The Free Market System Is Dead: The Fed Killed It

The Free Market System Is Dead: what a tragedy

The Free Market system is a fallacy

Updated June 2023

The free market system exists on paper but not in reality.  The Free Market system never really existed.  Financial markets were never fully free, to begin with, but any shred of freedom was completely eliminated after the financial meltdown in 2008. At that point, central bankers decided it was time to recreate reality. In other words, they were looking to create a new norm.  For this game to work, you do not need to convince everyone. You just need to convince the right people; in this case, the right people are the ones that either have the money or have access to easy money.

Thus your target audience is the top people who run the corporate world.  Once these guys join the bandwagon, the rest will either join or be destroyed.  The following excerpts extracted from various market updates, clearly highlight how well things have worked out for the top big players, who in reality are the ones that dictate the policy central bankers adopt.

Proof that the Free market system is nothing but a hoax

The higher readings below refer to our V indicator (V readings).

  • It is also our opinion that higher readings indicate that the level of market manipulation is increasing. Higher readings correspond to higher levels of market manipulation. Once again, this would explain the Dow’s incredible feat of putting in 11 new highs on pathetic volume, Gold shooting well past 1200, The Japanese Yen Index trading almost to 118 and bonds soaring to 141 before pulling back and so forth.

 This phenomenon was 1st revealed last year. In Oct 2008 the Dow bottomed, and then it went to put in the classic head fake where it put in a lower low in Nov 2008.   Between Oct and Nov 2008, the markets experienced several selling climaxes, VIX soared into record territory,  and the put-call ratios spiked. In addition, the number of individuals that were bearish on the market set new records. We had multiple positive divergence signals, several daily buy signals, etc. In essence, everything was in place for a turnaround. 

The only anomaly was that volatility readings stayed above the 900 mark. The Dow rallied briefly and then took out its Novembers lows. It moved from the oversold to the very oversold, to the extremely oversold and then finally into the extreme of extremes zones. And just to add a bit more pain it dipped a tad bit more before putting in a bottom at 6469.  It dropped almost 1000 points below its Nov 2008 lows.   Market Update Dec 8, 2009

Central banker’s goal is to end the  Free Market System 

What we need to focus on is that the underlying theme is “inflate or die”; this means that the currency race to the bottom is on maximum overdrive. In such an environment it would be foolhardy to take a different approach that would entail pain. Individuals in the West are not like their Russian counterparts; they are not ready, and they do not have the experience of dealing with hardships. 

In such an environment where the only weapon central bankers have is to flood even more money into an already overextended financial system (this phenomenon is not a localised phenomenon but a global one for the most part). And so every strong pullback has to be viewed as buying opportunity and every extremely strong pullback has to be viewed as a screaming buy. Market Update March 31, 2015

 Monetary destruction is the Fed’s Main Policy

All of these wild moves are indirectly connected to the policy of extreme money destruction that central bankers on a worldwide basis have embraced. We are moving to the stage where everyone is going to become money orientated, not because they want to but because there won’t be any other option on the table. When you keep interest rates artificially low (extremely low we might add) and print new money at a mind-boggling rate, you set up the perfect environment to bring out the worst of the worst in human nature. 

We suspect that this bull market might last a lot longer than even the most ardent of bulls have even dared to dream off. This is the most hated bull market in the history of bull markets.  There is still a lot of money sitting on the sidelines.  The reason this bull is hated is that everything driving it higher is well just Bull S**T and so the average person cannot fathom why the markets are constantly moving higher. Market Update March 31, 2015

  The MOD (Masters of deception) have decided to employ an extremely aggressive strategy in terms of increasing individuals stress levels.  A 3 pronged strategy is being employed right now.  Individuals are being hit in three areas, mental, physical and biological.  Even if you manage to escape 1 or 2, the masses will never be able to escape on all three levels, but you can if you know what to do. 

Indoctrination starts with a weak mind

This is why you need to watch what you eat because even organic food is being attacked and so-called innocuous agents such as carrageenan, locust gum, Guar gum, silica, corn starch, etc are being added in places where they should never be added. Why do you need any of the above for example in Cream, butter, yoghurt, etc? the most offensive of these agents is probably carrageenan which is a known agent of inflammation and is used by the pharmaceutical industry to test the strength of anti-inflammatory medications.  

The old saying is “you are what you eat”.  We modified this and adapted it to reflect what is going now “you are what you eat, that is why most individuals are so full of S**T. (Excuse the French but there is no way to say that politely).  Those who know how to deal with the stress will not face as extreme conditions as those who are not able to deal with. 

Physical and mental stress is relatively easy to deal with; the simplest strategy is to take the role of the observer; look and try not to become part of the play.  Let others become one with stress; you should be content to watch the show, for there is very little you can do to help those who embrace stress with open arms.  Market Update March 31, 2015

Education and high intellect are not the same things

We spoke to several well-educated individuals (well-educated from a conventional perspective, but probably a house mouse would have an edge over them when it comes to common sense) over the past two weeks. And the overwhelming theme was “when will the markets crash or pull back very strongly so that we can get in at a decent price”. 

These chaps are not alone, there are many more facing the same dilemma and eventually, stupidity will take over. And they will jump in because they are afraid of missing the move, which will most likely create a feeding frenzy and push the markets a lot higher.  This question is silly on two counts;

  • The markets already crashed and that was back in 2008
  • We are sure that if the markets were to crash again, these chaps would sit down and do nothing as was the case in 2008.

History repeats itself and idiots never learn from their mistakes.  Insanity is doing the same thing again and again and expecting a different outcome. What is absolutely preposterous is that these insane individuals are not aware of their programmed and predictable reactions. So let us give you a bit of advice; as long as central bankers are printing money like a bunch of crack heads, there are only 3 rules you need to understand

  • If the market’s pullback strongly, you should buy
  • If the markets pull back very strongly and or crash, buy like a bandit that is being chased by the hounds of hell
  • Make sure you never forget rules 1 and 2

Free Market system cannot exist as long as the Fed is in power 

The Feds will not raise rates until there are literally facing a double-barrel shotgun and even then they will wait until the last minute to act. This effectively means that this artificially low rate environment could be maintained for some time. As long as this is the case, they will find a way to push money into the markets. Remember extremely low rates combined with inflation (money becoming more worthless each day) will eventually push even the most conservative player into the market.   Market Update May 6, 2015

When you control the bad and the good news, you control the outcome of the game.  How high will this market soar? Well to issue very long-term targets would be a waste of time as the situation is very fluid; meaning that this market will go as high as the masses allow it to go. Market Update May 17, 2015

The free market system cannot exist without a free press

The markets have continued to soar higher and higher, much to the surprise of both the bears and the bulls. As we stated in the last update, nothing makes sense when examined from a logical point of view. However, as far as this market is concerned, logic and reality are two traits that will only hamper you and lead to losses.

The individuals behind the scenes are working on the premise that they can recreate reality and so far, it appears to be working like a charm. Interest rates will be held in check until the very end, whenever a reason surfaces to justify a rate increase, some negative news will appear shortly to make it appear that a rate hike is a bad idea.

When you control the bad and the good news, you control the outcome of the game. 

How high will this market soar? Well to issue very long-term targets would be a waste of time as the situation is very fluid; meaning that this market will go as high as the masses allow it to go. What do we mean by this? The reality is being recreated, and so as long as the masses either remain docile or accept this faulty data, then the path of least resistance will be up. We can, however, issue some targets based on the trend.

Do not assume that these targets will be hit with no volatility. In between, we expect at least one rather strong correction and several media to mild corrections.  As the NASDAQ just recently broke above a 15-year barrier, it appears to us that the NASDAQ should at least soar another 2000 points if not more. Remember a spring that has been held back for so long (and 15 year is a long time), uncoils with twice the force that held it back.  Market Update May 17, 2015

Free Market system is talked about all the time to keep the masses in the dark 

 Like clockwork, the news suddenly turned bad, making it less likely that the Feds will raise rates as indicated by the stories below. Like QE, they will keep teasing the masses with the threat of rate hikes and gauge the reaction; at some point, the Crowd will accept a rate increase and they will price it, in the same way, they accepted and price in that QE was officially going to end. The markets did not crash as many claimed it would.

They are programming the masses right now to price in and accept a rate hike, once the programming is complete, interest rates will be raised slowly, and it will have no impact on the markets. At least not in the beginning and when the market does eventually crash, it will not be because the Fed ran out of weapons (as many fools passing off, as financial experts will have you believe), it will be because the top players issued a sell signal.

The U.S. economy grew slower than expected in the first three months of 2015, due to harsh winter weather, a strong dollar and a slowdown in shipping resulting from labour disputes at West Coast ports. U.S. gross domestic product, the broadest measure of goods and services produced across the economy, grew at a seasonally adjusted annual rate of 0.2 per cent in the first quarter, the Commerce Department said in its preliminary estimate Wednesday. Full Story

When you control the narrative you control the outcome

The U.S. economy shrank during the first quarter as another brutal winter highlighted the fragility of the nearly six-year-old expansion, a historically choppy stretch during which the nation has struggled to thrive in an uneven global environment.

Gross domestic product, the broadest measure of goods and services produced across the U.S., contracted at a 0.7% annual rate during the first three months of the year, the Commerce Department said Friday. That was far worse than the agency’s initial estimate that showed 0.2% growth, marking an abrupt reversal from the prior nine months when growth surged and the economy appeared on the verge of a long-delayed breakout. Full story


Was that not the story we stated would appear; the story that is needed to justify lower rates and such stories will continue to appear when it looks like the Fed has to raise rates. The market sold off when Yellen stated that rates would be raised if economic conditions remained the same. The keyword there was “if” and the masters of deception will continue to create data that makes things look good today, but suddenly change the outlook to bad if the situation warrants it.

There is nothing real here. The only thing that works is common sense. Common sense states that when insane individuals are in power, they are not going to revert to doing things in a sane manner without force; change will only come about after these delinquents are out of the equation.

Logic does not equate to success in the Stock market

When you think logically and or use old parameters to gauge this market, every single bone in your body probably screams out that this market should crash and burn. That is true, but what is also true is that as nothing is real, logic has no place when it comes to the illusory. How can you use logic (which is based on using real and compelling data) to judge an event that is illusory in nature?

Every statistic imaginable has been, is being or will be manipulated to satisfy whatever picture the manipulators want the masses to believe in. It takes two to tango, one to cry and three to have a party, thus the crowd is as complicit in this game as are the manipulators. The most likely outcome is that the markets will trade higher than anyone expects as long as the trend remains up. Market Update May 31, 2015

 The Free Market System, for now, now is an illusion 

While many hold onto the illusion that the markets are still free and driven by market forces, we feel that free markets no longer exist. Like the dinosaurs, they have become extinct at least in the land of the once free (U.S.A)

Originally published on June 16, 2015, and consistently updated over the years. The most recent update was performed in June 2023.

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