Quote from opt789:
My dream is that one day the sheeple will realize that their government intentionally devaluing their currency to prop up asset prices and monetize the debt is not something to celebrate.
On the cash SPX side, we have not had two down weeks in a row since this rally started in March, except for the one single correction they allowed in June. Last week was slightly negative so they will want tomorrow to close over 1004.09. Is there anyone left to challenge them?
The US government is not popping asset price.
It is trashing USD and as a result, asset classes that are immune (fully or partially) to US internal consumption failures become inflation hedge.
e.g. various commodities with real demand, especially those that are not affected by economic downturn like grains which solely depends on population increase. or, stock prices on companies with international income.
It is a grand experiment on the theory that, since consumer spending and economic activities depend on sentiment (or their mood swings) and that sentiment depends on wealth effect - the sense of wealth printed in most people's asset portfolio with almost no correlation to the exchange rate, thus supporting the asset prices MAY in theory in turn improve economic activities as a whole.
Since it is an experiment, and no one has tried this before, it is very hard to tell how it is going to end. =D
Edit: A funny version of above - When a dog is happy it licks its owner, the dog is not happy and now stop licking the owner. Normally, a normal person will try to make the dog happy so that the dog will show its affection again. This dog owner, however, opened the dog's mouth, pull the tongue out with a clamp, and wipe that on his own face, thinking that the dog is now happy again.
