Fictitious Markets, False Economics, and the Reality of Fraud

Gary D. Barnett – Lew Rockwell.com Sept 10, 2019

In the past, there was a belief in the logic of the market, but no science of reasoning concerning the stock market was ever fully legitimate, as logic requires a market free from outside interference. Fast forward to today, and the manipulation is so extreme that little if any honesty is evident, and only fraud remains.

This stark reality should alarm investors, but many if not most, continue to rely on black magic economics as espoused by the mainstream media, those like Paul Krugman and his ilk, and a cadre of other Keynesian followers. As a rule, Keynesian or not, when it comes to market conditions and predictions, economists are always wrong. This is so due to the manipulative and bogus aspects of the Federal Reserve driven market, but even those who have genuine knowledge and understanding of free market economics, best described as Catallactics, cannot forecast with certainty. In a corrupt and fabricated market system such as exists today, it is impossible to predict outcomes with any accuracy because no pure market economy actually exists.

Currently, most open discussions about economics are convoluted and rely on a mix of politics, managed and controlled trade, trade wars, Fed policies, and minute-by-minute tweets from a narcissistic president consumed by his false prowess as manipulator-in-chief. The entirety of the American financial system is simply asinine at this stage of the game.

Economically speaking, this country’s financials are an unmitigated disaster, and the charge toward insolvency is quickening. Debt at every level is staggering, prices are out of control, and a triple bubble is obvious. Stocks and real estate prices are extreme, and the bond market is literally insane, with yields heading into negative territory worldwide. Nothing of this magnitude has been seen before, and a bubble economy of this degree when it explodes will be devastating beyond the imagination of most.

Many have claimed that the next bear market in stocks will be extreme, but I believe that to be an understatement. The notion that this is just another stock market downturn, with expectations that all will go back to normal after the correction, is very shortsighted. It is not just the stock market that will fall this time around, but also the majority of all the financial markets. This will lead to a global meltdown of epoch proportions, and financial chaos not seen in the past.

Never lose sight of the fact that this is a dilemma created, stoked, and perpetuated by the United States Federal Reserve System, and central banks around the world. Of course there are other factors, but the brunt of the problem lies in the nefarious monetary policies of the central banking system. The Federal Reserve Board web home page still espouses the claim that “the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system.” Dishonest hubris at this level is a testament to the fact that those elites controlling the monetary system have total faith in the blatant ignorance of the common man.

The entirety of the U.S. financial system is based on debt. This did not happen overnight, but it did happen in plain sight. The Fed’s expansion of the money supply went into permanent mode beginning in November 2008. That was when the first Quantitative Easing (QE) began, and the debt machine has been in high gear since that time. Interest rates have been held close to zero for the past decade, and now the call is to again lower rates even more. Effectively, saving has virtually ceased during this period, and there are no indications that this dynamic will change anytime soon.

Debt is at the highest level ever in history, and it is universal. Massively inflated debt is evident in households, corporations, and in government. Debt is now all consuming, and interest rates continue to remain very low with no end in sight. Debt continues to mount, as the cost to service that debt continues to increase. With debt expansion forever on the rise, inflation much higher than reported, the risk of higher interest rates in the future, and debt service becoming much more expensive every day, a cataclysmic risk of default seems imminent.

With continued monetary expansion and debt growth at current and most likely increased levels, this financial system will implode. How it has survived this long is certainly a mystery to me, but more expansion has brought more corrupt manipulation. It is difficult to imagine that this insanity can sustain much longer.

I am not suggesting that any single event, or even a one-time combination of events will instantly bring on Armageddon. This is not as likely here as in some other parts of the world, unless the events unfolding are of such an extreme nature, that nothing can stop the onslaught of catastrophe.

But with any all-consuming global financial collapse under these unique and unprecedented conditions, the market drop may be the least of our problems. What will happen if a majority face economic ruin? What will happen if food shortages are the norm? What will happen if the dollar loses most of its value, medical care is lacking, and a modern day depression consumes the country? What will happen in the inner cities and high population areas if left without the necessities to survive?

The likelihood of this scenario is extreme, but even the thought of these possible circumstances conjures up illusions of Martial Law, of police state brutality, of a complete loss of freedom, and of a frightened and out of control population. I have never been a doomsday proponent, but mass desperation leads to desperate measures, and in the case of any financial collapse today, those measures have the potential to become deadly.

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3 responses to “Fictitious Markets, False Economics, and the Reality of Fraud”

  1. Today is the 18th anniversary of 9112001 WTC bombing false flag. The great untold story about the Federal Reserve and central banking is that 911 was the inevitable result of creating the modern fractional reserve banking.

    Fraud and deceit is built into the “system”. The system is meant to get people into debt up to their ears without them even knowing why. Mike Maloney describes the system with his excellent video series:

    The Biggest Scam In The History Of Mankind – Hidden Secrets of Money Ep 4
    https://www.youtube.com/watch?v=iFDe5kUUyT0

    If you watch this video and wrap your mind around it, the system only works when debt goes up – but debt can only go up so far before everyone is tapped out, so recessions are baked into the cake.

    With each recession the Fed drops interest rates and adds liquidity until borrowing goes up again. They do this over and over until the recessions become so ominous they have to force debt into the system with permanent government borrowing.

    So this is where 911 comes in. The government must do a big false flag and launch a War of Terror to keep the game going. War without end. The military industrial warplex gets increased funding every year, the wars go on and on. We never leave Iraq or Afghanistan. We keep bombing for Israel.

    The great untold legacy of the Federal Reserve is destabilization of society and mis-allocation of resources as the bank-state keeps propping up the dead horse of exponential debt. Permanent illegal and immoral wars are the legacy of central banking.

    How long they can keep it propped up is unknown. This game has never been done before so how it turns out is not known. But they will try to keep control as long as they can, this meaning they will keep lying to us, keep placing more control on us, keep false flagging us, keep the wars going, and do whatever they need to do to keep their “system” going.

    What I am saying here is that the 2001 false flag was inevitable result when the Fed was created in 1913. The government will kill it’s own citizens to keep the game of borrowing going. How long this can go on seems to be tied to the direction of interest rates. Think about it, is it sane to lend money to these criminals at negative interest rates?

    Trump is now calling for interest rates to be lowered to zero, but what happens if the bond market decided it needed higher rates? If interest rates skyrocket like the 1970’s then what happens to the 245 trillion of outstanding debt? It becomes impossible.

  2. From Gary (the author):
    as logic requires a market free from outside interference.

    There is no such thing as a free market… markets are a man made creation. Libertarians are wedded to this idea of free markets, when in reality man is a rent-seeker, and will maneuver or manipulate to take a free ride.

    We see this behavior over and over, and the force that “stops” bad behavior is a regulating “legal” force.

    So, if the law is intervening in the market, is it still free?

    There are different kinds of market mechanisms, most especially elastic, inelastic and mixed.

    Inelastic type markets have no ready competition and can be used for monopoly and untoward usurious gains. For example, and port is a natural monopoly. If you are a ship captain, and you don’t like the fees, what are you going to do? Sail half way around the continent to find another port to unload?

    Regulation and intervention in inelastic sectors drives prices down. In Elastic sectors where there is natural competition, then prices find their own level.

    In other words, government and the law has a necessary role, but the “bad guys” continually demean and dissimulate what governments true role is. This is so they can take rents and unearned income.

    Gary is right in that bank credit as money is a perversion. Private corporations should not be issuing the money we use for their profit, especially at debt. The answer isn’t gold like Rockwell Lolbertarians maintain, but instead it is legal fiat – U.S. dollars issued by Treasury as the founders intended. It is in the first articles of the Constitution.

    Sorry, no such things as free markets, and government has a role. When government is in its role, prices are driven down. When government is outside of its role, prices go up.

  3. Surprise surprise, Lew Rockwell promotes Ju.daism.

    1. People make big mistake engaging in speculation. Speculation is a bet with God, a deadly sin in Islam. Are you ready to risk eternal damnation for few shekels?

    2. What is „Market”? Rockwell promotes Market as a god, but Market is simply a cabal of (Je.wish) oligarchs controlling the flow of commodities and goods. That is all. Less Market in the economy – the better for the People.

    3. ///The entirety of the U.S. financial system is based on debt.///
    This is truth. Money (not only) in the US is created as debt to Fed (public money) and to private Je.wish banking cartel (private money). This rule violates Constitution of the US.

    Article 1 (https://www.usconstitution.cc/)
    Section 8. [1] The Congress shall have Power To
    [5] To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;

    Money in the US should be created by Congress, not by private banks and Fed (Fed = cartel office of private banks). This money should be debt-free, like in the 3Reich or in Korea or the Soviet Union.

    Existing debt to Je.wish banking cartel should be released. Deuterenomy 15:

    1 At the end of every seven years thou shalt make a release.
    2 And this is the manner of the release: Every creditor that lendeth ought unto his neighbour shall release it; he shall not exact it of his neighbour, or of his brother; because it is called the LORD’s release.