Everything is Connected
QUESTION: Your launching of Socrates, coincident almost with a major change coming our way. All things are connected, and maybe the launching of Socrates is inevitable and factored in, as they say.
But does Socrates affect the future -which it should surely do- and is it a good thing or a bad thing, or just another ripple in the water with no more or less effect than anything else like Grexit, the coming French collapse, the exposure of 911, or a butterfly’s wings in the Amazon.
If Socrates is interpreting events and actions from current facts, then it cannot help but affect the future -because it has an influence on (some) people’s behaviour.
But does Socrates affect the future -which it should surely do- and is it a good thing or a bad thing, or just another ripple in the water with no more or less effect than anything else like Grexit, the coming French collapse, the exposure of 911, or a butterfly’s wings in the Amazon.
If Socrates is interpreting events and actions from current facts, then it cannot help but affect the future -because it has an influence on (some) people’s behaviour.
Regards
CM
CM
ANSWER: Anything man creates has two sides. Nuclear energy can power cities or destroy them. Our greatest problem in analysis has been our myopic focus. We analyze everything in isolation and ignore the fact that everything in the world is connected. In analysis, it is as if the majority sees the world as flat rather than round. Once you see that we are all connected, perhaps then behavior will change insofar as we end the era of Marxist manipulation trying to flat-line the business cycle.
Politics would change if we realized that we are all connected. It would be impossible for politicians to run on empty promises that are beyond their power to delivery. My concern about others trying to get their hands on the code has been that they will use it for themselves to the exclusion of society. If one knew the weak spots at turning points of a country, then yes, perhaps you could accelerate the decline, but you cannot reverse the trend.
We could NOT be correct on gold if we were NOT correct on the Dow making new highs back in 2011. We could NOT have been correct in calling for India to breakout to new highs, contrary to China, if we had NOT been correct in our forecast that the 19–year high in Chinese Yuan would hold in 2013 and a bear would market emerge. The high Yuan helped to create the recession and now a move to devalue the Yuan is necessary to ease the hard landing and reverse the trend. The rise in the Yuan reflects the recession and the coming high in the dollar will turn the U.S. economy down as well. Everything is connected. The global economy is like a seesaw. Push down on one side and the other rises. Only a fool tries to forecast a single market.
Conspiracy Theories & Markets: In Search of the Gods of Wall Street?
QUESTION: Dear Mr Armstrong …
An associate emailed me and asked me if I knew what PPT was?
I told him …. I did not and to elaborate.
I told him …. I did not and to elaborate.
He emailed me back saying PPT = plunge protection team!
I then googled it and it seems some people actually believe that the fed/US gov. have some mystical organisation called the PPT that buy the market up and stop it from falling. It seems this is what some believe happened today!!
That’s why the market reversed so hard! LOL
I know I live a pretty isolated life trading markets watching very little TV and only reading your blog whilst eagerly anticipating Socrates JR but to say this “PPT” exists is just nuts.
Its amazing what people will convince themselves.
Its amazing what people will convince themselves.
….
Thanks again for all your help. Glad to hear your in India I am of Indian origin although born here in the UK.
Take care
Regards
M.S.S
M.S.S
ANSWER: You are correct, as there is no PPT. This is precisely the sort of conspiracy theory that creates investigations every time. There are people who need to believe in powerful groups whom control everything for they need that image to justify being wrong. They say if God did not exist, man would create one. They have been doing that since Babylonian times. The same takes place in markets.
Japan tried to support their share market and lost. China did that and then turned to devaluation for in a sense that is like raising interest rates upon foreign capital inflows since it is a charge or loss on that foreign capital. The Japan bubble was in full swing when the yen and market were rising. That attracts foreign capital. A purely domestic rally in equities is distinguishable by a declining currency. China’s move was to drive a spike in foreign investors’ profits.
Nobody can support the market. They tried that during the Great Depression, but companies bought their shares back to try to support the price and went bankrupt. In his memoirs, Hoover apologized for starting the Senate investigations that gave birth to the SEC. He said he received a phone call that claimed there was a Democratic conspiracy to ruin the Republican Party by Socialists. Based only on that phone call and conspiracy theory, they launched an investigation to find that short, but no one was ever found.
Hoover wrote, “[W]hen representative government becomes angered, it will burn down the barn to get a rat out of it.”
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