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Understanding our Electronic/Cyber Markets – Part I

May 19, 2017

The next few missives will focus upon understanding our cyber markets and how these new index markets work in real-time. Today, I would like to focus on what happened over in Brazil on Thursday, May 18. This market crashed some 10% before recovering slightly. Upon reaching the 10% level our exchange elites halted trading via a circuit breaker technique. The Bovespa index market was shut down immediately for a period until the rulers over this market decided to turn the power back on. Trading is halted and the negative psychology which produced the crash is stopped in its tracks. What does this action reveal about today’s cyber index markets?

What this reveals is that we now live with electronic exchange markets which run on electrical power and via on/off switches. A circuit breaker can shut down the electronic markets and prevent any further decline in the index. This reveals that we do not have free open markets today which operate on human trader decisions but we have controlled markets which can be turned on/off at the discretion of the elites who run these exchanges. The elites are connected to the governments and the Central banks which allow these markets to exist.

If any negative psychology develops (as over in Brazil with their corrupt political environment) and if this negative psychology creates a negative decline in our electronic markets (say 10% or more), then our elites can SHUT DOWN the electronic markets with the click of a computer key. All trading is halted immediately and the shut-down lasts until this negative psychology can be reversed. The Bovespa index market lost some 6,000 points (billions of money units) prior to the shut-down and when the markets were turned back on the negative psychology was reversed with new trading (primarily from central computer sources).

All our global electronic cyber markets are now operating in a similar fashion. If the Dow Index were to crash by a given % (say 10+%), then the elites who run this index could do similar as was done over in Brazil. The Dow index would be shut-down and trading would be halted. The shut-down could last hours or longer depending on the situation. What this reveals is that all our cyber markets react upon events and psychology rules over all these markets. Negative psychology (when it continues) can be reversed by these circuit breakers and these shut-down tactics.

We do not live with a free market trading system today. All our markets are now index markets living within cyberspace and operate as electronic indices. The numbers are imaginary and all trading is now imaginary. Cyber markets are imaginary trading markets with no existence within real space/time. We also can call these markets ‘virtual’ markets as the ‘numbers’ (called money units) are really ‘imaginary’ numbers derived from the human spirit (consciousness). What a change from yesteryear. We used to live with free markets where real people set the parameters and the buy/sell extremes. This is no longer our situation.

Today, we live with virtual/digital/cyber markets which live within our computer screens (cyberspace). Since all these markets are now mostly index markets (merely the trading of imaginary symbols and numbers), these markets can be controlled, manipulated, and regulated by elites behind the scenes. Treasury officials and Central bank officials can shut-down these markets per their whim and then turn them back on per their whim. Is this Capitalism? Is this a free market for traders? I don’t think so! Our markets are now artificial and imaginary. They measure nothing and can go to zero at the whim of our elites who operate behind closed doors.

Read the Wall Street Journal of May 19, page B-11, for additional details on the Bovespa (Brazil) situation. All the emerging markets in Latin America and also Asia are also being watched to assure that this same negative crash mentality does not occur within these markets. Our behind closed-door elites will watch these electronic markets and they will use their circuit breakers (if necessary) to shut-down any market which turns excessively negative. If traders cause a 10% or more decline in any of these markets (including those in our developed markets) then the elites will likely halt trading to prevent further declines.

What should we call today’s cyber/electronic markets which reveal these new realities? We could call them artificial markets, manipulated markets, controlled markets, centrally planned markets, Ponzi markets, imaginary markets, virtual markets, cyber markets, or merely fantasy markets. We sure don’t have any FREE markets today given what is now happening in real-time. At some point, traders and investors will discern what I am now writing. They will discern that our markets are false and mostly worthless for measuring prosperity, wealth, growth, and progress. What a shame on the economics profession given what we now live with!

Is it time to change all these markets and start over? I think so! The SYSTEM is now mere fantasy and illusion. Central banks and our index market elites are running the entire global cyber casino.  The markets are pure FANTASY today. Few seem to discern the above realities and the realities which I have been writing about in prior missives. Wake-up and buy silver/gold now before the entire cyber casino crashes in real-time. Learn from real events and experiences in real-time! I am:




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