The manufactured stock market rally, the disconnect between Wall Street and Main Street

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Gone are the days that the stock market reflects the overall health of the American economy.

While the media are falling over themselves to report "happy days are here again," the "main street" economy is contracting. People are losing their jobs or are being cut back to part-time, others are underemployed doing jobs for which they are overqualified.

But that's okay, they say, "Wall Street is back! Yippee!"

Now for some cold hard facts.

The stock market is manipulated by the federal government -- aka the Federal Reserve. You see, as long as the Reserve is printing money out of thin air, the stock market will continue to rise. The more money they print, the more the U.S. dollar is devalued.



This leads to inflation and stagnant employee wages because employers can no longer keep up with the rapid increase in the cost of living.

So while the mega rich are getting richer, you and I -- the middle class -- are being strangled by high gas prices as well as rapidly rising food and energy costs.

When they turn off the printing press -- it's all going to fall a part. The money-printing will end when the Chinese decides to stop financing our debt.

Another crash is coming. The signs are there, only this crash is going to be much worse than that of 2008 because of our national debt situation.

All you have to do is look at the similarities between now and shortly before the crash in 2008, according to ZeroHedge:
  • Dow Jones Industrial Average: Then 14164.5; Now 14164.5
  • Regular Gas Price: Then $2.75; Now $3.73
  • GDP Growth: Then +2.5%; Now +1.6%
  • Americans Unemployed (in Labor Force): Then 6.7 million; Now 13.2 million
  • Americans On Food Stamps: Then 26.9 million; Now 47.69 million
  • Size of Fed’s Balance Sheet: Then $0.89 trillion; Now $3.01 trillion
  • US Debt as a Percentage of GDP: Then ~38%; Now 74.2%
  • US Deficit (LTM): Then $97 billion; Now $975.6 billion
  • Total US Debt Oustanding: Then $9.008 trillion; Now $16.43 trillion
  • US Household Debt: Then $13.5 trillion; Now 12.87 trillion
  • Labor Force Particpation Rate: Then 65.8%; Now 63.6%
  • Consumer Confidence: Then 99.5; Now 69.6
  • S&P Rating of the US: Then AAA; Now AA+
  • VIX: Then 17.5%; Now 14%
  • 10 Year Treasury Yield: Then 4.64%; Now 1.89%
  • EURUSD: Then 1.4145; Now 1.3050
  • Gold: Then $748; Now $1583
  • NYSE Average LTM Volume (per day): Then 1.3 billion shares; Now 545 million shares  
When it all goes down, liberals and big government republicans, along with those seeking social change in America, will blame capitalism and the free market. They will then demand a "new global economy" managed by an elite group of people. These people will redistribute the wealth of the world's wealthiest nations to the poorer nations.

This, in turn, will ensure America's decline and eventually mediocracy will be the new normal.

Another important note: If the market is being manipulated by government who is, through quantitative easing and bailouts, picking winners and losers -- this is not free market capitalism. It is crony. And it is criminal -- period.

So, there you have it.

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