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Topic: The paradox of declining volume and price and how it will end eventually (Read 637 times)

legendary
Activity: 1260
Merit: 1000
As an economy starts to run into trouble, the world in this case, usually a deflationary death spiral begins where nobody has money to buy anything whether it's cars, new clothes, even things that seem like they would be smart to buy like gold and oil.  People look at different assets and can't find a winner in anything.  The last bastion of safety seems to be a highly rigged stock market that's hugely overvalued because it's not a free market.  The Keynesian tactic of printing money doesn't help since the money printed doesn't actually circulate and just further elevates the wealth gap.

The majority of people have no money to invest in anything, and if they do, it's usually drawn into the stock market through ritual habit alone in things like retirement funds, further ballooning that bubble.  Since there's no available currency for such a large percent of the population, they should be facing a deflationary spiral as mentioned earlier, but the Keynesian policy manages to stop it...temporarily.  The effects of the what should be deflationary spiral for the general populace will eventually override Keynesian manipulation since Keynesianism has no fundamentals.
 
The first sign this is occurring, with a major event approaching, are the main signature assets of the wealthy, such as stocks, being pumped to all time highs.  They have little else they can do with their money since they're scared of investing big in things like gold and losing meager values like 5-10% in the short term due to it being manipulated by central authority to prop up the Keynesian policy.  They'll only go in a small amount if they do.  Assets like gold, oil, bitcoin, etc, can tank during this time period even when it seems like they shouldn't.

After three paragraphs of introduction, it really only comes down to one point.  When the stock market bubble implodes, that is when these other assets change drastically in price as the rich frantically try to get money into something else to preserve wealth.  Many will involuntarily become market makers just by trying to preserve wealth alone.

TLDR version:  The price of bitcoin, gold, oil, and many other assets can decline to nonsensical numbers until after the stock market bubble implodes, then instantly see exponential gains.  The stock market bubble imploding is the prime mover of all things in the future.
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