All bubbles eventually pop, even those based on the collective delusions of millions around the globe. Supported by the actions of self-serving central banks and the entities that control them, the Pied Pipers of finance have very likely created the greatest and universally most dangerous bubble of all time. Humankind is so easily deluded, in these days of mesmerizing propaganda that permeates our very souls, perhaps more than ever. Self-delusion can provide a cocooning comfort for a population whose whole mental construct of their universe is rapidly fraying at the edges, this is so even more for the professionals that occupy the seats of the investment management firms around the world.
For those who have the greatest to lose by the great unraveling yet to come, also have the risk of self-reinforcing delusions about the presumed perpetual Möbius Strip of paper (fiat) wealth they have been riding since the monetary pumps began to roar. The Cornucopia of wealth flowing over the worlds very select elites is a mirage that soon will blow away. Some already seem to be preparing for this inevitability, but the more suckers that they entice to come in to play their game, the easier it is for them to exit without disruption. Little is as it seems in the world of illusions and delusions that is the strange world we now live within. Charles Smith sees through the disturbing haze.
Have We Reached a Financial Singularity?
Encouraging and supporting asset bubbles is essentially the only force remaining to keep the system intact as we know it.
The Singularity is based on the idea that machine intelligence will soon exceed human intelligence, and human history is unknowable beyond that point. This concept draws from a variety of sources, but for me the foundational idea comes from the physics of black holes, in which gravity concentrates the material of a collapsing star into a point of infinite gravitation, i.e. a singularity, that is surrounded by an event horizon that marks the line beyond which observers will inevitably be pulled to their destruction in the black hole. Observers cannot go back once they cross the event horizon, but they cannot see the inside of the black hole without going beyond the event horizon.
Longtime correspondent B.C. recently proposed that the global stock markets have reached a Financial Singularity in which trading machines now control the markets. Here are excerpts of B.C.’s emails on the topic: In some respects, “The Singularity” has occurred in the financial markets, only humans are incapable of perceiving it except by inference.
I will reiterate from the past my assertion based on direct and highly suggestive personal evidence that the major US, UK, and EZ equity markets are being “managed” offshore by the TBTE (too big to exist) banks’ dark pools’ pass-through entities in the Caribbean banking centers, levering up US Treasury and MBS (mortgage-backed securities) holdings to jam equity index with the assistance of NYSE-Euronext exchange-sponsored HFT (high fequency trading) at the price margin.