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"The US needs low interest rates for a long period of time. This will be measured in years" - Fed Chairman, September 4, 2020
Several facts that perfectly characterize the "market economy" and "capitalization" in the so-called "developed countries" (translated from newspeak - bankrupt countries, financial and moral):
1. Since the launch of operation Covid, Central banks in Western countries have been monetizing "assets" (from US t-bills to mortgage derivatives) at an average rate of $1.41 billion of green paper every hour. Without this buyout, the liquidity of all this garbage would be in big question, as would "stock trends".
2. Since the launch of operation Covid, the stock market capitalization of Nasdaq 100 companies has been growing at an average rate of $1.6 billion every hour.
3. Despite the fall in revenue and production, the current year is still a record in history for the number of "bullish" days when the stock market capitalization is growing. Only 34 days have been recorded since the beginning of the year, when there was a reverse "bearish" trend.
4. Set a record for 100 years in the ratio of bond quotes to resource prices.
5. Set a record for 100 years in the ratio of stock prices to bonds.
6. However, the dividends for companies listed on the S&P500 are now on average only a measly 1.7% - almost the level of inflation.
7. Global debt has reached the level of $258 trillion of green paper or 2.3 of global GDP-naturally, this is a new historical record.
8. The total value of all stocks and bonds has reached $212 trillion of green cut paper - a new historical record.
9. 14 trillion dollars reached the volume of bonds that have a negative yield - a new historical record.
10. The printing press of the Central Bank of Japan monetized 40% of all Japanese bonds.
11. The US Federal Reserve printing press monetized 14% of all US t-bills.
In short, everything is just fine, there is no reason to worry. Keep track of stock records, do not be distracted by any nonsense such as the volume of real production, the dynamics of tax collections, etc
Source: https://www.zerohedge.com/markets/ce...s-about-market
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