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February 2, 2019 | Manipulated Markets work for a Season!

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:

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Could this graph provide some history as to what is now happening within our markets? My sense is that all is not as sound as many pundits suggest! A future moment of ‘now’ will be our teacher IMO!

Personally, I never envisioned that our global digital markets could continue this general expansion for this long. April 2009 to February 2019 is nearly 10 years. Today’s Wall Street Journal gives evidence that our markets are still strong and that 2019 will witness more of the same. Pundits have many differing views on what is happening within these markets. Some, like Peter Schiff, think that we are already in a Bear market. Others think we are starting a new boom market for 2019.


Larry Kudlow: ‘We are the hottest economy in the world. We are crushing it’

  • “We are the hottest economy in the world right now. We’re crushing it,” Kudlow says. “Europe is slowing down. Asia is slowing down. We are moving rapidly.”


So far our markets have not had any real correction which lasts. This is rather amazing. The downturn in December (one month) left me thinking that the Bull was over in our stock indices. But just as I wrote about the decline being real, the Fed changed its policy of draining liquidity and restarted more liquidity injections. This same policy decision appears to be happening in Europe, Asia, and China. More Central Bank pump priming is happening to prevent a crash or general collapse.


Manipulation by our Central Banks and their proxies does seem to work to some degree. I witness slowing real estate sales, slowing consumer spending, layoffs within the retail sector, slowing auto sales, and some loss in general investor confidence. But having said this I also witness the opposite in many sectors. Incomes appear to be growing along with more jobs. Stock markets have now gone up to historic levels since the downturn in late 2018. Who can cause this situation to happen?


The charts in the Wall Street Journal show a continuing UP momentum in the Dow, the S & P 500, and the NASDAQ. The 65 day moving average was declining precipitously in late 2018 but now all these indices are ABOVE this 65 day moving average. All this has happened in just the last four weeks (amazing). Who can move these markets with this consistency and with this determination? I can think of only one source…Central Bank trading.


Central Banks can use their computer trading system to pump up these digital markets whenever a serious downturn develops. This change in trading activity by our Central Banks can temporarily change investor thinking and confidence (at least this is what I perceive). Why would the Wall Street Journal cover the slowdown in China and Europe one day and then write about a growing prosperity the next day? Who can discern what is happening within these confusing digital markets?


My sense is that Central Bank manipulations can keep our markets from crashing for a season. What they do behind closed doors does affect our markets and does keep these computer markets from fully crashing. Our Central Bank trading operations have unlimited trading digits to work with (so it seems). They can funnel trading $$$$$ to a proxy and instruct this proxy to invest as they desire. This can change an index with the click of a computer mouse.


After watching the Caracas General digital markets for years, I have noticed how this market gets manipulated daily. The general economy over in Venezuela is in a depression but the electronic stock market crashes to near zero and then starts over continually. Those who run this market can pump trading digits into this market and manipulate its outcome (seemingly indefinitely). I presume that this type of manipulation can also be done in ALL these electronic/digital markets.


Our markets are now almost totally electronic/digital. There is not much paper or coin money circulating today. Some 95% of all trading activity is digital and computer driven. Algorithms trade even as humans go to lunch. I can set up instructions with an algorithm to trade my stocks even as I go on vacation simultaneously. Robots, algorithms, and automated trading is now ubiquitous. It’s all an ‘inner’ experience of the human mind. Money is virtual and trading is within our consciousness.


The human race has never experienced this type of commerce in all of human history. Today, our financial system is nearly totally ‘inner’ and within our mental thinking. Ask yourself, what is a digital $? Ask yourself, what is a virtual money unit? Ask yourself, if all this money flow within our computers is real or fake? Who can discern what is happening today given the nature of our cyber markets? It’s very confusing to me.


Since what goes UP must eventually come DOWN, I presume that all these bubble markets will eventually change direction. My perception is that all this could happen suddenly and without any prior warning. Since the human mind is behind all these markets, I presume that a change in emotion, interpretation, and perception will also change the direction of all these cyber markets. We could witness this change later in 2019. That is my perception as of today. Think for yourself on all these issues!


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February 2nd, 2019

Posted In: Kingdom Economics

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