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January 26, 2019 | More Central Bank ‘Rigging’ to Start Soon!

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.

Our system is now a rigged system where continuing Central Bank action is needed to keep our markets from collapse. Today’s Wall Street Journal expressed the following issue: ‘Fed Weighs Shift in Its Bond Strategy’. Why a shift in policy? It’s because more stimulus is needed to prevent a collapse. Higher interest rates have slowed the economy substantially. The plan now is to retain a Fed balance sheet in the trillions (say $3 trillion or more) and start to buy short-term treasuries rather than long-term. What is the goal? I thought our economy was booming? Official media says our economy is sound!

 

The official goal seems to be to gradually create lower short-term interest rates as our general economy slows. After 10 years of a bull market in stocks and real estate, these markets are now slowing…and to prevent a collapse our Central Planners will need to keep rates low (lower than current rates as of today). Selling off the Fed assets is now viewed as unnecessary and probably counter productive. Mr. Powell will meet with his advisers next week to discuss the details. What might emerge? Let’s explore this strategy further.

 

We might get a road map of the new strategy this coming week as Mr. Powell meets with the press to discuss these issues. Neel Kashkari, of the Minneapolis Fed, said the following “we may be able to say upfront, ‘Hey, the destination is going to be ‘X’, or we may say, ‘Hey, this is the plan (for now) we’re going to go to explore where that destination is.” What does all this mean? To me, it is obvious that our Central Planners will change policy on a dime as our general economy slows in the coming days, weeks, and months.

 

We could witness new QE policies in a few months to lower interest rates in the general economy. We also could witness more Fed rigging of the electronic stock markets to try prevent a real slowing within all our markets. Central Banks now trade all our markets. It appears that China and Europe will also keep rates low and pump more loans into their economies. Japan has no alternative to this policy as their debt is much beyond any resolution (ever). The handwriting is on the wall…more stimulus is needed and Central Bank rigging is the only game in town.

 

Our markets are now electronic and computer driven. Algorithms trade our markets and humans sit back and watch. Robots can now trade stocks and bonds. Our investment houses can use automated trading to change their portfolios daily. All is now COMPUTER DRIVEN with algo’s at the core. Our money units are now ‘photon digits’ and all valuations are subjective and changing in real-time daily. We live within our spiritual consciousness and all finance is now an ‘inner’ experience. I suggested some gold to one of my investor friends here at the clubhouse.

 

This friend said ‘I can not eat gold’ so I prefer real money. What a deceived investor. He views ‘photon digits’ in his smart phone computer as REAL money. I responded to him with ‘can you eat all these ‘digits’ in your computer investment account? He had no response. Yes, silver and gold can not be eaten but neither can computer digits. In fact, these computer digits are really ‘virtual’ units of nothing. They are ‘inner’ units with no substance or tangible existence. But my investor friend does not discern this reality. He thinks that these computer digits are real and tangible.

 

We now live in a computer driven marketplace and our currency units are ‘virtual’ units. What are ‘virtual’ units? Where are these ‘virtual’ units? What happens to these ‘virtual’ units as value declines and disappears? Are you aware that ‘virtual’ money units are mere units of my/your consciousness? They are ‘inner’ units with no substance, matter, or physical existence. I use the word ‘nothing’ to describe these ‘virtual’ units. Nearly, all investing is now a ‘virtual’ experience. We look at our computer screen and play with virtual numbers (called money). Does this sound like historical Capitalism? Does this sound like intelligent investing?

 

Capitalism existed from our founding in 1776 until 2008 (mostly). Today, we have no real Capitalism. We have Central Planning at the highest levels. A few elites within our Central Bank system make all the core decisions. They meet in secret to devise plans and policies to rig all these computer driven markets. Watch what happens this next week as Mr. Powell and his elites meet in Washington (at the Eccles Building) to devise new rigging strategies. These strategies will not be called RIGGING, however. The words coming from our elites in Washington will likely be ‘new management ideas’ for a slowing economy. New Strategies to sustain the BULL market of these past 10 years.

 

Those of us who have followed our Central Planners since the financial crisis of 2008 know that the only GAME in TOWN is really ‘rigging, manipulation, and deception’. And it’s all done by unelected elites who have no loyalty to the common people. Our system is hierarchical and those at the TOP rule the system. This is why I call this Central Planning. Others call this the Deep State. The marketplace of investors has no input into what will happen going forward. We are now all victims of a centrally planned system which operates behind closed doors. The system is rigged and managed to prevent total collapse.

 

Can this rigging continue for all of 2019 and keep the BULL market going? This market died in 2018 as most indices declined some 20%. The higher interest rates were the catalyst. Awareness of this reality is now bringing new change to policies at the TOP. We will likely witness new QE operations in a few months and we should also witness lower interest rates in 2019 (it already has started IMO). New stimulus will be needed as our real estate sector continues to deteriorate. Other sectors which are heavy with debt may also continue to deteriorate (like autos and durables).

 

There is no real solution to our debt and deficit situation here in the USA. A similar debt situation entangles the entire global system. This means that the ONLY game in town is more RIGGING at the Central Bank level. Our computer driven markets should continue to experience volatility for all of 2019 and our media should be exposing these Central Planners at the TOP. A few astute pundits recognize this rigging activity and we now need more exposure of these riggers to the general public. Listen to the following three videos for more enlightenment on all this rigging activity.

 

 

Listen and learn as RIGGING is the only game in town. I am: https://kingdomecon.wordpress.com.

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January 26th, 2019

Posted In: Kingdom Economics

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