by Martin Armstrong, Armstrong Economics:
QUESTION: You say that long-term manipulations are impossible while short-term manipulations have been the focus of the bankers. Do you mean to say that not even governments can manipulate the economy perpetually? Are central banks buying US equities to manipulate the US stock market higher? It would seem that the Fed would then be accused of creating a bubble. What is going on?
ANSWER: Ever since Marx, the Age of “New Economics” as Volcker put it came to an end with the collapse of Bretton Woods and the Crash of 1974.
ANSWER: Ever since Marx, the Age of “New Economics” as Volcker put it came to an end with the collapse of Bretton Woods and the Crash of 1974. Of course governments have tried to manipulate society and the economy. All governments operate out of their self-interest and they impose punishment as their weapon. They have falsified the statistics, revised them routinely especially CPI because they learned that everything was indexed to CPI so if you reduce the CPI you cut benefits without having to confront the people. After 1980, they removed real estate and replace it with rents using the argument that the former was investment not cost of living.
The entire game of manipulating society is to maintain their power. They historically will do whatever they need to do to achieve that goal. They routinely manipulate the truth using the press. Nobody will report that the Clintons not merely removed ALL restraints against the banks from Intrastate Banking to Glass-Steagall, but they also made student loans non-dischargable in bankruptcy at the bankers’ request so they could securitize them. Nobody will bring that up about Hillary because she is the favorite of the press. They attack Ben Carson and Trump all the time but Hillary they assume is a coronation.
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