SHORT SELLING… A SIGN OF AN UNSTABLE ECONOMY

Propaganda of Economic Mechanics

Propaganda of Economic Mechanics

 

“The Propaganda of those who are in power”…..

“Propaganda serves to hide the truth from the general population”…..

Most people trust in their investment broker, consultant or counselor… just as they trust in their preacher or priest. The same holds true that most people also put their earthly life’s savings in the hands of someone else… just like they do with their eternal souls. The most logical course of action in both instances would be to take the initiative to understand both, the economy and eternal salvation, on your own! After all, one does mirror the other!

Your average investor doesn’t know much about the economy or how it works, but they need to. You need to understand that your retirement funds are not being invested in the same way that those who invest for you… invest theirs. You, the average investor, provide the funds in a declining economy, which become the trough from which those in power feed. We, the average investor, are the power investor’s surrogates.

If you’re an average Joe or Joann, your retirement is being invested in the stock market. If you have a retirement account or a 401k, you are invested for the long term; which means that when the market takes a downward turn… your retirement fund takes a dive as well. I’m not saying that your investment counselor isn’t making trades within your retirement portfolio; they are and they do this on a regular basis. A large percent of their profit comes from trades that are paid with money from your account, or you pay an annual fee which covers all trades which are done in your interest!

In a growing economy, everyone makes money! Even your average Joe or Joann makes some money but when the economy begins its downward cycle, “your” portfolio takes a back seat. Maybe the economy will come back; you’ll lose some money but that’s the way the market works. Sometimes you get the bear and sometimes, the bear gets you. However, there is ample evidence which exists, that point to a market that is on a downward slide and it doesn’t look like it is going to recover “easily” or quickly. Little blood has been shed in the market thus far but the boundaries of economic war are becoming more defined. Don’t be the last to see them!

You’re in the market for the long haul but those on the other side of this economic war are selling short. Short sellers begin investing when the market opens and stop trading at the end of the trading day. However, when the market closes, “their” money may or may not be in the market at all.

I’m sure this will come as no surprise to you but those who have money control the market. They can’t make money in an economy which is moving down unless someone loses money. Who is it that they get their money from when market value is decreasing? You! When market value is increasing, everybody wins but when it heads the other direction, everyone is for themselves. While the power traders get desperate, your average investor is relaxed and calm because they don’t know what’s happening and that’s the way they, the power traders like it.

People in power don’t want the average Joe or Joann to know anything. The more you know, the less powerful “they” are. Did you ever wonder why propaganda is so important to those who are in power? Propaganda serves to hide the truth from the general population because if the general population knew what those, who are in power are really doing…. they would not allow it! Power is maintained by those who have it when the general population is ignorant of what “they” are up to. However, in times of crisis, often the secret comes to light and those who were in power… change hands to someone else who does the same thing. It is just the same ole’ propaganda with a different label!

I know this sounds pessimistic and hopeless but it isn’t. The key to ending this cycle which has existed since the beginning of man will end when the true power, your average Joe and Joann understand the mechanism of economy!

In a declining economy, those who control the market make money in three ways; “they” borrow it from another bank, they find new investors or create a hemorrhage in “your” portfolio. In other words, your invested money; 401k or retirement account serves as a reserve emergency account for them.

In a declining market, the market gets erratic. Look at what’s happening in the market now. For example: We hear that the country of Greece is close to defaulting on their loans and so the market falls 500 points. A few days later, we hear that Greece and the EU have worked out a bailout plan and the market goes up 450 points. A few more days later, we hear that the EU is balking on the bailout plan for Greece and the market falls 350 points. So, the market goes up and down and ebbs and flows until those who control the market have what they need.

When we see this happening in the market, the power investors are selling short and they will continue to do this until they have the money they need. It’s a game. However, the longer this economy spirals down, the more erratic it becomes and the more money the market needs to pay “their” creditors.

If it is not Greece, then it will always be something else. “This is market propaganda!” I don’t doubt that Greece is in serious economic turmoil but notice how the market is being gamed. If it’s not Greece then it will be something else, like building starts or unemployment.

The power investors get the market to go up by buying and then they sell when they can get what they need; hence, the market goes down. In the pyramid of profit, the power investors make the biggest profits and the day traders that follow them around make a little and those who invested long, you and me… lose money! There has to be a loser in a declining economy!

The market only works if you are in it, so the power brokers can’t squeeze you into total oblivion. If it is possible though, they have to keep you in the market. However, if it ever gets too bad, then they will squeeze you until you are out of the market and then they must turn on one another. The market, in a declining economy, is cannibalistic.

If you are going to put your life, be it either economic or eternal in the hands of another, expect for things to go wrong. Take control of your life; educate yourself and learn how the mechanism of economy works. This is not a difficult endeavor and it is so important! If you’ll learn how economy works, then learning how government works is close behind and so on and so forth.

You don’t have to be a prophet to know what’s going to happen in the future. The future follows a logical path which can be predicted accurately at a conceptual level. Economy, government, human nature…etc. are machines that work in a certain way. When we, the average Joe or Joann, understand how these machines work… then, we will never be taken advantage of again and we will never again be a surrogate for someone else!

1 comment for “SHORT SELLING… A SIGN OF AN UNSTABLE ECONOMY

  1. Uzbeky
    January 14, 2012 at 8:09 am

    Thanks for the article. I agree with it hundred percent. This can only happen to general investors though.
    In bear market you can still make money by hedging. For instance, you buy “put” option of the stock you own and if the stock goes down that premium from the option will pay off the loss. It might be complicated stuff but once you learn it then you’re good to go. Anyways, it’s all knowledge. Knowledge you have will bring the power and money once you learn how to use it. So gotta keep the eyes open all the time and learn everything including the life itself.

Leave a Reply

Your email address will not be published. Required fields are marked *

*