Global Stock Markets now a ‘Joke’! Why?
Yesterday the Nikkei 225 declined over 572 points and as of real-time today this same market is up 525 points. This UP and DOWN market is typical of all our electronic/manipulated markets. Today, algorithmic trading and HFT causes our markets to reflect machine manipulations and not real market measurements. Machines now rule over our electronic markets and trading is now at the speed of light. Measurement of real economic activity is now a ‘farce’! Also, we now have many of our Central Banks trading our markets to prevent any real crash of these cyber markets. Why are Central Banks involved in trading our markets? Central Banks, operating behind closed doors, can also obtain unlimited cyber money for their trading activities. Is this Capitalism? I don’t think so!
Capitalism has been replaced by Central Bank trading rooms, Computers, Algorithms, Cyber money, and Central Planners manipulating all markets!
What causes this market to crash and then recover? What is it actually ‘measuring’? Could algorithmic trading be part of the problem?
These past 15 to 20 years have changed our markets in fundamental ways. People are not trading today as in the past. Traders now use algorithms, robots, machine software, and speed of light trading. Today, our big Hedge Funds and our Central Bank trading desks can use trading strategies to ‘enter’ and ‘exit’ a trade in milliseconds. In fact some traders now trade in microseconds. The speed of ‘entering’ a trade and ‘exiting’ a trade is faster than the ‘blink of the eye’. How can this type of trading reflect real human judgment? In reality, human judgment is now obsolete. What traders use today are ‘coded’ algorithms which act spontaneously based on pre-coded instructions. This is not real trading! This is pure manipulation of our markets!
Notice this tick chart and notice the sharp changes in prices! What is causing these huge fluctuations? Could coded algorithms and HFT be part of the problem? Are today’s markets actually reflecting real economic activity?
Take the time to watch how our markets fluctuate from minute to minute in real-time. Often a market like the Dow or the Nikkei can rise by 3 – 6% at the opening with no real evidence that the economy has improved. Trading by machines, robots, and coded algorithms execute trades to create this phony result at the opening. Also, machines with algorithms follow instructions which have been encoded to act immediately on selected events (political events, military events, rumor events, and pure propaganda from our media). Pure ’emotion’ with no hard data can move a market. Logic and facts can be ignored. This makes our markets mostly meaningless for measuring the health of an economy.
Today’s DOW continues to grow into a huge BUBBLE…yet what is really causing this bubble? Could cyber trading and our Central Banks trading desks be part of the problem? Why are Central Banks trading our markets? What is their ‘motive’?
Today, our real physical growth in wealth is declining while at the same time our global markets continue to go UP and UP. What is causing this Schizophrenia within our markets? The key words today are MACHINES and ALGORITHMS. Also, robots acting with speed of light actions can create trades in microseconds and milliseconds. This speed of trading is much beyond any human judgment or ability. The old Open Outcry trading system allowed real human beings the time to THINK prior to acting. Today, thinking has been replaced by ALGORITHMS and High Frequency Trading. Machines (via algorithms) enter a trade and the counterparty is another machine with an algorithm. This creates a speed of light marketplace which does not represent reality! Capitalism is now electronic and our money is located within cyberspace.
Central Banks now trade, manipulate, and rig our markets. Is this Capitalism? Our American Central Bank, called the Fed, has some 500 traders operating at the New York Federal Reserve Building, 33 Liberty St., N.Y. What are they trading and why? How can private traders compete with these C.B. traders operating under the policies of the Money Cartel (behind closed doors)?
Our New York Fed operates behind closed doors with trading operations on the 8th, 9th, and 10th floors! How can private traders compete with those who can create money ‘out of thin air’? Are our markets even valid measurements of our economy?
What we need to recognize is that our money is now a cyber digit which operates within cyberspace. Cyberspace is where trades occur and trades are now accomplished via algorithms, HFT, and speed of light execution. This is NOT real human Capitalism! This is a Cyber Casino of phony transactions acting within a Ponzi Casino Market. We need to blame our Central Banks for all this dysfunction within our markets. Yes, our Central Banks are at the core of our Schizophrenic markets. Why are Central Banks operating behind closed doors? Why are Central Banks trading within our so-called private markets? Why are Central Banks manipulating and rigging all our electronic markets with their policies and proxies? Think on this! Enjoy! I am: https://kingdomecon.wordpress.com.