Has Computerization Eliminated The Business Cycle?
Has our Business Cycle been eliminated now that computers, algorithms, central banks, trade our markets?
The human element has been substantially reduced within all our electronic cyber markets to a smidgen of what it was twenty years ago. Back in 1998 and prior our markets had the Open Outcry system for determining most of our prices and trends within our markets. The Business Cycle ruled over our markets as human beings (with emotions) did our trading and created our global markets. Human emotion meant that our markets experienced corrections as human emotions changed from day-to-day. Major corrections happened at regular intervals which many could predict. This has all changed with computerization of our markets.
This human element (for determining prices) has now been removed from our markets and we live with nearly all markets under the control of electronic trading and speed of light transactions. Machine driven computers, algorithms, source codes, and high frequency trading strategies have replaced human traders in the pit. Human beings have been removed in favor of these emotionless computers and automatic machine driven trading. This now affects all global trading markets and it has mostly eliminated the historical Business Cycle which ruled over our markets.
Have you noticed that our electronic driven markets go up (mostly) continually irrespective of any dire geopolitical news, military actions, business closures, lay-off news, plant closings, governmental policy conflicts, war warnings, etc. No matter what happens nationally or internationally within our human markets, computers and algorithms can pump up markets indefinitely and irrespective of what is happening (emotionally). Computers have no human emotions when they use algorithms to trade our markets (automatically and at speed of light actions). A computer with a programmed source code (algorithm) can trade without any emotion and without any human input. This is now ubiquitous within all our trading markets!
The computer can be programmed to trade irrespective of dire human events anyplace on our planet. Today, some 70% or more of all trading is done via computers and algorithms. Institutions trade our markets with algorithms. Central Banks trade our markets with algorithms. Retail (private) investors also use robots and trading algorithms to trade our markets. Nearly all 65 international stock exchanges are now electronic and operate with digital money and electronic digital trading. The laptop, the smart phone, and the desk top computer does our trading and all can be done with no human element interfering with the process.
In addition to this computerization of our markets, we now have a new element which has emerged mostly since the financial crisis of 2008. We now have Central Banks trading all our markets and choosing to pump up these markets continually and with no end game in sight. Think of this change. Central Banks did not trade our markets twenty years ago. We had corrections in price trends and stock trends as our Business Cycle changed with human emotions. Today, this has changed. Few, however, are AWARE of these changes. I find that most everyone I talk with has no idea that Central Banks are trading all our electronic markets.
I find that few to none are aware that our money is now digital and that this digital unit is created arbitrarily by our commercial and our Central banks (out of thin air/nothing). Ask a person what happens with this policy called Quantitative Easing (QE) and few comprehend what happens. Many do not even understand that select Central Bankers can create these digits (called money) from their subjective consciousness. The trillions of digital units being created by select Central Banks (like our Fed, the European Central Bank, the Bank of Japan, the Peoples Bank of China, the Bank of England, etc.) do not register with hardly anyone (including major media pundits and financial pundits).
There is only a small fraction of thinkers on this planet who comprehend that all our markets are now RIGGED with computers, algorithms, and high frequency trading strategies. Nearly all emotion has been eliminated from our electronic cyber markets as computers are trading our markets (with no emotion from human beings involved). An algorithm programmed to trade automatically (at the speed of light) or via a robot does not have EMOTION. Trading at the speed of light (to enter/exit trades) is beyond human emotions or the effect of human emotions. The human element has been mostly REMOVED from our markets and this is HUGE. Think on this new situation!
All this change has happened in just the past twenty years and MOSTLY since the financial crisis of 2008. Our authorities have created electronic markets (driven by high-speed computers sourced with algorithms and select software). And our CENTRAL banks have entered our markets (with unlimited digital money) to rig and manipulate ALL our global markets. The SYSTEM is now totally rigged with computerization and with a process of Central Planning which is done totally behind closed doors. The U.S. Federal Reserve is mostly responsible along with the Bank of International Settlements in Basel, Switzerland. Did you know that our Fed has some 500 day traders trading our markets?
Yes, the historical BUSINESS CYCLE has been replaced with emotionless computers and algorithms. This factor along with Central Bank trading (with unlimited digits at their disposal) has changed all our markets. Central Planning is what we now live with and a DARK shadow group of traders who operate BEHIND closed doors in New York, London, Tokyo, Beijing, Frankfurt, Hong Kong, Basel, and a few other closed-door venues. The SYSTEM has eliminated almost ALL human ’emotion’ and this is why the markets can go UP and UP and UP forever (irrespective of dire human events). This is huge news to those who do not think for themselves! Think for yourself to discover this reality! I am: https://kingdomecon.wordpress.com.
Some additional images for your consideration:
Algorithms are now ubiquitous for trading our markets and computers dominate all trading nationally and globally!
Some 70% of all trading volume is a result of algorithmic trading. The algorithm is key to speed of light trading!
HFT trading is now ubiquitous as computers work best with this type of trading.
Our authorities can now use ‘circuit breakers’ to kill any major market decline with the push of a button! This is huge! Our markets are now all electronic!
Bitcoin is another digital currency which can be manipulated (rigged) as it uses an algorithm for its operating system! Algorithms can be changed easily!
Central Banks have their own trading desks which operate ‘behind’ closed doors to rig our electronic markets! This has occurred mostly since 2008!
Our big primary dealer bank (JP Morgan) can work in conjunction with a Central bank to trade/rig/manipulate our electronic markets! All is done behind closed doors!
These criminal bankers can work behind closed doors to rig, liquefy, change, manipulate, and prevent the Business Cycle from operating! Is this sound policy?
Has the Human Element (which causes the Business cycle) been eliminated? Maybe is my response! All human emotion is mostly eliminated due to computerization!
The historical foundation of Capitalism was the Open Outcry system for creating trades and our prices. This has been replaced with the emotionless electronic computer!