Central Bankers Rule – Zombies Trade!
Our global economy is now ruled and controlled by select Central Bankers and their trading strategies. If I were Mario Draghi and spoke select words like “more QE is likely in December 2015”, what would happen? The stock markets, via our Zombie cyber traders, would click their buy bets and UP go the markets. Then if I were the Peoples Bank of China (their spokesman) and said “I will lower interest rates”, this would immediately create more buy clicks by our Zombie computer traders. This is the world we now experience and all our markets are now responding electronically as our select Central Bankers SPEAK from their platforms of Authority! Words of those in select positions of Authority create a Zombie reply from our global group think traders! What a market we now live with! What does this mean going forward?
Mario speaks and the stock markets respond! Zombie traders click their buy bets!
Our key Central Banks now have huge trading rooms and Zombie traders which do as they are instructed. Our New York Fed has some 400 Zombie traders on the 9th floor of the New York Fed building, 33 Liberty Street, N.Y. These traders are active from 4:30 a.m. in the early morning until late into the evening. Trades and monitoring of the global markets are now a 24/7 operation for most traders. The entire globe is connected electronically and all the major stock exchanges are now electronic and 24/7 trading is available. Central Banks which did not participate in our private markets prior to 1998 are now fully staffed for real-time trading and real-time manipulation of all our markets. Central Bankers RULE over economics and trading! This is our situation in 2015!
Zombie traders follow the ‘words’ of select policymakers in positions of Authority!
The two most influential Central Banks on our planet are the U.S. Federal Reserve Bank and the Bank for International Settlements. Both have trading venues for purposes of controlling and manipulating our markets. The BIS has a trading room in Basel, Switzerland and another in Hong Kong, China. Our Fed has some 400 traders on the 9th floor of the N.Y. Fed monitoring and actively manipulating all our markets daily. Recently, the strategy of these Central Rulers is to pump up our cyber stock markets to give people the feeling of a ‘wealth effect’. I notice the positive response of traders and investors in my retirement community here in Arizona. They want the markets to go UP and UP whether it makes any sense or not! This is the mentality of most investors and traders! Keep the music rolling for now!
We all FEEL positive when the numbers go UP! The ‘wealth effect’ is important for peoples emotions!
I have found none who actually desire to understand what is happening and/or the ephemeral nature of our Cyber markets. When the music stops they will think and listen…but now is not the time for most to seek understanding! Human nature will not change until the music stops and thinking is required. Right now, everyone prefers to play games and enjoy the ride given by our Central Planners and Rulers. Many recognize that eventually the music may stop, but for now the mindset is don’t rock the boat. Keep the monetary cyber numbers increasing (this music) and continue to pump UP the markets so everyone can FEEL positive! Feeling positive is an emotion which most prefer for now. Sound thinking and reality is not for today!
Emotions change quickly when the ‘numbers’ on the screen go DOWN!
So for now, we need to think positive and let the music roll. Pretend we all are watching our favorite football team win a match over an enemy opponent. This mindset is what the crowd desires for now. Don’t talk about silver manipulation, gold manipulation, market rigging, price suppression, miners going bankrupt, or our elites being corrupt. This mindset is negative and not desired by the Zombie crowd of investors, traders, and speculators. Think UP and UP and the sky is the limit! I must FEEL good so I can play golf, tennis, hike, shop, and socialize. The time for thinking is NOT now! That’s how I experience the crowd at my venue. It’s very interesting! I learn about human nature daily! Enjoy! I am: https://kingdomecon.wordpress.com.
P.S. What is this concept which we call ‘inflation’? I find lots of confusion about this concept. Some claim that ‘inflation’ is an increase in the cyber money supply (or the printing of paper notes). QE is an example given by many. Printing paper notes (excessively) is another answer given by our experts. QE creates excess units of currency (today digits) and this means we have INFLATION (say many). Is this valid? Not really! Yes, there is QE currency inflation and this is a type of ‘inflation’, but it is not the same as PRICE ‘inflation’. Price inflation may not occur with all the QE operations (past or current). Why? Because Price ‘inflation’ must occur from the actions of consumers in the marketplace. Do consumers have excessive money units to spend? Are their wages going UP substantially? Is effective Demand increasing?
Currency inflation may or may not create PRICE inflation! Who has the currency and how is it being spent?
If consumers (70% of all market participants) are not borrowing and spending (excessively) and products and services are ample and growing, all the QE in the world may not create any meaningful PRICE ‘inflation’. Most of us follow Price ‘inflation and not QE inflation. The term which we call ‘inflation’ is a concern of consumers in the marketplace. Today, we have little Price ‘inflation’ even with all the QE (so-called printing) increases. Japan is not getting Price ‘inflation’. The USA is not experiencing meaningful Price ‘inflation’. Sweden is not getting Price ‘inflation’. Europe is not experiencing Price ‘inflation’. What we experience today is mostly dis-inflation with some actual DEFLATION (with some exceptions). All this talk of more ‘inflation’ in our markets needs to be explained more fully! The concept is somewhat confusing, however! Hope the above helps!