Tuesday, March 18, 2008

Nefarious Market Manipulation

As I wrote in my Sunday post: Tumultuous Week Ahead, the Plunge Protection Team (PPT) certainly has been busy.

Yesterday, the team bailed out/monetized Bear Stearns debts with $30 Billion of public money (and I'm sure we'll see plenty more where that came from).

Today, not to be outdone by the previous day’s activities, the nefarious market manipulators (PPT) pulled out all stops and their orchestrated manipulation operation was synched up perfectly to the FOMC announcement -- and was so extreme/blatant (across all spectrums), that I nearly fell ill from disgust.

Specific Examples of their Manipulation:

FOMC Rate announcement took place today at 2:15PM EST and the cut was 75bp.

To anyone with a working brain, the results of a significant rate cut like this should be dollar negative and gold positive (right?) Well look at the charts below—especially after the FOMC announcement

US DOLLAR INDEX CHART—Note the Dollar’s increase after 2:15 PM




SPOT GOLD—Note the fall in gold price after 2:15 PM (down > $20)



How about the DOW sell-off immediately after the 2:15 announcement (investors were disappointed with a 75bp cut—they expected 1%) and the PPT rescue, and huge rally later in the day?


S&P Chart below is nearly identical to the DOW above


We have a “free market" economy/society?

Come on, cut us a break — We may act like sheep sometimes, but we're not stupid, and your manipulation operation was obvious to anyone with a heartbeat.


I guess the NY Times was spot on with their article yesterday:


Fed Acts to Rescue Financial Markets. (Snippets below)

The New York Fed, which runs the Fed’s daily market operation and has long been the Federal Reserve’s primary channel for dealing with Wall Street...

In a potentially even bigger move, the Federal Reserve also announced its biggest commitment yet to lend money to struggling investment banks. The central bank said its new lending program would make money available to the 20 large investment banks that serve as “primary dealers” and trade Treasury securities directly with the Fed.

Much like a $200 billion loan program the Fed announced last Tuesday, this program will essentially allow the government to hold as collateral a wide variety of investments that include hard-to-sell securities backed by mortgages (My 2 cents--Worthless Toxic Waste). But Fed officials told reporters on Sunday night that the new program would have no limit on the amount of money that can be borrowed. (Did he just say “NO LIMIT”???)

“The Federal Reserve, in close consultation with the Treasury, is working to promote liquid, well-functioning financial markets, which are essential for economic growth,” he said. “These steps will provide financial institutions with greater assurance of access to funds.”

I guess the next question is: Will their incessant nefarious manipulation schemes work? Will they be able to re-instill confidence and liquid, well-functioning financial markets?

My thoughts are: They will not fix a thing, but will merely prolong the inevitable agony...

But for today, Bernanke's Prayers were answered...


Please post up your thoughts/comments on the issue.

best regards
Randy

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17 Comments:

At 3/18/2008 8:31 PM, Anonymous Patrick said...

There has been so much happening so fast, it has been hard to post a comment, but currently, my focus has shifted from money and markets to food and fuel.

SOARING WHEAT PRICES MEAN MORE EXPENSIVE FOOD IN EVERY AISLE

http://biz.yahoo.com/ap/080315/costly_wheat.html


TRUCK DRIVERS ON AN INCREASINGLY ROUGH ROAD--IF THEY FAIL, THE MARKET SHELVES WILL BE EMPTY

http://www.contracostatimes.com/business/ci_8583990?nclick_check=1

Got food? Got water?


NO MORE 3000-MILE CAESAR SALADS--THE HEAVY LOAD FOR TRUCK DRIVERS

http://venturacountystar.com/news/2008/mar/16/diesel-cost-is-heavy-load-for-truck-drivers/

MORE FROM SHARON ASTYK ON PUTTING UP AND PRESERVING YOUR OWN FOOD

http://sharonastyk.com/2008/03/18/putting-up-your-own/


WHEAT FUNGUS

Dangerous Wheat-Killing Fungus Detected in Iran

From the UN News Centre (5 Mar 2008)

“A dangerous new fungus with the ability to destroy entire wheat fields has been detected in Iran, the United Nations Food and Agriculture Organization (FAO) reported today.

The wheat stem rust, whose spores are carried by wind across continents, was previously found in East Africa and Yemen and has moved to Iran, which said that laboratory tests have confirmed its presence in some localities in Broujerd and Hamedan in the country’s west.

Up to 80 per cent of all Asian and African wheat varieties are susceptible to the fungus . . .”

http://www.un.org/apps/news/story.asp?NewsID=25859&Cr=cereal&Cr1


In the United States:

Ug99 and Emerging Virulent Stem Rust Race

Press Release from the USDA Agricultural Research Service

http://www.ars.usda.gov/Main/docs.htm?docid=14649


About wheat stem rust from the American Phytopathological Society:

Resistance in US Wheat to Recent Eastern African Isolates of Puccinia graminis f.sp.tritici with Virulance to Resistance Gene Sr31

http://www.apsnet.org/pd/search/2006/pd-90-0476.asp

Also, bulk food suppliers are reporting panic, price spikes, and shortages.

 
At 3/19/2008 12:25 AM, Anonymous Jim Pips said...

My thoughts? My comments?

I'm... I'm... flabbergasted! I'm verklempt! Completely #@%$* gobsmacked! I'm reduced to sputtering inanities while cowering under my desk with a fifth of Cuervo La Reserva and whimpering "holy frijole, we're freaking DOOMED, dude!"!!

No, seriously, it's the blatantness of it all that gets to me. If the oligarchy is going to screw me this monumentally, at least they could have the decency to do it softly and out of my direct line of sight.

 
At 3/19/2008 2:48 AM, Anonymous Anonymous said...

Thank you for publishing what I watched in real time on the charts.

CNN Money is an arm of the PPT. Yesterday morning, they had a very negative headline about Leahman - the kind that was destined to get the shorts to double their positions. I smelled a rat. The subsequent earnings announcement and jam job was specifically planned/designed to extract maximum pain from the bears.

CNBS is an arm of the PPT. They actually receive scripted talking points and specific assignments. Yesterday was a text book case.

Jim Kramer came on about a half hour after the rate cut was announced, when the market had backed up about a hundred points to about 200. With less than two hours in the trading day remaining, Kramer said:

"This is the kind of day that can close up 400 points, and I would be a bit surprised to see us close up over 400 points today."

Having seen them use this very technique to send "instructions" to the pigmen on a frequent basis, it was obvious that they were using Kramer to alert the traders that they (the PPT) were absolutely going to close it above 400.

This is worse than illegal, this is fascism.

The Fed is not a government entity, yet they are allowed to dictate government policy. David Rockefeller is running the entire country, and you know nothing about it.

All of the speculators will ultimately be fleeced by those who control the entire playbook. The volatility is increasing and the whipsaws will become more frequent until the entire "market" simply freezes - as everyone realizes that they cannot make money - they can only lose it - absent the inside knowledge of the PPT's plan.

Make no mistake, the banksters have destroyed America. Through the CFR and other "think tanks," they control who is allowed to run for "elected" office, and who will win. Only men and women of low moral character are allowed into the arena - subject to blackmail and bribery (witness Elliot Spitzer and dozens of others).

Bush had no authority to co-sign the note backing the bailout of Bear Stearns on behalf of US taxpayers. This insanity in action.

The Fed is a criminal enterprise.

 
At 3/19/2008 2:50 AM, Blogger josejoa said...

I can't understand why americans talk so much about freedom and then they manipulate the market from this outrageous form.

I think things are not that easy to handle like that, money is unsubstantial and can be handle with relative facility but raw materials can't manipulate and there is a lot of shortage of they in the whole world.

Best regards from Spain.

 
At 3/19/2008 6:17 AM, Blogger Matt said...

I have begun making the transition into commodities. I know deep down that I should take all of my money out of the market to buy physical silver and gold, and I will do that asap. Now is a perfect time to do it, with the value of gold being so suppressed.

 
At 3/19/2008 6:25 AM, Anonymous Anonymous said...

In the great body of world prophetic literature the faithful are given signs of the impending collapse of the corrupt secular world. Because of the fluidity of Time, many prophets prefered to couch their predictions in a descriptive metaphor… when this or that happens. This very much resembles Chaos Theory which describes a growing systemic dis-equilibrium as a precursor to collapse. To the Seer, dis-equilibrium and collapse of the forms of the Mental consciousness on a worldwide scale heralds the long awaited Apocalypse. Here are just a few of those signs:

When the world declineth in virtue and righteousness.

When vice and injustice mount the throne.

When the earth reaches the lowest point in its moral decline.

When property confers rank.

When wealth becomes the only source of virtue.

When rulers become plunderers.

When falsehood becomes the source of success in life.

When that which seemed immovable begins to waiver.

When the proudest and most solid constructions shake on their bases.

When the reality of these unfortunate truths begin to dawn in the general consciousness as they are now, we are not far from experiencing the collective trauma that the prescient playwright Henry Miller described:

"The great mass of mankind, destined in our time to suffer more cruelly than ever before, ends by being paralyzed with fear, becoming introspective, shaken to the very core, and does not hear, see or feel anything more than everyday physical needs. It is thus that worlds die. First and foremost, the flesh dies. But although few clearly recognize it, the flesh would not have died if the spirit had not been killed already."

Alcyone

 
At 3/19/2008 8:00 AM, Blogger Neal said...

Of course it was predicated from the beginning. Why do you think the HUI was down 9 (in front of the Fed announcement) when gold was up a few bucks and the market was up 300.

It is all a huge crock of shit.

I write about the same thing you do at

www.traderneal.blogspot.com

 
At 3/19/2008 8:37 AM, Anonymous Anonymous said...

Randy, I am happy to see not only
you share similar toughts with me
but also publish these important
"must to know" hype corrections.

Vesa from Helsinki, Finland.
Your brother in golden arms.

 
At 3/19/2008 10:01 AM, Anonymous Anonymous said...

I love reading your blog Randy. Keep up the good work. Here is a link to an excellent article from Ron Paul concerning gold and the $. http://www.lewrockwell.com/paul/paul445.html

 
At 3/19/2008 6:23 PM, Blogger Randy said...

Just got in from work and checking in.

Thanks to everyone for posting up and I'm glad this post was of interest to all.

Will try to read all of your links tonite (after dinner).

BTW: Did you guys see gold and commodities today get absolutely creamed by options expiration -- Holy Crap, that certainly was some firepower! Guess someone didn't want to get stuck with all those shorts...

Randy

 
At 3/21/2008 10:10 AM, Anonymous Patrick said...

Metal Exchange Closes Website Due to Overwhelming Demand

Don't be fooled by the central banks dumping gold and silver reserves in order to halt the rise in metal prices. The lowering of interest rates by the Fed this week only opens the door for more printing of dollars backed by nothing. The illusion the Fed is trying to create of a strong dollar while at the same time pushing a policy of printing unlimited quantities of cash can't hold for long. The reality is driven by the market, and the market is running dry. Every supplier of silver and gold is running out due to huge consumer demand to trade in worthless dollars for something that will hold its value. Below is the statement from APMEX.Com, the American Precious Metals Exchange. They cannot keep up with demand and are begging people to sell them metal to keep up. It's a great time to buy on this artificial dip in prices.

http://www.nationalexpositor.com/News/1113.html


Silver Shortage: 19 dealers reported "Sold Out"

(SOLD OUT!!)

Silver Stock Report

You know me, I don't send out two emails in one day, so this must be important. Since my email earlier tonight, where I reported that 5-6 major silver dealers (Amark, Tulving, 2 in Vancouver, my local dealer, NWT Mint) are "out of inventory", 13 more reports came in, saying that the dealers were out of silver inventory. Some of these names are big names in the business, Scotia bank, the Perth Mint in Australia, CNI Numismatics in LA, APMEX says they have some items, but are looking to buy.

http://news.silverseek.com/GoldIsMoney/1205995646.php

 
At 3/21/2008 10:41 AM, Blogger Patrick said...

Silver Shortage gets Worse, Price Drops Again!

(If you don't hold it, you don't own it)

Silver Stock Report
by Jason Hommel

Three more major silver dealers are reported to be out of silver today: The U.S. Mint, Kitco, and Monex. This, on top of the major dealers yesterday, Amark, Perth Mint, CNI Numismatics, and APMEX, all reported sold out. Further, nearly all of Canada is reported to be out of silver, from Vancouver to Toronto.

This is unprecedented, and is a perfect case of market manipulation in the paper market at COMEX and other futures exchanges to see silver prices continue to drop down to below $17/oz. today. Paper promises can be created endlessly, but real silver cannot.

http://www.silverstockreport.com/2008/shortage.html

 
At 3/21/2008 5:19 PM, Anonymous Andrea said...

I hate to sound as ignorant as I feel, but how do the 'powers that be' suppress certain markets (ie precious metals) when everyone you talk to can't buy enough of it?
If the collective 'they' have the power to bring down gold and commodities and raise the dollar, then why don't they keep waving that magic wand of theirs and keep the dollar strong and stop decimating our economy?
Sorry if this is ignorant, but I spend my days trading recipes, not stocks and really need a lemans understanding of what sounds like the most corrupt system on our planet.
Andrea

 
At 3/21/2008 10:45 PM, Blogger Randy said...

Patrick,

Yes, I've been following the issue but didn't have time to post about it until just tonight--check out my latest (Is the Credit Crisis over?)-- hopefully it makes sense (I just threw it together).

Andrea -- Please see latest post for (hopefully) a clearer explanation.

Regards

Randy

 
At 12/26/2008 11:16 PM, Anonymous Mark said...

I have completed converting the bulk of my liquid assets into precious metals, mainly silver bars. I still own some shares in gold and silver mining companies. The PM bars are either in my possession or stored securely by trusted third party institutions (not bank safe deposit boxes.) My remaining cash will be used to prepare for natural disasters and civil unrest. Good luck to us all.

 
At 2/12/2013 11:16 PM, Anonymous QUALITY STOCKS UNDER 5 DOLLARS said...

Excellent stuff.

 
At 3/28/2014 1:32 PM, Anonymous PENNY STOCK INVESTMENTS said...

Games will be played.

 

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