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September 6, 2017 | Central Banks trade all our Digital Markets! Why is this corrupt?

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: http://kingdomecon.wordpress.com.

Since 2008 our global stock and bond markets have changed from mostly privately traded markets to mostly institutionally traded markets. Today, it is our Central Banks which continually pump-up all our stock, bond, and derivative markets so that their BUBBLE economy will not deflate precipitously. An extreme example of pump priming is the Caracas General Stock Market. In just the past 12 months this market has increased 1000 percent (10 times). What a joke on intelligent traders and investors.

The real economy of Venezuela has crashed completely in the past 12 months and yet the digital/cyber/electronic stock market has increased 10 fold. Does this make any sense? Who can pump-up a market to this extent when the general economy is near a depression level? Who has the digits (called money) to inflate a market indefinitely and continually? Think: Central Banks. All this happens because today’s markets are electronic/digital and computer driven. Central Banks have their own trading desks!

 

The bubbles are so extreme that many investors and speculators think this is normal behavior. The markets can now go up forever (it would seem). But what is really happening to pump-up these markets and keep this game going (now over 100 months long)? The awareness that we all need today is that our Central Banks can now trade our markets for the sole purpose of preventing a precipitous decline of these markets. These centralized entities have the digits (called money) to continue this bubble game (irrespective of real economic facts) until it finally ends (with a total loss in confidence by traders/investors/speculators who follow this foolishness). When will this pump priming finally END?

My sense is that investors and our retail traders are finally getting fed up with our phony Central Bank bubbles. The bubbles being created do not justify themselves when the real economy is factored into the picture. Venezuela is an extreme example yet one which reveals the extremes which can occur when digits (called money) are unlimited and used to trade our markets. Central Banks can create these digits from their thinking (decision-making) and continue this bubble game until all confidence wanes and crashes. This event is soon to occur IMO. Confidence is now waning and I sense that this will continue to grow in the coming weeks and months. Watch and prepare!

CARACAS GENERAL STOCK MARKET INDEX

269,781.07 (September 5, 2017) This index was under 25,000 some 12 months prior.

+12,95%  [+30,328.22] (increase in one day on September 4)

 Typ: Index

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Image result for caracas general stock market index

The Russell 2000 is in a bubble (in America) yet when compared to the Caracas General Stock Index (Venezuela) it appears to be stable and healthy. All this electronic growth (in the Caracas General) is due mostly to big corporate purchases and Central Bank purchases. What a joke on those who think that our stock indexes are supposed to reflect the reality of our real economies. In reality they reflect mere pumped-up imaginary numbers (called a wealth effect) created by our Central Banks and those who receive special privileges from these Central Banks. The game is ludicrous and shameful.

Which Central Banks (other than Venezuela) are primarily behind all this hype and fantasy? Think of our Federal Reserve Bank and select Western Central Banks over in Europe and Asia. Our money today consists of mere imagination (digits in the computer screen). Digits can be created in unlimited amounts (by our banksters) to fool, distort, manipulate, and control any electronic market. Today, we have some 65 major electronic markets (globally). All these markets are now in huge BUBBLES. When will all this end? When will confidence wane and crash?

It will end when it ends. But my sense is that the end is rather SOON. The distortions are now so great that most intelligent investors are recognizing these bubbles. Real estate is in a bubble. Stocks are in a bubble. Bonds are in a bubble. Derivatives are in a huge and growing bubble. The pricking of this bubble must be rather SOON. When this eventually happens the game of Keynesian economics will essentially be OVER. The debt created under this 75 year Keynesian model will be exposed as unpayable. A new system will be required. Watch and wait is all we can do as of now. Prepare, however, for this debt jubilee on the horizon! I am: https://kingdomecon.wordpress.com.

P.S. Look at this website for the distortions within the American economy: http://www.usdebtclock.org. This website reveals the 75 year Keynesian consequences which must eventually be recognized as impossible to solve!

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September 6th, 2017

Posted In: Kingdom Economics

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