{"id":31122,"date":"2018-02-17T08:42:23","date_gmt":"2018-02-17T13:42:23","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31122"},"modified":"2018-02-17T08:42:41","modified_gmt":"2018-02-17T13:42:41","slug":"the-worst-threat-we-face-is-right-here-at-home","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31122","title":{"rendered":"The Worst Threat We Face Is Right Here At Home"},"content":{"rendered":"
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The Worst Threat We Face Is Right Here At Home<\/a><\/h3>\n
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The Federal Reserve is ruining us<\/strong><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Last week, volatility made a long-overdue return to the US and global equity markets.<\/p>\n

It began with a 2-day back-to-back violent drop. Day 3 saw a big rebound, swiftly followed by two more days of gut-wrentching losses. And then finally, last Friday, the day saw massive swings both high and low, ending with a huge upside run.<\/p>\n

During this period the S&P 500 lost more than 300 points.\u00a0 Since then, though, the market has been steadily rising.<\/p>\n

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Is the danger past?\u00a0 Are the markets safe once more?<\/p>\n

And if so, did the markets recover organically? Or were they rescued by The Plunge Protection Team (PPT)?<\/p>\n

The answer matters.<\/p>\n

If such intervention was rare we could almost justify it, if it took the form of simple, pre-arranged circuit breakers that shut the market down for a “cooling off” after they\u2019ve moved too far, too fast. Indeed, these already exist, and are sufficient in our view.<\/p>\n

But if such market interventions are routine, persistent, and generally depended on by the major market participants, then they’re highly destructive over the long term.<\/p>\n

Sadly, we live with the latter.<\/p>\n

Insiders get stinking rich by front-running the scheme (check). Normal adjustments are prevented (check), allowing dangerous bubbles of extreme overvaluation to form (check), while fostering malinvestment (check).<\/p>\n

Do this long enough and you end up with a deformed economy, an eroded social structure, and markets that no longer function as appropriate mechanisms for capital distribution and economic signaling.<\/p>\n

This is where we find ourselves today.<\/p>\n

Modern-Day Soviet Crop Reports<\/strong><\/p>\n

In the former Soviet Union, the communist method of assuring economic progress was to set targets for production. Famous among them were the crop reports.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Worst Threat We Face Is Right Here At Home The Federal Reserve is ruining us Last week, volatility made a long-overdue return to the US and global equity markets. It began with a 2-day back-to-back violent drop. Day 3 saw a big rebound, swiftly followed by two more days of gut-wrentching losses. And then […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5469,3596,154,303,927,2218,7292,742,1138,5024,3650],"class_list":["post-31122","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-control","tag-chris-martenson","tag-complexity","tag-fed","tag-manipulation","tag-peak-prosperity","tag-plunge-protection","tag-soviet-union","tag-stock-market","tag-us-equities","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31122"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31122\/revisions"}],"predecessor-version":[{"id":31124,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31122\/revisions\/31124"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}