Bitcoin Forum

https://twitter.com/nanexllc/status/505480919655141377/photo/1

the CME actually has an incentive program for central banks to buy s&P 500 futures with printed money.
this shows the rally in the financial markets is nothing but an engineered bubble by central banks who use printed money (aka stolen purchasing power) to prop up the markets regardless of any fundamentals of the underlying companies.

when the fiat shit storm explodes it is going to be lethal, i advice everyone to get the hell out of the stock market and into tangible assets.

Pretty sure now Mr Ben and friends are printing magic FIAT money now to buy on the BTC lows  ::)

the only difference is that bitcoin can't go to 0, someone will always be willing to buy it at some price.
when a failed business that is being propped up by the central banks goes bankrupt because no one buys its products it gets removed from the stock exchange and the stocks are worth 0 no matter how much fiat the banks print.

If the business is subsidized by government, it will still have value even if they have negative cash flow and lose money every year.

Looks like a good reason to go long on S&P then  ;D

Not really. The USD you earn on them won't be worth much.  :P

You should invest in the stock market to profit from that then. Leveraged if possible.

no one is even hiding this anymore, from the CME 2013 10k form:

http://investor.cmegroup.com/investor-relations/secfiling.cfm?filingID=1156375-14-12 (http://investor.cmegroup.com/investor-relations/secfiling.cfm?filingID=1156375-14-12)

"Our customer base includes professional traders, financial institutions, institutional and individual investors, major corporations, manufacturers, producers, governments and central banks."

why don't the central bankers just save us the hassle of analyzing companies and just tell us what the S&P 500 and EURO STOXX 50 closing price will be every day.

Have you noticed the amount of billionaires who are pulling out of stocks?

Soros puts down a massive short on S&P and then triples it.

The Fed tells commercial banks to prepare for liquidity issues by holding assets.

Something is not only brewing, it is about to spill over.

Imo, this is a textbook setup for a major market short.

The fed has used printed money to buy home mortgages and treasuries.

What has Barack Obama done to lower housing prices for the poor?

The reality is the printed money is used to expand government and bailout deadbeat debtors and homeowners.  The work poor savers get the shaft.

Yellen is a puppet of government.

Its not the Central Banks or Obamas job to supress housing prices.

Central Banks job is to keep liquidity in the market when there is a credit crunch

It's been the case for a while that stimulus is the only thing propping up the markets.  It's not a secret.  The question is how long it can continue like this before the inevitable crash happens.

Hold onto your butts.

There will never be a market crash, a crash only happens when there is no money. Now there are too much money in banks (Most of the QE money went into commercial bank's pocket in exchange of their MBS), they could easily support the stock market price

Then the crash of fiat money itself is even less possible. In principle, FED printed 4x money since 2008, then the price of everything should rise 4x, there will be hyperinflation, then everyone will dump their fiat money and the fiat money will worth nothing over night. However, most of those money went into bank's pocket and they don't spend a dime, they save them back to FED and receive an interest to spend, thus made the real amount of money in circulation almost non-change, that's also the reason the economy never fully recovered

So, banks have all the money they need to push up the price of anything they want, but they will carefully select some product first so that average Joe can not benefit from it (If everyone get easy money, there will be uncontrollable inflation thus threaten the life of their fiat money)

The central bank is the buyer of last resort hence it always over paid for anything it bought.

So, betting against the central bank usually payoff if you are patient.

This is not entirely correct.  Look at M2 right before 2008 crash.  You are confusing reserves w 'pockets'

The 2008 crash was because there was a huge credit expansion then sudden contraction that was set off by bust of housing bubble.  You are correct that QE used was to address this situation

A market crash can easily happen if everyone decides to pull their money out of stocks and basically only sell orders are on the exchanges, leading to a "crashing" of prices.

I think the 2008 crash was more due to the massive amount of uncertainty in the market. No one knew which banks were going to be able to survive because no one knew what kinds of assets they were holding, as a result they had difficultly borrowing to meet their short term cash needs, as a result they were unwilling to lend.

Nowadays is very easy and cheap to invest in the stock market, so if that were true, it would mean that banks aren't investing in the stock market. The same would apply for the commodities market.

Why should they care about how much is winning the average Joe?

So you think foreign central banks will print their currency to buy dollars, then buy stocks, and it's to prop up US stock market engineered bubble?
Why would they do that?

So they can then own everything, cheap.

The same thing that happened before, and after the battle of Waterloo, when the British stock market was manipulated.

Except this time, they're using printed money, which costs them nothing, therefore they do not care about the losses.

It's fucking diabolically brilliant.

Ok, why would the U.S. let foreign central banks 'own' the most valuable U.S. companies? Well, it's 'free markets' but still...

You are not right about losses. Despite that the money is created, it still adds to the balance sheet. If stocks fall, central bank experiences losses.

It's over. T-Bond buying by the rest of the world was central to the scheme. First, EU stopped* buying in 1999. PRC stepped in then, probably just to build themselves an 'economic nuke' (imagine a fat red button with written 'accelerate the destruction of the house of cards that is the US economy'). Then they stopped* too, in 2007. Now the USG/FED are buying by themselves (make no sense, right?) to stimulate the american public (small investors) into buying. It is a trap. They are 'externalizing' the collapse to the small saver! GTFO of the US stock markets FUCKING NOW!

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*When i say 'stopped buying', i really mean 'slowed down the buying'. It's all about flow, gents.

A decline in US stocks would probably drag the rest of the world down with it. As they say, when America sneezes, the rest of the world catches a cold.

Who says this still? Maybe in the 1950s LOL