Now that I’ve been eddicated on how to post an image I simply have to post a version of a financial chart that I have loved since I saw my first copy in 1988.
In the graph above, the nominal DJIA is shown in blue, and the DJIA, deflated by M3 (yellow), is shown in red. This chart demonstates the real return, the return in constant dollars (PPP), from 1960 to 2001 averaged 2.5% compounded annually.
(M3 is the measure of the total amount of bucks running around the universe.)
You can read the entire article here.
This chart ends in 2001. Since 2001 the Fed has been increasing M3 by 4 to 5 percent per year. So for all you stock investors – remember to take-off an average of 4.5%/year for the past 4 years to determine your net return.
Can you explain the acronyms?
I really did not at all want to be the first one to say “Huh?” 😉
DJIA = Dow Jones Industrial Average
What this chart shows is the rise of stock prices, the blue line, is primarily due to an increase in the net money supply, the yellow line. What this means is stock prices have not risen, in real dollars, with as great a percentage return as Wall St. or the Bush administration would have you think.
Just think of Greenspan as a US version of the Nechuung Oracle, but without credibility.
This is actually one of the reasons for the crusade.
They fear a huge Islamic bloc that refuses to pay interest or accept Federal Reserve Notes, or the vaporcurrency of Greenspanfarts, in exchange for oil, and the other Islamic Monster, the spectre of peace.
Peace is the opposite of money. Few fine old families are said to have made their fortunes during this or that peace.
For those who are unaware, an Islamic economy is not socialism, nor is it the designer feudalism that westerners have been indoctrinated to worship as capitalism and a free market.
In an Islamic economy, entrepreneurship, prosperity, even wealth are encouraged, but exploitation and unbridled greed have no place.
Call back those hasty fingers, you who are about to say, why such a thing does not exist, cannot, human nature, all this balderdash about the utopia of the Caliphate – remember that we are talking now of the actual religion, not the various appeasing travesties of it that profit the sheikh and the CEO and starve the people, and also remember that the fact that Utopia is not possible is hardly an excuse for deliberately not feeding people when there is food to do so, and spending more than the cost of feeding them to slaughter them, which is the basis of US foreign policy for decades, and why it is possible to find not so many intelligent and well-read Iranians, Malaysians, Pakistanis and a host of other ians who will not mind telling you that they don’t much care for Americans. link