ZeroPower
ZeroPower's picture

His handle is obama2012?

hahaha what a tool. haven't had the misfortune of reading his drivel yet, but will watch out for it.

Mon, 11/08/2010 - 14:11 | 708728 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

It makes my "junk" of the day all the easier!

Mon, 11/08/2010 - 13:37 | 708548 SheepDog-One
SheepDog-One's picture

'Your 401K lookin better'? What are you, retarded?

Mon, 11/08/2010 - 13:37 | 708555 Teaser
Teaser's picture

he's an obama supporter.  Of course he is retarded.

Mon, 11/08/2010 - 13:44 | 708584 Ratscam
Ratscam's picture

Mongo, Mongo plays Bongo Bongo

Mon, 11/08/2010 - 13:38 | 708550 Ragnarok
Ragnarok's picture

Bush = Keynesian

Obama = Hyper-Keynesian

Bush + Obama + most polticians since 1913 = FAIL

Mon, 11/08/2010 - 13:53 | 708638 Obama2012
Obama2012's picture

neither is/was a keynesian. you people just like saying that cause it looks like kenyan. PRESIDENT OF THE UNITED STATES OF AMERICA, BARACK OBAMA, WAS BORN HERE! deal with it

i want you to point out the passage in lord ks work where he advocates defecit spending like shrub did. obama has little choice but to try and get the house you rethugicants lit on fire back in order BY ANY MEANS NECESSARY. fed chair is a great student of the depression, the best actually. he'll get us through if the obstructionists would just get in the back of the car and let us drive for a while. 22 months without any help from your side and you want to pretend its the black guys fault, pathetic

Mon, 11/08/2010 - 14:11 | 708727 firstdivision
firstdivision's picture

Obviously you are here to start shit since you are too retarded to understand that Keynes != Kenya.  Ever have a econ class, or are you still in middle school?

Mon, 11/08/2010 - 14:30 | 708813 Obama2012
Obama2012's picture

you must be illiterate.  but thank you for resaying my point. stop throwing keynesian around when you know shrub and president barack obama(go ahead and say it, its not that bad) are not.  i asked for the quote from lord k because i know it doesnt exist. read the shit you people talk about.  you dont sound smart cause you say words your xbox live friends dont know. you sound like a god damn tool.

fight club? this is more like circle jerk club. GOLD BITCHEZ!!!!!!!!!!!!111
Mon, 11/08/2010 - 14:40 | 708866 firstdivision
firstdivision's picture

JB, nice to see you're back. 

Mon, 11/08/2010 - 15:13 | 709022 tmosley
tmosley's picture

Please provide your definition for the term "Keynesian".

Please don't say "a person born in Keynesia".

Mon, 11/08/2010 - 18:21 | 709776 FEDbuster
FEDbuster's picture

Wasn't Steve Liesman born in Keynesia?  Or was it Fedistan?

Mon, 11/08/2010 - 14:12 | 708731 SheepDog-One
SheepDog-One's picture

Moron. How did this clown get past the Captcha?

Mon, 11/08/2010 - 14:18 | 708755 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

the fed chair knows nothing about the great depression.  by the by, bertwinkie was appointed by thine enemy, Lord Bush.  22 months he had the Congress at his beck and call, and he decided to do a Health Care takeover bill that is not only government takeover, due to the fact that it is the government ENFORCING the policy like the fascist nazis they are, but a takeover by the insurance companies, because the corporations wish to drain the system one more time.  after you get done hawking your neo lib rag tag book, sit down and read some history. 

Zinn from The People's History...

Dems have funded more war spending than Repubs.  Carter raised the budget that Ford/Nixon had.  Clinton raised the budget that Reagen/Bush had.  Obama raised the spending over what Bush had.  There is no right, no left.  It is merely to control the paradigm.  You are the perfect example on how it does so.

Mon, 11/08/2010 - 14:35 | 708837 Obama2012
Obama2012's picture

GOLD BITCHEZ!!!!!!!!!!!!111

facist nazis blah blah blah. which insurance cos have been nationalized?

i dont agree corps are the culprit. its the ummmm pasty leadership at the top. you know the rethugicant network of hoodmen from way back. someone different gets into leadership and you all go bonkers cause your thef network is threatened. guess what times have changed, you might have to share some of that rock buying money with the(hold your nose) common people

GOLD BITCHEZ!!!!!!!!!!!!111

Mon, 11/08/2010 - 14:28 | 708802 Dionysus
Dionysus's picture

Brilliant -- I am definitely going to be tracking this guy's comments over the next two years, assuming he doesn't change his name.  I love absurdity in all its forms.

Tue, 11/09/2010 - 00:16 | 710558 StychoKiller
StychoKiller's picture

Yeah, sometimes the Kabuki theater needs a little comic relief!

Mon, 11/08/2010 - 13:38 | 708551 Ratscam
Ratscam's picture

you really don't get it, do you!

Go back to kindergarden and do your home work!

Mon, 11/08/2010 - 13:41 | 708568 contrabandista13
contrabandista13's picture

You have a 401k....?  Get the fuck of this thread douche bag....

Mon, 11/08/2010 - 14:23 | 708704 doolittlegeorge
doolittlegeorge's picture

this is an interesting argument actually unless of course it's meant as a joke:  basically, "the FOMC really is smarter than the market."  I still place my bets on "Wall Street knowing the gig is up before Uncle Salami" but I know of no empirical data proving the point.  "History and experience"--but this is "the mighty Feds" who are "lookin' out for you" as this "mole" seems to imply.  i will say this "what does it mean to pull excess reserves" when the problem is too much debt?  there is no logic to this argument.  Wont' those reserves suddenly become "the mother of all stranded capital" if the problem is not with a "lack of cash" but "too much debt that has to be serviced"?  When last i checked "the laws of supply and demand havn't been repealed" and "issuing more debt to create debt only makes for the particpants to demand SOMETHING for the risk," no?  with "permanent negative real interest rates"(???!!!!) what happens when Mr. Market becomes "MR PHUCKING GOD DAMN MARKET TO YOU, MOFO!"?

Mon, 11/08/2010 - 14:51 | 708924 Obama2012
Obama2012's picture

GOLD BITCHEZ!!!!!!!!!!!!111

"too much debt"? that is your "problem" right "there". i see lots "of" posts talk "about" the results of "treasury" auctions. bid/cover seems pretty good"." the "dollar" is the "reserve currency of" the world. "buy" all the shiny r"ock"s you want it wont change that "or the" military backing.

GOLD BITCHEZ!!!!!!!!!!!!111

Mon, 11/08/2010 - 16:29 | 709337 XPEH BAM
XPEH BAM's picture

What up?  Howz bubble butt doing?

Mon, 11/08/2010 - 13:37 | 708554 LongSoupLine
LongSoupLine's picture

The "short silver" margin calls on JPM have GOT to be massive!  yet...up JPM goes.

Mon, 11/08/2010 - 13:41 | 708570 fiftybagger
fiftybagger's picture

Bix Weir


QUESTION: What happens when the entire world finally understands the silver manipulation story?


We are at the point where the ONLY sellers of SILVER are banking cabal members and their partners. They continue on their suicide mission of naked shorting paper silver to cap the price. They KNOW that the world is aware of their precarious situation BUT THERE IS NO OTHER ALTERNATIVE!

Mon, 11/08/2010 - 13:42 | 708579 SheepDog-One
SheepDog-One's picture

Theyre backed into a corner on all of it!

Mon, 11/08/2010 - 14:08 | 708713 doolittlegeorge
doolittlegeorge's picture

what if "they" are the Federal Government tho?

Mon, 11/08/2010 - 14:13 | 708739 SheepDog-One
SheepDog-One's picture

Thats what I mean!

Mon, 11/08/2010 - 14:41 | 708875 doolittlegeorge
doolittlegeorge's picture

how does one "corner the government market"? in other words "wouldn't the blow up be in debt be far more hair raising than any rise in gold prices"?  put another way "aren't those white Greek terrorists so funny with their mail bombs"?

Mon, 11/08/2010 - 13:42 | 708580 egdeh orez
egdeh orez's picture

Ok... nobody said it yet, so here it is:



Mon, 11/08/2010 - 13:51 | 708623 Bartanist
Bartanist's picture

Too inelastic? ROFLMAO ... yes, as you say Exactly, that is the point. To create stability and end our gambling, fraud, bribery and porn based society we need an inelastic currency ...

... however, and this is the big one, with the announcement by the IMF that they want to be the creators and administrators of a gold based currency we would simply be handing the keys of the kingdom from the right hand to the left hand of the international banking empire and all we would end up with is a fiat, fractional reserve gold system that does not allow anyone to redeem their currency for gold.

It is a globalist banking con game, designed to kill the dollar in favor of global money control.

Mon, 11/08/2010 - 14:09 | 708720 doolittlegeorge
doolittlegeorge's picture

what exactly is a "porn based economy"?

Mon, 11/08/2010 - 13:58 | 708663 Dick Darlington
Dick Darlington's picture

Fresh out from Ran Squawk: "Bullard says FED not monetising debt and balance sheet expansion temporary". Now I would like to know mr Bullard's definition of debt monetization... Obviously gold disagrees with his view.

Mon, 11/08/2010 - 13:59 | 708665 themosmitsos
themosmitsos's picture

Gold to S&P ratio, 2-to-1, coming soon

Mon, 11/08/2010 - 14:09 | 708718 trgfunds
trgfunds's picture

"In other words, over the past two years there has been no real growth in asset values, as it has all come at the expense of every central bank's ongoing, and accelerating, debasement of its currency."

So, dare I ask... Where has the growth in GOLD come from (off the March 2009 lows)? It couldn't be from dollar devaluation could it? It couldn't be increased speculation/fear could it? The poor dollar couldn't ever possibly correct could it? Naaaah. No way. Never. Ever. I'm glad that isn't a possiblity because jeez if that ever happened a lot of gold owners could lose a lot of money.

Mon, 11/08/2010 - 14:13 | 708736 doolittlegeorge
doolittlegeorge's picture

and of course "The Collapse" teaches us the "peril of shorting THE DOLLAR."  There's a lot going on in that "financial nuclear reactor"--a lot more than one mere human can understand.  "When subjecting markets to said government control make sure said finances are phucking straight up bulletproof."  Otherwise "we go from too big to fail to too big to bail" SEEMLESSLY. 

Mon, 11/08/2010 - 14:18 | 708760 SheepDog-One
SheepDog-One's picture

Most of the growth in PM's is from banks shorts being squeezed in a vise! $LOLlar couldnt 'correct', I dont know what you mean, correct from the 98% devaluation of the LOLlar since 1913? What would cause that to happen, More money printing debasement now that the world is screaming to be decoupled from the US $ LOLlar? Cant print gold!

Mon, 11/08/2010 - 14:39 | 708863 trgfunds
trgfunds's picture

You can't print gold, and yet, you can't somehow tie it to economic growth / production without serious changes to it's value structure. Just how do you suppose people working, building, and creating growth in the labor market could all be paid in gold? They couldn't be. All that happened when the gold standard was removed was that the currency was tied to economic growth directly, and allowed to be "elastic". The problem isn't the actual system. It is the way in which the system has been used, and the way existing laws and checks/balances have been systematically captured. It is the demand for entitlements, the ignorance of the population, and the deception used by the elites on key ingredients such as these to manipulate society. Until these things are no longer allowed by everyone to happen, it doesn't matter WHAT type of system we use. If gold becomes the new mantra and the elites decide to go with it, guess what? They'll figure out a way to screw you with it. You cannot simultaneously hold onto precious metals thinking you have the answers and have a population of sheep not understanding ANY of the stuff talked about on ZH every day. PMs do not equal the "win" many of you believe they do.

Mon, 11/08/2010 - 14:45 | 708899 doolittlegeorge
doolittlegeorge's picture

better "the devil you know" than the "devil you don't then."  this is interesting as well.  "money markets" are a relatively new "contrivance."  needless to say "breaking the buck" doesn't sound like a big deal to "the novice" but it sure brought the Treasury Department to the "gurantee bazaar" pretty quick!  Now we're "running out of physical cash"?  Maybe the problem is "we're not flying the stuff directly to ATM's"?  We're being "herded into the mall to actual money."  Guess that's one way to help the retail industry!  Put the only ATM with actual cash there!

Mon, 11/08/2010 - 14:15 | 708744 firstdivision
firstdivision's picture

Would someone track down Johnny Bravo, I would love to hear his input on this.  <sarcasm>He was my compass in chaotic world.</sarcasm>

Mon, 11/08/2010 - 14:18 | 708761 doolittlegeorge
doolittlegeorge's picture

What direction do you go in when all your "compass" is doing is spinning 'round and 'round and 'round?

Mon, 11/08/2010 - 14:19 | 708771 SheepDog-One
SheepDog-One's picture

I think hes resurrected himself in the form of 'Obama2012'.

Mon, 11/08/2010 - 14:25 | 708796 H. Perowne
H. Perowne's picture

I thought that was Robo blowing off some steam. +1400 and whatnot. Just waiting for some charts to be posted . . .

Mon, 11/08/2010 - 14:50 | 708916 doolittlegeorge
doolittlegeorge's picture

I'm not disagreeing with you.  I find "super oddities" in here and am just trying to explain them.  One example:  "the housing industry is by far the largest user of copper so why is the price of copper so high?"

Tue, 11/09/2010 - 00:29 | 710571 StychoKiller
StychoKiller's picture

The Chinese have to build houses too, ya know!

Mon, 11/08/2010 - 14:52 | 708926 Spigot
Spigot's picture

Mother Gold, long suffering the aspertions of the modern banking crowd ("Out thou damn barbarous relic!), is now preparing to kick their bloody arses up and down the street much to the cheers of the neighborhood children.

Mon, 11/08/2010 - 15:44 | 709143 Clapham Junction
Clapham Junction's picture

Yeah, and tell me when Prechter gets here.

Mon, 11/08/2010 - 15:52 | 709182 I am more equal...
I am more equal than others's picture

Looks like a Descending triangle - continuation pattern. 

Continuing on to the road to utter and complete destruction or is that complete with butter?

Mon, 11/08/2010 - 17:21 | 709569 Whizbang
Whizbang's picture

I don't know if I should bother pointing this out, but the chart isn't adjusted to the USD at all, its adjusted for gold. Why don't you adjust for oats or corn, which will show the ES falling off a cliff.

Mon, 11/08/2010 - 17:44 | 709642 Djirk
Djirk's picture

in terms of gold...fjunky math

interesting thought though, be curious to see that chart done relative to USD purchasing power over the last 30 years or relative to the CPI minus shelter costs

Mon, 11/08/2010 - 21:46 | 710266 Buck Johnson
Buck Johnson's picture

Severe inflation here we come.

Tue, 11/09/2010 - 08:09 | 711318 liberal sodomy
liberal sodomy's picture

cnbc says "gold bugs" are stupid and wear tin foil hats. Especially the CFR's butt slut, barren burnett.

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