How long can THE FRAUDULENT VALUATION OF EQUITIES
CONTINUE?
After the
extraordinary sudden loss in equity values, the last
two days brought gains back to the stock indices (albeit with a late day tumble
today).
See Chart:
What
happened? Did the market sneeze, cough, or was something misread and today
perceived in a different light?
In my opinion this is what happened:
The Plunge Protection Team, as they have done on
previous equity market drops, or the Federal Reserve operating for the Working
Group on Financial Markets, sent a purchase order for S&P futures to the
trading floor. The hedge funds, seeing the incoming bid, front-ran the bid by
stepping in and buying S&P futures. This pushed the
market back up, ended the correction, and prevented financial panic.
See chart
in the source above
The Plunge Protection Team was created in 1987, approaching the end of
the Reagan administration, in order to prevent a market correction from costing
George H. W. Bush the presidential election as Reagan’s successor. The Republican
Establishment was desperate to reestablish its control over the party. The
Republican Establishment, convinced by Wall Street that the Reagan tax cut
would result in high inflation, found themselves instead confronted with a long
economic expansion. In those days that meant that the expansion could be
nearing its end, and a stock market correction could deny the presidency to
George H.W. Bush.
To prevent any such correction, the US
Treasury and Federal Reserve created a “working group” to intervene in the
stock market in order to support values. Whenever the market starts to
drop, the team purchases S&P futures which halts the market decline.
We have witnessed this on several occasions. And, most likely, again
this week.
Pundits who speak about “market forces” are speaking about something
that doesn’t exist. “Market forces” are the interventions that support existing
values with money infusions.
How long can the fraudulent valuation of equities
continue?
My sometimes coauthor Dave Kranzler and I think it can continue until
the dollar as reserve currency comes under attack. Neither of us believed that the fraud could be perpetrated
this long. The two other world powers, Russia and China, are
moving away from use of the US dollar, but the consequence for the dollar could
still be in the future. In the meantime, liquidity supplied by central banks
and the interventions of the Plunge Protection Team could send equity prices
higher.
…
Source: https://www.zerohedge.com/news/2018-02-07/paul-craig-roberts-exposes-plunge-protection-teams-fraud
----
----
No hay comentarios:
Publicar un comentario