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The Real Way of the Markets


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Are markets random or is there some link to various key factors within the economic-financial-banking envelope that shapes all end results?

BACKGROUND

We all have been 'educated' in the theories of market behaviour from various sources, many, without seeing how that ever ties in with the real market behaviour using empirical date of the last few hundred years plus. And with economics there are so many variables and key metrics used to the minutest details, particularly by central Banks who have all types of resources and data. On top of that, the community of economists amongst them come up with different evaluations and predictions which often do not come true, despite having used the same data!!! They have also forgotten that they are relying on theories too! This 'education' and practice has been emblazoned into our psychic for so many generations that we take it for granted that this is 'how it is' and 'will remain so'.

That means NO CHANGE. Yet since the existence of the private central bank, i.e. the FED was born 1913, and since that time there has been 95-98% loss of purchasing power of their currency (depends on which statistic you take). Yet the “reason” for their existence was so they could “cure” the huge volatility in the economic-banking markets. Their remit is rates and inflation control. Well, we HAVE HAD THE SAME SORT OF VOLATILITY EVER SINCE and NONE OF THEIR PREMISE AND PRACTICES HAS SOLVED ANY PROBLEMS, in a real solution. So, the central bank is not worth anything it is authorised to deal with. RESULTS OF THE LAST 110-years IS THE ONLY PROOF, not their justifications or pronouncements.

All fiat money undergo this nightmare as many countries experiences have shown. They destroy the value of money and later on had to create a new note for store of value. And then what did they do? They used the same old monetary theory, basically, that helped to destroy the previous currency!!!!

Do nations never learn, or are they persuaded to keep the status quo practices?

If you did some action in a particular way and that led you to ruin, would you then repeat that again, or totally change the method of your future actions so it does not happen again?

Do the economic-banking-financial fraternity who advice government, make any serious, real change after creating disasters? NO. They restructure and make all think they are magicians and will now solve it with the “new plan” set-up. Ha, ha, ha.

So what are the problems that keep us ignorant or glibly comply with the big boys economic-financial game plan? Well, let's review some key factors.

ECONOMICS

Economic law no.1 relies on the supply of money that should equal the annual goods and services delivered. Far less money would undermine the flow of business expansion. Too much above that encourages businesses to over expand, too fast. The latter (too much) cannot be done on a constant basis, nor may it be utilised efficiently, and it is in practice often misused or wasted. This also has a major impact on the levels of inflation too which follows from it, as prices become inflated to adjust to the balance. That is, too much money in the system is chasing too few goods and services that could be delivered. Strangely, it has become the norm by economists to use other factors in order to control inflation.

We get side tracked by the wage-inflation, price-inflation spiral, both of which began with the manipulation of the money supply in the first place! Then there is the case of the poor definitions of inflation / deflation. And, what is good inflation? And what is bad inflation? Some economists have this defined but the big elite fraternity do not welcome it as it would make things easier to understand and undermine their 110-years of rituals. The excessive money print leads, eventually, to bubbles in the markets, house prices, in credit levels, debt levels, product price rises, etc... These eventually burst, one after another.

Then there is too much reliance and encouragement by central banks on getting individuals and businesses into an extremely heavily indebted state. This happens regularly. You may not have thought about the VESTED INTEREST behind this. The bankers MAKE HUGE money from making loans of all sorts. Their basic bread and butter. They will therefore be inclined to push that agenda in any which way can can dream up. And central banks are privately owned by the big banks, or their owners.

Take another example, the lawyers, they keep the so called Legal system complicated in order to keep their services in huge demand and there are clauses or loop holes for the big corporations and the super wealthy to pay less taxes which the ordinary population cannot get away with legally. Another vested interest in operation!!

Now, for government, businesses and the wider society, they need to balance all this with their own major determinants to balance their books, with their own vested interest, if they to be really in-charge, and solvent. But this is where it is not really done, as the mess of running governments evidently shows and the mega influence on them from the big boys is massive.

The regular push for the state of heavily-indebted businesses and governments always leads to some external or internal company event or malpractice that brings ruin to the economic / financial system. The blame is put on some 'other' causes, often some external event which is the nth effect point that is now used as the immediate “cause” of the problem. Most MISS THE FACT that the PRIMARY CAUSE was set well before IN TIME that began the fire and is only now big, raging out of control and affecting the whole system. So it eventually led to next big current situation. Yet we humans, as shown by the PR passed forward by the vested interests and stated to the media and advisors, are that the current calamity was “caused” by reason w, or reasons x,y, and z. This is really by association of some tertiary cause(s) now in operation and visible. The primary one is not visible and hence it is not in focus, nor identified.

So in the daily churn of economic data and the resulting effects, the same sort of principle applies.

In the markets most of these effects are for a short time. But later when a recession takes place, other factors are said to be the cause of it, and more bla, bla, bla follows. The economists can't see the recession ahead of time, and can only fully define it once completed!!! You may have observed that the current chant has been that the 2022 recession is over by various authorities and the media. That the FED “averted it” after 5 major banks failed in a huge calamity in the USA. THIS IS AN INDICATOR for the future. The calm in the eye of the huge storm. The manipulations and the juggling that takes place in the background is rarely in big media print for all to know, but insiders do know. And do NOT forget the huge Swiss banking mess regards to Credit Suisse collapse. ANOTHER INDICATOR. This is equivalent to the Leman Brothers collapse that “apparently caused” a past recession!!!! It collapsed and was bought out dirt cheap by one of the giant US banks. That means one less competition for them in the future and they got the business so cheaply, so in effect they made huge money out of it!!!! WHAT A SYSTEM! Same as what has happened of late!

Questions:

How come governments cannot make money from banks and businesses they saved in the past by charging them the full cost of their service?

Do governments work for the people they are supposed to represent and who pay the taxes to support it?

Or do they work for banks and private businesses who milk the system and make the taxpayers pay for it all, when they mess up?

In a worrying scenario of a collapsing economic and or, the banking system, the government fears loss of jobs! Fear IS deliberately spread in the media!!! Governments then panic!!!! They are criticised badly, and totally incorrectly!!!!!!! All the blame goes on them! The businesses pressure government for bail-outs, toxic debts take over by government via the central bank, or other measures to keep them going. Otherwise the financial system will collapse, end-of-the-world scenario, and chaos rules, is the new fear-tool used on them and the rest of society!!!

Hey, WHO CAUSED IT IN THE FIRST PLACE? – Central banks and the financial system.

And WHO FAILED TO PREVENT IT IN THE FIRST PLACE? – Central banks and the financial system.

The central banks are the responsible party, they are in charge. It has happened too many times in history too!!!! NO CHANGE IN HOW THEY OPERATE and the methods used are in effect the same, just the lingo and the infrastructure they use have changed.

The capitalists now seek socialism by 'begging for rescue' and getting the public to end up paying for it all. Note: the public never got any profits from them in the past nor made any money from giving a 'rescue action' done by the government. Most people take it for granted that businesses can have tax write-offs, even subsides (free usually), toxic debts taken from them and put onto government's books via the central bank's manipulation of their own accounting system, which is similar to the old Soviet Union's method (that collapsed) and the E.U.'s accounting system.

Ofcourse, the public outcry will naturally be high. So they have a way to placate this rage from them.

Get BIG government plans into action, once again. Big public handouts via various schemes is implemented by politicians so the demand for change of the system is thwarted, and the sacking of those responsible!

And where did all the money come from to do all this? Governments had to borrow more! Didn't you realise that? Pretty smart scheme for the banking fraternity as they profit from all this!

 

If INSTEAD the banks were asked TO GIVE free bailouts in a situation, OR, to write off all debts owed by government then that would NEVER BE. “Are you mad, we don't give away our hard earned money to anyone for nothing”, “we need to survive” would be their chants. “You have to take responsibility for your own actions” or else give your “crown jewels and other concessions” to help you out, would be their outcry privately too. If any business goes burst and owes money to the banks then the banks make sure they get as much as possible back, backed by law.

So, you and I cannot get something for nothing. However, the fraternity wants all forms of subsides for nothing and let others to pay for it. That is, penalise the good and those who did not cause the problems but reward the guilty, to keep the destructive practices and failed businesses in existence. Somehow things will turn out ok!!! But, has it ever? No, not really.

Everyone forgets that the banks lend to businesses after making research on them and then took a calculated risk to lend. So, its their own responsibility if that company goes burst. Something going wrong with businesses is the financial-banking system's responsibility as they are in charge and monitor them from the loans given to them. The banking model is all wrong, since it gets everyone into massive financial trouble, regularly.

It is not the taxpayer or the government's responsibility directly or indirectly as people are made to assume, or as the opposing political parties criticise the ruling government for it, in order to justify that they will “solve” it far better, if elected. No political party ever has. Hell, none of them saw it coming too, nor the problems that were infesting in the pipeline. Their advisors and sources failed to know that too or, didn't tell them!! So really, all politicians and mandarins are in the same confused ship and they rely on the problem causers who are in the control tower at the top!

Where big government have ever interfered with “helping” private industries (includes banks or the existing banking system), they have never, never really works out. That is, IT NEVER SOLVED THE PROBLEMS PERMENANTLY and we have ended up repeating SIMILAR ruins to occur again, and again, with the similar symptoms being present. This has always brought more ruin to the taxpayers who IS MADE TO PAY FOR PRIVATE BUSINESSES UNETHICAL PRACTICES INSTEAD. The taxpayers are the ones to suffer financial and social destruction as a result. Governments (all politicians and the mandarins) do not understand this well, as they are sold theories and practices of the professionals who follow the dictates of the Financial-Economic-Political Tripartite Kingship rulers. Future financial-banking failures will be funded by depositors of banks as governments may not be able to, that has been put into law quietly sometime ago in western counties and elsewhere. So, all plans have been worked out ahead, for times when the system is in ruins.

 

Now there is also the natural factor. That all industry sectors run differently, and on different cycles. The overall Business cycle is the mean. But this information maybe used far less then it should be. It also tells us why the economy collapses later in the recession cycle. The Markets cycle and the economic cycles are separate but do have common points of agreements.

We also have the natural key determinant known as the business Fundamentals. This Micro economics plays the most important part in the health of any company. Yet governments, Financiers and Economists focus solely on the Interest rates and Inflation data to “run” the public economy on, practically!!!! Warren Buffet of Berkshire Hathaway Fund, is one ,of many, who fully understands this and whole heartedly uses business fundamentals in investments, for the long term. Yet the WAY OF THE MARKETS has its own dynamics and behaviour. So those who invest in it have to take other factors into account too!

Businesses are really not viable if they are not able to sell their goods or services in enough quantities to make some annual profit for expansion. Organic growth is the primary test of the ability of any management to grow a business. It is a misnomer that interest rates are the biggest factor that govern businesses. Rates become important to indebted companies. It is far more important in how businesses manage their business, the demand for their company's products, and the ability to predict costs for the future from such things as rates, inflation levels and raw materials. Rates are far more important in the Macro economic environment and for depositors.

 

Look at Japan, as a case study. It employed the same formula of central banks every where and it hyper-inflated its economy and markets for a long time. Since the Highest ever peak in its market, it has not come back and gone any higher after 30-odd-years later! That is the sad by-product of the fraternity's monetary policy model. Its economy was ONLY saved by it huge exports success and its peoples huge savings rate at that time. Today it still battles the vagaries of the financial manipulation via the “system”. Its citizens are much poorer and work hard to survive.

So next: Should YOU invest in unprofitable companies or profitable ones?

INVESTMENTS

Depositors are the LIFE BLOOD of banks and businesses. They deposit their well earned and already taxed money into banks who then use it to invest in businesses, or in the markets. Depositors also invest directly into companies, hopefully into profitable businesses! As with the recent huge rise in interest rates, Depositors should have gotten their fair share from the banks. But have they? No. The bankers also have plans to consider negative interest rates, i.e. to charge them money for lending to the banks, in effect a tax levy to save themselves from their own blunders. Negative rates has already happened in some countries and with bond holders too, who agree to it by thinking their money is safer in those bonds (losing money)!!! Great scheme by the bankers. Hell for the rest.

This cuts the survival of the whole system, slowly, AS THE FUNDAMENTAL FOUNDATION OF THE WHOLE SYSTEM DEPENDS ON THE HEALTH OF DEPOSITORS, the BASIC BUILDING BLOCK. Governments fail to understand this for generations and merely follow the dictates of the ruling top professionals assumptions or, misguided beliefs. Maybe many politicians and mandarins desire jobs from these industries once they leave politics, so it is best for them to keep in their good books.

Other ways it cuts financial survival of the system, is in the use of creative accounting methods, frauds and other unethical practices by businesses. Decade after decades these have been known about but not really been addressed and permanently penalised in law from happening again due to the Lobby system used by big businesses and bankers.

For example, take the Special Purpose Acquisition Company (SPAC) – is a company without commercial operations and is formed strictly to raise capital through an initial public offering (IPO), for the purpose of acquiring or merging with an existing company, within 2-years. They are “blank check companies” as there is no knowing what the investors money will really be used for. It is a dark shell set-up operation.

Yet they are listed on the major stock exchanges as if they are running businesses!!! Regulators lack disclose from SPACs, and you have total risk of possible fraudulent or “overhyped investment”. And this does happen. Anyone can set it up, run it for two years, earn and pocket the interest on IPO investment and from the profits from share rise, then close the business. It is a sham in reality but the greed of the industry will allow anything in “good times”. In 2022 alone tens of billions ($) have been terminated!! So those who bought shares have lost a lot, for “investing” blindly. They were sold by advertising hype and all in the transaction routes got their cut (called incentives). The public eventually lost out.

Second example, the Chinese property loans industries that has been in a huge fiasco for the last few years. Nobody is out of the woods nor is it going to be solved any time soon. It matters not how far out of the news it is now or where the focus is currently. Another indicator of things brewing up. It will have a knock-on effects to the western banks. Greed got the western banks to get involved directly or indirectly, and they paid little attention to the real key metrics to not get out early on.

General note: Super greed can over comes all rational senses and puts stops from quitting ahead.

So, YOU may ask: How then are all these so called Top professionals, professionals? Something to think about!
 

As I have said in the past, Life is a SYMBOTIC RELATIONSHIP. Natural laws (whether we know them or not) are the ruling determinants. We create a dwindling spiral of economic and financial problems by abuse, and by NOT CHANGING the failed system that CAUSES the financial and social destruction of the population. The rich are cushioned from it and so do NOT see nor realise the deeper consequences down the road, even for them.

 

Every past civilisations or Empires have ALL COME AND GONE. They could NOT last. This roller coaster is seen in various aspects of life, as well as the booms and busts we experience in economics and finance.

Each had the same symptoms after their peak. Each had started, usually, with good intent and a good ethical purpose but later on they all slowly became corrupted by the power hungry and corrupt money motivated ruling people. The historical kingship dynasty rule has almost died out in the modern world but in its place has come the Elite-ruling kingship (e,g, ruling political dynasties, dictatorships, One World ruling Elites, etc...). That means any group, society, financial system, political system, etc... that allows its top corrupt members to get away with it, whether by legal manipulations, or twisting of arms, or turning a blind eye to such practices, using unworkable theories and models, and so on, will end up in this dwindling spiral. All end up suffering the consequences. That is, the rulers cut their own very long term survival which they assumed was infallible or, they thought their own personal greed and schemes could get away with it all.

Another example, wars and take over of countries may appear to “work” for a while. Contagion of aberration forces other countries to react back. Just look around the world of the recent wars we have been through and the effects and the counter reactions we suffer. Only those who called the war covertly or overtly may “benefit” for a while, e.g. they got rid of a leader who did not go along with them any more (Gulf war).

 

The biggest irony is that these elites could have used smarter ways to make a real good system for all where they benefit, and the population too. A win-win situation. This would keep the natural laws in place (not violated), and build the base foundation from strength to strength. This, I believe is very possible but it requires a big change and evolution from the current system in operation now. We need an Awakening!


 

Peace and building good working relationships by trust, agreements, and keeping one's word have apparently gone out of practice in this era of great anger and greed of the elites in various countries. Some build their war machines (e.g. China) to expand into more take over of countries by stealth or by other means. Yet each such country failed to see the vast wasted resources and astronomical costs that cripple them slowly over time, even if they were to come to “dominate”. They even fail to see the approaching mega environmental problems facing the whole planet and so do not focus and put enough resources into handling that. Our “wars” should be against the environmental elements that act to destroy life by our abuse of our resources and fossil energies. And build on future planets near by. Technologies are coming into existence to make it happen.

Another major incorrect premise is that markets are run on the so called Efficient Market Theory as has been assumed and disseminated broadly. It states that share prices reflect all information and consistent fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices. They also assume you cannot time investing in markets and have to use riskier investments to make money. It cannot be true since it does not stop professionals from making money by investing at the right times, or in good businesses. They have also missed out the human psychology which effects the market patterns too!!!
 

There is no “ideal” way. There are many, many factors that could and do come into play. So you have to understand the way the markets really operate currently and the market behaviour as is borne out in patterns and cycles. The financial markets know all the methods used by all players and use some of them themselves. They keep an eye on all the information in tip sheets and investment services for investors to use it to their advantage against these investors. So the game is set and they have set the rules!
 

Perhaps there will be some public people who are naïve enough to think that bankers just lend money and invest wisely like Warren Buffet to make money, and play no dirty tricks!!! Real life is very different. And the banks do use money to make money out of others who are betting or investing in the market. You are in a shark infested world of investments where the professionals have far more relevant and accurate up to the minute data and an array of market Intelligence then the Pension funds and the public investors ever will. They do not exist to do you a favour, unless you are rich and let them invest for you, for a hansom fee, ofcourse.

This is then my viewpoints on how it is, how the markets are affected and operate.

The truth is out there! Even on YouTube, if you know where to look and have time to check out who to really follow – e.g. Jim Richards with his brilliant know-how of the world of economics / finance and the banking connections. Or Harry Dent, who worked out how the economy works on demographics but remains unacknowledged by the bankers / Economists (but some of them do use it privately). Or, even Deflation.com who understand economics very well too. There are many others out there who do too, e.g. “The-Creature-from-Jekyll-Island”, by G. Edward-Griffin.

Have a good day!!!

Have a good Awakening too!!!


 

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