Thursday, January 30, 2014

Charting Systemic Fraud

As many people do make great efforts to establish credibility with charts and graphs, citing technicals with furious conviction, it is worth noting a somewhat obvious flaw in their analysis, which I have time and time again been compelled to call out, in the name of both common sense and reason.

Most such experts acknowledge that markets are manipulated, yet they do not factor such manipulation into their various support levels, plot-line crosses, moving averages, resistance, cup and handle formations, consolidations, breakout levels, upper bands, retests, quantitative correlations and other myriad and multi-faceted algebraic patterns.

I am reminded of the movie A Beautiful Mind, whereby the genius of mathematician John Nash descends into a schizophrenic obsession.

Likewise, our financial market "chartists" appear delusional, though not through the power of mass hallucination, but rather through the power of market manipulation. It is quite simple (as Rob Kirby so succinctly puts it). They are charting fraud. And the only "pattern" fraud reveals is the pattern which enriches the manipulators by deceiving and further confusing the lamenting market chartist / fundamentalist.

Like a demented logician, the chartist integrates each new incongruity into his increasingly complex pattern of normalcy bias (within his own fraudulently constructed paradigm). And to watch the afflicted writhe in agony, as each new anomaly "created" by the central planners convinces the chartist that he finally understands the complexity of the shifting equation ... well ... it is not unlike witnessing the duress of insulin shock therapy (of a financial sort) as speculative trader-chartists and their fiat betting chips are summarily parted.

This form of denial leaves the Roacheforque with very little room for empathy. Clearly, no rational mind can accept the statistical impossibility inherent in the sheer number of central bank primary dealers who (rather flagrantly) make profitable trades 365 days of the year ... and not accept that these banks operate inside the fraudulent market operation - by altering the very fundamentals which their chartist / marks pathetically cling to. I do believe we covered this concept in our recent treatment of "Suspension of Fundamentals Value" (SOFV). But apparently old habits die hard.

Few seem to understand that these banks are in effect abitrarily executing policy, not so much of the governments of their respective bases of incorporation, but rather of a systemically calibrated form of global corporatism, whereby bankers are richly rewarded for enabling the growth and profitability of corporations, who in turn reward those government entities which are complicit in these systemic calibrations.

While the key benefactors of this global financial order are indeed human beings, they are well-cloaked in the facade of corporate autonomy, such anonymity being essential to the generational wealth dynasties behind the BIS, the Federal Reserve and its primary dealers, the remaining central banks and their primary dealers, the key shareholders, board members and directorships, and their counterparts at regional reserve banks, the ESF and various Treasuries, the IMF, World Bank and the various trade agreements through which their policies, provisions and protections are enacted.

If the above depiction sounds like the delusional ramblings of a "conspiracy theorist", then I suggest you return to seek comfort in the predictability and continuity of your charts and graphs in that manner which continues to serve your own best financial interests.

In fact, the Roacheforques would much prefer that you do just that, so as to adequately continue serving theirs.

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