Read the Thursday Afternoon Wrap-Up for 7/25/2013 and the Friday Morning Commentary for 7/26/2013
Yes, I know; the title is decidedly not self-explanatory. Then again, writing a newsletter, half the fun is keeping readers – and often, myself – in suspense. Often, I start RANT topics with but a concept; which morphs into an article once the neutral link between my brain and fingers gets going. Stephen King himself said,” He had ‘not a clue’ how a story would proceed until he started writing;” so I’ll take it as the supreme compliment that often, I have no idea either…
“THE LOST ART OF READING”
As to this particular concept, it relates to something I have picked up from observing financial markets tick for tick for the past 24 years; or as I deem them now, “markets” – as they have become 100% MANIPULATED. That “something” is best described as a greed/fear factor that ebbs and flows throughout the day. In other words, rising stocks yield investor confidence and calm; and falling prices, uncertainty and fear. And as you might expect, the more extreme the directional moves, the more extreme the emotions.
As I have written of for years – and essentially PROVEN in RANTS like “DOW JONES PROPAGANDA AVERAGE”; the markets are not only devoid of free trading, but the very volatility that has historically defined speculative investments…
Retail – and “HEDGE BOMB” market participation is down dramatically from the last market peak in 2000 – and particularly since 2008’s Global Meltdown I. However, there are still thousands – if not millions - of global investors; many of whom have MAJOR equity and fixed income positions. Thus, the emotions they experience are directly related to the aforementioned directional movements and volatility.
In my 24 years of experience, I’ve learned to feel market fear and greed; and as is the case across ALL aspects of life, the “fear factor” is far more powerful than its bullish counterpart. That is, when markets are falling – particularly when doing so rapidly – a pall is cast over participants that permeate all aspects of their being. And given that humans are emotional beings – given to “extrapolating” fears to infinity – prolonged equity declines cause a (typically) rational fear that the “economy is imploding”; and will only get worse.
In “normal” economic scenarios – and freely-traded markets – such fears are healthy; and typically overblown. However, in today’s “smoke and mirrors” economy; in which the only glue “holding it together” is MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA, such fears are not only rational, but CORRECT. And thus, TPTB simply cannot allow them to percolate for even a minute; lest they spontaneously morph into perception-killing CRASHES. This is why the Dow is essentially NEVER allowed to fall more than 1% per day; and conversely, why gold is essentially NEVER allowed to rise more than 1% – among other prevailing PPT, Fed, ESF, and Cartel “rules.”
To counter such fears, TPTB have inadvertently “conditioned” investors – and other market observers – that “normal” equity and fixed income market conditions involve essentially ZERO volatility and losses; unless, of course, you have the nerve to invest in Precious Metals and – god forbid – “PAPER PM Investments” like mining shares and bullion ETFs…
“IN REAL MARKETS, GOLD AND SILVER SHOULD BE THE LEAST VOLATILE ASSETS”
Such conditions – of course – are 100% contrary to the REALITY of centuries of market results. However, as they say, “desperate times require desperate measures”; and NEVER have I seen such desperate times – ormeasures.
As the largest, most destructive Ponzi scheme in HISTORY unravels – i.e., the GLOBAL FIAT CURRENCY REGIME –TPTB will likely take their “anti-reality crusade” to new, “UNPRECEDENTED” levels. In other words, they will try to control market levels and volatility as never before; by preventing the aforementioned “negative market conditioning” from fomenting. Which, of course, can ONLY be achieved – until it no longer works – via increased MONEY PRINTING and MARKET MANIPULATION; in other words, “QE to Infinity.”
