It doesn't seem to me the breaking point of the stock market is what we have to worry about. I see the problem as being the breaking point of the people.
Let me try and explain.
I'm seeing the stock marked as only a reflection of the value of the currency. When they double the amount of money in the system the stock market adjust accordingly by changing the asking and selling price.
Take a look at this chart Robert Sahr came up with based on the Consumer Price Index showing the devaluation of the dollar.
Robert Sahr Dollar Devaluation
(Image by Robert Sahr Oregon State University) Permission Details DMCA
Even before the central banking system we have now we were able to introduce counterfeit money into the system and throw the value of the dollar off. See how we did it in times of war numerous times?
Now look at a long term look at the Dow Jones Industrial average.
Notice how its baseline of about 500 matches Robert Sahr's chart baseline of about $5.00. Then they both top out at about 13000 and $130.00 respectively. I thinking the DOW is adjusting to keep its value current with the devaluation of the dollar.
And now that gets me to the problem I see coming as the breaking point of the people.
All the time the counterfeiting is going on with the central bank it is stripping the wealth out of all of our everything. According to Robert Sahr's chart that has been happening at the rate of about 8% a year for the last fifty years after going off of the gold and silver standard. Most of the change happens slow and unnoticed like a frog in a pot of water that the temperature is slowly being raised to a boil.
Since we are already looking at stocks, let's look a little more into the way that is changing. On the one hand it is remaining stable and pacing the devaluation of the dollar. If you owned a million dollars of stock in the seventies it would be worth now about thirty four million. It would have kept you up with inflation all of those years, unless you're one of the people that has to pay their capital gains taxes. Then all of a sudden your out about a third of your millions on the ILLUSION of a gain.
The eight percent a year effects us in oh, so many other ways.
Now lets take a look at a chart of our recent history in regards to the breaking point of the people. Something most of us would have felt.
I'm thinking this chart shows what happens when we reach our breaking point and we start defaulting on loans.