Source: Daily Reckoning
“For the last 40 years, most people believed the stock market always goes up. No thought or hard work needed. It was a nifty strategy — until the idea burned most investors in 2008….Last June, Fortune surveyed readers. 71% of respondents said ‘the economic system in the U.S. is rigged in favor of certain groups’…They’re not wrong. Somebody made gains from all of those sectors in the stock market. It just hasn’t been Main Street…Dark money is the #1 secret life force of today’s rigged financial markets. It drives whole markets up and down. It’s the reason for today’s financial bubbles…The “dark money” comes from central banks. In essence, central banks “print” money or electronically fabricate money by buying bonds or stocks. They use other tools like adjusting interest rate policy and currency agreements with other central banks to pump liquidity into the financial system…Yet these dark money flows stretch around the world according to a pattern of power, influence and, of course, wealth for select groups…It’s easy to see how this dark money affects the stock market at a high level, because we can monitor its constant movement…Here’s the smoking gun, matching the S&P with the Fed’s balance sheet through the earlier part of the year:
The black line shows you how much dark money the Federal Reserve has printed since 2008. The gray line shows you the S&P 500.”
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