Pulse of the Market - March 2022
Two topics that are all over the news: Inflation and constant market maker fraud. The topics: How "money" can be destroyed and the golden age of fraud
How “Money” Isn’t So Free Anymore: The Collapse of Your Wealth
When you sit in an Economics 101 class, I find it odd they mostly focus on supply and demand graphs while the most important factor in economics is the almighty power in the sky: The Federal Reserve
The Federal Reserve was created in 1913 and has failed in every facet of their job as evident from the debasement of the US dollar shown below.
And most recently, the world as seen the collapse of a foreign currency, the Russian Ruble, after legitimate economic sanctions were placed on Russia.
And in case you thought governments didn’t already have too much more over your wealth and “money”, Russia raised their interest rates to 20% basically overnight.
Debasement of a currency is the easiest, most efficient way to destroy a country’s wealth and prosperity. Click into the tweet to see how debasement was a critical component to the collapse of the Roman Empire.
In the end, the most efficient way to wage war on a country is to strangle their economy and debase their currency, which is evident by the Ruble’s collapse. While the United States as seen a slower demise, the Rubles’ collapse is proof it could happen in an instant.
If only there was a hard money that could not be created out of thin air, capped at a certain amount, couldn’t be manipulated by central or foreign governments, and could be transferred peer to peer in times of government overreach……
The Golden Age of Fraud: The Collusion of Market Makers
When one thinks of fraud, most people think of white collar criminals, such as those that steal credit card numbers. However, in this day in age, market markers, who are supposed to be the “referee” of the market, have been rampant in committing blatant fraud, usually in broad daylight.
A market maker is a firm or individual who actively quotes two-sided markets in a particular security, providing bids and offers (known as asks) along with the market size of each.
The article linked below explains how the London Metal Exchange ($LME) has committed massive fraud by cancelling orders and concluding with China's Tsingshan Holding Group, a very large notional short, that refused to pay on their gamble.
LME forced to halt nickel trading, cancel deals, after prices top $100,000
The sad thing is, I can provide example after example after example of massive fraud by market makers. Either the rules have to change or enforcement has to happen. Not sure which will happen first….
The Inflation “Surprise”
In May 2021, almost 1 full year ago, I started to call out inflation and potential raising rates when 99% of media coverage was calling it “transitory” and propagating this dismissive attitude to a potential recession starter. Here is what I wrote (linking charts of skyrocketing commodities at the time):
Sadly, with economic sanctions, war, and higher rates already starting, the Federal Reserve is very likely gonna be the almighty power to start a recession if prices keep going higher. I will end with this meme below:
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