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January 19, 2019 | Can Digital Stocks go UP as the General Economy goes DOWN?

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:

DOW up some 6,355 points since the Trump election. Amazing what confidence traders must have in our Republican President and his policies? The economy is BOOMING in 2019 (so it seems within our virtual cyber screens)!

  • Dow: 18,332.74, +73.14, (+0.40%) on Nov. 8, 2016
  • S&P 500: 2,139.56, +8.04, (+0.38%) on Nov. 8, 2016
  • Nasdaq: 5,193.49, +27.32, (+0.53%) on Nov. 8, 2016

Who can predict what our rigged markets will present us since all these markets are now digital/electronic. They operate in cyberspace. There are some 65 digital/electronic exchanges on our planet today. Each operates via digital/electronic trading computers. We also have select Central Banks trading our electronic markets daily with their computers. So what might happen going forward? Who can cause these markets to go up even as the general economy slows and declines.


Our general economy is slowing and we have evidence everywhere for this reality. Real estate sales are down, auto sales are down, the confidence index is down (slightly), the Baltic dry index is down some 15.26% for the year, mortgage applications are down…yet our electronic stock markets are on a tear UP. The DOW index is up some 6% for the year, the NASDAQ is up some 8%, and the S & P some 7%. Where does all this wealth come from? What happened to the down markets of December, 2018?


After watching the Caracas General electronic market over in Venezuela, I have noticed that these markets do not necessarily respond to what is happening in the general economy. This also goes for many other markets. Since our Central Banks trade these markets, they can pump up these markets via trading gimmicks (continually). The Dow Index has some 30 stocks. If eight key stocks of the thirty are pumped up, then the entire Index can go up. The key is trading momentum.


The idea for a Central Bank is to create momentum (and false confidence) for select stocks so that traders use their Algo’s to follow suit. Some 80 – 85% of trading volume is now done via Algo’s. And who can create unlimited trading digits for these Algo’s? Yes, our Central Banks can do this all day long. All this means that our Index markets can go up even as the general economy goes down. What a game of rigging which few discern. Amazing!


Personally, I have zero confidence in the credibility of these digital trading markets. This rigging game could continue for weeks and months. Traders seem to desire an UP market regardless of how well the economy is doing. My investor friends hate when the Dow goes down. They get negative when I say that the markets are rigged. Most want a rigged market as long as their stocks go UP. This is evident to our Central Planners (so it seems).


How long can this Ponzi Casino Game continue before it crashes? No one knows! My sense is that our Central Banks will continue the Ponzi as long as possible. Maybe they can change the trend of a slowing economy? That might be their game plan. Personally, I see an end game coming. But the precise date is impossible to predict. Rigged markets could continue for much of 2019 if traders desire this outcome!


I talked to a number of investors today at the Metals Forum in Vancouver. Some 500 investors are attending this hard asset forum. The speakers seem hesitant to predict what might happen going forward. I sense that these experts are confused and I certainly am also. Markets were designed originally to represent our general economy. This all changed in 2008 with the advent of electronic/computer trading.


Today, our Central Banks rule over all these electronic markets. Our Fed in New York has some 500 day traders who trade these markets. Japan’s Central Bank trades our markets. The European Central Banks trades our markets. The Swiss National Bank trades our markets. The Peoples Bank of China trades our markets. And the Bank for International Settlements trade our markets. I read today that Mr. Draghi is now changing his tune on QE for his markets. He is (apparently) continuing the QE which was supposed to be stopped at the end of 2018. Interesting!


If our Central Banks go back to more QE we could see a re-liquification of our markets and then negative interest rates everywhere. We might see these electronic markets crash UP which would be an oxymoron event. We live in a crazy world of manipulation and intrique. Policy makers desire UP markets. Even Trump is now passing on going to The World Economic Forum (WEF) in Davos. But the Deep State will be attending. Interesting!


For now, safe haven investments such as silver/gold are not moving up (as many predicted). Rigging and manipulation does seem to work in the short run. Personally, I sense that the Mark of the Beast financial system is emerging. This system lives off digital money, artificial intelligence, algorithms, and auomated trading. Is this Capitalism or is this Digitalism within a VIRTUAL reality marketplace of Zombies? Think for yourself on these issues! Have a good day!


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January 19th, 2019

Posted In: Kingdom Economics

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