Posts
Every
"Record" Dow Jones Point Costs $200 Million In Federal Debt
8
March, 2013
The
past week brought us history: on Tuesday, GETCO and Citadel's HFT
algos were used by the Primary Dealers and the Fed to send the Dow
Jones to all time highs, subsequently pushing it to new all time
highs every single day of the week, and higher on 8 of the past 9
days: a 5ish sigma event. But there is never such a thing as a free
lunch. And here is the invoice: in the past 5 days alone, total
Federal Debt rose from$16.640 trillion to $16.701 trillion as of
moments ago: an increase of $61 billion in five days, amounting
to $198,697,068 for every of the 307 Dow Jones Industrial Average
points "gained" this week. Because
remember: US debt is the asset that allows the Fed to engage in
monetization and as a result, hand over trillions in fungible
reserves to banks... mostly foreign banks.
From
Debt
to the Penny:
The
good news is that debt is no longer and issue, and only the level of
the stock market matters. Because if the wealth effect at $16.7
trillion and a record DJIA is staggering, just wait until the Obama
administration takes the debt to $22 trillion in under 4 years.
At
that point, nobody will have ever ever have had more money. Sadly, at
some point, all that money will be used to buy a loaf of bread....
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