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June 3, 2020 | Will Our Central Planners ‘Choose’ To Crash Our Virtual Markets?

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.

It is obvious to me that our virtual stock markets are rigged, managed, pumped up, and manipulated in real-time (daily). This situation has been going on for some 12 years. The recent mini-crash in March, 2020, lasted a few days…and then when growing dire events developed (unemployment, riots, looting, etc.), our central planners (with their own computer trading) reversed the downward trend immediately. This is the new reality for our rigged markets!

We have had eight days of UP markets even with dire riots, depression level unemployment, and with weak economic data. Yet our virtual markets ignore all these dire events. Dire events do not affect ‘algorithms’ (which trade our markets today). Algorithms can be programmed to trade irrespective of what is happening on the ground. Amazing! Our markets are now virtual and our trading money is virtual. All trading happens within this imaginary space called ‘cyberspace’ and programmed algo’s do most of the trading. This is a NEW REALITY for today’s markets.

Amid the exuberance of eight days of up markets, a popular technical momentum indicator is close to flashing a warning sign for the S&P 500…yet global stocks have climbed to their highest level versus estimated earnings since the early 2000’s. The current rally has surprised most analysts who predicted a long road back to normalcy following the pandemic. Our central planners, however, obviously desire more UP markets for the time being. And these traders CONTROL events.

I am now of the view that our central planners will continue the monitoring and management of these markets so that no real lasting crash develops (prior to the election date of November, 2020). Our central planners (the Plunge Protection Team) in conjunction with central bank traders can keep this situation going indefinitely. If markets crash for a couple of days, these central authorities can reverse this situation with their own trading. And these central authorities have UNLIMITED trading digits to play with. Who can challenge their control?

What’s new for today’s markets is that we have Central Banks monitoring, controlling, managing, and rigging all these virtual markets in real-time. This is new as Central Banks are not supposed to be trading our markets under Capitalism. But we do not have Capitalism today. We have what economist’s call MMT (modern monetary theory). Under this theory our central banks can create virtual money digits with their thinking mind (in unlimited quantities). THINK and grow rich is their mantra. Mr. Powell and Mr. Mnuchin can think up new dollars with their thinking mind and then act to create new digits. It’s all done with the PUNCH of a computer key.

Today, I witnessed a host of dire events in Washington and around our nation. Riots and growing unemployment continues. Yet America’s virtual markets went UP: DOW 527.24 points, Nasdaq 74.54 points, S&P 500 42.05 points. Would a real free market of traders create these UP numbers (given these dire events)? I don’t think so! It’s all done by our Central planners in New York and Washington. We give these folks the ‘name’ Plunge Protection Team.

The PPT can trade our markets at will and reverse any real dire outcomes. They have the money digits to accomplish their outcome. It’s all done with algorithms and programmed trading. Electronic markets allow these traders to trade BEHIND closed doors. Who is aware of what they are doing? NO-ONE! Secret trading can accomplish all these outcomes.

I now assume that any minor market crash will be REVERSED by our central planners (PPT).
 Unless these authorities DESIRE a crash it will not happen. Will they DESIRE a crash? This is possible. But as of today, I am not betting on it. My assumption is that these authorities will continue the rigging activity INDEFINITELY. Watch to discern! Have a great day and watch the daily rigging as it happens. Gold and Silver will also be price rigged for now!

I am: https://kingdomecon.wordpress.com.

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June 3rd, 2020

Posted In: Kingdom Economics

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