It is no secret that the US stock market has been in trouble of late; the S&P 500 has been plunging, as has the Dow Jones Industrial Average.

To properly understand what is going on, though, it is important to consider the Federal Reserve’s actions regarding expanding the money supply. The Fed’s bailouts often result in an expansion of the money supply, as do direct injections into the money markets.

The end result is that the nominal price of everything ends up getting boosted. So, to truly understand the size of the S&P and DJIA’s declines, we need to factor in that those values are still being further inflated via inflation of the money supply.

Austrian economists are familiar with using the price of gold as a proxy to hedge against inflation of the …

Global stock markets are still under correction. Major indices haven't succeeded to rally after they bottomed on March this year. Last week Dow Jones Industrial Average has turned into the bear market by drop more than 20% from recent October high. Market lab show still Head and Shoulders bearish pattern for S&P 500 and DJIA on weekly basis. We have closed 4 consecutive weeks in negative for broad US indices.Iran tension and weak USD lift crude oil to new all time high. Another commodity supported by current market conditions is gold by endless sub-prime mortgages financial crises.Worse earnings reports are dragging down shares which again triggers selling pressure on US dollar. Which makes vicious spiral.Outflow from US dollar and shares helping some markets and their currencies. Especially economies growing still at modest pace. Have a look to Czech currency Koruna. Despite 20% appreciation ...