Never Play Another Man’s Game

If asked about ‘the rules’ of investing, Wall Street will offer endless variations, but never reveal the big one. Because to do this would point out to the legions hapless rubes (average investors) invested in the securities markets these days, that although stocks and bonds have done fabulously over the past six-years coming out of the 2008 financial crisis, still, for those who actually participated this must be looked at as good fortune more than anything else, especially considering you are ‘playing another man’s game’. Because stocks and bonds are not going up for the right reasons, they are rising due to a growing list of financial engineering gimmicks that do nothing but hollow out and destabilize these markets, with parasitic high frequency trading (HFT) and illicit corporate buybacks topping the roster, bringing the bulk of benefit to a small group of oligarchs at the very top of the food chain. Sure, the spoils are spread around to the dogs to keep them complicit in the game, and in a larger sense it’s still Wall Street against (fleecing) Main Street, but make no mistake about it, the real money is going to the top 1% disproportionately, because they set the rules of the game.
That’s right, the rules are shaped by these people because they buy political influence in the positive feedback loop that is the relationship between Wall Street and the Beltway, the largest collective fraud ring in man’s history. And that’s why the average investor should not be playing this game, because you take all the risk, and will likely suffer losses (again) in the next collapse because it has been engineered to occur very quickly. This is when the sharks come in and make lucrative proprietary deals off the market that guarantee themselves windfall profits down the road at the expense of taxpayers (again), who again, foot the bill. Why don’t you hear anything about this kind of thing in the news? Answer: Because like their political dogs, oligarchs the magnitude of Buffett own the mainstream media – who will not report contrary to his interests. (i.e. because they want the advertising revenue.) What makes it easy is the American public is fixated on the latest Ellen show (or some other distraction), so high level fraud like this goes on everyday because the average village idiot is brain-dead. They will wake up one day when they are not eating – it’s amazing how hunger will wake up even the dullest idiot – however this kind of thing can be expected to continue until truly dire circumstances befall the American public – and they abandon the distraction game.
This is when the ‘powers that be’ will play the ‘war card’, to both step up the distraction game and justify the austerity that will be required to ‘aid the effort’, but will in fact be a result of the continued rape of dopey public by the oligarchs. This is why Russia is beefing up their presence (nuclear) in the Ukraine, because they know the crazies in Washington are getting ready to escalate (nuclear), which will kick off in earnest when markets / economics allow for it. (i.e. when people will not complain because they are worried about getting more money.) As denoted last week in our commentary on what to expect from the Fed, with the exception of the fraudulent Employment Report, most of the economic data coming out in the States (and globally) is now accelerating downward, and in many instances is in contraction, which is getting increasingly difficult to hide. A carefully couched official Policy Statement from the Fed is designed to obfuscate this fact, however it’s important to realize this is happening right now, where it could be argued that from macro-monetary perspective, the Fed is already behind the curve, but nobody wants to admit it because this would be tantamount to admitting a global recession (depression) exists.

This post was published at GoldSeek on 6 April 2015.