Wednesday, April 26, 2006

Elevation and Manipulation

Gary Dorsch asserts that "global central bankers have been expanding their nation's money supply to immunize their equity markets from the effect of soaring energy and raw material costs."

According to Cliff Droke manipulation of markets is something that is very common:

"Yes manipulation, the dreaded "M" word. Although it's fashionable to think of market manipulation as being a recent phenomenon brought about by the Federal Reserve and international financiers, manipulation is actually as old as the world's oldest financial exchanges. Every bull and bear market since the beginning of financial markets has been the product of manipulation. Without the influence of market manipulators, there would be no price trends, but instead a series of erratic and non-discernable wiggles of mostly sideways movement. (To get an idea of what a market without manipulators and specultaors looks like, check out a chart of some major commodities before the advent of the financial exchanges. Or better yet, look at graph of a 1-cent, inactively traded "penny" stock).

Manipulation has created every asset mania and financial bubble in memory by commoditizing those assets and engineering trends to the point where they engulf everyone one in the seemingly unstoppable upward trend. The bear market that inevitably follows such manias is likewise the product of manipulation designed to strip the mainstream mania participant of his newfound gains before the bubble (eventually) begins all over again."

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