Two Charts Central Bankers Don't Want You To See

Devaluation has always been the "unofficial" official policy used to mitigate the economic and social effects of excessive debt burdens.

Devaluation can push up nominal (fiat) stock prices across the globe, but it can do little to affect real prices. Real prices as reflected by gold adjusted prices have been down trending since 2000 despite all the economic hype (bailouts, stimulus, and government assisted data).

Two charts central bankers don't want you to see.

Dow Jones World Index and Dow Jones World Index to Gold Ratio:


Even when world stock prices rally, they are contained within the 76.4% retracement of the previous decline. In other words, when global stocks outperform, they can only muster a small, temporary bounce.

Long-term analysis suggests the depth and length of the correction yet to come.

U.S. Large Cap Stocks Capital Appreciation Index (LCSCAI); S&P 500 to Gold Ratio: