Taking the Stock Market Private

So the stock market gets organized support. Is the news bad? If it is the market gets extra support.  Is the news good? Then the market get just enough support.  I have written a lot to the effect that there are advantages to centralizing and concentrating stock ownership into strong cooperative hands. Each day that goes by, corporate buybacks and central bank purchases take trade-able stock out of circulation. With every passing day, the task of elevating stock prices gets easier. There is less supply so moving stocks higher gets easier and easier. What is the end game here?

The stock market is being taken private. Don’t misunderstand. Ordinary people still own stock and quite a lot as a group. The plan is for the elite of the world to own a controlling interest in all of the world’s major corporations. That is not as hard to do as it first sounds. Free money from the government is limitless. What we are witnessing is the wealthiest segment of the world finding ways to own or control the factors of production globally. Wars for profit control land. The media as an opinion management service controls the reasoning of the general population. That leaves the capital markets of which the stock market is the most significant part.

The important point I am going to make is that there is no point at which manipulation of the stock market will be discontinued. That is because there is more to the stock market agenda than just churning out profits in the immediate time frame. Profits are a big deal but the goal of privatizing the stock market is bigger than that.

No one who understands markets or economics seriously believes it is reasonable to expect rising asset prices to generate aggregate demand indefinitely. In terms of independent and dependent variables, economic activity is the independent variable. Asset prices are the independent variable. These kinds of variables are not like wild cards in a poker game. Demand driven by increased asset prices is a reversal of the dependent and independent variable relationship. So, that process has a lifespan. No smart person believes this is a permanent situation.

The goal of privatizing the stock market is separate and independent from efforts make trading profits or using the wealth effect to generate temporary GDP numbers. The goal is to concentrate and centralize stock ownership. That effort will not be abandoned willingly.
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About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.
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