Investor and financial types have a huge deficit of understanding regarding digital platforms and the control schemes that underpin them. Since the financial crash of 2008 the central banks have slowly transitioned the legacy markets to a full blown price control system. Digital control of markets is arguably the most relevant story in the financial space today. Yet it is entirely unspoken of in the main stream media, and nearly as much in the alternative media. I suspect that this is because digital control of markets is both highly fraudulent and highly technical, with the latter contributing to the former. The power of digital control is the primary, if not the only, reason for the nose bleed valuations of all assets traded on the legacy exchanges today. It is also the basis of central bank confidence, and the primary support for the greatest central bank financial experiment ever perpetrated on the population of the world.
DIGITAL CONTROL - First of all it needs to be clearly stated that the managers of the legacy Wall Street markets do not manipulate asset prices as many of the bearish prognosticators proclaim. Certainly these proclamations intend to insinuate price control, but this description is much too benign for the reality. The word “manipulate” conveys only a hint of control; an indirect influence, much as the word is used to describe how one person indirectly controls another, a strategy powered only by influence or deception. “Manipulation” conserves the free will of the manipulated. But I contend that the prices of assets priced in the Wall Street legacy markets are controlled with precision. This is completely feasible through the use of digital trading platforms and digital closed loop process control, a control technology nearly perfected through industrial applications over the last twenty years, and more recently, by major advances in network technologies. In the interest of full disclosure, I must confess that I have no background in banking and finance. I have no education or professional experience in money and markets. Furthermore, I have no inside information about fraud or criminality on Wall Street. But I do know a lot about digital control, especially in its application, not in finance, but in industry. I view the mechanisms for market pricing as an engineer. And I can form a premise and build a case.
To begin, controller output signatures are recognizable regardless of their application. In recent years price trends of the major stock indexes have consistently followed nearly identical daily patterns. This is strong evidence of the same underlying digital controller and control algorithms maintaining price set-points for all of the major indexes. This cookie cutter control strategy across all major US indexes makes complete sense from an engineering point of view. The effective maintenance of a programming configuration demands a deep understanding of the underlying logic flow. Applying the same control schemes to all targeted indexes leverages the specialized expertise of a limited staff for oversight and maintenance, and most importantly, it increases speed of control modifications, and their successful implementation.
Next, the unexplained nearly instant recoveries from the stock market significant drops during the summer of 2015 and early 2016 suggest modifications to the control algorithms and tuning parameters as a response. It is likely that these undesired market drop occurred as the legitimate market activity eroded below the lower limit of the controller’s capacity for stable control. The adjustments reestablished stable price control in a more eroded market, and then continued the major index uptrend.
And finally, market breadth has deteriorated consistently since 2013. How do prices rise in a free market on continuous lower volume? And how about the sudden swing in stock futures and precious metals prices on the night of the presidential election in November? Enough said. As licensed professional engineer, experienced in the implementation and modification of industrial control technologies, I am convinced that asset prices in the legacy market space are controlled with digital precision.
Digital control systems are immutable within the range of the inputs that can change their outputs. When properly tuned they are highly reliable within their tuned range of stability. This is especially true for virtual applications in which all controller inputs and outputs are ethereal, unlimited, and unconstrained. Conversely, for real world control applications, the controller inputs are usually many, but their range of values are highly constrained. For example, a coal boiler control system attempts to control the conversion of water to steam. But there is limited coal, limited combustion air flow, limited feed water, and limited feed water flow. And finally there is a limited amount of coal, and free coal does not exist. Ultimately, the amount and the rate of steam generation is limited by the real world. Additionally, the industrial controller output impacts all of the inputs, which in turn impact each other. This places a constant heavy demand on the controller as it attempts to stabilize a real world system. In the real world stable digital control of a system is a real challenge.
Conversely, in the ethereal world of the digital markets and instant digital money, the primary controller input needed to maintain price is digital fiat. And today, central bank money is unlimited and unconstrained. Remember that global fiat is digital and unbacked. It is vaporous, and created on demand in real time by the price control algorithm in order to create the necessary bid to hold price set-point. As a result, there is no constraint on the controller price output. Although digital fiat is the primary input for price control, the digital markets likely maintain other important set points like sovereign currency price ratios, money flows between markets, and asset classes, and central bank balance sheet ratios. Additionally, well know technical levels such as moving averages, likely also drive price set-points in order to trigger legitimate bids and offers at strategic opportunities.
The truth is that I do not know the content and structure of the price control algorithms running the legacy markets. And the greater truth is that no one outside of the digital curtain of Wall Street knows either. This is likely the most protected information in the world today, more classified than the workings of modern weapons systems at the Pentagon. It is legal fraud, justified and protected in the name of national security. Not only are these algorithms protected, but so are the selected few who do know and are tasked with the maintenance and modification of the digital magic. These individuals aren’t the Jamie Dimons, Lloyd Blank fines, or Janet Yellens of the world. These people are politicians. They haven't a clue as to how these systems work. In fact, it is probable that key executives across the banking cartel are protected by a deliberate policy of plausible deniability. But you can bet that there are a couple dozen programmers across the globe who know the real skinny. And they are likely the best paid on Wall Street. You and I will never know their names….Guaranteed.
Digital price control works in both directions and across all current global markets, and asset classes. Bottom line.....if it is a digital number delivered to a price output register captured within the global legacy "markets", it is completely controllable. This explains the surreal digital numbers mapped to fiat currency pairs, sovereign debt, stocks, oil, the VIX, and precious metals in and economy that is consistently eroding. But more importantly, it explains the ability of these digital numbers to respond rapidly against natural market forces.
THE FREE MARKET WORKS ALL THE TIME - Market theory premises that markets will work no matter what. We have all heard it. If you believe this, as I do; and you believe that debt and equity prices are artificial through legalized digital fraud, then how is it possible for the market to still work? Where is the market? Have the central banks stomped it out?
Well in fact, the real market has been at work all along. Absent the rule of law, fraudulent digital markets and unconstrained fiat have surely suppressed price discovery. This is undeniable by those who care to look. But in a market price merely communicates value. That is the sole purpose of price. But the central banks are using proven digital technology to prevent price discovery. As a result, the MARKET has responded appropriately, and powerfully, by creating a new money. This new money is discovering the real value of all artificially priced assets through the discovery of its own fiat price. This new money is called Bitcoin. Bitcoin is the real market at work forcing honesty into the monetary system, either through rehabilitating sovereign money, or by becoming money itself. The central banks will try to kill it but they will lose the battle. The entrenched will forbid it, but the innovative will embrace it, and in doing so, draw the best and brightest financial and human capital into their economies.
There is thick irony in the air. The same digital technology used by the banking cartel to corrupt the markets, and the money for their gain, and stomp out a run to honest alternatives like gold and silver, has been used by the real market to create a remedy for the fraud. Bitcoin and the other up and coming cryptocurrencies are here to stay. They are a direct manifestation of the MARKET. They are establishing the path back to honest money and markets.
Wall Street doesn’t have to turn real.....ever! Its system is virtual with unconstrained price control input, unlimited digital fiat, instant and free. The same system can suppress the metals prices indefinitely though the very same digital mechanisms provided that demand for physical can be constrained by government power. So the central banks can control their “market” indefinitely, but they cannot control THE MARKET. THE MARKET has created the perfect free market solution for an age of unprecedented government sanctioned digital market fraud. Bitcoin is already destined to discover a fiat price that will reveal over two decades of obscene global digital fiat creation. But this will occur in parallel with a rising or falling Wall Street fake market. The status of the western banking legacy "market" will become increasingly irrelevant as it continues to turn zombie, held up only by central bank instant digits that become more worthless with every automatic and instant creation of the next. The corrupt controllers will constantly try to match the price of Bitcoin as the Dow, S&P, and NASDAQ are driven higher courtesy off digital control; But the free market will drive Bitcoin higher, to levels decades above the price of the fraud.
MOTHER MARKET always has her way! Janet Yellen, Mario Dragi, and Haruhiko Kuroda are powerless to stop her.