Money Printing Is The New Mother’s Milk Of Stocks

By Michael Pento – Re-Blogged From Silver Phoenix

My friend Larry Kudlow always says that Profits are the mother’s milk of stocks. That used to be true when we had a real economy. But sadly, that is no longer factual because we now have a global equity market that is totally controlled by central banks. To prove this point, let’s look at the last few years of earnings. During the year 2018, the EPS growth for the S&P 500 was 20%; yet the S&P 500 Index was down 7% over that same time-frame.

Conversely, during 2019, the S&P 500 EPS growth was a dismal 1%; yet the Index surged by nearly 30%. What could possibly account for such a huge divergence between EPS growth and market performance? We need only to view Fed actions for the simple answer: it was the degree to which our central bank was willing to falsify asset prices.

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How the Federal Government Betrayed Millennials

By Veronique de Rugy – Re-Blogged From

Candidates running for president should take the following warning seriously: Years of bad government policies catering to interest groups have created a generation of young people facing tremendous challenges in the labor market and little chance to experience the good old American dream. We can hope that someone will put this government-created generation of disinherited at the center of his or her platform.

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The Myth of the Depression of 1873: More Evidence of a Bright Future for Austrian Economics

By John P. Cochran – Re-Blogged From

More evidence the future of Austrian economics is in good hands is Patrick Newman’s (a PhD student at George Mason University and a participant in the 2012 Mises Institute Summer Fellowship program) excellent piece of scholarship recently published in the Quarterly Journal of Austrian Economics as “The Depression of 1873: An Austrian Perspective.”  The paper is extremely important and timely as the Great Depression of 1873-1879 is often used against Austrians as a counter example of a long depression with relatively laissez-faire macro policies and no central bank. An example is provided by Jeffrey M. Herbener in a short blog that provides a response based on work by Rothbard.

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