"As we have seen, the whole concept of rising asset prices and stock investments constantly increasing in value is an economic illusion. What we are really seeing is our currency being devalued by the addition of new currency issued by the central bank.
The prices of stocks, houses, gold, etc., do not really rise; they merely do better at keeping their value than do paper bills and digital checking accounts, since their supply is not increasing as fast as are paper bills and digital checking accounts.

The fact that we have to save for the future is, in fact, an outrage. Were no money printed by the government and the banks, things would get cheaper through time, and we would not need much money for retirement, because it would cost much less to live each day then than it does now. But we are forced to invest in today's government-manipulated inflation-creation world in order to try to keep our purchasing power constant."

Edited by stock_surgeon - 10/Sep/2011 at 1:38pm

We don't need to go to Japan. Even here our economy has grown since 2007 but sensex is at the same level as it was in sept 2007.

Where you start the calculation matters a lot. Statistics hide more than they reveal.

I am sorry stock surgeonji. My comment was about Japanese stock market doing nothing for 2 decades. Japan experienced a humongous PE rerating back then and anyone who starts from there will conclude a not so happy ending.