Companies’ performances in the stock market do not reflect the real state of affairs for the US economy in times when supply and demand, as well as output, stop being the economic markers thanks to the Fed.
RT’s Keiser Report weighs in on how America faced an “illusion of wealth,” while interest-rate management by the Federal Reserve System (the Fed) became the most important aspect of the economy.
According to RT host Max Keiser, stock pricing has been going up by engaging in “price manipulation” and “massive fraud” enabled by central banks. He says that investors live in their own ideal world, which does not change no matter what happens, resembling Oscar Wilde’s fictional character Dorian Gray.
“In the main salon are stock holders who are living in a parallel world where everything is constantly going up, they never get old, they never have a down day, JP Morgan never reports a loss on their trading desk,” Keiser explained.
He added that they have all the tools to “manipulate earnings” without taking a risk, but “the attic is the real economy” in which the “average American is dying prematurely” and life expectancy is falling.
“All these ‘assets’ on the central bank balance sheet, if added all up, I think that central banks in total have something like $50 to $55 trillion of what they call assets, but they might be worth a McDonald’s hamburger,” the veteran host said.
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