May 4, 2021 • 37 mins
Is it possible that someone has been playing both sides of the financial fence, seeking to destabilize markets for their own purposes? Find out in this classic episode.
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Episode Transcript
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Speaker 1 (00:00):
So this is one I think we should have put
out a few weeks ago. It would have been it
would have been timely, right exactly. And by the way,
I think we should do a shirt that says cryptids
not crypto, what do you guys think? Or crypto not cryptids? No, well,
I don't know cryptids or crypto, you choose. But the
point is all of this crypto stuff that we're seeing
(00:21):
in the news now, uh, and the way it interacts
with the stock market and all of this fear of
collapse um, very very prescient. This episode that we're about
to resubmit to you for your approval, right, Yeah, And
today's classic episode we ask can people purposely collapse the
stock market? The answer historically is that yes, people can
(00:46):
collapse certain stocks and have done so and have gotten
way clean. But the question is, can someone purposely tank
the entire financial ecosystem? Yeah? And then could like I
don't know, a couple of big banks merge like Kana Karen,
and then just you know, run the whole show afterwards
(01:06):
and and be vultures to pick off the bones. Mammon
always gets his due from UFOs, two ghosts and government
cover ups. History is riddled with unexplained events. You can
turn back now or learn the stuff they don't want
you to now. Hello, welcome back to the show. My
(01:27):
name is Matt. And then, and this is stuff they
don't want you to know. And you may hear my
voice sounding a little strange. That's because I cleaned house yesterday.
Is that a euphemism for something I wish? But no
it is not. I actually just dusted and swept, and
I have some dogs, so the amount of hair just
(01:49):
in a week can accumulate his astounding. So you do, uh,
you do like cleaning stuff of your house every week?
I mean no, not every week, certainly, but this time
it was a week in like interval between sweeping in
the living room and holy crap balls? Oh I can
can I say that? Yeah? Yeah, there might be a
(02:11):
place that you know, there's probably someone who sells something
called crap balls and they're hopefully overjoyed hearing the podcast.
Um their cake pops, and that would be like a
crap ball Holy cakes. Well, I really hope that we
can say crap ball, Matt, because this will be about
the h It'll be fun. If we can't, then Noel
would just have bleeped it out and no one will
(02:34):
know what we've said. So yeah, as always a big
hand to our super producer, Mr Noel Brown. On the
Ones or Two's Matt, I found the phrase cleaning house
or clean house very interesting because, as you know, at
the time of this recording, Uh, some tapes emerged from
a whistleblower the Federal Reserve, and uh, it's got people
(02:56):
in modern America, although not as many as I would
have thought clamoring for a cows cleaning and I do
mean as euphemism at the Fed. What on earth did
those tapes say? Was there something wrong in them? Well,
apparently the the whistleblower herself, who will probably do in
(03:16):
another episode. Uh. She found that the Federal Reserve or
members of the Federal Reserve had a distressingly cozy relationship
with some of the very same organizations they were supposed
to be policing, such as Goldman Sachs, and that they
would have conversations where people would say things like, well,
(03:40):
you know, do the rules really apply that way when
you're wealthy, when you when you have that much money,
do they really know? Right? Well? That was that was
the sense that she got in full disclosure. I've yet
to listen to all these tapes. I've just been reading
about them. Yeah, so what we've what we found is
that this is kind of an open secret. But for
(04:04):
the average American dare I say the average person in
the world, uh, the stock market and finance itself, it's
very up to strange, arcane thing, right, Oh yeah, sure.
The complication of it alone is it makes someone like
me want to turn away because you just you there's
so much information that you need to grasp in order
(04:27):
to understand just the basics of what's happening. Right. There's
some terminology, sure, there's some jargon, but to me, I
feel like I didn't need to study, like I was
gonna take a test or something. Yeah, and you know,
you and I working at how stuff works here. We've
always thought that it is possible to learn something you
can take. No matter how complex an idea is, it
(04:50):
can be broken down into certain components. Those components can
be explored and then soon enough, although piecemeal, you may
know the entire thing. It can It can be a
tough gig sometimes, but it's worth it. With that in mind,
let's start, uh, enlighten me, what what the heck is
a stock market? Why do we have these? Well, we
have stock markets because capitalism exists, and a couple of
(05:15):
things happened along the history of capitalism to create these
fun things that we call stock markets. So there are
these things called securities, and they're essentially financial instruments that
serve as investments, let's say, and their respective terms are
considered to be longer than stocks. But stocks, um they
(05:37):
may be more apt to undergo kinds of the fluctuations
that you see when you look at the stock tickers
when it goes up a certain amount of points or
down a certain amount of points um. But then these
securities they're typically considered to retain a lot more of
their uh the stable nous of their let's say, their numbers,
so so they're stable. They're also considered like with assets
(06:00):
and investments essentially anything you can trade in a lot
of ways to security. But they're not just stocks. And
there there are a couple of kinds, right, well, there
are three. These are probably the things that your dad
is invested in. Just you know that having conversations with
my father over this week, I find out, you know,
I found out a lot of things that my dad's
(06:21):
four oh one K isn't because you know most of
our I don't know. I can't say most. A lot
of the people who work here probably have four oh
one ks or parents that maybe had a four oh
one k from the sixties or seventies. Your life is
just so much more well organized than mine. We'll look
lean in your house. You're talking to people about money. Well,
(06:44):
it's one of those things that you have to begin
to understand when you hit your thirties. Us, I got
in a fight with a dog over a sandwich last
week and it was my dog. That's where That's where
I'm at in life, bro. But anyway, anyway, yeah, okay,
So there are several different kinds of securities back there.
(07:05):
So there's a debt security. These are things like bonds,
bank notes. There are equity securities. These are your common stocks. Okay,
so when somebody says stocks, they're probably talking about equity
securities exactly. And they're also these fun things called derivative securities.
These are futures forwards options there, they are derivatives. That
(07:30):
is the one thing that is that's the thing you
might struggle to understand here, as we sort of did.
But it's you can wrap your head around it. Just
stay with us. So another definition a share, A share
is literally that a share of percentage of portion of
ownership in a company. By having a share, you are
(07:51):
theoretically entitled to some amount of assets. However, not all
shares are created equally. There are common shares, they're voting shares.
There's a difference, and all these shares together form what
we call a stock, right, And a stock is comprised
of a certain number of shares, yes, and not all
(08:12):
companies have the same number, and certainly not the same
value per share, and more can be created, which is
really interesting. That's cool. Uh, it's like some sort of
magic I mean by which I mean math. Yeah, yeah, yeah, yeah,
that's what it is. Anyway, it was it was a
euro so I'm not sure if it technically counts as
a sandwich. Going back to that story, God, we're just
(08:34):
jumping every I love this. The dog is cool though. So. Uh,
you know, a company has assets, and assets are everything
the company owns, right uh. And they also have their earnings,
which are everything they bring in. So the big question
is why on earth would a company want to share
this with the public, right? What what's the what's the gift,
(08:56):
what's the advantage. Well, the advantage means that you're getting
inflow of cash or it's kind of an investments into
your company capital, if you will, so that you can
do things with your company and then maybe make some
more money and then give back in derivatives to your stockholders.
(09:17):
So a lot of companies will borrow money, which is
debt financing. Uh. Then they can in turn sell shares
and that's called equity financing. Okay, So those two different
ways that companies can acquire capital. Going back to our
amazing pizzeria thing, Uh, all right, why would you Why
(09:37):
why do so many companies prefer to sell stock rather
than to a crude debt. Well, there's no interests, that's
for That's a good starter right there. And because there's
no interest, there's not even a requirement to pay this
money back. Um. Selling stock distributes the risk among a
(09:57):
whole swath of people rather than just the small group
of investors. UM. So basically, if the whole thing just
goes belly up, the founders don't have to lose everything necessarily. Um,
they'll lose smaller chunks of everybody's stuff. So it distributes liability.
That makes sense, but they're also disadvantages to playing in
(10:19):
the stock market pool. One of the biggest and the
primary is risk um and part of that risk is
whether or not the game that you're playing, in particular
is rigged. Ah. Yes, And as we mentioned at the top,
you know, recent evidence shows that organizations charged with policing
(10:41):
the stock market have some cozy relationships with some of
the groups they're supposed to supervisor regulate. But Matt, going
back to what Goose said, I thought it was very interesting.
Is the game rigged? Um? I'm just gonna answer that
way first and then get to it. Well, it's very
(11:03):
interesting that you would ask that. Ben. Let's get to
several of these theories that we've been covering this week.
Ah as some here's where it gets crazy. Yes. Well,
in fact, we have found that it's quite possible for
a single group to acquire a large enough chunk of stock,
or at least one section of the market, to trigger
(11:25):
either rise, even if it's just a slight rise or fall.
And this when this happens, the group could theoretically control
or alter the market in their favor if they controlled
enough of the pot. Again, we're speaking, you would have
to have quite a large amount there. Here's a good one,
one very popular conspiracy theory, because there are quite a
(11:47):
few conspiracy theories about this stuff, um, some which hold
more water than others. But this one is if there
was the greatest hits, this would be one of the
more recent ones that made it onto the track less.
This guy's name you will know George Soros, according to
Mahat Tire being Mohammed, who is not just some guy
with an interesting name, but in fact a former prime
(12:09):
minister of Malaysia from maybe one to two thousand three,
so his prime minister for a long time. Matt He
says that George Soros was partially responsible for the economic
crash of the East Asian markets. The Thai bots was
unpegged from the dollar. And what we mean by that
is in currency trading or in currency valuation, quite a
(12:32):
few countries are pegged at a certain amount to a dollar,
so x amount of boats or whatever, X amount of
Thai currency equals one dollar. Um. A lot of countries
do that, but Thailand didn't, and then Thailand stopped rather
in the three years leading towards the crash, says the
Prime Minister of Malaysia, George Soros invested in short term uh,
(12:57):
speculative stocks and real estate and then he just dumped
them when he heard about the evaluation. And then that,
according to this guy, triggered right dropped the market. So
how much did he have that? That's one thing that
we have learned so much about the speculation involved in
the stock market and how much a rumor can change
(13:21):
the entire thing. Oh yeah, it's there's there's a strange
group psychology. Yeah, or even just the thought that someone
as influential who has a lot of something like George
Soros looking at what he's doing and then going oh,
well I need to do the same thing, and then
you just get this wave effect. Like if Warren Buffett,
(13:42):
for instance, came on National TV and of course they
give him a spot. He came on National TV and
he said, you know what is over has Bro toy
market or something like that, then they would tank because
people follow this uh financial profit. Yeah, that's what financial profits.
(14:02):
I feel like we need to do a whole series
on that now been Oh I don't know, man, Yeah, okay,
we could do it. But if we talk about financial profits,
we have to talk about, of course, the but I'm
gonna say, by far, the largest, most well known, most
popular conspiracy theory about someone controlling the stock market. You
mean the Boogeyman family, the Rothschild's, or you could really
(14:26):
insert pretty much any large banking family that's been around
four hundreds of years. Yeah, Rockfeller, Morgan, et cetera. So
there's this idea that ultimately the Rothschild family itself, the
entire clan, controls stock markets around the world. Yeah, and okay,
(14:47):
so here's why it's scary because as a whole, the
Rothschild family, the dynasty, if you will, is profoundly rich. Yeah,
that part is true, Like whoa rich up, perhaps the
most wealthy family in the world or perhaps even the
history of the world. We literally have no idea how
(15:07):
much money this family controls, how many assets they officially have.
You can just look at the real estate of the
Rothschild family and your brain will pop right out of
your head. Yeah. Great wine too, apparently. Oh yeah, that's
something that people say. Uh, but there's a point here
where we have to be fair and we have to
point out that with so many competing interest Uh, it's
(15:30):
tough to believe that a single entity could control the
entire global market system. What's more likely would be loosely affiliated,
maybe influid confederacies of groups that move as their interest aligned. Yeah,
and it should be noted that the Rothschild family is
widespread throughout the world, and perhaps even their own interests
(15:52):
among the family are competing. So I didn't think about that. Yeah,
I was looking at I guess the genealogy and just
be it, where all the people are, what kind of things.
There's a lot of information about individual rich people on
the Internet, which kind of freaks me out but also
makes me glad to know that there's at least some
(16:13):
kind of tabs. But Wikipedia has way too much information
on people. Yeah. Yeah, Wikipedia is fascinating, and I think
it gets a bad rap sometimes because the people behind
it are definitely not in it for the money, and
they're doing some great work at different times. I just
found out that the that people name different types of
(16:34):
wind in Australia, and there's one called the Fremantle Doctor.
It's a name for this consistent sea breeze that goes
through Perth. And I wouldn't have known that if Wikipedia
hadn't told me so thank you, thank you Wikipedia. But
with that, yeah, with that in mind, the idea about
privacy being a new privilege of the elite is another
podcast that we could explore to We've got a lot
(16:55):
of potential here at UM. There's another theory, and the
theory is that bank have always controlled the stock market
and the big fight is actually between US banks and
European banks. Now, listeners, I know a lot of you
guys are gonna say, there's not really difference. It all
goes back to the city of London. Oh what what?
Which is a weird, creepy, anachronistic thing to begin with,
(17:17):
and we should also do a show on that. And historically,
the US presidents we're against these kind of central banking
systems that um that often lobbied to move away from
the standards, the hard standards like gold standards are still silver, um.
And then you've had these other competing interests of the
(17:38):
bankers that always wanted this not always, but many times
wanted a fiat currency like the one that we have
right now, controlled by a central organization, right, a quasi
governmental organizations often called uh yeah, we know it's true,
maybe not all, but many US presidents were against these
sorts of banking systems. Got a quote here from James Garfield,
(18:01):
whom some of you may remember, I mean remember reading
about unless you were very very old, and which kids
contact us with You know what I remember from high school?
Did he get hurt or spoiler? Here we go from
his inaugural speech. The chief duty of the National government,
in connection with the currency of the country, is to
(18:23):
coin money and declare its value. Grave doubts have been
entertained whether Congress is authorized by the Constitution to make
any form of paper money legal tender. The present issue
of the United States notes has been sustained by the
necessities of war. But such papers should depend for its
value and currency upon its convenience and use, and its
(18:44):
prompt redemption and coin at the will of the holder,
and not upon its compulsory circulation. These notes are not money,
but promises to pay money. If the holders demanded, the
promise must be kept. Days later, he died of what
dysentery on the Oregon trail. No, no, he was assassinated,
(19:09):
which you know, not to not to make too much
light of it, and not to say those are necessarily connected.
But yes, he died of assassination. So that's one theory
that banks have already controlled it. And then there's a
different idea, and that's that the stock markets function as
these money managing or siphoning tools. So if you can
do a quick example North Korea. So North Korea has
(19:31):
a booming black market because it was the only way
for many people to survive, right uh, selling goods from China,
cell phone, South Korean soap operas, methamphetamine, and and they
begin to save money. They were cruing savings. This could
be a problem for the uh, for the regime or
(19:51):
for the government. And at one point they just said, okay,
we're changing the valuation of the money. So everybody lost
the cash that they had made. And this other theory
about the economic system, called this talk market, is that
it's the same kind of scheme. Yeah, well it yeah.
(20:12):
I remember seeing something about the thirty year cycle of
boom and bus to where I guess the people who
are of a certain age will be able to profit,
profit for a generation and then retire and then uh,
then it starts over again. It falls. Then you kind
of get this thirty year cycle. I don't know, Um,
(20:33):
it's an interesting theory. Well, it's Uh, it's funny because
do you remember Dilbert comics Dilute. Yeah, well, the creator,
Scott Adams believe that this is the case, or he
did at one time. Oh uh, he actually wrote about
it in twenty blog post. My prediction is based on
the observation that the stock market appears to move as
(20:56):
if it's manipulated by a network of big players. They
lure in the small excitable investors by allowing the market
to show a year or two of solid gains. Then
they sell their shares, spooked the world with predictions of doom,
and buy back into the market at lower prices. Interesting
quote there, Ben, Yeah, that's pretty interesting, Matt. And you
(21:19):
know there have been other people, of course who have
said this. Uh Scott Adams a very smart, very clever man.
Uh not necessarily an economists by trade. I hope I
don't have to eat those words later if you are
actually an economist by trades, or I apologize to Wikipedia.
To Wikipedia. So okay, I have to bring this one up.
(21:40):
I just have to one of my favorite conspiracies of
all time. So there's another one that this that the
stock market collapses might be a part of Project Blue Beam.
Oh yeah, this is a This is a long time
favorite of Matt's, you guys, So Matt break it down
for us. What is Project blue Beam? Oh man again,
(22:03):
all right? So Project blue Beam states that some force,
probably a government, would use this technology that they call
blue beam that somewhat exists now actually, where you can
project a hologram onto water vapor and you have what
seems to be a three D object or three D
something just floating in the middle of the air. The
(22:26):
idea is to make these holograms of religious figures and
have them come back in various parts of the earth
and have a religious um revival of sorts. But then
the deities slash whoever that maybe they say, oh no, no, no,
you guys, we've you've guys have gotten religion all wrong.
(22:47):
And then there's one basically one religion that comes together
throughout the entire world, helping to um solidify the new
one world government that would also be ushered in. And
this would come at after a series of manufactured crises,
right exactly. So everyone's at there at the brink of
what they think is disaster, lost all their money, servation.
(23:10):
Then the deities come, Everything's fine, anyway, I love it.
It's so it's just it's just a great apocalyptic vision.
I just like technology and religion. I just have a weird,
a weird image in my head if somebody's sitting around
the u N and someone else going You know. What
I like about that is that it's simple. It's just
(23:33):
easy ships, it's cheap. We know it'll work. It's simple.
But here's the other thing. When we talk about this
idea of one world government, of course we have to
also mention the Illuminati. These are the people that will
be blamed for so many different things. Those sons of
we have. We have a series on the Illuminati, and
(23:56):
they pop up fairly frequently in a lot of the
stuff that we look at. And yes, conclusively, if no
one has told you, if you haven't seen our video yet,
there is Slash was a real Illuminati. The claims the
group makes are maybe not the claims you would here
associated with the Illuminati today, uh there, but there is
(24:17):
a historical precedent. It's a real thing. It was at
one time at least apparently. They are also manipulating the
stock market. The Illuminati that we have heard are rumored
to exist and they're doing this because they want to
eventually break down the current national and international borders, creating
(24:38):
one global system under the rule of this group. Uh
kind of, it's kind of similar to just kind of
change the players a little bit and some of the machinations. Um.
So the next one is that there is this secret
stock market that's for the fee only, Okay, and the
(25:03):
idea that insider trading is only a crime if you're
one of the people who was not inside this insider group.
I see. And so yeah, if you hit Caughton, you're
not in the group. Um. Sorry, But if you are
in the group, then hey man, you're good to go,
and you can just get as much infinite money, really
(25:24):
just get infinite money. So it's like it's like a
hack of some sort. Here's yeah, yeah, here's the question
I have with that. Have we reached a point from
a regulatory standpoint? Have we reached a point where these finds,
which pale in comparison at times to the profits, are
becoming just part of the cost of doing business. I,
(25:48):
as an uneducated person in the world of economics, would
say absolutely, yeah. Neither of us are experts and economics
we are relaying the official stuff we know, and then
the theories that we have heard and we love to
hear from. You. Also tell us what you think about
these theories. Do any of these hold water? Uh? And
(26:09):
we're going to go to one other subject, but before
we do, let's pause for a word from our sponsor. Mean,
I can't believe I got another passive aggressive phone call
from the SEC and the FED. Well, Hi there, friends. Uh,
I was over there just burning hundred dollar bills, throwing
them at a dandered animals. And I couldn't help it
(26:30):
over here that you've got something on your mind. Yeah,
that's those dips over the regulatory agencies. Every time I
try to bend the rules a little and make some
major units, they email me or text me or get
me on an app, and they just they tell me
not to do it. Man, can you believe it? I mean,
I have to pay for the calls I received, you know,
it could be as much as ten cents per text message. Dude,
(26:53):
Why that's not fair. That's money out of your pocket.
Who do they think they are? Don't they want to
work here after they've served their public sector time. That's
the thing. I can't stop answering their calls because I
need them on our side, right And what if our
people get replaced by some sort of white knight, you know?
Can you imagine how ridiculously inconvenient it would be if
a FED or SEC agent actually try to enforce the
(27:16):
rules and trying to make us play fair. Never playing
unfair is unfair to us. But don't worry, friend, I
have some news for you. Why don't you just check
out my phone? Here? You see this app? Oh? What
is that? It's the new se c A. Each and
every time a future employee of a private bank currently
pretending to regulate the giants of the industry sends a lame,
(27:37):
please stop message to you, sec A will defer the
call to our outsourced center, where automated voice acting software
will pretend to listen to their complaints, promise to do
whatever it is supposed to be legal to do this week,
and even display empathy when the regulator confesses personal information. Empathy. Yeah,
I don't know. I think it's a thing for poor people. Listen.
(27:59):
Sec it doesn't just deflect, It also compiles a list
of information from each call that will be analyzed and
automatically parse for insider information. To maximize your trades. I
don't have to do anything. Why should you? Doesn't the
world owe you a favor? Aren't you tired of people
getting mad at you because they weren't privileged enough to cheat.
(28:19):
They do the same thing to you in a second.
Maybe you know, I don't really think about other people
that much, and now you'll have to think even less.
Do we have a deal? Yeah? Say who are you? Well?
I'm a robot. SEC has not approved by the SEC,
the Federal Government, the Federal Reserve, the Democratic Peoples Republic
(28:41):
of North Korea, Michael McDonald. They cast of a team
the inventor of the inflatable Life After with the producers
of Big Trouble and Little Chinla. A SEC is legally
required to notify you that the consequences of using SEC
rest entirely on the user and his or hers nepotistic
influence or bank accounts. SEC of maybe have it. Forming
a SEC is not a substitute for bribery for loaned.
Use of SEC may lead to world trititudes, slaunching ethics,
well deserve cocaine related health problems, and in some cases,
bloody revolution. You are in the pyramid, but not at
the level you believe, and you have considered this from
the wrong perspective by consume obey. Sec is a product
(29:03):
of illumination Global unlimited. And we're back. So Ben, let's
talk about the future. Ah, yes, the future. So there's
this thing that we failed to mention in our first
(29:23):
two videos, and we did it purposefully because we think
it's one of the more meaty parts of this whole
wider subject, and that's high frequency trading. Ah. Yes, yes,
not to be confused with high fructose corn syrup. Yes,
slightly slightly different. That's my valuable contribution to this part
(29:45):
of the conversation. I wonder how easy it is to
get from high frequency trading to high fructose corn syrup
on Wikipedia. Well you know what, I bet there's a
rabbit hole there somewhere. Uh. So it's interesting because high
frequency trading is an amazing process from a technical perspective.
Uh what what is it? Well, Ben, let me tell you.
(30:08):
High frequency trading is a kind of algorithmic trading of stocks,
and it uses mathematical models to rapidly trade these things.
And we're talking fast, like fractions of a second. According
to Rob Lotty, I'm probably mispronouncing that of the T
A B B Group h F trades accounted for. That's
(30:29):
high frequency trades accounted for sixty to seventy percent of
the total equity trading in two thousand nine, falling to
in two thousand twelve. Now that's crazy because that seems
little counterintuitive to people who just heard about high frequency
trading through things like the flash Crash or Flashboys, And
(30:52):
just by way of a book recommendation, flashboys is a
super breed. I really enjoyed it, isn't that Michael Lewis, Yes, yes,
And we've got we've got some interesting stuff here that
that you find out about high frequency trading. One of
those is that this dates back way before two thousand
and ten. It may have started as soon as electronic
(31:13):
exchanges were allowed. So what we do know is that
at this point, high frequency trading is changing the game.
We won't spend too much time on it because we
have videos about it, um, but I do want to
make a couple of corrections to some things that I
got wrong in the videos. I misspoke they can take
a trade in point zero three seconds, not point three. Well,
(31:37):
I will annotate that, and hopefully if you watch the
video you'll know yeah, we do try to make corrections,
will get something wrong, and that was a slip on
my part. But regardless, it is true that high frequency
trading depends on very very small time increments Millet, you're
even micro seconds. But is it legal? Well, that depends, uh.
(32:01):
Question one. Are you listening to this in let's say October,
Then yes, it is legal. Um. It seems like one
of those things that will be changed further down the
road at least looked at a little more closely, but
for right now, yes, it is legal, all right, and
we know that in some places it's even accepted, like
(32:23):
one of the more recent laws involving high frequency trading
comes from oddly enough Italy, who are charging point zero
zero zero two euro on trades that last less than
half a second. So that's clearly targeted at high frequency trades.
And knowing the volume of high frequency trades that can
(32:45):
occur in that kind of situation, then they may be banking.
We don't know yet. That feels like the office space
a scheme, Do you remember that. Yeah, it feels like
they're putting a tax as a warm account, and that's
kind of what you know. High frequency traders make a
lot of money in very small increments, right, so they
(33:07):
add up, So we man, No, I have to ask
you personally, do you think that high frequency trading is wrong?
That's a tough one. Yeah. I'm gonna go out and
jump ahead and answer, I don't really think it is.
I don't think it's fair, but I don't think the
(33:28):
stock market is fair. Yeah, Okay. That that is an
interesting way to frame it, because it seems like if
you have the ability to do this and no one's
telling you that you can't do it um and there
isn't a at least some kind of penalty, like like
Italy has introduced that would just make you maybe think
(33:49):
twice about it, then I guess I guess it's not wrong.
I think it's just Yeah, you're right, it's the system
overall that I have a problem with. So we know
that at we know that typically a technology like this,
or the application of a technology like this is what
Jonathan over tech Stuff would call disruptive, just just the
(34:12):
same way that Amazon's order online model was disruptive to
break and mortar bookstores, which I think we mentioned in
the video, and just as Google, for example, or Uber
or something like that, it makes me think of a
strange story, which is a sports analogy. You know, originally,
(34:32):
when baseball gloves came out, they were considered cheating in
addition to being unmanly. Oh now that is right there. Yeah,
I think the last part was more of an insult
than cheating. But now they are an accepted part of
the game. And when people argue, for instance, about performance
(34:53):
enhancing drugs in sports, um, the idea of high frequency
trading is another technological step. Now, I'm not saying it's
one on one comparison to using a baseball glove or
taking steroids, but it is an edge and in a
competitive place, people are going to try to do that stuff.
(35:14):
I'm wondering if it's already too late to curtail this.
If the future of stock market trading is going to
be a bunch of very very fast, very smart algorithms
in an internal jam session. It seems like that's where
it's heading because humans just can't make those calculations. Uh,
(35:34):
they're yeah, it's just not possible with the speed that
they do. And oh man, that that's that's terrifying. It
feels like maybe machines are going to be taking over
our economy. Ben. You know, I would say that we
still will need human beings to clean the machines, to
(35:55):
turn it off and turn it back on. It sound
like a Twilight episode, you know, um, but that's an
interesting idea that could robots take over the economy or
even the world, the world, the world, the world, the world,
the world. We would all right, well, yeah, I guess
we'll just we'll cover that another day. We are going
(36:17):
to do that, right then, Yeah, I hope so awesome.
Well for now, why don't you tell us what you
think about this stuff? What do you think about high
frequency trading? Is it good? Is it bad? Is it lukewarm?
You don't really care? And what what do you think
about the idea of someone purposefully and personally orchestrating a
(36:38):
market wide boom or bust? Could could a group of
people overcome all the other very powerful interests around the
world or in a market to sink it or you know,
blow up the bubble. I'm I'm curious because I don't know.
I don't know if it's possible. I mean, I think
theoretically it is possible. But let us know what you think,
(37:01):
who would do this? And how awesome you can talk
to us on Facebook. We are conspiracy Stuff. There. You
can find us on Twitter. We are at conspiracy Stuff.
Go to our website, Stuff they Don't Want You to
Know dot com. It is the best and that's the
end of this classic episode. If you have any thoughts
(37:22):
or questions about this episode, you can get into contact
with us in a number of different ways. One of
the best is to give us a call. Our number
is one eight three three st d w y t K.
If you don't want to do that, you can send
us a good old fashioned email. We are conspiracy at
I heart radio dot com. Stuff they Don't Want You
(37:43):
to Know is a production of I Heart Radio. For
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favorite shows.
So this is one I think we should have put
out a few weeks ago. It would have been it
would have been timely, right exactly. And by the way,
I think we should do a shirt that says cryptids
not crypto, what do you guys think? Or crypto not cryptids? No, well,
I don't know cryptids or crypto, you choose. But the
point is all of this crypto stuff that we're seeing
(00:21):
in the news now, uh, and the way it interacts
with the stock market and all of this fear of
collapse um, very very prescient. This episode that we're about
to resubmit to you for your approval, right, Yeah, And
today's classic episode we ask can people purposely collapse the
stock market? The answer historically is that yes, people can
(00:46):
collapse certain stocks and have done so and have gotten
way clean. But the question is, can someone purposely tank
the entire financial ecosystem? Yeah? And then could like I
don't know, a couple of big banks merge like Kana Karen,
and then just you know, run the whole show afterwards
(01:06):
and and be vultures to pick off the bones. Mammon
always gets his due from UFOs, two ghosts and government
cover ups. History is riddled with unexplained events. You can
turn back now or learn the stuff they don't want
you to now. Hello, welcome back to the show. My
(01:27):
name is Matt. And then, and this is stuff they
don't want you to know. And you may hear my
voice sounding a little strange. That's because I cleaned house yesterday.
Is that a euphemism for something I wish? But no
it is not. I actually just dusted and swept, and
I have some dogs, so the amount of hair just
(01:49):
in a week can accumulate his astounding. So you do, uh,
you do like cleaning stuff of your house every week?
I mean no, not every week, certainly, but this time
it was a week in like interval between sweeping in
the living room and holy crap balls? Oh I can
can I say that? Yeah? Yeah, there might be a
(02:11):
place that you know, there's probably someone who sells something
called crap balls and they're hopefully overjoyed hearing the podcast.
Um their cake pops, and that would be like a
crap ball Holy cakes. Well, I really hope that we
can say crap ball, Matt, because this will be about
the h It'll be fun. If we can't, then Noel
would just have bleeped it out and no one will
(02:34):
know what we've said. So yeah, as always a big
hand to our super producer, Mr Noel Brown. On the
Ones or Two's Matt, I found the phrase cleaning house
or clean house very interesting because, as you know, at
the time of this recording, Uh, some tapes emerged from
a whistleblower the Federal Reserve, and uh, it's got people
(02:56):
in modern America, although not as many as I would
have thought clamoring for a cows cleaning and I do
mean as euphemism at the Fed. What on earth did
those tapes say? Was there something wrong in them? Well,
apparently the the whistleblower herself, who will probably do in
(03:16):
another episode. Uh. She found that the Federal Reserve or
members of the Federal Reserve had a distressingly cozy relationship
with some of the very same organizations they were supposed
to be policing, such as Goldman Sachs, and that they
would have conversations where people would say things like, well,
(03:40):
you know, do the rules really apply that way when
you're wealthy, when you when you have that much money,
do they really know? Right? Well? That was that was
the sense that she got in full disclosure. I've yet
to listen to all these tapes. I've just been reading
about them. Yeah, so what we've what we found is
that this is kind of an open secret. But for
(04:04):
the average American dare I say the average person in
the world, uh, the stock market and finance itself, it's
very up to strange, arcane thing, right, Oh yeah, sure.
The complication of it alone is it makes someone like
me want to turn away because you just you there's
so much information that you need to grasp in order
(04:27):
to understand just the basics of what's happening. Right. There's
some terminology, sure, there's some jargon, but to me, I
feel like I didn't need to study, like I was
gonna take a test or something. Yeah, and you know,
you and I working at how stuff works here. We've
always thought that it is possible to learn something you
can take. No matter how complex an idea is, it
(04:50):
can be broken down into certain components. Those components can
be explored and then soon enough, although piecemeal, you may
know the entire thing. It can It can be a
tough gig sometimes, but it's worth it. With that in mind,
let's start, uh, enlighten me, what what the heck is
a stock market? Why do we have these? Well, we
have stock markets because capitalism exists, and a couple of
(05:15):
things happened along the history of capitalism to create these
fun things that we call stock markets. So there are
these things called securities, and they're essentially financial instruments that
serve as investments, let's say, and their respective terms are
considered to be longer than stocks. But stocks, um they
(05:37):
may be more apt to undergo kinds of the fluctuations
that you see when you look at the stock tickers
when it goes up a certain amount of points or
down a certain amount of points um. But then these
securities they're typically considered to retain a lot more of
their uh the stable nous of their let's say, their numbers,
so so they're stable. They're also considered like with assets
(06:00):
and investments essentially anything you can trade in a lot
of ways to security. But they're not just stocks. And
there there are a couple of kinds, right, well, there
are three. These are probably the things that your dad
is invested in. Just you know that having conversations with
my father over this week, I find out, you know,
I found out a lot of things that my dad's
(06:21):
four oh one K isn't because you know most of
our I don't know. I can't say most. A lot
of the people who work here probably have four oh
one ks or parents that maybe had a four oh
one k from the sixties or seventies. Your life is
just so much more well organized than mine. We'll look
lean in your house. You're talking to people about money. Well,
(06:44):
it's one of those things that you have to begin
to understand when you hit your thirties. Us, I got
in a fight with a dog over a sandwich last
week and it was my dog. That's where That's where
I'm at in life, bro. But anyway, anyway, yeah, okay,
So there are several different kinds of securities back there.
(07:05):
So there's a debt security. These are things like bonds,
bank notes. There are equity securities. These are your common stocks. Okay,
so when somebody says stocks, they're probably talking about equity
securities exactly. And they're also these fun things called derivative securities.
These are futures forwards options there, they are derivatives. That
(07:30):
is the one thing that is that's the thing you
might struggle to understand here, as we sort of did.
But it's you can wrap your head around it. Just
stay with us. So another definition a share, A share
is literally that a share of percentage of portion of
ownership in a company. By having a share, you are
(07:51):
theoretically entitled to some amount of assets. However, not all
shares are created equally. There are common shares, they're voting shares.
There's a difference, and all these shares together form what
we call a stock, right, And a stock is comprised
of a certain number of shares, yes, and not all
(08:12):
companies have the same number, and certainly not the same
value per share, and more can be created, which is
really interesting. That's cool. Uh, it's like some sort of
magic I mean by which I mean math. Yeah, yeah, yeah, yeah,
that's what it is. Anyway, it was it was a
euro so I'm not sure if it technically counts as
a sandwich. Going back to that story, God, we're just
(08:34):
jumping every I love this. The dog is cool though. So. Uh,
you know, a company has assets, and assets are everything
the company owns, right uh. And they also have their earnings,
which are everything they bring in. So the big question
is why on earth would a company want to share
this with the public, right? What what's the what's the gift,
(08:56):
what's the advantage. Well, the advantage means that you're getting
inflow of cash or it's kind of an investments into
your company capital, if you will, so that you can
do things with your company and then maybe make some
more money and then give back in derivatives to your stockholders.
(09:17):
So a lot of companies will borrow money, which is
debt financing. Uh. Then they can in turn sell shares
and that's called equity financing. Okay, So those two different
ways that companies can acquire capital. Going back to our
amazing pizzeria thing, Uh, all right, why would you Why
(09:37):
why do so many companies prefer to sell stock rather
than to a crude debt. Well, there's no interests, that's
for That's a good starter right there. And because there's
no interest, there's not even a requirement to pay this
money back. Um. Selling stock distributes the risk among a
(09:57):
whole swath of people rather than just the small group
of investors. UM. So basically, if the whole thing just
goes belly up, the founders don't have to lose everything necessarily. Um,
they'll lose smaller chunks of everybody's stuff. So it distributes liability.
That makes sense, but they're also disadvantages to playing in
(10:19):
the stock market pool. One of the biggest and the
primary is risk um and part of that risk is
whether or not the game that you're playing, in particular
is rigged. Ah. Yes, And as we mentioned at the top,
you know, recent evidence shows that organizations charged with policing
(10:41):
the stock market have some cozy relationships with some of
the groups they're supposed to supervisor regulate. But Matt, going
back to what Goose said, I thought it was very interesting.
Is the game rigged? Um? I'm just gonna answer that
way first and then get to it. Well, it's very
(11:03):
interesting that you would ask that. Ben. Let's get to
several of these theories that we've been covering this week.
Ah as some here's where it gets crazy. Yes. Well,
in fact, we have found that it's quite possible for
a single group to acquire a large enough chunk of stock,
or at least one section of the market, to trigger
(11:25):
either rise, even if it's just a slight rise or fall.
And this when this happens, the group could theoretically control
or alter the market in their favor if they controlled
enough of the pot. Again, we're speaking, you would have
to have quite a large amount there. Here's a good one,
one very popular conspiracy theory, because there are quite a
(11:47):
few conspiracy theories about this stuff, um, some which hold
more water than others. But this one is if there
was the greatest hits, this would be one of the
more recent ones that made it onto the track less.
This guy's name you will know George Soros, according to
Mahat Tire being Mohammed, who is not just some guy
with an interesting name, but in fact a former prime
(12:09):
minister of Malaysia from maybe one to two thousand three,
so his prime minister for a long time. Matt He
says that George Soros was partially responsible for the economic
crash of the East Asian markets. The Thai bots was
unpegged from the dollar. And what we mean by that
is in currency trading or in currency valuation, quite a
(12:32):
few countries are pegged at a certain amount to a dollar,
so x amount of boats or whatever, X amount of
Thai currency equals one dollar. Um. A lot of countries
do that, but Thailand didn't, and then Thailand stopped rather
in the three years leading towards the crash, says the
Prime Minister of Malaysia, George Soros invested in short term uh,
(12:57):
speculative stocks and real estate and then he just dumped
them when he heard about the evaluation. And then that,
according to this guy, triggered right dropped the market. So
how much did he have that? That's one thing that
we have learned so much about the speculation involved in
the stock market and how much a rumor can change
(13:21):
the entire thing. Oh yeah, it's there's there's a strange
group psychology. Yeah, or even just the thought that someone
as influential who has a lot of something like George
Soros looking at what he's doing and then going oh,
well I need to do the same thing, and then
you just get this wave effect. Like if Warren Buffett,
(13:42):
for instance, came on National TV and of course they
give him a spot. He came on National TV and
he said, you know what is over has Bro toy
market or something like that, then they would tank because
people follow this uh financial profit. Yeah, that's what financial profits.
(14:02):
I feel like we need to do a whole series
on that now been Oh I don't know, man, Yeah, okay,
we could do it. But if we talk about financial profits,
we have to talk about, of course, the but I'm
gonna say, by far, the largest, most well known, most
popular conspiracy theory about someone controlling the stock market. You
mean the Boogeyman family, the Rothschild's, or you could really
(14:26):
insert pretty much any large banking family that's been around
four hundreds of years. Yeah, Rockfeller, Morgan, et cetera. So
there's this idea that ultimately the Rothschild family itself, the
entire clan, controls stock markets around the world. Yeah, and okay,
(14:47):
so here's why it's scary because as a whole, the
Rothschild family, the dynasty, if you will, is profoundly rich. Yeah,
that part is true, Like whoa rich up, perhaps the
most wealthy family in the world or perhaps even the
history of the world. We literally have no idea how
(15:07):
much money this family controls, how many assets they officially have.
You can just look at the real estate of the
Rothschild family and your brain will pop right out of
your head. Yeah. Great wine too, apparently. Oh yeah, that's
something that people say. Uh, but there's a point here
where we have to be fair and we have to
point out that with so many competing interest Uh, it's
(15:30):
tough to believe that a single entity could control the
entire global market system. What's more likely would be loosely affiliated,
maybe influid confederacies of groups that move as their interest aligned. Yeah,
and it should be noted that the Rothschild family is
widespread throughout the world, and perhaps even their own interests
(15:52):
among the family are competing. So I didn't think about that. Yeah,
I was looking at I guess the genealogy and just
be it, where all the people are, what kind of things.
There's a lot of information about individual rich people on
the Internet, which kind of freaks me out but also
makes me glad to know that there's at least some
(16:13):
kind of tabs. But Wikipedia has way too much information
on people. Yeah. Yeah, Wikipedia is fascinating, and I think
it gets a bad rap sometimes because the people behind
it are definitely not in it for the money, and
they're doing some great work at different times. I just
found out that the that people name different types of
(16:34):
wind in Australia, and there's one called the Fremantle Doctor.
It's a name for this consistent sea breeze that goes
through Perth. And I wouldn't have known that if Wikipedia
hadn't told me so thank you, thank you Wikipedia. But
with that, yeah, with that in mind, the idea about
privacy being a new privilege of the elite is another
podcast that we could explore to We've got a lot
(16:55):
of potential here at UM. There's another theory, and the
theory is that bank have always controlled the stock market
and the big fight is actually between US banks and
European banks. Now, listeners, I know a lot of you
guys are gonna say, there's not really difference. It all
goes back to the city of London. Oh what what?
Which is a weird, creepy, anachronistic thing to begin with,
(17:17):
and we should also do a show on that. And historically,
the US presidents we're against these kind of central banking
systems that um that often lobbied to move away from
the standards, the hard standards like gold standards are still silver, um.
And then you've had these other competing interests of the
(17:38):
bankers that always wanted this not always, but many times
wanted a fiat currency like the one that we have
right now, controlled by a central organization, right, a quasi
governmental organizations often called uh yeah, we know it's true,
maybe not all, but many US presidents were against these
sorts of banking systems. Got a quote here from James Garfield,
(18:01):
whom some of you may remember, I mean remember reading
about unless you were very very old, and which kids
contact us with You know what I remember from high school?
Did he get hurt or spoiler? Here we go from
his inaugural speech. The chief duty of the National government,
in connection with the currency of the country, is to
(18:23):
coin money and declare its value. Grave doubts have been
entertained whether Congress is authorized by the Constitution to make
any form of paper money legal tender. The present issue
of the United States notes has been sustained by the
necessities of war. But such papers should depend for its
value and currency upon its convenience and use, and its
(18:44):
prompt redemption and coin at the will of the holder,
and not upon its compulsory circulation. These notes are not money,
but promises to pay money. If the holders demanded, the
promise must be kept. Days later, he died of what
dysentery on the Oregon trail. No, no, he was assassinated,
(19:09):
which you know, not to not to make too much
light of it, and not to say those are necessarily connected.
But yes, he died of assassination. So that's one theory
that banks have already controlled it. And then there's a
different idea, and that's that the stock markets function as
these money managing or siphoning tools. So if you can
do a quick example North Korea. So North Korea has
(19:31):
a booming black market because it was the only way
for many people to survive, right uh, selling goods from China,
cell phone, South Korean soap operas, methamphetamine, and and they
begin to save money. They were cruing savings. This could
be a problem for the uh, for the regime or
(19:51):
for the government. And at one point they just said, okay,
we're changing the valuation of the money. So everybody lost
the cash that they had made. And this other theory
about the economic system, called this talk market, is that
it's the same kind of scheme. Yeah, well it yeah.
(20:12):
I remember seeing something about the thirty year cycle of
boom and bus to where I guess the people who
are of a certain age will be able to profit,
profit for a generation and then retire and then uh,
then it starts over again. It falls. Then you kind
of get this thirty year cycle. I don't know, Um,
(20:33):
it's an interesting theory. Well, it's Uh, it's funny because
do you remember Dilbert comics Dilute. Yeah, well, the creator,
Scott Adams believe that this is the case, or he
did at one time. Oh uh, he actually wrote about
it in twenty blog post. My prediction is based on
the observation that the stock market appears to move as
(20:56):
if it's manipulated by a network of big players. They
lure in the small excitable investors by allowing the market
to show a year or two of solid gains. Then
they sell their shares, spooked the world with predictions of doom,
and buy back into the market at lower prices. Interesting
quote there, Ben, Yeah, that's pretty interesting, Matt. And you
(21:19):
know there have been other people, of course who have
said this. Uh Scott Adams a very smart, very clever man.
Uh not necessarily an economists by trade. I hope I
don't have to eat those words later if you are
actually an economist by trades, or I apologize to Wikipedia.
To Wikipedia. So okay, I have to bring this one up.
(21:40):
I just have to one of my favorite conspiracies of
all time. So there's another one that this that the
stock market collapses might be a part of Project Blue Beam.
Oh yeah, this is a This is a long time
favorite of Matt's, you guys, So Matt break it down
for us. What is Project blue Beam? Oh man again,
(22:03):
all right? So Project blue Beam states that some force,
probably a government, would use this technology that they call
blue beam that somewhat exists now actually, where you can
project a hologram onto water vapor and you have what
seems to be a three D object or three D
something just floating in the middle of the air. The
(22:26):
idea is to make these holograms of religious figures and
have them come back in various parts of the earth
and have a religious um revival of sorts. But then
the deities slash whoever that maybe they say, oh no, no, no,
you guys, we've you've guys have gotten religion all wrong.
(22:47):
And then there's one basically one religion that comes together
throughout the entire world, helping to um solidify the new
one world government that would also be ushered in. And
this would come at after a series of manufactured crises,
right exactly. So everyone's at there at the brink of
what they think is disaster, lost all their money, servation.
(23:10):
Then the deities come, Everything's fine, anyway, I love it.
It's so it's just it's just a great apocalyptic vision.
I just like technology and religion. I just have a weird,
a weird image in my head if somebody's sitting around
the u N and someone else going You know. What
I like about that is that it's simple. It's just
(23:33):
easy ships, it's cheap. We know it'll work. It's simple.
But here's the other thing. When we talk about this
idea of one world government, of course we have to
also mention the Illuminati. These are the people that will
be blamed for so many different things. Those sons of
we have. We have a series on the Illuminati, and
(23:56):
they pop up fairly frequently in a lot of the
stuff that we look at. And yes, conclusively, if no
one has told you, if you haven't seen our video yet,
there is Slash was a real Illuminati. The claims the
group makes are maybe not the claims you would here
associated with the Illuminati today, uh there, but there is
(24:17):
a historical precedent. It's a real thing. It was at
one time at least apparently. They are also manipulating the
stock market. The Illuminati that we have heard are rumored
to exist and they're doing this because they want to
eventually break down the current national and international borders, creating
(24:38):
one global system under the rule of this group. Uh
kind of, it's kind of similar to just kind of
change the players a little bit and some of the machinations. Um.
So the next one is that there is this secret
stock market that's for the fee only, Okay, and the
(25:03):
idea that insider trading is only a crime if you're
one of the people who was not inside this insider group.
I see. And so yeah, if you hit Caughton, you're
not in the group. Um. Sorry, But if you are
in the group, then hey man, you're good to go,
and you can just get as much infinite money, really
(25:24):
just get infinite money. So it's like it's like a
hack of some sort. Here's yeah, yeah, here's the question
I have with that. Have we reached a point from
a regulatory standpoint? Have we reached a point where these finds,
which pale in comparison at times to the profits, are
becoming just part of the cost of doing business. I,
(25:48):
as an uneducated person in the world of economics, would
say absolutely, yeah. Neither of us are experts and economics
we are relaying the official stuff we know, and then
the theories that we have heard and we love to
hear from. You. Also tell us what you think about
these theories. Do any of these hold water? Uh? And
(26:09):
we're going to go to one other subject, but before
we do, let's pause for a word from our sponsor. Mean,
I can't believe I got another passive aggressive phone call
from the SEC and the FED. Well, Hi there, friends. Uh,
I was over there just burning hundred dollar bills, throwing
them at a dandered animals. And I couldn't help it
(26:30):
over here that you've got something on your mind. Yeah,
that's those dips over the regulatory agencies. Every time I
try to bend the rules a little and make some
major units, they email me or text me or get
me on an app, and they just they tell me
not to do it. Man, can you believe it? I mean,
I have to pay for the calls I received, you know,
it could be as much as ten cents per text message. Dude,
(26:53):
Why that's not fair. That's money out of your pocket.
Who do they think they are? Don't they want to
work here after they've served their public sector time. That's
the thing. I can't stop answering their calls because I
need them on our side, right And what if our
people get replaced by some sort of white knight, you know?
Can you imagine how ridiculously inconvenient it would be if
a FED or SEC agent actually try to enforce the
(27:16):
rules and trying to make us play fair. Never playing
unfair is unfair to us. But don't worry, friend, I
have some news for you. Why don't you just check
out my phone? Here? You see this app? Oh? What
is that? It's the new se c A. Each and
every time a future employee of a private bank currently
pretending to regulate the giants of the industry sends a lame,
(27:37):
please stop message to you, sec A will defer the
call to our outsourced center, where automated voice acting software
will pretend to listen to their complaints, promise to do
whatever it is supposed to be legal to do this week,
and even display empathy when the regulator confesses personal information. Empathy. Yeah,
I don't know. I think it's a thing for poor people. Listen.
(27:59):
Sec it doesn't just deflect, It also compiles a list
of information from each call that will be analyzed and
automatically parse for insider information. To maximize your trades. I
don't have to do anything. Why should you? Doesn't the
world owe you a favor? Aren't you tired of people
getting mad at you because they weren't privileged enough to cheat.
(28:19):
They do the same thing to you in a second.
Maybe you know, I don't really think about other people
that much, and now you'll have to think even less.
Do we have a deal? Yeah? Say who are you? Well?
I'm a robot. SEC has not approved by the SEC,
the Federal Government, the Federal Reserve, the Democratic Peoples Republic
(28:41):
of North Korea, Michael McDonald. They cast of a team
the inventor of the inflatable Life After with the producers
of Big Trouble and Little Chinla. A SEC is legally
required to notify you that the consequences of using SEC
rest entirely on the user and his or hers nepotistic
influence or bank accounts. SEC of maybe have it. Forming
a SEC is not a substitute for bribery for loaned.
Use of SEC may lead to world trititudes, slaunching ethics,
well deserve cocaine related health problems, and in some cases,
bloody revolution. You are in the pyramid, but not at
the level you believe, and you have considered this from
the wrong perspective by consume obey. Sec is a product
(29:03):
of illumination Global unlimited. And we're back. So Ben, let's
talk about the future. Ah, yes, the future. So there's
this thing that we failed to mention in our first
(29:23):
two videos, and we did it purposefully because we think
it's one of the more meaty parts of this whole
wider subject, and that's high frequency trading. Ah. Yes, yes,
not to be confused with high fructose corn syrup. Yes,
slightly slightly different. That's my valuable contribution to this part
(29:45):
of the conversation. I wonder how easy it is to
get from high frequency trading to high fructose corn syrup
on Wikipedia. Well you know what, I bet there's a
rabbit hole there somewhere. Uh. So it's interesting because high
frequency trading is an amazing process from a technical perspective.
Uh what what is it? Well, Ben, let me tell you.
(30:08):
High frequency trading is a kind of algorithmic trading of stocks,
and it uses mathematical models to rapidly trade these things.
And we're talking fast, like fractions of a second. According
to Rob Lotty, I'm probably mispronouncing that of the T
A B B Group h F trades accounted for. That's
(30:29):
high frequency trades accounted for sixty to seventy percent of
the total equity trading in two thousand nine, falling to
in two thousand twelve. Now that's crazy because that seems
little counterintuitive to people who just heard about high frequency
trading through things like the flash Crash or Flashboys, And
(30:52):
just by way of a book recommendation, flashboys is a
super breed. I really enjoyed it, isn't that Michael Lewis, Yes, yes,
And we've got we've got some interesting stuff here that
that you find out about high frequency trading. One of
those is that this dates back way before two thousand
and ten. It may have started as soon as electronic
(31:13):
exchanges were allowed. So what we do know is that
at this point, high frequency trading is changing the game.
We won't spend too much time on it because we
have videos about it, um, but I do want to
make a couple of corrections to some things that I
got wrong in the videos. I misspoke they can take
a trade in point zero three seconds, not point three. Well,
(31:37):
I will annotate that, and hopefully if you watch the
video you'll know yeah, we do try to make corrections,
will get something wrong, and that was a slip on
my part. But regardless, it is true that high frequency
trading depends on very very small time increments Millet, you're
even micro seconds. But is it legal? Well, that depends, uh.
(32:01):
Question one. Are you listening to this in let's say October,
Then yes, it is legal. Um. It seems like one
of those things that will be changed further down the
road at least looked at a little more closely, but
for right now, yes, it is legal, all right, and
we know that in some places it's even accepted, like
(32:23):
one of the more recent laws involving high frequency trading
comes from oddly enough Italy, who are charging point zero
zero zero two euro on trades that last less than
half a second. So that's clearly targeted at high frequency trades.
And knowing the volume of high frequency trades that can
(32:45):
occur in that kind of situation, then they may be banking.
We don't know yet. That feels like the office space
a scheme, Do you remember that. Yeah, it feels like
they're putting a tax as a warm account, and that's
kind of what you know. High frequency traders make a
lot of money in very small increments, right, so they
(33:07):
add up, So we man, No, I have to ask
you personally, do you think that high frequency trading is wrong?
That's a tough one. Yeah. I'm gonna go out and
jump ahead and answer, I don't really think it is.
I don't think it's fair, but I don't think the
(33:28):
stock market is fair. Yeah, Okay. That that is an
interesting way to frame it, because it seems like if
you have the ability to do this and no one's
telling you that you can't do it um and there
isn't a at least some kind of penalty, like like
Italy has introduced that would just make you maybe think
(33:49):
twice about it, then I guess I guess it's not wrong.
I think it's just Yeah, you're right, it's the system
overall that I have a problem with. So we know
that at we know that typically a technology like this,
or the application of a technology like this is what
Jonathan over tech Stuff would call disruptive, just just the
(34:12):
same way that Amazon's order online model was disruptive to
break and mortar bookstores, which I think we mentioned in
the video, and just as Google, for example, or Uber
or something like that, it makes me think of a
strange story, which is a sports analogy. You know, originally,
(34:32):
when baseball gloves came out, they were considered cheating in
addition to being unmanly. Oh now that is right there. Yeah,
I think the last part was more of an insult
than cheating. But now they are an accepted part of
the game. And when people argue, for instance, about performance
(34:53):
enhancing drugs in sports, um, the idea of high frequency
trading is another technological step. Now, I'm not saying it's
one on one comparison to using a baseball glove or
taking steroids, but it is an edge and in a
competitive place, people are going to try to do that stuff.
(35:14):
I'm wondering if it's already too late to curtail this.
If the future of stock market trading is going to
be a bunch of very very fast, very smart algorithms
in an internal jam session. It seems like that's where
it's heading because humans just can't make those calculations. Uh,
(35:34):
they're yeah, it's just not possible with the speed that
they do. And oh man, that that's that's terrifying. It
feels like maybe machines are going to be taking over
our economy. Ben. You know, I would say that we
still will need human beings to clean the machines, to
(35:55):
turn it off and turn it back on. It sound
like a Twilight episode, you know, um, but that's an
interesting idea that could robots take over the economy or
even the world, the world, the world, the world, the world,
the world. We would all right, well, yeah, I guess
we'll just we'll cover that another day. We are going
(36:17):
to do that, right then, Yeah, I hope so awesome.
Well for now, why don't you tell us what you
think about this stuff? What do you think about high
frequency trading? Is it good? Is it bad? Is it lukewarm?
You don't really care? And what what do you think
about the idea of someone purposefully and personally orchestrating a
(36:38):
market wide boom or bust? Could could a group of
people overcome all the other very powerful interests around the
world or in a market to sink it or you know,
blow up the bubble. I'm I'm curious because I don't know.
I don't know if it's possible. I mean, I think
theoretically it is possible. But let us know what you think,
(37:01):
who would do this? And how awesome you can talk
to us on Facebook. We are conspiracy Stuff. There. You
can find us on Twitter. We are at conspiracy Stuff.
Go to our website, Stuff they Don't Want You to
Know dot com. It is the best and that's the
end of this classic episode. If you have any thoughts
(37:22):
or questions about this episode, you can get into contact
with us in a number of different ways. One of
the best is to give us a call. Our number
is one eight three three st d w y t K.
If you don't want to do that, you can send
us a good old fashioned email. We are conspiracy at
I heart radio dot com. Stuff they Don't Want You
(37:43):
to Know is a production of I Heart Radio. For
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