‘Stock Market?’ What Stock ‘Market?’

‘There are no markets, only interventions’ – Chris Powell, Treasurer and Director of GATA
To refer to the trading of stocks as a ‘market’ is not only an insult to any dictionary in the world that carries the definition of ‘market,’ but it’s an insult the to intelligence of anyone who understands what a market is and the role that a market plays in a free economic system. By the way, without free markets you can’t have a free democratic political system.
The U. S. stock is rigged beyond definition. By this I mean that interference with the stock market by the Federal Reserve in conjunction with the U. S. Government via the Treasury’s Working Group on Financial Markets – collectively, the ‘Plunge Protection Team’ – via ‘quantitative easing’ and the Exchange Stabilization Fund has destroyed the natural price discovery mechanism that is the hallmark of a free market. Capitalism does not work without free markets.
Currently a geopolitically belligerent country is launching ICBM missiles over a G-7 country (Japan). In response to this belligerence, the even more geopolitically belligerent U. S. is testing nuclear bombs in Nevada. The world has not been closer to the use of nuclear weapons since Truman used them on Japan. The stock markets globally should be in free-fall if the price discovery mechanism was functioning properly.

This post was published at Investment Research Dynamics on August 29, 2017.