Roots of Stock Market Manipulation PDF Version
Prior to the mid 1980s, the financial markets were mostly pristine free market entities. Technology had not yet developed to the point where simultaneous bids could be placed for every stock in an index. Wealth was not so severely concentrated that a small number of equity owners could cooperate with one another for the purpose of moving their assets values higher independently of economics and earnings.
Following the passage of the Full Employment Act of 1978, the Reagan Administration immediately implemented supply side Keynesian stimulus initiatives. In 1987, after the crash, government began tampering with financial markets. This was the birth of a new paradigm that has been increasingly employed by every administration that has followed.
Keynesian theory was flawed even before the Keynes general theory was published. The key ingredient is the presence of a completely unbiased, non political person to implement stimulus policy. While Modern Monetary Theory has nothing in common with fiscal based Keynesian Theory, it is often discussed as if it is Keynesian based. Any successful use of Modern Monetary also requires the presence of a straw man. Without 100% objectivity neither theory has even a remote chance of accomplishing its stated goals.
Since there is no such thing as a straw man anywhere in the universe, there is no chance any type of central planning can produce a positive outcome that is a net benefit to society as a whole.
What it does does do is make it possible for economically powerful people and institutions to make money without working. What stimulus works out to be is enormous lobbying efforts focused on convincing government to increase spending in ways that support the most powerful financial interests in the world.
Rigging stock market started with opportunities created with the Full Employment Act of 1978, also called the Humphrey Hawkins Act. With stimulus, there is no net benefit to society. Those who benefit do so because they have the power to determine where and how government spends.
Chances are, that in the 1980s, no one had plans to control the stock market independently of profits and economics. Based on the advantages contained in the Full Employment Act of 1978, the process of using political power to gain economic advantages began growing as years passed. As time moved forward, new and improved ways to influence stock prices evolved. There is more to this than just easy money from the Federal Reserve. In the articles that follow, I will explain how the market is managed but it all starts with the opportunity. Stock market manipulation began in the Reagan Administration with the initial implementation of the Full Employment Act of 1978. The practice has grown to the point where it is now all pervasive.
The fact is that governments don’t make economic decisions. Governments make political decisions only.
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Well, James, regardless of background, you ideas resonate. I’ll continue to tune in and see what you have to say. You say you do not envision a V shaped recovery. Are you referring to the economy, the stock markets or both? Is the Fed capable of levitating this market until the economy begins to recover, which may be in the first half of 2021? What do you see happening?
Will there be a recovery? So for, in the entire history of the world, there has never been an economic recover without free market influences. At the upper echelons of the economy, there is no free market. Small businesses are still free market based. Political power is all at the top where there is no free market. Small businesses are failing right and left. The ingredients necessary for a recovery are missing. It won’t happen for sure in my lifetime.
Democratic principles are being abandoned at the top and the bottom. Disagreement in democracy is normal. Everyone on the same page working together is totalitarian. Any peace in the world has always come from adhering to democratic principles. Abandon those and free market principles and there is no chance for a recovery.
All economic stimulus must must dismantle one or more pillars of free markets. As more and more stimulus is added free markets move further into the past. Stimulus will not cause a recovery.
James, what is your background? What you say makes a lot of sense. Why did you stop making the videos 9 months ago?
Bill, My efforts here take no background at all. The only thing unique about me is that I am fantasy free. Anyone can do this.
It starts by accepting reality as it is. Every child, although unaware, is born into an an ongoing power struggle that continues throughout life, even if one barely participates. Life is governed by laws of dominance and subservience. No one knows what life, consciousness and death are.
This situation is daunting so over eons fantasies evolve with respect to what this all means.
All animals are born with a gift from nature that allows them to immediately discern dangers and opportunities in the present moment.
Mankind also has this gift but it is not useful when fantasy replaces reality. Give up fantasy and these things I figure out become automatic.
Why did I stop making videos? My channel like similar ones on YouTube is squelched and discouraged. So, making videos turns out to be a poor use of time. There is now way to gain a meaningful audience on YouTube that I can see so, my efforts have been more productive elsewhere.