Economists and market analysts are constantly confounded that the stock market continues to defy the laws and nature. The dogma they follow says one thing and the stock market does something else. It never occurs to these sorts that they are completely washed up and don’t have a chance of being right about anything.
Here is the essence of stock market manipulation. We don’t know who the manipulators are exactly. We don’t know to what degree to which cooperation is organized. We don’t need to know these things. All we need to know is that the manipulation is ongoing and it clearly is. Here is the very basis of how it works.
Prior to the crash of 1929 the practice of cornering the market was very common. As short positions were taken in a certain stock, certain operators would be busy buying all of the shares offered for sale. Eventually they would own the entire float of the stock. When the time was right for folks with short positions to take a profit, the only shares they could use to cover were in the hands of one operator who would force them to pay an enormous price for shares of a basically worthless company.
In today’s stock market arena,the elite of the world, by virtue of political power, are concentrating stock ownership within a very small portion of the world’s population. This is what corporate buybacks and central bank buying accomplish. Stock is constantly moving from weak hands into strong hands which will never sell. In essence, the elite of the world are cornering the entire equities market. The public is corralled in IRAs and other semi permanent equity positions. This is the foundation on which all other manipulation rests. As long as equity ownership continues to become more and more concentrated, managing every day stock prices is a piece of cake.
What is to be gained by concentrating equity ownership withing such a small percentage of the population? By doing so the practice of managing stock prices becomes easier every day. The way to make the largest amount of money in the shortest period of time is to run up the price of a stock with public money and keep it moving higher. There is no way this practice will be discontinued voluntarily. The final result will be the destruction of the economy and countless lost wealth and income. For now though expect business as usual.
Don’t expect to read this anywhere else or hear the same thing from a mainstream economist. They are completely lost to what is really happening in the world. They are lost in their numbers and their models are full of erroneous assumptions.
The truth is a hard sell. Fantasy Free Economics gains readers one at a time. Major search engines simply do not list blogs which disagree with their political agenda. As long as folks share the link to this blog and others speaking out against the grain, the truth will at least trickle into the public consciousness.
Fantasy Free Economics recommends the following blogs.Fantasy Free Economics recommends the following blogs.
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