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Miraculous Market Rebound on Thursday and Friday - Mystery Solved [Copy link] 中文

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Post time 2016-1-23 16:16:30 |Display all floors
The PBOC pumped some 400 billion yuans into the banking system of China in preparation for the coming Lunar New Year celebration of February 8, 2016, just three days ago, and the ECB pledged to pump 50 billion Euros into the banking system EVERY MONTH until the European economy grows healthily again.  

Nothing to do with the merits or demerits of various companies, commodities or market sectors.

This is pure money demand raising the price of whatever these two tranches of cash were used to purchase.  All you have to do is keep buying until there are no more sellers, and the price has to stay up, until some fellows figure it out, and begin selling all over again.  As long as more money is being printed to keep the prices up, the shares prices will remain up for some time.  In short, the market is no longer a market, but rather, it is a "fixing" as done by London on the price of gold.  We shall see eventually what the Monday "fixing" will be like.

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Post time 2016-1-23 16:55:14 |Display all floors
> the market is no longer a market, but rather, it is a "fixing" as done by London <

Fixers choose the issue they want to fix and, using the skills of a team of creative experts, they work out how to make sure their message is heard by the right people.
Then they use digital, print and broadcast media to make their voice heard as far and wide as possible.

And the average person will be "FIXED"

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Post time 2016-1-23 17:09:29 |Display all floors
emanreus Post time: 2016-1-23 16:55
> the market is no longer a market, but rather, it is a "fixing" as done by London <

Fixers choose  ...

The difference between a Free Market and a Fixed Market is that in a Free Market, the price at which the goods are cleared (sold) is determined by the balance of supply and demand among the market participants, while in a Fixed Market, the price at which the goods are cleared is determined by either a seller with inexhaustible goods to sell, or margin to borrow the goods to sell, or a buyer with inexhaustible funds to buy whatever he wishes, or both.

The real market is actually made up of two fixings.  There is a group that wants to buy up the goods in order to make them scarce, and thus be able to sell them in the future at a higher price.  There is also a group that wants to sell the goods until there are no more buyers, and thus be able to buy them back in the future at a lower price.  The long and the short of it is that when a monolithic player can move the price either up or down according to his predetermined target, that market ceases to reflect the general supply and demand, and becomes merely the bulletin board on which the monolithic player announces the price at which he is willing to buy and sell, and this is increasingly the case in all the bourses of the world.  At present, the Central Banks are playing the role of such monolithic players in their domestic stock markets.  Their activities affect in turn the exchange rate of their currencies, even against their own wishes.  In this situation, China should simply print more Yuans, support its own stock market, and allow the Yuan to naturally devalue according to market supply and demand, reaping the  best of both worlds.

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Post time 2016-1-23 18:10:11 |Display all floors
This post was edited by sfphoto at 2016-1-23 18:17
abramicus Post time: 2016-1-23 17:09
The difference between a Free Market and a Fixed Market is that in a Free Market, the price at whi ...

The difference between China's "Fixed Market" and the West's "Rigged Market" is that China "fixes" its financial markets in order to stabilize them for the benefit of its industrializing economy while the West "rigs" its financial markets for the benefit of its Capitalist Overlords. Socialist China's industrializing economy needs orderly and stable financial markets to support industries and businesses unlike the Capitalist West whose post-consumer economy relies more and more on financial speculation to enrich the Capitalist speculators.

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Post time 2016-1-25 18:15:22 |Display all floors
This post was edited by abramicus at 2016-1-26 15:51
sfphoto Post time: 2016-1-23 18:10
The difference between China's "Fixed Market" and the West's "Rigged Market" is that China "fixes"  ...

Good point.  China's fixing of the level of the stock market index, and of the Yuan exchange rate, are meant to serve a public good, while a Cartel-Rigged market is meant to serve the interest of special groups.  However, in the case of the PBOC's irrationally exuberant overvaluation of the Yuan, it has caused more public harm than good, and it is time for the PBOC to be banned from wasting any more hard earned dollars to buy back yuans just to support its overvalued Yuan exchange rate which has been the principal cause of China's loss of a trillion dollars worth of reserves and future earnings.  The beneficiary of such fixing of the Yuan at an overvalued exchange rate was Japan, and these fellows should just resign and retire to Japan.
(Recently, in the Davos World Economic Forum, the Japanese governor of the Bank of Japan, Kuroda, even issued his "advice" to his Chinese counterparts (or underparts) to keep the Yuan overvalued by means of capital controls.  Interesting, since Japan never had China's best interest at heart, it advice can be likened to an order for China to commit mass suicide.)


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Post time 2016-3-31 13:26:24 |Display all floors
abramicus Post time: 2016-1-25 18:15
Good point.  China's fixing of the level of the stock market index, and of the Yuan exchange rate,  ...

China is one of the main proponents of an asset backed currency, so the premise of your post is incorrect. The Chinese are using market opinion to get out of their UST's so they don't have that liability, something you believe is a strength / has value. China knows UST's have no value, why? Because China knows the USD is unbacked and imaginary, and is preparing to dismantle the fiat regime, with a gold backed regime. The US has been resisting for 75 years, so the Chinese are forcing the issue now.

The world is boycotting the US, can you not see why the shelves are becoming bare? US either stops the fiat games, or ends up losing all value in the dollar. Chinese want no part of it, so they stopped sending goods to the US, and are forcing the US to replace their fiat with an asset backed dollar. The Chinese have already won, it's just that the US won't admit they lost. That's why the Chinese are getting rid of their treasuries. UST's are not a reserve asset, they're a liability.

The US is shipping oil, because people won't trade with the US for Dollars. At least some nations will accept oil as payment for goods being sent to the US, but not all. Some want to force the hand to make the US introduce a gold / silver / asset backed dollar. Oil is the attempt by the cabal to retain the fiat dollar. It won't be long now for the USD to drop.

IRRANGERIS

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Post time 2016-4-1 16:21:03 |Display all floors
sfphoto Post time: 2016-1-23 18:10
The difference between China's "Fixed Market" and the West's "Rigged Market" is that China "fixes"  ...

What's the difference

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