Saturday, November 6, 2010

The Higher it goes the stronger it will FALL

The Illusion of Wealth Continues in America

For all of those who denied the existence of a Plunge Protection Team (PPT) creating the Illusion of Wealth in WALL ST.

 It's here. It's real. And it's happening today!

Yes sir, who needs the so-called smoke-filled back rooms of PPT deals when you have the Federal Reserve Board? Who needs to continue the so-called myth of the PPT when the past TWO Chairmen of the Fed openly admit that they are rigging the so-called "free markets" of equities, bonds, and commodities.

Wikipedia says of the PPT..."Plunge Protection Team" was originally the headline for an article in The Washington Post on February 23, 1997, and has since become a colloquial term used by some mainstream publications to refer to the Working Group. Initially, the term was used to express the opinion that the Working Group was being used to prop up the markets during downturns.

Of course, all "right thinking" Americans thought that the very idea of a PPT rigging the market was flat-out unamerican and would therefore never...ever..happen. Ever! Yeah, right!

Let's cut the bullshit shall we? The Fed is rigging the market today, BIG TIME !; there is no doubt about it. There is no need for a PPT run by a president's council when the bankster's mega-banker...the Federal the real version of the PPT. They surely call it another name, but who cares; let's just call it Quantitative Easing for now.

The prior Chairman, The Greenspan-Put, confirmed in late July on Meet the Press what everyone knows: namely that the primary goal of the Fed is to encourage higher stock prices: "If the stock market continues higher it will do more to stimulate the economy than any other measure we have discussed here."

Riiiight... ! the Fed is agnostic on whether the market is affected by its measures...riiiight !. Is that still true even when the CHAIRMAN says that the best thing it can do is stimulate the economy via the STOCK MARKET?

But it doesn't end there. Helicopter-Benron-Backstop Bernanke agrees with The Greenspan-Put: the only thing that matters are the equity markets. These Monetary Duo do not give a damn about your inflation, your deflation, your unemployment ( same as Wall St. ); they only care whether the banksters are happy or not.

That statement above by EZ-Al was made three months ago; however, about three days ago the new Chairman (Bernanke) said - "And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion."

The Fed’s move to a second round of quantitative easing may have boosted the market over the past two days, but it also has its critics, notably on the international stage with policy makers in emerging markets sharply criticizing the move as it could spark a wave of protectionisms and currency tensions. Germany’s Chancellor Angela Merkel has also voiced concerns.

Therefore, Logic and Common Sense ( Let's cut the BULLSHIT ) :

* The stock market is not rising because of good fundamentals. THE STOCK MARKET IS RISING BECAUSE OF THE FOMC.

* The commodity markets are not exploding because of a sudden increase in demand by itself. THE COMMODITY MARKETS ARE RISING ACROSS THE GLOBE THANKS TO THE FOMC.

* The US dollar is not collapsing by itself. THE US CURRENCY IS COLLAPSING BECAUSE OF THE FOMC.

* Gold and Silver are not skyrocketing for no reason. GOLD & SILVER ARE RISING BECAUSE OF THE OUTRIGHT MANIPULATION BY THE FOMC.

* The ENTIRE GLOBE is engaged in active currency debasement for one reason only: THE UNITED STATES FEDERAL RESERVE BANK

Please read :

It is stunning that so many people (at all levels) in this country believe that high consumption levels are paramount to a sustainable economy. The problem with this system is that even now when we are in a weak economy, which was essentially caused by our over-consumption of foreign goods and a lack of domestic investment (ie savings, production, etc.), so many are advocating policies that would only revert the country back to the old system.

Without production and investment an economy will be unable to sustain itself. In the United States, consumption accounts for 70 percent of GDP. Of this 70 percent, over half is spent on services. The U.S. spends 22 percent of consumption on real estate (a dead market) and health care (a high-cost market with low direct economic benefit). Approximately Two thirds of federal expenditures (8 percent of GDP) is spent on the defense budget; total government expenditures make up 20 percent of GDP, with state and local governments spending 12 percent. Bringing up the rear at 16 percent of GDP is private savings and investment. Just to get the ball rolling, let’s throw in the U.S. trade deficit, which reached $816 billion in 2008 (it decreased in 2009 because of the global recession) and is on pace to hit similar levels in 2010.

These numbers paint a bleak picture. As members in a service-based economy the majority of Americans are unable to produce real wealth. American jobs essentially consist of selling and transitioning the sale of foreign goods. The same companies that pay our wages are generating the profits from our consumption. Generally, this is a perfectly acceptable system and exactly the kind of system that sparked such huge growth in America’s golden era. However, the companies paying our wages now are for the most part foreign-owned or internationally financed. Essentially, what Americans are doing is passing around money that is financed and controlled by foreigners, and then using that money to buy more foreign goods. What little wealth that is created from a service economy is sent right back into the hands of foreigners.