BEAT THE CENTRAL BANKERS! GET AN EDGE WITH TRUE STOCK INDEX PRICES NOW IN TRUE DOLLARS™

Over on my companion site, The True Dollar Journal, I've released the much awaited WORLD ECONOMY LEAGUE™ Stock Exchanges Indices.  There is only one place on earth where you can get the true prices of stock indices and that place is right on the True Dollar Journal.

Every week, many are losing buying power in stock markets everywhere and they don't even know it. This is true even when prices are going up in the local current currency!

With True Dollar prices, you can see which ones are actually increasing in buying power.

Check out Iceland! Head up to the True Dollar™ Markets menu to see. The indices are live!

Read more ...

"REAL" GDP IS FAKE, BOGUS, CRAP. AMERICANS AND SCHOOL CHILDREN HAVE BEEN HOODWINKED FOR DECADES.

The formula for "real" GDP taught in schools:

nominal GDP ÷ base year GDP × 100

This yields "real" GDP in what was called "constant dollars." Supposedly, this "real" GDP is a measure goods and services of the current year deflated to the prices of a base year GDP. Base year GDP is merely the nominal GDP of the year chosen to be the base.

You can watch Sal from the Khan Academy teach the difference between nominal and "real" GDP on YouTube and then you can watch Sal teach the Constant Dollar method to calculate supposedly "real" GDP also on YouTube.

Under logical scrutiny, the concept gets exposed as mere hokum, bunko. Think about it. The base year GDP is inflated by whatever the inflation was for that year.

Before 1996, the BEA used the school method. From 1996, the U.S. Department of Commerce has used the chained-dollar method (see: BEA's Chain Indexes, Time Series, and Measures of Long-Term Economic Growth).

The BEA method for real GDP, though complicated, is hardly much different that school-method GDP. The new method uses the average of two successive periods of GDP. So year two of a chained-dollar average becomes the year one of the next chained-dollar average. The minions at the BEA believe this removes distortion that any year might cause owing to changes in composition of goods and services.

The math looks something like this:

"real" GDP = nominal GDP ÷ implicit price deflator

where the implicit price deflator = (current-dollar ÷ chained-dollar) × 100

and a chained-dollar = base period current-dollar measure × (chained-type quantity index number current period - chained-type quantity index number base period)


Anyway, chained-dollar "real" GDP is still as bogus as the chain consists of an averaged succession of already inflated GDP as the basis to deflate current dollar GDP.



Could you measure a length of a distance with a ruler that changes in size the farther you go? That is what academicians and the minions at the BEA claim you can do with their bogus method.

And today, that academician economists can't see this plain truth reveals how stupid they are, how weak their intellects are, how indoctrinated they are. Worse are the millions of idiot-like parroters who parrot the false belief of "real" GDP when they report on it.

Men were much smarter about money and banking from the years of the late 1870s through the 1920s. One such man was Edwin Walter Kemmerer who was known as "the money doctor." This is what Kemmerer had to say about inflation:

 

Kemmerer goes on to say:

Anyway, there is a method to deflate away inflation, which uses a metaphorical measuring stick kept at a constant length. That method is my method — the True Dollars™ method. It is the only real, true, legitimate method.

Both the constant-dollar method or the chained-dollar method rely on prices. Prices are an effect and not a cause. It's impossible for an effect to be its own cause.

It's impossible to deflate prices with past inflated prices.


Economists are idiots to believe otherwise. And guess what? They believe otherwise.

Read more ...

DID THE NASDAQ COMPOSITE HIT AN ALL-TIME HIGH ON JUNE 23, 2015 AS REPORTED? IT'S NOT EVEN CLOSE.

Google News returns 122,000 hits for the search phrase: NASDAQ Composite June 23, 2015 record or all-time

So is it true? Could the NASDAQ hit a high higher than the peak of Dot Com era when every American who wanted a job held a job?

In True Dollars™, which are the only dollars that count, the NASDAQ Composite is quite far from the all-time high.



The NASDAQ Composite hit an all-time high on 3/6/2000 peaking at $1,032.37 in True Dollars™. All who lived through that time as an adult will quite remember the Dot Com mania that abounded throughout America.

Americans were flush with jobs and with cash. Truly good times had been flowing for awhile for Americans.

There is no way the NASDAQ Composite today is at a true all-time high. Americans are far from good times. Many Americans have yet to leave hard times behind.

Today's NASDAQ Composite close is down -61.8% from the all-time high and a tinge higher (1.9%) than where it marked at true peak GDP hit at the end of Q4 2007, but down -16.8% from the peak hit during the Greenspan-Bernanke Inflation Bubble, the biggest credit bubble in the history of mankind.

Cash in circulation is up 150.2% since the all-time high and is up 52.9% since the March 2009 NASDAQ low. In True Dollars™, the NASDAQ Composite is up 116.3% from the March 2009 low.

Along with the quality charts I share like the one above, below is the kind of quality report I will be making on offer soon to subscribers that tracks ETF trading instruments.

Read more ...