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Central Banks Rig Stock Prices

Editor Victor's note: You can read the website URL below but the following paragraphs make the key point:

In an article titled “Central Banks Now Own Stocks And Bonds Worth Trillions – And They Could Crash The Markets By Selling Them,”


Michael Snyder writes,

Have you ever wondered why stocks just seem to keep going up no matter what happens? For years, financial markets have been behaving in ways that seem to defy any rational explanation, but once you understand the role that central banks have been playing everything begins to make sense…. As you will see below,global central banks are on pace to buy 3.6 trillion dollars worth of stocks and bonds this year alone. At this point, the Swiss National Bank owns more publicly-traded shares of Facebook than Mark Zuckerberg…. These global central banks are shamelessly pumping up global stock markets, but because they now have such vast holdings they could also cause a devastating global stock market crash simply by starting to sell off their portfolios…. The truth is that global central banks are the real “plunge protection team”. If stocks start surging higher on any particular day for seemingly no reason, it is probably the work of a central bank. Because they can inject billions of dollars into the markets whenever they want, that essentially allows them to “play god” and move the markets in any direction that they please. But of course what they have done is essentially destroy the marketplace. A “free market” for stocks basically no longer exists because of all this central bank manipulation. (The Economic Collapse Blog)

It is no secret, of course, that central banks were attempting to create a wealth effect by pumping up stocks through their own member banks — buying US bonds back from banks with free overnight interest with the proviso that banks use the income to buy stocks. As I wrote during last year’s stock market plunge, even central bankers finally admitted to that.


Editor Victor: More than one media reporter has explained the same reason for the market's survival as Swiss banks and others and the U.S. 'Fed' buy blue chip stocks themselves. We understand easily why the level of collusion between central banks for the New York Stock Exchange made stocks jump hugely when France's LePen was defeated in order to see the banker favorite Macron was elected instead.

The purchase of stocks by central banks belies the "free" market that is regularly touted. Our predictions have been accurate nonetheless.

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