The mainstream media is saying “OMFG!  The Dow broke 14,000!  It may set a new record!”  There’s a huge fallacy.  That ignores inflation.

If you price the stock market in gold, the value has decreased almost every year for the past 10 years.

It’s very easy for the State to push up the stock market. If there is 20% inflation, then the stock market will go up approximately 20%. It isn’t an exact relationship, because inflation is not uniform and there are bubbles and busts.

When State insiders do talk about inflation, they use the biased CPI instead of more accurate measures.

When the Federal Reserve “stimulates the economy”, they really are “giving free money to insiders”. When banksters invest in the stock market, they typically have high leverage. If they borrow at 0% and buy stocks with 7x leverage, a 20% gain in the stock market is a real profit of 140%. The cost is paid via higher inflation for everyone else.

State bankster comedians cheer a rising stock market, because that enables them to steal from everyone else. State comedians cheer inflation, because they get to print and spend the new money.

The stock market also makes it easy for insiders to steal via “share inflation”.  When a CEO gets shares and options, he’s getting new shares that dilute everyone else’s ownership.  That’s one reason that the stock market underperforms true inflation.  Corporations produce earnings, but those earnings are less than the amount stolen by insiders.

It’s wrong to cheer a stock market “record”, because that considers the nominal value and not an inflation-adjusted value.  With massive inflation, it isn’t surprising that stock prices also rise.  Real stock market gains do not keep pace with true inflation.  Insiders don’t care, because they’re heavily leveraged or skimming a percentage off other people’s wealth.