From Bill Buckler of The Privateer
The Mechanics Of Manipulation
The “markets” chose to ignore the strictures put on the ECB’s ability to make good on its September 6 promises by the German Constitutional Court’s ruling on September 12. They have also ignored all the certain future damage to be done to the US and global economy by the Fed’s decision of September 12-13. All they can or want to see is a never-ending stream of new “money” issuing from the central banks to replace the “money” which has already gone up in smoke with their existing malinvestments. They know that they stand or fall on this stream being perpetual. They refuse to accept any prospect other than it will be perpetual. Without this “money” and the ability to “borrow” it without cost, their “assets” literally bear no relationship to what is going on in the economy whose life blood they claim to be.
The Fed has claimed that their new round of printing will revive the “economy”. They propose to continue on their path until their contention is “proved”. How will it be proved? By means of statistics put out by government departments which pretend to “measure” the prosperity of the economy and the level of unemployment in that economy. It has been a long time since these concocted statistics bore any resemblance to reality. Now, it is a safe bet that the distortions will greatly increase. If Mr Bernanke and the Fed do finally realise that they are skating in the middle of a melting iceberg and panic, they are going to have to have a justification for “reversing” their policies. That justification would be provided by the government further falsifying their “measurements” to the extent that the Fed could claim “victory”.
Thus, the chasm between official claims and reality is set to widen even further than it already has. The point will inexorably come when the long-suffering denizens of “Main Street” will rebel with the same combination of designed apathy and weary disgust with which the people of the East Bloc turned irrevocably away from their own rulers. The first “victim” of this abhorrence will be the Fed.