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January 21, 2018 | U. S. Government Shut-down – then DOW of 30,000 to follow? Why this Result?

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.

What happens after a dire event is that our corrupt Central Bank traders (using their high-speed computers and their trading algorithms) pump up the DOW and the other indexes to cover-up the pain. I have witnessed this paradox many times these past 9 years. A dire event happens and then the DOW sky-rockets to another HIGH (anyway). Will this happen again on Monday morning?

 

I have watched our DOW, NASDAQ, and S&P 500 continue to new highs as sobering events happen on this planet. A new launch of a ICBM rocket by Kim, the Brexit event, war clouds in the Middle East, or hurricane destruction in Houston, Florida, or Puerto Rico does not affect our electronic indices. They usually increase after every dire event. Why this paradox?

 

My sense is that our corrupt Central Bank traders at 33 Liberty Street, New York and/or similar venues in London, Tokyo, Basel, or Frankfurt are given orders to pump up the indexes so that the dire event will not be felt economically. This is now possible given that all our indexes are electronic exchanges. Central Banks now trade all our markets and this reality has created all our bubble electronic markets (globally).

 

We live in a computer driven cyber marketplace where select trading computers (operating behind closed doors) can change an index easily. The DOW consists of only 30 stocks. All I need to do to pump up this index is buy a few select DOW stocks (in sufficient amounts) and the index reaches a new high. This can be accomplished with the click of a trader’s mouse. The result is a new high on the index. Retail investor concern can be ameliorated by our Central Bank traders who trade with unlimited trading digits (via their high speed computers).

 

Sobering events in the political, social, or military arena do not seem to change our electronic markets from reaching new high’s. In the old days, any dire event would affect the emotions and confidence of traders and the markets would experience a sharp decline. The price of gold would increase substantially. This does not usually happen today with our electronic markets. These markets are driven by computers, algorithms, and high frequency trading. Emotion has been taken out of these markets.

 

Watch the various world indices on Monday and see what happens. My sense is that our Central Bank traders (with unlimited digits to trade with) will pump-up these electronic markets irrespective of the recent U.S. Government Shut-down. We could witness a substantial increase in the DOW…on its way to 30,000 eventually. We live with very corrupted markets and corrupt insider trading. Central Banks are the culprits IMO. Markets can go up irrespective of the seriousness of the dire event.

 

Think for yourself! I am: https://kingdomecon.wordpress.com.

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January 21st, 2018

Posted In: Kingdom Economics

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