The Lie about the DOW JONES

I lifted my own quote from another post because I felt that it warranted its own thread:

Compare the price of the dow to gold in 2008 vs dow to gold in 2012. Is it really above 13,000? Hmm makes you think:

Dow in October 5, 2007: $14,066/unit Dow Jones
Gold in October 5, 2007: $730/ounce
It takes 19 ounces of gold to buy one unit of Dow jones


Dow on Feb 28, 2012: $13,005/unit Dow Jones
Gold on Feb 28, 2012: $1,735/ounce
It takes 7.5 ounces to buy one unit of Dow jones.

Meaning that it takes less gold to buy the same stocks, meaning the value of the stocks is actually much much lower than what they are telling you.

We are being duped into thinking that the Dow being 13,000 is a good thing when in reality it is still worth much less than it is

www.google.com...

Nice, I follow your logic. I thought the cake was a lie from when I heard it hit 13,000+.

reply to post by THE_PROFESSIONAL


Clever observation. And the only thing this temporary peak means, is that we are about to come crashing down the other side of the hill. Same as last time.

reply to post by THE_PROFESSIONAL


Very clever. Also add in the fact gold is also artificially inflated right now and you have a serious situation. Gold price is literally defined by supply/demand. Since supply is flat the only thing that increases gold price is demand.

Being proactive, what's next? Silver or the Dinar?

Both are cheap.

The DOW is a bubble and the ceiling is Oil.

Watch the markets. Every time the market recovers, oil starts to go up and people spend more. The oil increase hits the pumps and everyone stops spending again, than the markets stall and start to go down.

The DOW is for-sure a bubble right now. It's burning up the injected dollars from the Government. If they don't scare the price of Gold down, or increase domestic production of oil (proving the peak oil theory incorrect), than the markets are going to pop.

It's just a matter of time before people give up, put their dollars down and do something else instead.

Great thread!
The Dow is heavily manipulated. The past 9 months imo have shown the heaviest amount of manipulation I have seen.
In August the dow crashed from around 12,750 down to as low as 10,500 within 13 days. It then traded within a narrow range thus creating a perfect bear flag formation. A bear flag is a very ominous sign and indicates the markets heading even lower usually penetrating support when it hits it the third time.
This is exactly what happened, the dow bounced off the august lows and blasted through the support when it hit it the third time.
Check out October the 4th, the dow blasted through major support and went as low as 10,377. This is a key indicator to all traders that the market is going to head lower, much lower. But wait, what you notice is that day ended in the positive, thats because europe started a rumour that very day that europe were going to get together and fix the crisis. Many many traders would have been wiped out that day because the markets magically reversed on that rumour.
The markets broke out of the bear flag and looked to go even higher.
The rumours about eu meetings and greek debt write offs were dragged out for months knowing that the markets were heading higher based on the rumours.
The markets haven't looked back since, blasting through resistance levels as if they're not even there.
This sends a message by tptb to every trader- Don't You Dare Short This Market Or You'll Be Sorry!

After that 1000 point drop may six to encourage congress to vote up some bailout money
and then the recovery in hours...
I'd say the whole system is suspect
Gold is the bankers money, paper for the peeps

Originally posted by litterbaux

...Gold price is literally defined by supply/demand....

Gold is literally priced to the value of the dollar. That $20 gold piece 100yrs ago bought a nice tailor made suit. That same amount of gold does the same thing today.

I like your silver/dinar idea though...like every week the last seven years hoping to hear good dinar news this week! Hahaha...

The dollar is not pegged to gold anymore, so the comparison isn't valid. That said, the stock markets are a sham. The numbers are manipulated to give people a false sense of security (or inversely, fear). It's a system of mind control. Pump the numbers up and people think everything is coming up roses, push them down and they quake in fear. I think the game is nearly up, the average person is done investing in stocks and I don't think they'll ever return after getting burned so bad in the last decade.

Originally posted by THE_PROFESSIONAL
Compare the price of the dow to gold in 2008 vs dow to gold in 2012. Is it really above 13,000? Hmm makes you think:

That's not an accurate way to make comparisons, as the two are not related.

Gold is a hard commodity, the price determined by it's value compared to the value of a currency.

Publicly traded stocks are not a commodity. For investors, the prices are determined by those betting on the success or failure of each company. For speculators, small fluctuations in price are exploited for short term gain.

Perhaps overly simplistic, but you get the idea.


Some better comparative data can be found here:
Gold Market Price vs. Dow Jones Index
and here
Here’s that Gold-Versus-the-Dow Chart You Wanted


In short, this type of cycle has been happening a lot. And when the DOW outperforms gold by a wide margin, historically that means those playing the market are speculating on economic improvements.

Not to dilute your good work and critical thinking but others are way ahead of you. George Ure of Urban Survival has been saying for quite some time that for the DOW to equal the pre-crash level it would have to be trading at over 15,000 just to make up for inflation (money printing). You could do the same exercise with a number of other commodities and end at the same result. The DOW is fiction. It's simply systematized gambling for the 'big kids'.

IMHO I believe the Federal Reserve and us Gov't is propping up the stock market because people associate the stock market with the economy.If the stock market is good then the economy is good. This is a false growth for a few reasons.
1.) looming war with Iran
2.) Greek finances
3.) Japan problems
4.) My car being dirty
With all of these problems and more the market still goes up, which makes me say hmmmmmm.

reply to post by THE_PROFESSIONAL


Except you are forgetting two things

1. People also invest in Gold harvesting
2. Gold speculation is also an investment tool

thanks!

What about, just the differences in cost of living compared to the dow, or is that not a realistic option?

I don't know as I just follow this stuff with limited interest as I'm just waiting for the housing market in Vancouver to crash!

The whole idea that the Dow is manipulated is silly.
It takes money to move the market. A lot of it. More than the government can borrow.
Even if they did then they would be at risk of losing even more money. Money that they didn't have to begin with.
These lenders are not simply going to write off these loans.

The market moves on emotion. A good report bumps the market up even though the balance sheet will take months (if ever) to show the bump.

As the old saying goes. Buy the rumor, sell the fact.

Originally posted by litterbaux
Gold price is literally defined by supply/demand. Since supply is flat the only thing that increases gold price is demand.

Except the supply is actually growing. In reality.

Source: I work in a gold mine.

reply to post by samkent


Emotion = Inside Trading.

All the top movers and shakers of the stock world are in cohorts. No matter what market or in which country.
They fuel the rumours an then tip off there 'buddies'. More money they make the more drunken debauchery that night.

Its just a game to them and they don't care who it hurts as long as the 0000000's keep stacking up in their accounts.

Originally posted by samkent

The whole idea that the Dow is manipulated is silly.
It takes money to move the market. A lot of it. More than the government can borrow.
.

that's what they want you to believe!


the flash trading that takes place does not require the transfer of funds... and these flash traders can move a market with the trading of hundreds of million shares (naked trading) in seconds...

just like JPM & their alleged hold on Silver Futures to the tune of some 500 million ounces when the records show only 300 million oz. are in the physical market on a daily basis...


as far as 'affording' the fed through many odd facilities & windows can make instantly liquid
the Presidents Council on the Markets AKA; the Plunge Protection Team
because it is only click of the mouse & digital entries on a ledger to make them solvent


the whole whacky market has been termed a 'casino' by more knowledgeable economists than i could ever hope to be... they have it right...its all a crap shoot, or musical chairs...

but the system needs this market manipulations to fund & support the derivatives market which is bigger than the DOW/NYSE

reply to post by THE_PROFESSIONAL


I'll be the first to admit I don't know much about the stock market that being.... down here on the average person totem pole, I know we're being manipulated about two things:

1. The jobs, why would they come back to this country to be regulated and taxed to death and then mandated to have health insurance for everyone?

2. The stock market I've had a hunch for a long time it is being artificially kept going and with the lies that spin in it into the upright position.

Me know next to nothing about this stuff, gets the gut feeling God Help Us WTSF!

This is how the big players scam up the real killings....
Look at one example....
The battle of Waterloo was fought and won by the brits....
But The english rothschild having advance knowledge of the winner, started to sell wildly....
The brits figured he had the low down,, and they had lost....
The selling was frenzied after that little push, and no one noticed Rothschild switch from selling to buying.....
He bought the majority share of the entire british stock market for pennies on the pound that day....
This is how its done....