If you've read any stock market literature then you've likely heard of "The Random Walk" and similar texts.

Basically the idea is that the markets are chaotic. You know the old story of how air moved by a butterfly in Tokyo become a thunderstorm in Los Angeles?

It turns out markets are NOT chaotic at all. In fact, it's quite the contrary. The markets are rigged.

While ups and downs seem kind of random in the short term, in the long term you can see that markets are absolutely linear and predictable.

Have a look at this 30+ year chart of the Dow Jones Industrial Average 30.



Does anything strike you as odd in this image?

Note the red line I drew on the chart.

It doesn't matter what happens, the FED keeps printing money and the markets are ALWAYS rising linearly.

2008 subprime crisis, 1999 dotcom bubble? Doesn't matter. Right after these maket turbulences, the trend resumes because the FED simply prints more money.

Doesn't it seem strange to you that a "random" walk has such a linear trend over 30 years?

It'd be expected if this trend happened over a few weeks or months. But over 30 years? 3 decades of almost linear growth?

The crashes happened and bubbles burst, but the linear pattern returned to its trend. How?

How come major market turmoil didn't completely shift this long term trend?

It doesn't matter what happens, the US can print money using its power projection in the world. Every single time there was a crisis after abandoning the gold standard in the early 1970's, the FED simply printed more money and pumped the markets back artificially.

But shouldn't this cause inflation? Monetary inflation, yes. Price inflation? Well, here's the catch: they don't print this money for YOU! They print this money for bankers. That way you can't spend any of this money, but bankers bought more and more equities in the stock market.

Thus, the FED simply keeps printing money to keep the stock market growth linear. No matter what happens in the short term, in the long term the markets are completely controlled by the FED.

But you and others who put their money into savings are simply being robbed. Banks buy all the equities using their free printed money while you save up and work 9-5 for decades to build savings. It's a ponzi scheme, new blood, new generations keep working more and more and more to buy a fraction of what people could buy 30 years ago. Banks keep printing money and robbing 99.9% of the world's population who work for a little over a dozen people.

It's phony capitalism. The markets are rigged and 7 billion people on this planet pay the bill for a dozen people controlling the banks.

I presented the linear trend in the chart. You can access this chart on investing.com I didn't make it up.

How can a random process have an underlying linear trend? Impossible.

Well it's up for anyone to speculate on since we don't have any way to tell whether a certain someone or group of people are manipulating the market because of crypto's anonymity. Though if you think about it another way, if you have enough resources to sway the market to your favor, wouldn't you do it? And there are such people with enough assets to do it.

But, we are still having a balanced system like balanced economical situations where if you hard work you will find your needed things. Governments are ready to give free money and all facilities to corporate and banks whereas they will not give free money to their citizen. Because, that will make them lazy which will be leading to collapse of entire economy.

For example, corporate are getting lots of benefits from government to set up a business, and then they will be providing job opportunity to common people based on that business. It is like they are giving opportunity for the people to prove their hard-working capabilities, those who are all finding chances to prove themselves with their hard work, getting their rewards. In this we cannot blame the government for giving all benefits for setting up that job opportunity.

Governments or banks may print money without having proper reserve for that. But, they should not distribute that money freely to their citizen. They may use that money for providing job opportunities for their citizen. This is the basic rule to keep the system intact. When all the people in a country will be getting all their needs without any big efforts then their economic system will collapse. This has been proved right with many countries'scenarios like they are simply printing money still they are able to manage it accordingly.

Markets and our economic systems are probably rigged but we cannot do anything about that because it needs to be like this otherwise it will lead to imbalances of systems.

Rigged is actually part of the game, as long as there is money involved, greedy people will find a using their power to rigged the market in their favor.
Being a trader, you should also have the mind of a gambler, it's similar in sports gambler where there is a fixed game, and that is rigged but if you were able to put your money at the right side, you won't complain.

It has to be like that because a lot of big people want to gain a lot of it. And anyone who knows how to play the game is at the higher chance of getting rich and when small fries only needs to follow their footsteps.

 We can take your above post as it is. Often time we been seing a lot of speculation about the market which manipulated by Whales or insider transaction could bring one prime stock to the grown..but we have no factual based on the said speculation. More often than that is just negative views against the market. If the US stock market goes down it can be because of the war trade with china.

Markets are kinda rigged but not in the way you think. The difference of why the line is always going up is that companies in those dow jones type calculations are always the best companies, so if a company is losing a lot of money and going down than the next company that makes profit takes its place and makes the chart go up, there are times when everything falls of course but the reason why its not just a straight line or why it keeps going up is that the best companies are in these calculations and that means they always have the most profitable going higher type of deals going on in them.

There is no "rigged" calculation, its just the way it has been forever and that is why it goes up higher. Of course the rigged part is that these companies are forced to make profits each quarter or the investors will take their money out and put it on the next big thing and companies do every accounting trick in their power to show profits they can to look like they are alright until bankruptcy hits them.

Sadly you're probably correct. Although what you describe in the first sentence is all but capitalism (governments pumping the stock market).


I didn't intend to imply that. The reason I don't show prior to 1984 is because the investing.com chart only went so far.

This present day system began in 1970 IIRC, not on 1984.

Sorry if I didn't reply to your earlier question.

Adjusting the chart for inflation would only lower the slope of the linear trend. My point is not the % gain (the slope). It's about it being linear!

The whole point of this thread is to point out that the FED and the fractional reserve system simply manipulate the stock market at will to keep it a straight line.

What I mean by "the markets are rigged" is that it's not a random walk, it's not chaotic, it's none of these things. The markets are completely controlled by the FED as shown in the 30+ year trend. The FED's true mission is to keep that linear behavior on that chart. That's my point.

If you adjust every price on the composite index used for that chart (the Dow) for inflation, you'll get a lower slope, that's all. Will not change the point I tried to make.


EDITED: The reason I opened the other thread is because yesterday we saw the greatest pump EVER on US markets. And today we see a dump. So we have these two new facts.

This new information adds to the point I'm trying to make: the banks control the markets at will. There is 200+ trillion dollars out there printed by the FED (unpayable debt) that is used to do whatever they want to the markets. They can crash it, pump it, dump it, what ever.