In economics, the invisible hand, also known as the invisible hand of the market, the term economists use to describe the self-regulating nature of the marketplace,[1] is a metaphor first coined by the economist Adam Smith in The Theory of Moral Sentiments. For Smith, the invisible hand was created by the conjunction of the forces of self-interest, competition, and supply and demand, which he noted as being capable of allocating resources in society.[2] This is the founding justification for the laissez-faire economic philosophy.[3]
As supply and demand, competition and self-interests are trumped by the brute force of paper backed by the printing press, the invisible hand has become quite visible in many markets. There is not better example of this than the US long bond futures and options market. Today's "invisible hand," more like dark glove, is visibly pushing back to maintain support despite the deteriorating fundamentals (rising prices and declining economic activity).
Are you interested in the real statistics and the real story? Here they are. There are nowhere else. I am totally serious.
Commentary No. 280: January CPI, PPI, Housing Starts, Production
- Annual Inflation 2.6% (CPI-U), 3.3% (CPI-W), 9.8% (SGS)
- Quarterly Inflation Shifted from Fourth- to Second-Quarter 2009
- Economy Keeps Bottom-Bouncing as Intensified Contraction Nears
"No. 280: January CPI, PPI, Housing Starts, Production "
THE DARK GLOVE:
US TBd (20 Years +) and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest
Source: en.wikipedia.org
Source: jsmineset.com
Source: shadowstats.com
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