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October 3, 2019 | Digital Money: Why Does it Work 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:

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Today’s Wall Street Journal says that 89% of all money is now held virtually. This means that our money lives within our computer screen (in cyberspace)! Paper money is disappearing and coin money is rarely used today!

I use my CNBC app to watch our digital markets go down and up in seconds. Today, the Dow plunged over 300 points and then reversed course and is now up some 60 points as I write. Why this volatility and change? Who is behind these changes in prices which supposedly represent our economy? Let’s think on this for today! Check out this video on high frequency trading to understand part of the picture:


The above video reveals how our markets have changed in the past 15 years (mostly) . It used to be that traders actually voiced their commands to execute a trade (called the Open Outcry System). Today, algorithms have replaced people and their voiced commands. High frequency trading can now be used by our central bank traders as well as private retail traders. This allows a few select traders to manipulate all our markets from their behind closed door venues. Who is aware?


I could use a high frequency trading computer (today) to pump up a market if I have enough digital trading units to trade with. Our central banks can create these trading digits (called money) to manipulate these electronic markets continually. Trading strategies can spoof (and stuff quotes) and/or deceive the general markets with their trading algorithms. I have watched all this manipulation for years. But, for now, these digital trading markets can work to keep our markets from crashing. Our authorities will keep our markets somewhat stable as long as confidence remains strong (among consumers). Sentiment has not crashed as of today!


Computerized trading (by our central banks and select primary banks) can continue to pump up prices with their trading strategies (indefinitely). We have experienced some 126 months of UP markets (with no serious correction). The business cycle has been put on hold for the time being. We could witness a continuation of this manipulation for many more months or it all could change in seconds if confidence crashes.  At some point the confidence of general traders will over-rule the central banks and a major crash will occur. Will this happen in 2019, 2020, or later?


This video gives more evidence that our stock markets are rigged and that prices are manipulated. Watch to understand how rigging is now possible:

As I write our Dow Index is being manipulated by high frequency trading (algorithms). We can not discover WHO (which algorithms) are doing the manipulation as all this can now be accomplished behind closed doors. But manipulation is happening and this will continue given the nature of our digital markets. Digital markets are really ‘virtual’ markets. Virtual markets happen within our consciousness. Amazing. We now live within our consciousness for all digital monetary transactions. Change happens within us!


The subjectivity of these virtual markets will eventually be the downfall of all these markets IMO. Virtual money is subjective money and the few who control the circulation of these subjective digits will eventually make a mistake. Their algorithms will fail them and the markets will crash without anyone knowing WHO initiated the crash. This situation happened back in 2010 with a ‘flash crash’ in seconds. Prices crashed and some stocks went to zero. All this happened in milliseconds. It will likely happen again at some point!


Watch the volatility in these digital markets on your smart phone. An app like Webull gives real-time trading information. I watch this app to observe the UP’s and DOWN’s in all the digits. Our economy could slow and decline even while these digital markets go Up and Up. To understand we need to think of all our money transactions today as subjective and inner. Virtual transactions are inner transactions. A few algorithms behind closed doors can manipulate all our indices. Amazing! Is this Capitalism?


Capitalism is essentially over and we now live with Central Bankism. A few central banks rule over our global markets. Our Fed, the ECB, the BIS, the Bank of England, the Peoples bank of China, and the Bank of Japan are the key movers/shakers for all our markets. All the action happens with high frequency trading and behind closed doors. Watch the above videos to gain some understanding. We now live with Central Bankism and rigged markets. It will continue until a real crash occurs. When? Who knows? In the meantime, have fun with trading these manipulated markets. It’s a virtual CASINO within us!


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October 3rd, 2019

Posted In: Kingdom Economics

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