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October 11, 2016 | Markets Buoyed by Investor Ignorance! What?

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:


Our global Ponzi markets are supported (buoyed) by a lack of understanding and investor ignorance. That is my premise as I watch the markets daily. What do I mean? Practically all our ‘symbol’ markets now live within a virtual environment called cyberspace. Traders click their computer screen to trade ‘symbols’  and ‘numbers’ (called stocks, bonds, options, currencies, and derivatives). All this clicking and trading is done within this Netherworld (our inner consciousness) called cyberspace. All this trading is mostly meaningless when it comes to growing a global economy and improving prosperity for our global citizens. The entire ‘infrastructure’ of economics has entered a Ponzi debt (death) environment (a subjective cyber ‘matrix’) which does not technically EXIST. Who comprehends? Who is aware?

The game of trading and investing is now mostly a subjective internal scrip which is hidden within a ‘matrix’ of metaphysical jargon and symbology (words, numbers, and virtual symbols).  None of this activity is healthy for growing our goods, services, and activities so that our global citizens can become more prosperous and healthy. Today, our global economy is suffering from years of prior debts (past consumption riding on our ledgers) which must be serviced with newly created currency symbols to cover-up this unpayable debt. What a huge Ponzi debt system which deceives practically everyone. None of this will be paid-off and none is external to our inner consciousness. What an illusionary joke when understood!

Economics started for Americans back in 1776 with the philosophy of Adam Smith, Thomas Jefferson, Alexander Hamilton, and a few others. The idea was to grow wealth via labor and human ingenuity. If I increased ‘value’ (also called wealth) from the ground via my labor, I would get rewarded with a money unit(s) which had perceived ‘value’. The goal of wealth creation was to increase GOODS (things which were produced from the soil of planet Earth). Then as ample GOODS were produced and available in our physical markets, we turned to SERVICES. If I performed a service activity which benefited the community, I would get rewarded with money to reflect this perceived ‘value’. All this was called increasing ‘goods’ and ‘services’ for the marketplace.

Later as we increased ‘goods’ and ‘services’ so that everyone had ample supplies we moved into human ‘ACTIVITIES’ (sports and such). If I performed superbly in a sport activity, I would get rewarded with money for this subjective ‘value’…which added to the community welfare system. Economics expanded from only GOODS (say mostly from 1776 to 1929) to SERVICES (say mostly from 1929 to today) and then to ACTIVITIES (say mostly from 1965 to today). Money was given to everyone for goods production, service production, and activity production. All this became our GROSS NATIONAL PRODUCT. But what was the Achilles heel to all this GNP (now GDP)?

The Achilles heel to all this was DEBT and more DEBT. This became a Ponzi game of increasing debt within the system so that all these goods, services, and activities could continue to flourish. Today, however, this Ponzi debt system has become unsupportable and growth and revenue are stalling rapidly. The technical model for all this debt growth is called Keynesianism. Today, this Ponzi debt game is beyond repair and is soon over…but most everyone refuses to recognize this reality. New games called QE, currency stimulation, liquidity injections, debt restructuring, and debt write-offs continue so that this Ponzi economic system can continue for a short season. But what else has happened which is even more significant?

In addition to the Ponzi debt system which we constructed, we have an evolution in our money concepts…from physical reality (originally) to a Ponzi cyber system for our money today (mere mental abstractions serve as our money…within a cyber environment/matrix). This evolution from physical money to cyber money is huge. We now live mostly with this cyber money system which gets created merely by ‘typing’ currency symbols into the computer screen. This Ponzi ‘typing’ of symbols (into the computer screen) is called money creation from ‘nothing’ (via the consciousness of our elite cyber banksters who hide behind closed doors). What a Ponzi global economic non-system I witness today! Who is aware, however? Who comprehends?

Since that vast majority (90+% IMO) are mostly unaware of what has transpired these past 40 years this allows for a continuance of this Ponzi cyber game for our traders and investors and us. Trading of ‘imaginary’ symbols and ‘imaginary’ wealth is what I witness in today’s markets everywhere. Our ‘prices’ are now created by the computer trading system. These ‘prices’ are cyber prices which flow from millisecond to millisecond within the computer screen. Today, much of this flow is done via programmed ‘algorithms’ (coded instructions to trade automatically). Human beings are not creating this phony ‘wealth’ but programmed ‘algorithms do the job. All this monetary evolution is happening globally and we now are near the END of this phony cyber debt system.

When will it all END? This is unpredictable as ‘ignorance’ within the markets is so vast and ubiquitous. When will traders and investors wake-up to what has happened? When will an exodus of this phony system begin? When will confidence wane so that massive short selling occurs? When might the banksters recognize that their Ponzi debt game is over? These unpredictables are what holds this phony Ponzi game together for now. The END is sure, however. None of this will end positively! The game is essentially OVER for those who comprehend the above history. The gross ‘ignorance’ in our markets, however, is still allowing this Ponzi debt system to survive. Think on this history! Enjoy for now but prepare for chaos! I am:

Some images to internalize:

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Markets are buoyed by Ponzi gimmicks and cyber manipulations within our bankster hierarchy!

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Ignorance is my view of why markets are still (temporarily) viable!

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The entire global economic system is a huge Ponzi debt game hidden within a cyber Matrix!

Image result for goods

Goods are what wealth creation was all about at the start (1776 to 1929)!

Image result for services

Services emerged as being rewarded mostly after 1929!

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Activities were monetarily rewarded starting around 1965 and after!

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The concept of ‘value’ is what we all are suppose to focus upon to receive a monetary reward!

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Money is what represents the ‘value’ produced by an economic agent!

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Cyber money has replaced physical paper and coin money!

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Cyberspace is the environment which economics now lives within!
Image result for banksters
Banksters now rule over all economics and all the citizens on planet Earth!
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Debt enslavement is what has resulted from all of the above shenanigans (Keynesianism)!
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The END game from all the above is a huge market CRASH and DEBT liquidation (years)!
Image result for reality is always NOW
Reality continues but we need to get started with reconstruction and renewal (NOW)!

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October 11th, 2016

Posted In: Kingdom Economics

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