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August 3, 2018 | Fantasy Prevails Over Reality For Now!

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:


Fake money has pumped up our markets and asset prices for nearly 10 years. For the time being, I must admit that fake money has worked for all our cyber markets (to a degree). General prosperity has resulted, especially for the huge tech firms and for stock investors. All this, however, is temporary as ‘reality’ will eventually prevail in all our markets. Cycles are still real but delayed. That’s why I seek reality over fantasy. Let’s review why fake money has worked for nearly 10 years.

  1. Central banks create fake money from their thinking and then pump these cyber digits into our markets via their proxy dealers (banks and investment firms). This fake money then finds it way into huge companies (like the FANGs) which can benefit from low-interest rates, excessive loans, buybacks of their stock, and higher earnings. Stock prices go up and this allows those with special advantages to prosper and grow. The trickle down works as money finds it way to competitors who also benefit from the system.
  2. The game, however, is starting to change somewhat. Interest rates are now increasing, stock buybacks are somewhat less, real estate values are being recognized as being inflated, and price earnings ratios are also recognized as excessive. These factors will gradually start to squeeze the markets and produce a correction that will be significant. It’s happening slowly and relentlessly.
  3. Fake money is defined (by me) as money with no substance and with no lasting relevance. Have you noticed how all this fake money disappears when a market corrects? The digits vanish and disappear into one’s consciousness. Fake money is immaterial and without any lasting substance. It works as investors accept these units for trade and valuations. But when a market corrects (as it has already done in Venezuela) then these fake money digits get rejected by investors and traders.
  4. Our central planners who operate behind closed doors within our various central banks, can play with fake money to rig, manipulate, and elevate asset values for a time period. QE is an example of fake money. Lending with no backing or reserve is another example of fake money. Most people have no understanding of what our central planners have been doing. Few understand money, finance, trading, or the changes which have occurred since 2008.
  5. Fake money has allowed computers to rule over all our markets. Computers and speed of light trading has allowed markets to be pumped up continually. Central bank trading has been the key to this temporary prosperity which I have witnessed since 2009. Central banks were not trading our markets prior to 2008. Today, they trade to prevent a collapse of the system. Fake money and central bank manipulations have allowed our markets to flourish. All this will continue until it ends (sometime in the next few weeks, months, or years). The precise date is uncertain to all pundits who follow these markets.
  6. Our markets are now mostly all electronic. This allows those with control over the central bank computers to rig, manipulate, and monitor these markets. Fake money, algorithms, and high-speed computers allows these elites to continue this game of fantasy for the time being. The system is built on sand, however. Shifting sand will bring change eventually. Reality will prevail eventually. Confidence will waver eventually. A big correction is assured eventually.
  7. As I write, I witness a slowing of trade and investment globally. All this will become significant when a given threshold has been reached. My sense is that real estate values are in the biggest bubble of all time. This can not continue as our higher interest rates will bring this sector down eventually. Stock buybacks will slow and disappear eventually. This will reveal the unsustainability of current price levels. I sense the slowdown happening but the real threshold level which creates a correction has not occurred as yet. Keep watching to discern the growing trend.


For the time being, fantasy markets will continue to prevail. Fake money will continue to pump up various markets to prevent any collapse. Prosperity is evident for the time being. The general business cycle has been delayed for the time being. Bubble markets can continue longer than most think possible. All this is because computers and central planners rule over all our markets. We live with fantasy markets and few comprehend this reality. My blog will continue to publish issues of reality.


You may want to keep current by comparing my blog to those who ignore reality. History shows that reality prevails eventually. Reality means that fake concepts and ideas will vanish at some point. The biggest fakery has been our money units and the games being played by our central bank planners. Rigging the markets is what these elites have done. This fakery must end. Watch as reality prevails in the coming weeks, months, and years. Enjoy the fantasy markets for now. I am:

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August 3rd, 2018

Posted In: Kingdom Economics

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