July 2010

from MoneyTeachers Website


In response to the article in the Financial Post that claims the stock market isn't collapsing, I submit the following:

  1. I am unaware of any index that includes every stock by every company that trades on the New York Stock Exchange or OTC. Instead we have the Dow Industrials, NASDAQ, and S&P 500 that give us a supposed representative sampling of the entire stock market.

    In the case of the Dow Industrial Average (The most widely reported Index), we have only 30 companies represented. That is out of 3,615 estimated companies that are listed on the New York Stock Exchange. Add another 3700 that are traded on the NASDAQ, and another 2,000 listed on the American Exchange. One estimate is that 15,000 companies are traded publicly.

    To think that 30 companies (on the Dow), represents the true picture of the rest of the market is ludicrous. The Nasdaq Index, which includes an estimated 3,000 companies, might tell a more valid story. It has not even come close to the 4,700 mark it set in the year 2000.


    In fact, today it is trading at 2,232, off more than 50% from the 2000 high, with minimal recovery off of its low of 1200 set in the year 2002.


  2. Now for the other variables:

    • Indexes, like the DOW are "weighted" using a formula that assigns some companies more "weight" in the Index than others. This opens the door for manipulation.

    • Companies, can be removed from the Index, or "de listed" from the exchange if they fall below a certain stock value. Think of the Indexes as a storefront window, with the best that the store has to offer, being modeled to attract customers. The Index will always show the best the exchange has to offer.

    • Trillions of dollars have been transferred from thousands of companies' stock values through the use of short-selling, put options and pump and dump schemes. Forget the indexes, they are meaningless.


  3. Of Course the Numbers are Being Manipulated:

    • The Treasury Department was authorized by Congress, under The Troubled Asset Relief Program, to buy mortgages and any other security (stocks are securities) that it sees fit. Companies like General Motors, CITI, AIG, and others had their stock value pumped up by freshly printed dollar bills from the privately owned Federal Reserve. There is a whole lot of "funny money" in the market right now.

    • The myth that some companies have repaid the Treasury is offset by the fact that they borrowed more money to do so, making their debt position even weaker.


    The fraud being perpetrated by the collaboration between the Fed, large corporations and the SEC exists within a closed system.


    When the co-conspirators are watching the co-conspirators, the truth rarely gets out to the public. This is aggravated by the conspiracy of CEOs and CFOs cooking the company books under the watchful eyes of a totally complicit media watchdog.

    Company financial reports, which are filed with the SEC, are often "cooked", to hide the fact that they are heavily in debt and nowhere near making a profit.


    Company balance sheets are also manipulated to show assets where none exist, and liabilities as non-existent.


  4. Its a myth to think that the market is being controlled by the "Little Guy" or "Supply and Demand".

    • Rhetoric to the contrary, institutional investors, mutual funds, insurance companies etc own most of the stocks that are being traded publicly. There is no "little guy" effect on the market. This makes collaboration and manipulation all that much easier.

    • Newspapers, television and other corporate owned media exist for the only purpose of appeasing an angry public that has watched its life savings evaporate through theft and deception.


  5. The dollar is dead, and so are "dollar based investments".

    • Whether the dollar rises or falls against another paper currency is irrelevant when all paper currencies are manipulated and owned by the Banksters.

    • The only true measure of a currency is how it stacks up against gold and silver, which are the only "real money" in this world of ours. The Banksters have suppressed the price of gold and silver through the fraudulent manipulations of the Silver and Gold Options market.



  6. We are dealing with 25% real unemployment in the United States. Far worse than the Great Depression, when 50% of the population lived on family farms.

    • The American Consumer is 75% of what he/she used to be. Yet, the stock market indexes continue to push against the laws of gravity and good old fashioned common sense.

    • Many Americans have been forced to liquidate their stock holdings just to survive. They are selling at a discount, not buying.


  7. There is no value in the stock market. Value is determined by profits, assets and liabilities. Profits are down, assets are gone and liabilities are well hidden through government intervention and the corporate media.


If we don't liquidate our dollar based assets, like stocks, bonds, CDs, long-term savings accounts etc., and get our money out of the hands of the Satanic Psychopaths, by converting our assets to food and other preparations, and gold and silver, than we are truly doomed.


We cannot afford to rely on the mercies of those that have shown no mercy, stolen our other wealth, or shill on behalf of the Criminal Elite that now control our system.


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