ALERT: Exchanges Breaking Down
Quite a few items I talk about in my latest book are happening as we speak.
Two big news items after the closing bell today about the disruption at the exchanges:
1) Chinese Investors buying Chicago Stock Exchange http://www.cnbc.com/2016/02/05/chicago-stock-exchange-says-its-being-sold-to-china-led-group-report.html
2) Six members Resign From London Metal Exchange http://m.nasdaq.com/article/six-members-resign-from-london-metal-exchange-20160205-00607
There will be many more shake-ups before this game is over. Chapter 5 of my book is called "Justice for Silver Investors" and here's a section that covers the problems with the exchanges and how to fix them...
Me: Ok. I see what you mean. Then what kind of market is the best kind if a "free market" is not?
God: That is up to you.
Me: Well, I think a market where people can come together in an open and honest manner to exchange goods would be best.
God: So how would you construct a market like that?
Me: I guess it would need a regulator but there are already regulators in our current markets and that is clearly not working.
God: How about a regulator that enforces the same rules for everyone?
Me: Wow, would that be nice.
God: It sure would be different than what you have now.
Me: I know. Our market regulators are either totally ignorant of what is going on or totally in the pockets of those large enough to rig the prices.
God: It is a little of both but there is also the "Official Manipulation" of markets that is carried out by your Government.
Me: Yeah, what's with that? I mean, how do they get away with it?
God: They are the rule makers of their own game and they have given themselves the authority to control their game such that it continues to function artificially no matter what the underlying fundamentals are.
Me: That's insane! Why can't they just back out and let the market determine an equilibrium price for everything. Why do they always have to control the prices?
God: Two reasons. The first is since the invention of computers in the 1960's, the financial authorities have been able to fully control prices without the knowledge of the rest of the world. Participants still believe that the markets are freely traded so there is no challenge to the 'little man behind the curtain.'
Me: So that's how the world was able to go off of the Gold Standard in 1971. Everyone thought that without the discipline of a Gold Standard prices would go through the roof because they always had in the past. Currencies would collapse due to unrestrained printing of money and we would ultimately return to a Gold and Silver Standard.
God: Yes, if people have the freedom to print and issue money without limits, they have always over done it creating too much money and crashed their unbacked monetary system.
Me: But this time the result has been different. We still created too much money, more than ever before, but the system has stayed together for over 40 years.
God: Yes, they were secretly rigging the market prices to make it look like the markets were functioning properly.
Me: That's so deceitful. I mean, fooling the world into thinking they are making free choices in free markets when all along the game has been rigged. Surely, that can't go on forever.
God: That is up to you.
Me: Well I think that a system like that should not exist and I will do everything in my power to stop it from continuing.
God: Yes, and you already are Bix.
Me: What's the other reason they can't just let the true market forces take over from this point?
God: The second reason is that the market prices have become so distorted over the past few decades there would be massive market chaos if markets were left to trade freely.
Me: So what if there is a little chaos while the markets adjust, up or down. At least we could move forward in an honest manner.
God: But it's not just the market pricing that would be affected. The derivatives that have been written against these market prices dwarf the size of all markets and exchanges. Hundreds of trillions of dollars in derivatives have been written against the current artificial prices. If the market prices were allowed to find their true price levels then these derivatives would destroy everything that has been constructed in your monetary systems.
Me: So be it. A Creative Destruction Event would clean the slate instantly and we could move forward.
God: True, but how would you move forward?
Me: Like I said, we can start new markets where people can come together in an open and honest manner to exchange goods.
God: That may solve the market problems but it still won't solve the biggest problem.
Me: And what is that?
God: How to get from Point A to Point B. The transition from a controlled and manipulated system to one of open and honest dealings will not be easy. That is the great challenge that lies before you now....
...continued in my book "The Road Awakens" which you can order here:
//www.roadtoroota.com/public/centeruBook_IIIuBRThe_Road_Awakenscenter.cfm
There will be many, many more things manifesting that are 100% in line with the Road to Roota Theory as things break down over the next few weeks.
Stay tuned...
May the Road you choose be the Right Road.
Bix Weir
