The economy is on the rise. No, it’s sinking. There are very good indicators. No, all the signals are catastrophic.
We’ve seen pundits on television hawking their version of the near future. Many of them represent organizations who have political and financial agendas.
For example, Globalist forces and their mouthpieces would have you believe that laying tariffs on imports will sink the stock market.
However, since the stock market is a rigged game for insiders, here is a proper translation of the above paragraph: “If tariffs are laid on, Globalist insiders will MAKE the stock market sink, and characterize that as a natural consequence of the new tariffs.”
In turn, then, a diving stock market will be PROMOTED (by the Globalist press) as a sign that the overall economy is in big trouble.
Trump surrounded himself with Goldman Sachs people because they could give him a rising stock market.
This is not an ironclad agreement. If Goldman decides Trump’s policies are wandering off-track, they can bail on him and send the stock market down.
This is how the economic game is played.
The return of some corporations from overseas, to set up factories in the US again? Fine. No problem. But Trump’s statement, several days ago, that he would lay a 25% tariff on imported steel and a 10% tariff on aluminum—that’s an anti-Globalist earthquake.
Globalist leaders in foreign countries are lining up to say they’ll retaliate. They’ll lay tariffs on imports from America. Bourbon, jeans, motorcycles, orange juice, rice. But is this the end of the world? No. It should be the first step in sorting out unfair and ruinous trade policies that have eaten into the US economy for decades.
The stock market is hyped as the prime indicator that passes judgment on what Trump (or any president) is doing. If it falls precipitously, that means he’s wrong and very badly wrong.
But in truth, the stock market is a separate giant Vegas casino. Investment funds’ algorithms move billions in and out of trades, minute by minute. Individual speculators bet on rises and falls. Claiming the condition of the entire US economy is reflected in the stock market is like saying the Powerball lottery reveals the financial health or sickness of the US automobile industry.
The stock market and the precious Dow are set up as a very profitable playground for insiders. That’s the beginning and the end of that story.
Imagine we have a company, X, which is listed on the New York Stock Exchange. Its price is very low, and has been low for quite some time. It crawls along, doing nothing.
Quietly, insiders are buying up the stock. When they’re ready, they take the price up. Then the rubes, seeing the rise, buy the stock, too. THEN there is a shakeout: the insiders momentarily take the stock price down. The rubes, frightened, sell—and the insiders scoop up those shares. Now they’re really ready. They take the stock for a long ride. Up. They make a bundle. When they’ve had enough, they put out news that company X’s stock is a terrific buy. The rubes buy in—but this the top. The insiders unload their shares on the rubes and take stock price down. The insiders also sell short (bet against a rise) and profit on the way down. It’s a piece a cake, a very handsome piece of cake.
This is the game. It really has nothing at all to do with the condition of the economy.
But—there is another game. The insiders, through their minions in the press, continue to promote the illusion that the overall condition of the stock market reveals “how the economy is doing.”
Therefore, by being able to control the stock market, the insiders can control THE PERCEPTION of how the economy is doing.
If they decide it’s time to give the impression the economy is in deep trouble—and therefore the economic policies of a president sitting in the White House are disastrous for the country—they take the stock market down.
Every president faces this situation. He’s at the mercy of forces beyond his control—unless he tries to expose the game and show the American people what’s really going on.
But most presidents are unaware of the overall op. If they do know the score, they’re reluctant to blow the whistle on it, in part because they believe the public is too ignorant to grasp the mechanics of how the op works. And the howling press, firmly in the pocket of the insiders, would call the president a conspiracy nutcase in a hundred different ways, day and night, 24/7.
The stock market is a casino. The economy is the economy. They are two separate realities.
But shills and operatives and propagandists and sold-out economists and idiot financial reporters forever connect the two realities and make it seem as if they are entangled in an intimate cause-and-effect relationship.
Many people believe the sale of stock benefits a company. This is true when a privately held company goes public by issuing stock in what’s called an initial public offering (IPO). During the limited time period of the IPO, money from the sale of stock does go back to the company issuing it, and that money can used for company growth. Yes.
Later, the company can issue more stock in what’s called a follow-on offering, and then, too, money from the sale of the stock goes back to the company.
But…by far the greatest amount of activity in the stock market is the simple buying and selling of shares…and none of the ensuing profits and losses accrue to the companies whose shares are being traded. It’s a pure casino operation.
***This casino operation does nothing to benefit the companies in the way of adding cash to their assets.
Consider what can happen to a large retirement pension fund. The fund takes in money from employees. It will later pay back that money, plus “add-ons.” How? The pension fund invests a great deal of the money it is holding in the stock market. It buys a variety of stocks and sells them and buys them and sells them. So if those stocks plummet and stay down, and the pension fund isn’t willing to ride out the storm in hopes that the fall will eventually turn into a rise, the pension fund will sell off those stocks and end up losing much money. It gambled in the casino with other people’s money, and it lost.
But even here, the reason for the loss was an incorrect perception/prediction about what was going to happen in the casino. It wasn’t about actualities of the economy.
Getting the picture?
Top to bottom.
This article was reprinted with permission from jonrappoport.wordpress.com