Just a few weeks ago, I wrote about the foreshadowing of Trump’s trade policies leading to economic meltdown. Although the underlying factors leading to this coming collapse are more complex than the policies of one president and have much more to do with the actions of central banks, news media has put the blame on a developing trade war. This amounts to political theatre. It wasn’t difficult to surmise that this would happen. The indicators were available for all to see.
Political theatre played no part in this production
Given the way financial commentators such as Forbes contributor Jesse Colombo have analyzed market behavior in recent weeks, it seemed obvious that some major turbulence would be coming soon.
Combine this with the political theatre drama of Trump’s trade policies, and you get a recipe for disaster brewing in the near future. On Thursday (March 22), the Dow Jones Industrial Average saw one of the largest daily drops in its history, falling over 700 points, as reported by CNBC. As predicted, news articles began being published declaring that the introduction of new tariffs and a brewing trade war somehow led to this massive sell-off.
Not a single one of these articles ever mention the fact that 90 percent of all modern trading is done by computer bots – high-frequency trading algorithms, to be exact. While this inconvenient truth was once the stuff of conspiracy theory, it has been proven to be a fact for many years now.
In addition, the fact that the Federal Reserve just happened to raise interest rates the day before this crash also seems to be left out of the discussion. On Friday (March 23), the Dow fell an additional 400 points or more, only to rebound over 600 points on Monday (March 26). And on Tuesday (March 27) it plunged 350 points again.
Some experts agree that we may be gearing up for another epic Stock Market Crash. Volatility in the stock market has skyrocketed, as noted by blog Business Insider.
Political theatre and financial fiasco
In addition to bots being responsible for the overwhelming majority of market meddling, something significant happened about 24 hours before Thursday’s closing bell - The Federal Reserve raised interest rates.
What a marvelous coincidence. The Fed just happened to raise interest rates the day before Trump announced his new trade war tariffs. And immediately after the stock market nosedives, articles proclaiming the disastrous consequences of those tariffs pop up all over the place. Just hours after the market close and stock market crash, the narrative has already been firmly established. My guess is that most of the public has already accepted the fact that the stock market crash was a direct result of the imposition of new tariffs.
The big picture of the political theatre
The fact of the matter is that all of this has been orchestrated. Our present state of affairs amounts to little more than political theatre.
The common metaphor of politicians being puppets is apt. The ones pulling the strings behind the scenes are the same who own and control central banks. The chairman of the Fed, in a sense, is also a puppet, for he does not own the bank he oversees. He’s simply a sort of executive – a face to the world who appears to make important decisions. The POTUS assumes a similar role.
As economies and ecologies continue to collapse, the world will be dragged into war as a result. The pieces for this horrific play have already been set in motion. It is only a matter of time before financial crisis grips the globe, famine spreads like wildfire, and ever-larger conflicts ensue. And let's not forget about the retail apocalypse that has already begun to rear its ugly head time and time again.
Toys R Us stores set to be bid on by Target, Big Lots and Aldi, among others https://t.co/SdmASyt4Qs
— CNBC (@CNBC) March 28, 2018
In my next article, I will cover the most recent event that has ensured this undesirable future – the launch of the Chinese petro-yuan.