VodkaPundit

13,000 Points of Nothin'

How’s that Dow looking these days? Not so good, actually:

While the Dow Jones Industrial Average gained 8.14% during 1Q2012, the price of gold rose by 8.56%. This means that the Real Dow actually lost 0.38%. The sad thing is that, even with a loss, 1Q2012 was the 5th best first quarter for the Real Dow during the 14 years since 1Q1998.

The Real Dow is a proxy for the real value of America’s productive capital. A rising Real Dow spurs investment in assets that create jobs and raise GDP. A falling Real Dow rewards investment in barren assets like commodities, especially gold. All periods of prosperity have been accompanied by a rising Real Dow. There can be no significant recovery in real incomes until and unless there is a sustained rise in the Real Dow.

Here’s the problem. Obamanomics consists of putting a boot on the economy’s throat, then endlessly whacking it upside the head with a giant bag of money while shouting, “Produce, you greedy millionaire!” When that fails, get a bigger bag.

Needless to say, the results haven’t been very positive. The Real Dow proves it.