A New Paradigm - Crashing a Market in the Digital Age.
Are we on the precipice of a market crash? This seems to be the topic of the day. The answer is that we already are, but not in a way ever seen before in the history of the markets. Some are comparing the state of today's markets to those that preceded the crash of 1987. But today's digital markets are nothing like 1987. In that day digital platforms only provided support for floor trading activities. Price discovery was still subject to the input and the will of human beings, and more importantly, to their deliberate, thoughtful, and SLOW mindful response to changes in asset prices. Conversely, today's markets are digital at their price discovery core ; And advances in microprocessor speeds, digital multiplexing protocols, and networking hardware like optical fiber, provide nearly instantaneous response time for global closed loop digital price controllers. Additionally, global interconnected trading platforms and, in all practicality, a single western central banking sovereign digital fiat currency provide a global central banking continuous coordinated liquidity response. No.....today's markets are not anything like 1987. In fact, yesterday's markets no longer exist. They are not markets at all because they have been deliberately transitioned into a full blown digital price control system. The lion's share of this transition has occurred since 2008, as the real market has continually failed to sustain asset prices when briefly released from the grip of price control to discover price. It is important to recognize and appreciate the difference between legitimate price discovery and digital price control. And it is equally as important to understand that the market has not been eliminated through the digital fraud. It is still with us and it is still discovering value, albeit not necessarily as it has in the past.
A market crash is occurring right now, but it looks completely different from any market crash previously seen in the history of modern markets. In fact, it is not different, it only looks different. And it must look different because digital fraud in the legacy "markets" has severed the link between price and value. Many believe that soft money is to blame because unlimited digital fiat allows Keynesian actors to buy up every asset offered for sale in order to support prices. But the primary driver underlying price control is not unbacked digital fiat. The primary driver of asset prices is robust digital control technology. While it is true that instant and unlimited digital liquidity is required to perpetuate the fraud, this is only the fuel. And this fuel is only required as long as financial accounting remains a requirement. Digital price control is the engine. It is the hardware and software of the legacy trading platforms that really maintain the system. In fact, if financial accounting is discarded, and new liquidity does not enter the system the control system is fully capable of maintaining price set-points, with the appropriate algorithmic configuration and tuning. Under this control scheme bids and asks in the marketplace become instantly irrelevant. Of course, in such a case, even the facade of monetary propriety would be discarded, but the price control would continue without a hitch. If one considers the depths of market and monetary fraud that our governments and our central banks have already sanctioned, is it really a stretch to think that direct control of digital price registers is out of the question? It's only a matter of time.
One has to only look to the main stream financial media for evidence that the digital control technology is the primary covert means to continuously achieve higher asset prices in the legacy markets. The main stream financial press is always willing to discuss the pros and the cons of hard money, quantitative Easing, fiat money. These actors always take the Keynesian side, but they do at least recognize the arguments of Austrian hard money. But you never hear a hint of discussion about digital market price control in the main stream financial press, and you likely never will. Nor will you hear one mote about the maintainers of these systems, their hardware, or their control algorithms. What does that tell you? Barring a miraculous reformation in the rule of law within government, banking, and finance, the Wall Street price control system will continue to achieve its set-points. Brief and intermittent undesired price drops will occur as the true market occasionally overwhelms the limits of a controllers range. But these same undesired events will also provide the political impetus for deeper digitally based fraudulent schemes. With ongoing modifications these control systems will achieve their price set-points. The technology assures it.
History will show that digital control was the linchpin of robust, immutable, and perpetual "market" fraud during this era. But history will also show how this unending fraud did not kill the market, but instead forced its rebirth in the crypto-currencies. This is the good news. The very same technology supporting the monetary and market fraud is also assuring the life, liberty, and legitimacy of a new free market monetary foundation. Bitcoin is that foundation. It is discovering a fiat price in a real market; and that price is reconciling the value of a monetary system held up by over twenty years of fiat monetary fraud. Bitcoin is the anti-matter of a fake debt based system buoyed by years of instant and unlimited currency unit creation, and digital price suppression of alternate centralized money markets. The fiat price of Bitcoin is slowly morphing the perception of central bank global digital fiat from a store of value to an empty and instant digital number. The financial system is bifurcating now. One side continuing to deceive, manipulate, and devalue, and the other seeking to illuminate, disclose, and revalue. Bitcoin is the anti-matter of fake money. It is the yang of monetary virtue coexisting with the yin of monetary evil. Monetary slavery juxtaposed to monetary liberty. Look closely. Can’t you see it?
The upshot is this: You can continue to trade your hard earned fake fiat for assets priced in fake fiat by a system that digitally disguises real value. Or you can trade them for a monetary asset that digitally illuminates real value. The irony is this: both pricing systems achieve their objectives with the very same digital control technology. And that technology is robust, reliable and immutable. In the end, both systems will flawlessly carry out their machine language instruction sets.
Now if you accept this underlying premise then there is only one outcome as long as both systems continue to operate. The crooked system will continue to deliver fraudulent false valuations, and the other will continuously revalue that fraud. This is the new paradigm for a market crash in a digital age driven by both evil and virtue......The Yin and the Yang.
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