The Road to Roota Theory postulates that there is a group of people in the United States as well as around the world that are working to remove and destroy the financial banking powers that have secretly controlled all aspects of our lives for hundreds of years. The original idea of this group sprang from the mind of Alan Greenspan and involved rigging markets with computer programs that he had invented in the 1960’s.
The Federal Reserve Board is largely made up of tenured economics professors who are long on theory and short on practical. So it’s not surprising that their dot plots rarely reflect anything close to a realistic, well-reasoned forecast. A 3.25% short-term rate prediction, for instance, is pure science fiction.
Central Banks Are Willfully Destroying This Critical Market Function
Michael E Lewitt
With central banks owning $25 trillion of financial assets and sovereign wealth funds owning countless trillions more, it is time to ask whether capitalism as we know it is a thing of the past.
These non-economic actors have different motivations than traditional investors who buy assets in order to earn a profit over a reasonable period of time.
Central banks are buying stocks and bonds in order to monetize government debt and keep afloat the endless Ponzi schemes required to finance massive entitlement promises to their constituents.
Sovereign wealth funds are looking for places to park their cash for extremely long periods of time and often focus on assets with trophy or strategic value.
But the most important thing these two types of buyers have in common is that they don’t have to sell, which means that their ownership can inflate the value of what they own for prolonged periods of time.
This destroys the price discovery mechanism that markets are supposed to provide. And without price discovery, markets cease to function properly.
Then the destruction starts in earnest…read further