I am looking for a stock market stunt to take place next week as the Democratic convention gets started. I have written many times that the mob (friends of the Fed) will cut and run when the Federal Reserve can no longer guarantee their profits. What is also possible is that the Friends of the Fed will suddenly switch sides and usher in a stock market decline that will be profitable for them.
I am noticing that the beginnings of relationships among enablers of manipulation are beginning to degrade. Roger Ailes is on his way out at Fox News. The British are opting out of the European Union. Just the mention of Goldman Sachs brings boos at the Republican Convention. Mark. K. Johnson of HSBC has been arrested. These may seem like small things but all kinds of friendships and relationships are necessary to manipulate asset prices. When these associations start getting frayed, individuals start going into the survival mode. A large enough break in the ranks will crash the market.
There are no patriots in the mob. My conjecture is that a second elitist camp is starting to emerge and there will be conflict with the old one. The mob will be aligned with the side that has the advantage. There is a strong incentive to crash the market during the Democratic convention. That would make everything going on at the Democratic convention look nebulous and unsophisticated. The value of this to the Trump campaign is obvious.
To get the market to crash all that is necessary is to withdraw support and cooperation. Without these things, the market would have collapsed a long time ago. Do no rule out a Trump statement to get a crash started. Probably the most amazing thing about Trump’s success in that he is often telling the truth. The truth, to my knowledge, has never been used in politics by a candidate who has won. If Trump says the stock market is rigged and to watch out below, he is telling the truth. With respect to the elite, Trump is part of it but he belongs to a different club or a faction that is not currently in power. This is also true of his friend Carl Ichan.