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September 28, 2017 | Cyberspace, Cyber Dollars, Cyber Currencies!

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:

Let’s think about our financial markets and where/how they operate. Are you aware that mostly ALL of our financial markets now operate within ‘cyberspace’? Our global markets have been converted from human/people markets to cyber/machine driven markets. All this has happened in just the past 20 years (mostly). Yet most traders, investors, and the general public do not talk about this change publicly (with a few exceptions). Our controlled media is also silent!

Our markets, historically, were mostly ‘open out-cry’ markets and this meant that real human traders were in charge of the outcomes (price discovery, value exchanges, and supply/demand transactions). Today, our markets are nearly 100% electronic and our money and prices are living within this ‘notional’ space called cyberspace. Most of our prices today are determined via trading actions of machines and machine software (algorithms). All these concepts live within ‘cyberspace’. Are you AWARE of this?

What a change from yesteryear. Our markets are now ‘inner’ and they operate within this inner space called ‘cyberspace’. Cyberspace is not the same as that which resulted from the ‘open outcry’ trading environment. Open out-cry allowed prices to be determined by real supply/demand transactions derived from real live human people/traders. Price discovery was via human negotiation and human emotions (not algorithms and computers). What a difference!

This has all changed dramatically (these past 20 years) with our new machine driven markets. Today, traders and counterparties use software to manipulate prices within a netherworld space called ‘cyberspace’. Traders now use algorithms (many types) to enter and exit trades which happen automatically via our speed-of-light computer machines. Trading in micro and milliseconds is now the default method of trading our markets. Prices are now cyber prices derived from all this cyber trading!

This change from yesteryear allows computers to RULE over all our global markets. Computers are not human beings. Computers may use artificial intelligence (robots) and programmed algorithms to execute trades but they are not human. These computer driven markets now create our ‘prices’. Often these prices do not reflect real supply/demand within our markets. A commodity, like silver and/or gold, can be computer manipulated via programmed algorithms indefinitely. Are you aware of this?

This computer manipulation is now so prevalent that a market like the Caracas General over in Venezuela can go up irrespective of the real economy. As I write this missive the Caracas General (this computer driven market) is up to 474,126.20, an increase of some 3,609% over the past 52 weeks. This computer driven market is up 11.34% in just the last five days. Does any of this make any sense to economists, traders, financial pundits, or investors? Why does no-one point out the hypocrisy in all this computer manipulation and this corruption within all our markets?

The Dow index (this computer driven market) is up some 22% in the past 52 weeks (over 4,500 points). It stands at 22,375 as I write this missive. Some now project a number of 30,000 in 2018. Is this realistic? Absolutely! Does the American economy justify these results? Computer driven markets (which use cyber dollars to trade) can be manipulated via algorithms indefinitely and to infinity (theoretically). Why is this so? Who is behind all this computer manipulation?

Computer driven markets do not operate via supply/demand (with a few exceptions) when our Central Bank trading desks can use their super computers (and their programmed algorithms) to trade our electronic/cyber markets in real-time. Central Banks have no limits on these cyber dollars (mere photon digits) which they can create for trading activity. These digits (called money) can be typed into cyberspace to infinity (if this is desired). Prices can go up and up even while our goods economy goes in counter directions. Cyber money is not REAL. Cyber dollars are not REAL. Think on this!

Today, our retail markets and soon our real estate markets will start to collapse and decline in America. Yet our computer driven stock markets ignore all this activity (which results from real market forces) and continue to go up and up. Why? It’s simple! Traders can now use algorithms and computers (operating behind closed doors) to computer manipulate our markets. Machines do this based upon prior programs (software) and sourced algorithms. This can continue indefinitely until confidence finally crashes.

Until confidence crashes (in general) we could see 30,000 on the Dow index in 2018. We could see the Caracas General at 1 million in 2018. In fact, these numbers could be reached in 2017 if our Central Banks allow this to happen. Who can discern what is now happening within all our global computer driven markets? Who has the discernment to recognize what is happening? Who understands cyberspace and cyber money?

Visualize our planet and the 5 billion smart phones held in the hands of consumers, traders, pundits, and speculators! A smart phone can now be used to trade our markets and create some of our cyber prices. Central Banks can use desk computers to trade our markets. Central Banks can operate behind closed doors and trade our electronic futures markets 24/7. Central Bank traders can use algorithms to trade our silver and gold markets and suppress these prices (now cyber created prices) INDEFINITELY and forever!

All our markets are now electronic and computer driven (with a few exceptions). This means that machines rule over our markets and over price discovery (prices). Robots and algorithms rule over all our markets and our fake/false/cyber economy. Are you AWARE of this? I doubt it! I have been writing about this for nearly 10 years to deaf and dumb ears. People desire to remain ignorant and sleeping! This is human nature in 2009 to 2017! Sleep on folks, our elites desire this behavior!

Few desire critical thinking on what is happening today. Critical thinking requires asking uncomfortable questions to our authorities and our financial elites. Critical thinking means we must ask hard questions to our media and to our employers. Critical thinking is what is LACKING today IMO. We need to think and ask new questions given all the above changes. Think for yourself is my advice! Reality will prevail eventually! I am:

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September 28th, 2017

Posted In: Kingdom Economics

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