[quote=werewolf34]Can anybody point at stronger fundamental economic data that supports higher stocks?
If not, then the rise in stocks is speculation that the economy recovers in the future (how long in the future?)[/quote]
Werewolf, I can’t point you to any strong economic data, but my bones are telling me that any recovery for this country is going to literally be a decade (or more away). Why? Because way too many stars are aligning against us. A perfect storm is being created. Now, in addition to the BRIC bloc clamoring for a dollar replacement, we have to contend with the fact that the opposition party in Japan will almost certainly win the election this Sunday. For the first time in 54 years, the ruling party will be out. And the opposition party has made one thing extremely clear: no more dollars. Come this Fall, when our second largest creditor begins to demand repayment of U.S. bonds in YEN, the floodgates will be opened, and other countries will follow suit. All of Obama’s debt-laden fantasies of reform and *change* will come crashing down, along with the dollar.
Those who expect a recovery for housing, those who are working to *reform* health care, those who are hoping that stimuli will stimulate this dead frog -these people may as well be polishing flatware on the Titanic.
And the greatest tragedy is that this blow will come suddenly, unexpectedly, for the people who have been manipulated and coxed by the media into believing the worst is behind us. This is an economic crime against humanity. They will be left adrift, with a shredded dollar and no safety net from a collapsing government.
“But the next blow to the dollar may come as a complete surprise to Washington policymakers. Since World War ii, Japan has been a stalwart dollar supporter and a close collaborator with Federal Reserve monetary policy. That may be about to end. For only the second time in 54 years, the opposition in Japan is close to taking over the government. Japan’s economy, like those of the rest of the world, is in severe contraction, and disgruntled voters are upsetting the balance of power and pushing for radical reforms.
Back in May, Masaharu Nakagawa, the chief finance spokesman for the opposition, told the bbc that he was worried about the future value of the dollar. He said that if his party were elected in the upcoming national elections, Japan would refuse to purchase any more U.S. treasuries unless they were denominated in Japanese yen instead of dollars.
Such a decision could break the U.S. dollar bond market.”
