More evidence about the debt cartel

We had previously documented large excess returns on equities ahead of scheduled announcements of the Federal Open Market Committee (FOMC)—the Federal Reserve’s monetary policy-making body—between 1994 and 2011. This post updates our original analysis with more recent data. We find evidence of continued large excess returns during FOMC meetings, but only for those featuring a press conference by the Chair of the FOMC. 

From the research staff of the NY Fed. 

The federal reserve board represents member banks in their district.s  The member banks are within the same organizations that manage debt; the debt advisory board, the primary dealers.  The whole point of the Fed chair making an announcement is to inform the world that the debt cartel has reached a decision. So, obviously, all the members of the debt cartel and their wealthy patrons have advanced knowledge.  In fact it is worse.  The large banks offer a premium yield to wealthy investors who  play the debt cartel game.  In this way, debt flow is regular and smooth, but it is oligarchy capitalism required to manage the unending flow of massive borrowings by Congress.

The main point is how we do this in sandbox. We let everyone play the debt cartel game as long as they keep the required reserve ratios.  Since citizens are stuck with a volatile republican form of government then citizens need to play the government debt game.