What I want is the taxpayer to make bank and I want our government to start running this program where we the taxpayer profit.

This is just the craziest idea. A stock market doesn't work when someone announces they're going to buy x trillion dollars of equities. You would get a huge short squeeze and spike in the market at which point the smart money would unload it all on the average joe just as he's hitting the buy button. It would CRUCIFY the public not help them.

It is for the same reason why lottery officials are not able to play the lottery.

Second line.

Yo, Greenski, it can't happen like that because...........

...T + 3! The brokers gotcha by the short hairs. Now don't it?

Money supplies always increase in order to keep the game in motion. The ''game'' ultimately is to control the holders of your currency. You want people bonded to you. You want people beholden to you. To do this you want to keep inflating the money supply in order to keep the motion steady within your borders, and also to get new folks hooked outside your borders. The country that can hook the most users is going to be the winner ultimately in the Earth control contest. You have to make more money available to current and prospective game players all the while maintaining the illusion of steady value.

You've got natural population increases inside your border, and you've got new players brought online outside your borders, which require you to print more money so everybody can have some to spend. And you've got those people who are the best at attracting money and they will accumulate it, while most people just rotate it through their personal accounts from payday to payday and accumulate little. So most stay broke while the best players get more and more money in their accounts. These black holes of money attraction take money out of the pockets of the little guys. So you've got to constantly be putting more money into circulation in order to keep the flowing going with government paychecks, welfare checks, military checks, bank loans for building, etc.

Remember you have to control the money supplies rate of increase, and sometimes temporary decrease, in order to steer the game for best game play, always keeping in mind that supply inflation causes people to doubt the worth of their currency. You have to constantly keep people hooked on the idea that the currency is worth something in relation to what they thought it was worth yesterday. A new car isn't $4000 anymore, but then again an engineer doesn't get paid $8000 per year anymore either. So in a way the Fed has managed to keep the game going while everybody still believes that the currency is worth what it used to be worth. Only the numbers have inflated. But the life you buy is still about the same across the board.

Pumping unlimited money into the stock machine will mess up the game play because the rate of inflation would be so astronomical you would end up devaluing the currency. You can't inflate the money supply too quickly. It has to be paced in a somewhat natural manner, abstract but natural. The amount of money that would be necessary to constantly drive the stock market up would be ''unlimited'' and that would just not do. That would cause the whole game to fail. Plus you can't push the market up like that. The market pushes down. Remember Bull and Bear? Mr. Bull is irrational and jumpy and easily incited. Mr. Bear is more cunning and ultimately more powerful. When brokers have the ability to ''naked'' short you simply can not put enough money in to keep the market going up against the wish of the brokers. Get it? The brokers run the stocks. You CAN NOT drive a market higher if the brokerages want to take it down. The central banks and governments of each country run the money supplies and compete with each other for the most attractive living arrangements and most satisfied, productive and beneficial populations. The brokers run the stock market. It is a capital gathering machine that attracts currency towards those who believe themselves to be the best stewards. The stocks don't make currency. They take currency. You can't just keep pumping it in with reckless abandon without catastrophic effect.

Call the time ''T''. Start the Bid at $10 and the Ask at $11.

I'm a broker. The first thing I do is go short and hit the Bid for $10. I now have $10. I am only one single broker though, and the other brokers are ganging up to take the market higher. I'll catch on eventually, but for now I'm going to have to play catch up. The market closes at $11/$12. That's T.

Now it is the next day. This is T+1. The market opens at Bid $11, Ask $12. The first thing I do is hit the bid for $11. Now I have $10 from yesterday and $11 from today, for a total of $21. The other brokers are still going higher though. They want the market at Bid $12/Ask $13. Oh well, tomorrow is another day.

Now here it is the third day, T+2 for me and my first short sale. The market opens at Bid $12, Ask $13. The first thing I do is go short some more and hit the bid for $12. Now I have $33 in my account and I am keeping track of three short sales at $10, $11 and $12. The other brokers are still going higher. Market closes at Bid $13, Ask $14. If forced to cover all my shorts at the asking price of $14 I would be liable for 3 x 14 = $42. All I have is $33. Oh well, tomorrow is another day.

Alright. Day four. The day of reckoning has arrived. It is now T+3 for me and my first short from $10. The market gaps like crazy and opens at Bid $17 and Ask $18. Who cares? Not me. I'm having fun. The first thing I do is short again hitting the bid twice for $34 (17 x 2). Now I have $67 in my account. I've got to settle my first short from $10 so I cover at the asking price of $18. Now I've got $49 in my account and the game continues. I have more and more cash, more and more shorts, a higher and higher price, and when the other brokers finally decide to take the market down I will learn a bit and make a killing.

EDIT: This is a really simplified example, but remember, I'm a broker so I'm holding all the cards (ie. all my customers' cash and stocks) and I can balance my book as long as nobody demands too much cash withdrawal. Most people buy and hold stocks, so I'm safe. At least until there is a major run on my brokerage operation.

[edit on 8-2-2010 by Cabaret Voltaire]