The Impossible Co-Bubbles: Stocks and Bonds

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The Impossible Co-Bubbles: Stocks and Bonds - Jeff Nielson

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The Impossible Co-Bubbles: Stocks and Bonds - Jeff Nielson

 

In the past, readers have been alerted to numerous “impossible” trends in our markets and economies, all manufactured by the Western banking crime syndicate. Here are just a few of those highlights (low-lights?)

a) It’s impossible for Western bond prices to be at all-time highs. Western nations have never been less-solvent (i.e. obviously bankrupt). The less-solvent the debtor, the higher the rate of interest the debtor is (supposed to be) forced to pay, and bond prices and interest rates are precisely inverse to each other. Interest rates should be at all-time highs, bond prices should be at all-time lows. Obvious fraud.

 b) It’s impossible for our markets to move like one, gigantic, synchronized yo-yo, every minute of every hour of every day. Markets diverge, it’s what they do. When we see prices move together in near-perfect clockwork, we know we no longer have “markets”. Obvious fraud.

 

c) It’s impossible for precious metals prices to fall below the cost of production – and stay there – with large supply-deficits in both the gold and silver market. There is literally only one, possible “cure” for a supply-deficit: higher prices. These markets are being (permanently) prevented from doing what theymust do. Obvious fraud.

Note also that all of these “impossible” trends are separate from the multi-billion and multi-trillion dollar mega-crimes which these same financial criminals are caught perpetrating, on a near-daily basis (and are allowed to continue to perpetrate):

1) They were caught conspiring to serially rig the $500 trillion LIBOR debt market.

2) They were caught conspiring to serially rig the $5 trillion/day global currency market.

 

3) They were caught conspiring to serially rig the “gold fix”.

4) They were caught conspiring to serially rig the “silver fix”.

5) They were caught conspiring to serially rig base metals markets.

6) They were caught conspiring to serially launder $TRILLIONS for the drug cartels and “terrorist” organizations. Isn’t there supposed to be a “War on Drugs”? Isn’t there supposed to be a “War on Terror”? Why do these criminals get a free pass?

[Meanwhile, the Lemmings continue to scoff at “conspiracy theories”.]

But all of these “impossible” (i.e. fraudulent) developments in our economies, and all these mega-crimes that are swept under the carpet by our puppet governments pale in significance next to the greatest impossibility/insanity of all: the co-bubbles in Western stocks and bonds, and more specifically the incredibly gigantic (simultaneous) stock- bubble and bond-bubble in the U.S.

Stock prices and bond prices can never rise together, in any legitimate marketplace. Period.

U.S. stock prices are at all-time highs. U.S. bond prices are at all-time highs. This is market fraud to (literally) the ultimate extreme. Why can stock prices and bond prices never rise together? The bankers have been explaining this to us, for decades.

Stocks are the “speculative investment”. It’s where investor dollars flow and concentrate when investors are feeling confident and “bullish” about the marketplace. Bonds are the “conservative investment”. It’s where investor dollars flow and concentrate when investors are feeling pessimistic and “bearish” about markets. That’s the real world.

Then we have our ultra-corrupt, fantasy-world, where (impossibly) the U.S. has both a gigantic 6 ½ year-old stock bubble, and a more-gigantic, bond bubble in its Treasuries market which is arguably much, much older. Absolutely impossible. Ultimate fraud.

What do the criminals (i.e. bankers) tell us today, with markets which totally violate everything they had been previously telling us, going back at least a quarter-century? The criminals tell us that investors are “bullish” and “bearish” right now, at the same time. To frame it differently, the market is (supposedly) “hot” and “cold” at the same time. Absurd. Impossible.

We have a word for when you mix “hot” and “cold” together: lukewarm. Here’s the point. If the criminals were actually telling the truth (for the first time, ever) and investors really were “bullish” and bearish” at the same time, we wouldn’t see U.S. stock markets and the U.S. bond market simultaneously at all-time, bubble highs. We would see lukewarm markets, with average, stock and bond prices – reflecting what the bankers are telling us: that investors (supposedly) can’t make up their minds as to whether they are bullish or bearish.

The infantile “explanation” by the criminals on the co-bubbles in U.S. stocks and U.S. bonds is just as impossible (and nonsensical) as the bubble-prices themselves. The criminals have no explanation for these “impossible” markets.

This begs an obvious question, in terms of simple mechanics. How did the criminals create two, gigantic, simultaneous fraud-bubbles in U.S. markets, when these two bubbles (according to everything we know about markets) could never occur together – by any means?

Regular readers should be able to answer this question:

Unlike what we hear from the criminals, and their servants (our governments and regulators), this chart explains the “impossible” co-bubbles in U.S. stocks and bonds in simple and rational terms. There are five times as many “investor dollars” in U.S. markets today as there were only five years earlier. As readers know, money-printing on such an extreme, exponential level is obviously hyperinflationary – but that is aseparate subject which has been previously discussed on many occasions.

Suddenly, what appeared “impossible” is no longer impossible at all, merely completely fraudulent. What we see here is nothing more complex than the concept of a “rising tide”. Pour five times as much water into our oceans, and we wouldn’t simply have “high tides” all over the world, simultaneously. We would have a global tidal wave.

Now we can view the U.S.’s “bubble” markets in their correct context. Thanks to the fraud of “fractional-reserve banking”, and our even more-fraudulent, near-zero interest rates, the criminals receive, for free,every year, somewhere in excess of $100 TRILLION in Western funny-money, most of it denominated in USD’s.

With Western markets literally flooded with this debauched, worthless, funny-money, what appeared to be the highest-of-high-tides is actually something much different. We do have lukewarm markets – in proportion to the mountains of funny-money which the criminals are hoarding. Put another way, the criminals could have pushed these U.S. bubbles up much, much higher than their present, insane levels.

They have only deployed the tiniest portion of all their (illegal) funny-money. Most of it is hoarded in the banksters’ $1.5 QUADRILLION rigged-casino which they call “the derivatives market”. For the mathematically challenged, that is a $1,500 TRILLION hoard of illegal capital – twenty times larger than the entire, global economy.

Suddenly, we’re looking at a much different question. Instead of asking how the criminals could have pumped-up these U.S. bubbles to such incredible highs, we ask ourselves something entirely different: why haven’t the criminals pumped-up their fraud bubbles even higher – much, much higher?

There are two answers to that question, both based in practical terms. To start with, small numbers of the brainwashed Lemmings in our societies are already questioning these “impossible” fraud markets. What would they say if the Dow was up at 50,000, and the “interest paid” on U.S. Treasuries was negative 10%? What if you took markets which were already ridiculously impossible, and made prices five times, or ten times as extreme? The “jig” would be up.

But there is a second, even more-important reason why the criminals have no desire to pump-up their fraud bubbles to even more-insane levels: there is no profit in doing so. Pump-up the price of a particular stock 10,000% higher, or even an entire stock index, and it does you no good unless you can find some Chump who is willing to buy your stock at such wildly fraudulent prices.

The criminals need to ensure that the fraud-prices in their markets remain at some quasi-plausible level, or there will be no more Chumps for them to fleece. They would simply be playing with (exclusively) their own money in these fraud markets – and you can’t steal from anyone by doing that.

For most of us who still retain the capacity for rational thought, we look at the U.S.’s crime-ridden, bubble markets, and we shake our heads. We wonder how these prices could ever go so high, simultaneously, as we see with the U.S. stock-bubble and the U.S. bond-bubble.

 

Meanwhile, as the criminals dine on their filet mignon, and gaze out over the economic carnage they have wrought in our societies, their conversation is entirely different. They don’t “gaze in wonder” at these sky-high prices. Rather, they lament that there is no way for them to “make” (i.e. steal) even more money – by pushing their fraud markets much, much higher.

 

 

 

 

 

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Clowns on Acid's picture

I thought they had this figured out when they passed Glass Steagal ?

Truth Eater's picture

Fraud?  What fraud?  The most transparent and honest administration in US history says all is well.  Obama saved us from the "great recession".

Hmmm...  he saved us for the greater depression.  Wouldn't want to miss that joy ride.

To Infinity And Beyond's picture

There is a lot of angst against "bankers" lately and the bottom line is some are upset because they feel the game is rigged. They are actually upset because they can't win. Ironically the most venom is thrown by investment wannabes. It's like going to Vegas and srceaming in the streets the games are rigged becuase you lost all your money.
Yes, the game is rigged. The only way not to lose it to not play. When this whole thing collapses there will be millions of people who will never know anything happened. They will go along living their simple lives as always. They don't depend on the housing market to get them into the next bloated house they don't need. They don't care about the latest Lexus.
Don't want to be a slave to debt? Then quit playing their game. If you are thinking "that's impossible" then you have turned the key in your own prison cell and refuse to acknowledge it. Quit debt today. Commit to never buying anything on credit again. Pay off existing debt. Invest in yourself. Learn skills that are required to be self sufficient. There is the peace of mind you can't seem to find.

crashguru's picture

When this whole thing collapses there will be millions of people who will never know anything happened.

Right, those who are living on Gov benefits and salaries...

Kickaha's picture

I had previously thought of all of this free money as being akin to a huge ball rolling from one market to another to create the price volatility necessary for profitable short-term trading.  Until reading this article, I had not realized that the "rising tide" analogy is now the far better way to look at it.  Money, money everywhere, lifting all boats, but not a drop to drink.

new game's picture

remember two things:they have a lot moar to loose and when the dollar becomes worthless who will be still standing. question is, can the majority vent their anger towards the real culprits?

Chipped ham's picture

There is no outcome that has a pleasant ending. Those evil bastards won't stop until they are the only ones left.

What will they be left with? Each other! Yet they continue,rapaciously devouring..

Burticus's picture

The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests. - Rothschild Brothers of London

There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig Von Mises

Bastiat's picture

What is the source of that Rothschild quote?

lucky and good's picture

The term "liquidity trap" that has been used by Allen Greenspan and others can be difficult to understand. We reach a point that to much money makes it a worthless commodity. We are reaching the point where banks will no longer be willing to pay depositors for the use of their money.

At some point the return on loaning money is simply not worth the risk!  Why do you want to loan money if most likely you will never be repaid or repaid with something that is totally worthless? The sweet drying up of credit, occurs when credit-lines are not renewed by banks adverse to risk as they cover their pockets and slam closed their vaults

When this happens the only safe place to store wealth will be in "tangible assets" and the only lenders will be those who print the money that nobody wants. It might soon become apparent the economic efficiency of credit is beginning to collapse and the additional money poured into the system coupled with lower rates can no longer drive the economy forward.

When this happens we are at the end game. The collapse of credit can pose major problems such as what we saw when many sellers were forced to demand payment up front before shipping goods in 2008. More on this subject below.

http://brucewilds.blogspot.com/2014/06/the-economic-efficiency-of-credit-can.html

roodeetoodee's picture

Utter nonsense.

Money is not a commodity.

Banks dont pay depositors for use of their money. Its the banks that create the deposits by lending.

If banks dont lend there are no deposits and therefore no economy that banks themselves control. i.e. we go back to the barter system.

So banks are never going to stop lending.

Lending is literally their lifeblood.

Hence the reason why we call them blood suckers.

buzzy_the_pirate_dog's picture

Said another way.  Our system is based on debt, all new money is created by debt.  When the debt is repaid, that money is destroyed.  More debt is needed to pay off the intrest  (T=P+I) where P and I are non-negitive, so T is larger than P (though our I today is nearly zero)

Wahooo's picture

And why they call loans Assets.

gregga777's picture

I expect nothing less than criminal fraud from the Wall Street CON Market.

moneybots's picture

"They were caught conspiring to serially rig the $500 trillion LIBOR debt market."

 

For nickels and dimes at a time.  Since 1982, the FED rate trend has been down.  They didn't serially rig the trend on LIBOR, they took inside advantage of being able to make minute changes in the rate to advantage themselves in a moment of time.  Over and over again, it adds up.

 

 

"They were caught conspiring to serially rig the “gold fix”."

Gold went parabolic in 2011 and blew off.  It has been declining since.  It is following what has been happening in the world.  Commodites have dropped, Baltic Dry has dropped, oil has been dropping.  The global economy has been weakening.

Like with LIBOR, the fixers were taking inside advantage of the trend.

A market maker will run stops, pick up supply, then turn the stock the other direction.  But he isn't changing the overall trend in the stock.

messymerry's picture

Gold is not a stock and gold is not a commodity. .period.

Gold has some commodity properties, but it is first and foremost a monetary metal. 

Like it or not...  dot . dot . dot .

;-D

lasvegaspersona's picture

With the 'wealth' of the entire planet in the balance, no one (except those betting against the system (ie traitorous contrarians) would object....MDB

dumdum's picture

 

 

I am sure you are referring to worthless paper wealth, built upon unsustainable debt.

By the way, contrarians are not traitors. they simply have a lot more common sense and understanding of true market dynamics (ie they do not follow the herd into the slaughter house).

moneybots's picture

"with large supply-deficits in both the gold and silver market. There is literally only one, possible “cure” for a supply-deficit: higher prices. These markets are being (permanently) prevented from doing what theymust do. Obvious fraud."

 

D E F L A T I O N

 

The 800 pound gorilla in the room.  These markets are not being prevented from doing what theY must do.  Deflation is the completion of a cycle.  Cycles go up and down.  Markets go up and down.

There is no permanently in a cycle.  It goes up, rolls over and goes down. Then it rolls up again.

Quit the propaganda.


Bastiat's picture

In deflation, real money buys more.

Seal's picture

I wonder how Ray Dalio is going to do when the "all weather" constituents all go DOWN at once.

perchprism's picture

My TV has lines in it for about 10 minutes until it warms up.

Its_the_economy_stupid's picture

The Kardashians await your new purchase.