jcismylord
10th September 2017, 07:05 PM
Here is one radical, or perhaps not so radical idea for your consideration
We all know, that one of the main function of MONEY is to be a STORE OF VALUE.
So, if I am to ask a question - "what is money in our days?" - all we have to do is to LOOK at where people store their wealth today.
If you take the richest guys like Warren Buffet, Jeff Bezos, Bill Gates and the likes of such - notice these guys don't store their wealth in USD ( in banks ) or in gold or in other currencies or in bonds or in parcels of land.
All of them store their wealth in STOCKS.
Therefore they use STOCKS as money.
STOCKS are and have been for decades a new form of money.
Despite all the noise, STOCKS, not gold are supported and baled out.
Owning stocks is encouraged and protected by the PTB.
Being MONEY, allows STOCKS to be so divorced from things like "earnings per share", "valuations", "book value" or anything that we call "fundamentals".
I often hear many an old-school analyst baffled by a disconnect in between fundamentals and the current stock price, simply due to their failure to realize that in this present era STOCKS ARE NOT SHARES OF BUSINESSES they use to be. STOCKS ARE MONEY. As money, stocks compete against traditional "money" such as the dollar or other currencies.
Powerful and wealthy of this world don't keep their wealth in huge bank accounts, in cash or commodities - they keep their wealth in stocks, which so far have been simply a BETTER STORE OF VALUE than the dollar or say land - the STOCKS ARE BETTER MONEY today.
Raise of the stock market of the last decades is not at all indicative of the great health of underlying economy, - raise of stocks is NOTHING MORE THAN A MANIFESTATION OF INFLATION, where better money - THE STOCKS outperform the bad money - the dollar before our eyes.
With that said - the phrase "IRRATIONAL EXUBERANCE" is a failure to see the true nature of what stocks have become ( have been made into ) in the recent decades - a new form of money.
We all know, that one of the main function of MONEY is to be a STORE OF VALUE.
So, if I am to ask a question - "what is money in our days?" - all we have to do is to LOOK at where people store their wealth today.
If you take the richest guys like Warren Buffet, Jeff Bezos, Bill Gates and the likes of such - notice these guys don't store their wealth in USD ( in banks ) or in gold or in other currencies or in bonds or in parcels of land.
All of them store their wealth in STOCKS.
Therefore they use STOCKS as money.
STOCKS are and have been for decades a new form of money.
Despite all the noise, STOCKS, not gold are supported and baled out.
Owning stocks is encouraged and protected by the PTB.
Being MONEY, allows STOCKS to be so divorced from things like "earnings per share", "valuations", "book value" or anything that we call "fundamentals".
I often hear many an old-school analyst baffled by a disconnect in between fundamentals and the current stock price, simply due to their failure to realize that in this present era STOCKS ARE NOT SHARES OF BUSINESSES they use to be. STOCKS ARE MONEY. As money, stocks compete against traditional "money" such as the dollar or other currencies.
Powerful and wealthy of this world don't keep their wealth in huge bank accounts, in cash or commodities - they keep their wealth in stocks, which so far have been simply a BETTER STORE OF VALUE than the dollar or say land - the STOCKS ARE BETTER MONEY today.
Raise of the stock market of the last decades is not at all indicative of the great health of underlying economy, - raise of stocks is NOTHING MORE THAN A MANIFESTATION OF INFLATION, where better money - THE STOCKS outperform the bad money - the dollar before our eyes.
With that said - the phrase "IRRATIONAL EXUBERANCE" is a failure to see the true nature of what stocks have become ( have been made into ) in the recent decades - a new form of money.