It was once believed that if the Stock Market could be controlled and manipulated at all it would only be for a short time. The stock market was simply too big and even the largest financial powers did not have the clout to have a permanent effect on prices.

That is not true today.  Split second trading accounts for most of the volume. The public which is cited as now moving into the market in a frenzy, has been leaving the market for decades. Stock ownership is concentrated in the top 10% of earners. That group does have the money, power to determine the level of stock prices over long periods of time.  They are doing that right now and have been for a long time.

Am I making a guess? It could sound like one. What evidence do I have? I don’t have a confession or a witness. Do I have any facts? Yes, quite a few, but mostly, all  I or anyone else need do is watch. What we have is mountains of circumstantial evidence that most prefer not to look at.

It is not at all hard to find folks who agree that the intentions of the Federal Reserve are to elevate asset prices. What I will show you is how the stock averages are orchestrated and micro managed with the help of the Fed but independently also.

Lets start by coming to grips with who your government actually is and what it is that actually determines political outcomes.  A person or institution can be either described as how it is defined or how it functions. If a class of citizens has the power to determine who does or does not get elected, and make it impossible to remain in office for someone who does not adopt various agendas, that class of citizens is your government, not the one you elect. With Fantasy Free Economics I treat institutions and people according to how they function and no how they are automatically assumed to function. The riches people in the world do have enough money and power to control government and stock prices. Is there any reason why they wouldn’t given the opportunity?  Do we know their names. No, and we may never.

Back in the early 20th century, when only 8 planets had been discovered, scientists noticed an odd motion in Neptune’s orbit. That meant that there was an additional planet in the solar system that had not yet been discovered. That planet is Pluto. They new there was a planet. It had just not been seen. Control of the stock market can be observed by focusing on phenomenon that would never occur in a free market.

The Federal Reserve does its part but that is just part of it.

This is a one minute chart of the Dow. It doesn’t look that weird in isolation but this pattern is present with a few variations every day.

Most days the market gaps up. At that point, the market falls as those waiting to sell exit. There is a basket ready for prices to land in. As soon as there is any stability at all prices are initially stablized and then ratcheted slowly upwards and then pushed higher at the close. This pattern occurs for days at a time, and far more than any pattern would appear in a natural setting.

Views: 0