The Catastrophic End of Market Manipulation
Originally posted December 1, 2009
ON MARCH 9, 2009 THE DOW JONES Industrial Average hit its lowest point in this “Economic Downturn” touching 6,440 with no viable economic reason to expect a turn around in the economy or in the markets. The mood of the investing public was dire. Over the next 3 days I notice some extreme market manipulation moves by the Obama Administration that I theorized was part of an official operation to manipulate the economy higher without any underlying fundamentals to support a rise. On March 12, 2009 I published a Road to Roota letter in which I highlighted ten things the Obama Economic team was doing to try to fool the investing public in thinking that the recession was ending.
Three weeks later I wrote another article stating that this was no ordinary con job by the administration but a large scale and prolonged market manipulation plan executed on many fronts and including many government and public participants. Since these articles were written the DJIA has risen from a low of 6,440 to 10,300 with shouts heard far and wide that the recession is over and we survived the worst economic downturn since the great depression.
Meanwhile the unemployment rate has blown over 10%, the residential housing markets are still in major distress, the commercial real estate markets are imploding, the derivative markets continue to balloon and the middle class of America is being systematically beaten about the head such that one day they will be declared officially DEAD. Death by market manipulation. Death at the hands of our caretakers. Now, 8 months later, we are saddled with markets so distorted and twisted that nobody knows where the “equilibrium price” of anything is any more. Stocks are too high. The USD is too high. Oil is too high. Gold is WAY too low and Silver is practically FREE! What’s going to happen when they stop pulling the leavers and prices find their natural supply/demand equilibrium? One thing is for sure… someone’s going to get a serious case of WHIPLASH when this manipulation ends! So who has benefitted from the Obama Administration’s “Operation Confidence Con”?
You guessed it… THE BANKS THAT CARRIED OUT THE BRILLIANT PLAN! Market manipulation is very easy to implement with computer trading programs that execute millions of transactions back and forth in a matter of seconds steering markets wherever the programmer points his mouse. With no market oversight from the SEC or CFTC and an unlimited checkbook at the Federal Reserve the power to rig markets with computers is awesome. To understand the full scope of manipulation funds available to Obama’s economic team it helps to understand how much money the government/FED has pledged in its various programs…many people believe it was only the $700B TARP funds but according to the FDIC the number is closer to $14 TRILLION as of 1st quarter 2009.
The real fraud here lies within the insider trading and “front running” of all this money at the point of execution for the huge market orders. The New York Federal Reserve executes these trades through their banking cabal conspirators called “Primary Dealers”. By knowing the FED moves ahead of time and actually making the trades for the FED these insider banks have massively goosed their profits. Watch Alan Grayson accuse the General Council of the Federal Reserve of the illegal practice point blank.
Rep. Alan Grayson: “Has the Federal Reserve Ever Tried to Manipulate the Stock Market?”
Note the list of Primary Dealers from the New York FED and you will understand who these market manipulators are: NY FED Primary Dealers
Primary Dealers List
Memorandum to all Primary Dealers and Recipients of the Weekly Press Release on Dealer Positions and Transactions. The latest list reflects the following changes: Effective July 27, 2009, Nomura Securities International, Inc. has been added to the list of primary dealers.
List of the Primary Government Securities Dealers Reporting to the Government Securities Dealers Statistics Unit of the Federal Reserve Bank of New York:
BNP Paribas Securities Corp.
Banc of America Securities LLC
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Securities America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies & Company, Inc.
J. P. Morgan Securities Inc.
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
Nomura Securities International, Inc.
RBC Capital Markets Corporation
RBS Securities Inc.
UBS Securities LLC.
This list is a “Who’s Who” of banks that went from the brink of collapse only one year ago to making outrageous profits this year at the expense of the rest of us “unwashed masses”. The majority of the large gains were categorized as “trading profits” in their rigged casino. Just look at the stock prices of some of these banks from trough to peak over the term of this official manipulation:
Bank of America $2.53 – $19.10 increase of + 755%
Goldman Sachs $59.13 – $193.60 increase of + 327%
JP Morgan $14.96 – $47.47 increase of + 317%
Citigroup $0.97 – $9.00 increase of + 928%
This would be bad enough if they only posted stock gains from our sorrow but the Banksters are now CASHING OUT of their stock ownership positions before these manipulated prices come crashing down! Just look at the November “Insider Transactions” for the King of the Obama Administration insiders…Goldman Sachs. Not only that but Goldman is planning to payout $23B in individual bonuses this year! The only question left is will these criminals get one last monster bonus check before they collapse the system? If they do get their final payout I guarantee you the majority of them will run to buy gold and silver bars before the fraud is revealed! These banks must be stopped in their tracks before bonus are paid.
CONCLUSION: This year we have witnessed first hand the problem with planned economies and free market manipulation. Tim Geithner, Lawrence Summers and Austan Goolsbee have tried to inflate a contracting economy by using massive manipulation and deception across all markets and have failed miserably. What they have done is further transferred the wealth of our nation from the poor and middle class to the rich bankers that caused the mess in the first place. What they will see very soon is the “blowback” from their market manipulation project with the total destruction of our global economic system.
The Obama Administration Economic Team should be tried in court by a “jury of their peers” for the high crimes of Free Market Manipulation and may god have mercy on their souls. Do me a favor if you are reading this… Go to your local coin shop and buy as much gold and silver as you can carry because there is only one way for this massive market manipulation operation to end….BADLY! May the Road you choose be the Right Road.
US Operation Confidence Con
Originally posted 12 March 2009
To restore the underlying false confidence in our economic and monetary systems thus continuing the dominance of the global financial power elite. Plan of Attack:
1) Start by having the President tell the investing public to buy stocks because they are cheap.
2) Slam the gold and silver markets using the traditional COMEX paper rigging operation to hide the truth about the condition of the US Dollar and the fact that the world is quickly running out of both physical metals.
3) Have CEO’s of major banks such as Citigroup and JP Morgan announce that they had a great first two months (excluding losses in mortgage portfolios, credit card portfolios, credit default swaps and other toxic derivatives)
4) Have the Plunge Protection Team flood the markets with stock buy orders to flush the shorts and brings along the perma Bulls like lemmings.
5) Float rumors of ending mark-to-market accounting and re-instating the uptick rule to fry the short traders.
6) Have GM announce that they don’t need the extra $2B in March (ooo, so all their problems are cured… for 3 weeks at least!)
7) Have the Muppets on financial TV programs proclaim that the bottom is in and it’s safe to go back in the investing water.
8) Introduce a restrictive US mining law that would destroy all hard rock mining operations in the US so the banking cabal can cover their naked mining share shorts.
9) Downgrade GE to AA+ and declare “it’s a good thing” giving them a “Stable” outlook and goose their share price so no one thinks there’s anything wrong…”No problems here”.
10) Do anything and everything you can except NEVER show the true fragile state of the monetary system with over a QUADRILLION DOLLARS in derivatives that have yet to be resolved (…in fact they are growing exponentially!)
EXPECTED RESULT: Buy a few more weeks/months before the complete collapse of the global monetary system.
The Geithner Plan = Sustained Market Manipulation
Originally posted 3 April 2009
On March 12, 2009 I wrote an essay entitled “Operation Confidence Con” where I showed the likely game plan of the new US Treasury Secretary, Tim Geithner, on how he planned to build confidence in our current economic system by manipulating markets and public perception. Although I believe I correctly exposed the plan, I did not anticipate the size, scope and duration of this new market manipulation policy.
Operation Confidence Con is not a “one off” plan to revive the corrupt western banking system but a policy of SUSTAINED MARKET MANIPULATION that is trying to cover-up all aspects of Economic Reality. The tools to accomplish this plan include rigging government economic numbers, disguised plans to bail-out banks with taxpayer money, loading the FDIC with debt obligations to insure further bailouts, crashing the gold and silver markets with paper metal, orchestrating a G20 show to show false solidarity, pumping the stock market with PPT money, changing the accounting laws so banks can hide losses, and on….and on….and on… Recently, Tim Geithner revealed the core of this master plan in an interview with George Stephanopoulos in a “This Week”:
“The market will not solve this, and the great risk for us is we do too little, not that we do too much,”
This should send shivers down any free market advocates spine. This statement shows his inclination to subvert the free market for the banking cabal’s twisted version of manipulated markets. The beauty of a free market is that it DOES solve theses types of problems but Mr. Geithner and the banking cabal that he works for just DOESN’T LIKE THE ANSWERS.
In a “free market” the companies that make these kinds of giant mistakes go bankrupt and the company no longer exists. Counterparties that aligned their bets with these insolvent companies also suffer the consequences of their poor judgment in that they do not get insurance pay-outs that they counted on to cover their own reckless bets. That is the free market solution.
As for the individuals who commit these types of massive fraud they should be arrested, prosecuted and end up in jail. In a free market they don’t get huge bonuses from taxpayer bailouts. The AIG bonuses were a drop in the bucket compared to the bonuses shanghaied by Goldman Sachs, Citigroup, GE, Bank of America, etc. They got HUGE bonuses/compensation for 2008. Those companies should have imploded because of their reckless practices and NO BONUSES WOULD HAVE BEEN PAID!
Another Geithner quote: “To get through this, governments need to act. Great obligation, responsibility for governments to act to solve these things.”
Not true! To get through this the FREE MARKET needs to be allowed to ACT. We are closing in on 2 years of this “Credit Crisis” and there is still no end in sight. Had the free market been allowed to work we would have already suffered through the consequence of our actions and be on the road to recovery.
Today, Tim Geithner and his friends at the Treasury, the FED, the FDIC, the SEC and the CFTC are all colluding to rig EVERY MARKET to suit their Confidence Con. These computer market rigging operations will likely destroy everything the United States stands for. Meanwhile, people are losing their jobs, their retirement savings, their houses and their faith in their country. It is time to stand up and say “NO MORE”!
Read my lips Geithner…
WE DON’T WANT TO REGAIN CONFIDENCE IN YOUR CORRUPT SYSTEM
WE WANT HONEST MONEY THAT CAN’T BE CONGERED FRON THIN AIR
WE WANT THE CROOKS THAT CAUSED THIS TO GO TO JAIL
WE WANT FREE MARKETS NOT RIGGED ONES
WE WANT OUR COUNTRY BACK