What If The "Crash" Is as Rigged as Everything Else? Charles Hugh Smith, Of Two Minds

[mother earth]

August 26, 2015

Take your pick--here's three good reasons to engineer a "crash" that benefits the few at the expense of the many.

There is an almost touching faith that markets are rigged when they loft higher, but unrigged when they crash. Who's to say this crash isn't rigged? A few things about this "crash" (11% decline from all time highs now qualifies as a "crash&quot don't pass the sniff test.

Exhibit 1: VIX volatility Index soars to "the world is ending" levels when the S&P 500 drops a relatively modest 11%. The VIX above 50 is historically associated with declines of 20% or more--double the current drop.

When the VIX spiked above 50 in 2008, the market ended up down 57%. Now that's a crash.

MORE:
http://www.oftwominds.com/blogaug15/rigged-crash8-15.html

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In the game where everything is rigged, EVERYTHING is deliberate. Apparently, Charles is familiar with Naomi Klein's Shock Doctrine.

[CJCRANE]

1. There is a 7 year economic cycle

according to "conspiracy theorists" with examples of recessions starting in '87, '94, '01, '08...

So I've been expecting this 'crisis' for a while.

[mother earth]

3. LOL, yeah, there is no lack of theories for September. I just don't see how anything

can crash when it is all rigged to begin with. I do think the theories make for entertaining reading though. I have no doubt things are not business as usual, but if there's money to be made, no one's going to crash their golden goose. The ups and downs are not based in reality, every blip is engineered & someone is profiting.

I think I read one of your posts on another thread, so maybe you can expand on that economic cycle a bit here?

It seems to me that at some point the golden goose for the l% has to shut down, I think they are running out of tricks, even with the revolving door in their pockets. Nothing lasts forever.

[CJCRANE]

5. Yes, it looks like a rigged cycle

hence the regularity and predictability once you've noticed the pattern.

It's a simple theory that they pump up the stock market for seven years then the insiders dump their holdings on schedule when they're high. At the same time the media doesn't warn anyone about what's about to happen.

In fact it's not really a theory, just an observation about what seems to happen every time.

[mother earth]

7. I thought it had a name? nt

[CJCRANE]

8. It's a longer term and larger version of "Pump and Dump".nt

[Demeter]

2. Well, if you have enough momentum (money) behind you

you can move markets up or down. That's what QEforever is.

But it doesn't work forever, shuffling money from one pocket to another with obligatory"losses in transit". Man does not live by finance (aka looting or piracy or rent-seeking) alone.

Somebody somewhere has to do an honest day's work to produce the wealth, and then, if he doesn't get an honest day's pay for it, nobody can afford to buy his production.

There's a limit to how much 500 wealthy families can consume, even if they are sharing amongst the relatives.

So the rigging for the benefit of the 1% or .01% will collapse in a case of monetary "constipation". And when the S hits the F, it's not good to be Elite! That's why they want to set up their Utopia on Mars and get away from us all....

I'd like to send them there, too, without any ground support whatsoever...

[mother earth]

4. Agreed. It's been a sweet ride for them, and I do think the S will H the fan, but I would think

it might be precedented by actual rule of law coming into the picture, so far there have been fines only. Who gets jailed? So the game goes on.

[CJCRANE]

6. My suggestion is "QE for the people"

to get money moving around and stuff done in the real economy.

(In fact there should've been a second stimulus package, the first one seemed to get the ball rolling).

[RussBLib]

9. the whole of the GOP ought to be strung up

for all the obstruction of Obama and his efforts to get the economy rolling again.

But no, it's Obama that gets the reputation of a tyrant

Damn shame the GOP don't give a shit about what's best for the country; only what's best for the GOP (and they're even wrong on that score too)