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September 5, 2015 | Robots, MSCI, BDI, plus Ag and Au! What’s happening!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

The current evidence shows clearly, to me, that our global economies our slowing. The rate could be rapid as we now live with speed of light markets within cyberspace. One key index which is key is the MSCI index. This index of some 836 companies within 30 emerging market economies has crashed this past month. This suggests that these economies are slowing and this trend is likely to continue. What does this mean for our stock and bond markets? This could mean more downward movements in the coming month. As investors and traders become aware of this trend we could see more short selling.

This index is now declining and the trend could continue going forward!

The other key index which I watch is the BDI index. This Baltic Dry Index has declined from 1200 to 875 in the past month. This substantial drop clearly indicates a slowing in imports and exports and this means slowing economies in the coming months. The bubbles which our QE administrators have created these past few years…to pump up all markets may now be ineffective going forward. All this will be noticed in our global stock markets in the coming days, weeks, and months. We have entered a BEAR market and this ‘bear’ will extenuate the negatives. Our entire globe is now interconnected and interdependent. All markets are now within cyberspace! This situation is ominous for stability and regularity. Expect volatile markets going forward!

This index does fluctuate from month to month but its current reading seems to suggest a sharp slowing in our global markets!

Labor Day is this coming Monday, September 7, 2015. What has happened this past year that is significant? My sense is that the growth of Robots and Artificial Intelligence is the biggest issue this past year. Robots are creating most of our productivity and this has made it difficult for labor to grow. Robots are gradually replacing many employees and this means more unemployment going forward. Manufacturing is using more robots and AI. Farming is using more robots and AI. The service industry and banking are using more robots and AI. This trend is positive for growth but negative for robotic type jobs. Our economy has changed this past year and the trends will continue into 2016 and after.

Look at this ‘tick chart’! How can the price drop by 90 cents in seconds? Could this be a ‘naked short’ sale on an electronic market? Which trading desk may have desired that the ‘price’ of silver drop? Why? This continues DAILY! Think!

I continue to listen to our financial pundits and gold miners on the issue of price manipulation of Ag and Au. It seems that few can discern the core issue. Few seem to comprehend the nature of Algorithmic trading and price manipulation via Algorithms. All our markets are now electronic (with few exceptions). This means that trading today is a computer operation. What do computers and trading promote today? The use of Algorithms is becoming ubiquitous. Few of our gold miners, our gold/silver pundits, or those in the hard money camp seem to comprehend this change in our markets. I guess they don’t like to read my blogs.

Group think occurs in all types of venues! Scientific, religious, economic, finance, education, families, gold/silver, etc.

I have been writing about this change and its implications for many years. The hierarchy, however,  which controls the Hard Money media, refuse to allow many contrarian opinions on many issues. Feed the sheep the same menu day in and day out. This seems to be the trend. This is typical behavior and fits into my understanding of human nature. Those who control the Hard Money media desire to promote their own private philosophies. Anyone who challenges this monopoly in their controlled media camp, must be ostracized (it seems)! Don’t let contrary views surface! This allows for continuance of the deception (viewed as ‘truth’ by the hierarchy) within this camp. Human Nature is interesting and we all can learn by seeking ALTERNATIVE opinions and viewpoints!

Groups mostly desire to promote a mindset of conformity to the leaders philosophy! I witness this in my own family!

Where are gold and silver prices heading? First of all, we need to recognize that these prices have been controlled (yes, manipulated) by trading strategies. The concept of ‘naked shorts’ (a trading strategy) within what the Hard Money Media call the PAPER market has been continuous. Download a Live Gold/Silver App for your smart phone and watch a ‘tick chart’ of real-time trading! I watch my App daily and notice how price manipulation works. You can do likewise! Download an App! Watch the prices as they ‘tick’ from moment to moment! Prices derive from our electronic ‘tick’ markets!

A ‘tick chart’ as above reveals how trades affect ‘price’. Notice the sharp changes in price of silver as it happens in real-time!

When the ‘price’ of silver goes up (more than a few percentage points) indicating demand for the metal, a trader enters the ‘tick chart’ market and immediately DRIVES the ‘price’ down. How is this accomplished? Think! How is a ‘naked short’ sale created? Which markets? Are they electronic markets? Is there any real exchange or delivery after the TRADE? What happens when a ‘naked short’ sale occurs with NO EXCHANGE of the metal being traded? Think!

A massive silver raid occurred on our electronic markets (see above)! Do these ‘tick charts’ reveal supply/demand or Algorithmic trading?

We now live with electronic markets and electronic trading. Our PRICES are now created via this trading. The strategies being used to effect ‘prices’ are trading strategies (such as the ‘naked short’ sale). A ‘naked short’ sale on the GLOBEX electronic market increases the imaginary SUPPLY of silver or gold in these electronic markets. This increase in the ‘imaginary’ supply within our computer screens creates a DROP in the spot price! This is all part of our trading markets today! What is being used to effect these prices? Think…Algorithms! Algorithms and algorithmic trading via ROBOTS (also called automatic trading) creates our silver/gold prices today! Could our Central Bank trading desks be involved in ‘price’ manipulation? THINK! Why might the highest officials within select governmental finance departments desire that silver/gold prices be suppressed or bracketed at a suppressed level? Think!

Robots are ideal for trading in today’s cyber markets! Why? Who uses robots?

If I were running our FED would I desire to promote digital money (say our digital dollar) or would I desire to let the demand for silver/gold run per real market demand/supply? What is my GOAL as a Central Banker? Think! My goal is to promote cyber/digital currencies! I want a Cashless Society for this planet! Think! Why? I want to CONTROL the marketplace and determine WHO gets WHAT! Is this natural human behavior for a Central Banker? I would suggest, YES! Why would I want a free market price structure for gold and silver? Why? I don’t want these metals to emerge as MONEY or a CURRENCY! Think! Who runs our planet today? Do our Central Banks create our Money? What are they creating? Think!

Central Banks now rule over Cyber Money! Why would they desire to promote a currency such as historical silver or gold? They do not desire this reality! Think!

Yes, the stupidity within the Hard Money media camp (some venues not all) is reaching elevated levels IMO. But these people need (apparently) to feed their sheep what they think their sheep want and desire! Is this reality? Why would I want a totally FREE market of opinions expressing views contrary to mine?  Do politicians want their views challenged publically? Do corporate elites want their views challenged? Do religious leaders want their views challenged? Do media pundits (on CNBC) want their views challenged? Why would I want my view to be challenged by another opinion which I do not desire to hear?

The Hard Money Camp does not include our Mega Commercial Banks!

Is this Human Nature? Does ‘group think’ live within our Hard Money media camp? I think so! Human nature is interesting and we all can learn from our own proclivity to control communication venues! I do not exclude myself from this reality! I might do precisely what I am criticizing above! Human Nature is at the core of all our behavior (that is my view)! Enjoy and think about the above philosophy! Markets open on Sunday night in China! Watch! Our U.S. Markets open on Tuesday! Enjoy Labor Day! I am:

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September 5th, 2015

Posted In: Kingdom Economics

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