What's Fueling The Stock Market?

• US money supply is surging once again! It is the setup for inflation –> hyperinflation!
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• What’s Fueling The Stock Market?
  by http://truthingold.blogspot.ca/ 
  (Hint: It isn’t fundamentals)
  The run-up in the stock market  (the SPX for purposes of this article) has been nothing short of  stunning. Since hitting a sell-off bottom on October 4, 2011, the SPX  has run-up a nearly non-stop 47.8%. In just the last month, the SPX has  run up 7.5%. This is in the face of deteriorating economic indicators  and declining corporate revenues. The stock market has for sure taken  most observers and professionals by surprise, except for maybe the most  passionate “perma-bulls.”
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  Given this incredible move higher in  stocks, I wanted to investigate a couple of possibilities for what is  fueling this near-parabolic stock rally. Based on what I’ve been able to come up with, it’s pretty clear that stocks are rocketing higher on Fed fuel and not fundamentals. But don’t take it from me, it seems that  some high profile billionaire investors are unloading their big  positions, especially anything related to consumption:  Billionaires Are Dumping Stocks.  Let’s take a look “under the hood” of the economic and financial system and see if we can figure out why.
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  While Bernanke was giving his report on the economy and monetary policy to  the Joint Economic Committee of Congress today, in which he pretty much  laid to rest any fears that the Fed would “taper” its monetary policy  and bond purchase program anytime soon, I decided to look into some of  the Fed’s monetary data as reported on the  St. Louis Fed website.  Specifically I wanted to look at the Adjusted Monetary Base, which is  the sum of the currency in circulation plus the commercial bank reserves held at the Fed, because this monetary account is the one directly  affected by the QE program.
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  Here’s the most current snap-shot of the Monetary Base going to back to 1984, when the data-series began: (top of post)
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  Close to $2.8 trillion in money has been printed and used to purchase assets  from the banking system, ranging from highly distressed toxic waste to  short-term Treasury notes. Next I decided to “blow up” the chart  above and look at just the last twelve months and compare it to the same time period for a chart of the S&P 500:
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  read more!

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