Top story today - Dow hits a record high!
The Dow Jones industrial average jumped more than 100 points early Tuesday, climbing to an all-time high, powered by China's strong economic growth targets and a jump in European retail sales
But maybe there's more to the story?
Charles Brady, senior editor of the FOX Business Network, has put together a remarkable chart that clearly shows the Federal Reserve?s monetary easing policies are not going into the U.S. economy, but instead into the stock market.
The chart here compares the Dow Jones Industrial Average with the St. Louis Federal Reserve Bank?s adjusted monetary base. It shows the effect of Fed purchases of mortgage-backed and Treasury securities from Fed dealers, whereby the Federal Reserve buys $85 billion total every month from the big banks, hastening the growth in the Fed?s balance sheet to more than $3 trillion.
Break: Besides all this smoke and mirrors, the US government still does not have a budget. But it knows in it's heart that it needs to increase taxes and cut benefits. Hell of a way to run a railroad.