Urbanismo Conectado

The real value of US stocks in terms of Gold.
Comparing Japan's Economic Depression with the present US stock-markets prices

Graphs speak more eloquently than I can and they speak a brutal truth.Perhaps it is my background or perhaps I appreciate the art that can be found in price charts. In either case, I prefer the message of charts to so-called experts.

Anyone who currently has excesssavings they want to invest is in the minority of the world's population. They are also likely "rich" and "evil" according to populist sentiment. In any case, these aren't the best of times foradvanced/Western economies.

United States are currently in the midst of an unmistakable secular bear market for general equities. Such bear markets don't end with the current obscene valuations and theydon't end because US government saves the day.

The piper waits patiently, knowing that he will be paid. Currency debasement and allowing survival of the most unfit is not the way to restore asecular bull market.

But neither Japan's QE1, QE2, and QE3 helped their stock market for the long haul, neither US's QE will avoid a long depression.

Quantitative Easing, change the value ofcurrencies, then we need to compare the results of those QE using another unit. Which? That Gold bulls are used to such pricing strategies, the "price in Gold", which it is time for reality to intrude on thepaperbug world.

When you compare Japan and US stock markets priced in Gold, you realize that United States are on a similar course to a dip depression.

Whatever monetary chaos in which we are,the Gold will outperform stocks over the next several years. And the question is of whether fiat money will retain its value over the next decade.

But notice the "phase shift" chart messagebetween Japan and the USA shown below. The chart is a monthly log scale chart of the Nikkei stock index ($NIKK, the main Japanese stock index) divided by the price of Gold ($NIKK:$GOLD), shown in a black...