So What’s Going on with the DAX

The DAX rally is being driven by the collapse in the Euro. As strange as it may seem to say, the DAX has not actually broken out just yet despite what it appears in nominal terms. This is precisely what takes place when a currency declines, which I have been harping about. ALL ASSETS RISE in proportion to the decline in a currency purchasing power. It is NOT inflation; it is the other side of currency collapse.

When the advance in assets is across the entire spectrum, it is NOT supply and demand driven, it is the collapse in CONFIDENCE in the government. Our world leader are totally lost in their corruption to see what the abyss they are leading society into.

The Bubble Project has not yet been reached. This is a capital flow which is internal rather than international. Hence, the DAX has risen and surprised everyone, but it has NOT broken out. It is internal capital flows moving (1) to German and (2) out of the banks.

[link to armstrongeconomics.com]