Investing and Market Manipulation
Today I’m going to share a few thoughts about the market manipulation which is pervasive in the United States and just about everywhere else too. These thoughts are not original with me—most of you already know what I’m going to talk about, but it’s good for the choir members to preach to each other once in awhile as a reminder.
The stock market remains up and the precious metals down despite fundamentals which should produce the opposite. The purpose of the manipulation of course is theft—theft of trillions of dollars by the criminal syndicate running the globe. A secondary reason for the manipulation may be to keep the system from collapsing a while longer, but if so, it is only for the purpose of stealing any remaining wealth from law-abiding citizens in order to drive them into helpless poverty and render them incapable of resisting the criminal dictatorship.
Financial analysts are scratching their heads, wondering where the manipulators come up with enough physical gold and silver to keep the paper prices of the precious metals suppressed. The answer, at least in regard to gold is, as a swiss gold refiner has pointed out, that the price can be suppressed forever as long as no one (or at least few people) actually takes delivery. The manipulators can print up (counterfeit) paper certificates and re-hypothecate gold to infinity. Silver may be more of a challenge to the manipulators because of its industrial use but even so, they can keep that price suppressed forever too it they wish—providing they have the political power to do so. How so? In the Soviet dictatorship they could set the price of anything anywhere they pleased, and if someone asked a higher price than the official price, that someone would be shot. There might not be any of the product to be had—but nonetheless its price would be whatever the dictatorship decreed.
When financial analysts say that a manipulation cannot continue forever, they mean providing there is some semblance of a free market left. Do we have any semblance of a free market left? Probably not. But for the sake of argument let’s say that we do. Even so, they can manipulate the price for at least as long as you live; after that, whether or not they are unable to manipulate the price becomes highly academic to you. They can manipulate the paper price up and down, sell the physical when the price is high and buy when it is low, with funds made by cheating in the paper market (or if that doesn’t work out for them they can print the money out of thin air). They can manipulate the price up and down ad infinitum, selling some of their physical at the top to get the ball rolling down hill, and make profits on both the physical and paper side coming and going. They have access to what the outsiders are doing, know where their stop orders are, and can change the margin requirements to force selling, etc. They can force miners to sell to them at a low price until the miners are bankrupt and then buy the mines for pennies on the dollar. And there may be more physical available than we think because ninety percent of the population can’t afford to buy any even if they want to and in fact may have to sell what little they have to buy food. On top of that, even though the Chinese are accumulating massive amounts of physical, they are probably in league with the New York and City of London club. They can manipulate if for at least as long as you live and certainly longer than you can afford to hold on to a losing investment. There is no legitimate reason for short selling: not in commodities and not in stocks. The only reason short selling exists is for manipulation. In an honest economy (not based on debt and credit created out of thin air) prices would be relatively stable and farmers and miners would have no need to hedge their products. Nor is there any reason to allow stocks to be shorted. If you have a stock you don’t like any more, sell it. If you don’t have it, don’t buy it. There’s only one way to stop the manipulation—you get rid of the manipulators. You get them out of your country. If you allow members of a criminal syndicate to be in your country, they will take over.
What about Wall Street? Why do we need Wall Street? We don’t. An honest company could have its secretary issue shares directly to the public (some do that now). Wall Street—the middleman—exists for one reason: manipulation. That’s not to say your local broker is dishonest or not needed; but if you don’t want to manage your money then all he needs to do is pick stocks for you and purchase them directly from the company on your behalf as a money manager—not a broker. Brokers and brokerage fees are not needed.
In an honest economy, investing wouldn’t be that hard. Read Harry Browne and Peter Lynch. If you would do a little homework, use some common sense, and diversify among some good stocks with a dividend reinvestment program, you would more than likely wind up with a very comfortable retirement. We would need to get rid of the taxes on capital gains and dividends for this to work out optimally (to my knowledge, at this time a Roth IRA does avoid taxes on capital gains and dividends but is limited as to how much you can place in it annually).
Are we ever going to be completely rid of corruption? No, not even if we get rid of the organized crime syndicate running the country. There would still be some unorganized crime (at least that is manageable) because we don’t reach sinless perfection this side of eternity. That’s why Jesus said, “Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal.” Nevertheless, we need to work toward the Kingdom of God and His righteousness here in time as well as for eternity and in every sphere of life, including finance and investing. If we don’t get rid of the Federal Reserve, its Wall Street subsidiaries, and the rest of the criminal syndicate, it will be difficult to impossible for most honest citizens to have much investing success. In addition to their financial investments, Christians need to invest some time and resources in placing Christian men and women in every civil office as we work to re-Christianize the country. We need to seek first the Kingdom of God and His Righteousness—first, for love of God and neighbor, and secondly, because doing so will lay up treasures in heaven for us, which will pay eternal dividends. And there is a nice by-product if we do that—it will make it closer to heaven here on earth.
Donald Krumm