Don’t Panic, The Fed Is Control Of The Markets

There’s no such thing as markets anymore – only interventions.  –  Chris Powell, co-founder and Treasurer of GATA

If today’s market action does not convince the last skeptics that the U.S. financial markets are completely rigged, nothing will.

The action in the U.S. markets today after the Greece/EU situation hit a wall today demonstrates the degree of control the Fed and the U.S. Central Planners have over the markets now.    The S&P 500 futures opened down 30 points when global electronic trading opened Sunday evening.   Gold and silver spiked up.  Both markets began to reflect some degree of the risk to the global financial system posed by Greece’s potential financial collapse.

Of course, as has been the case since the 1987 stock market crash, the Fed/Treasury – collectively the plunge protection team (PPT) – went to work containing the damage to the paper markets.  This entailed methodically working the S&P 500 higher during the course of the night and methodically pushing gold/silver back down – click to enlarge:

SPX1Gold

The manipulation of the markets reflected by these overnight trading charts of the SPX and Gold futures epitomizes the extreme degree of market intervention by the PPT. Ever since 1987, and since Reagan signed the Executive Order which authorized the PPT to prop up the stock markets, there’s been market intervention “creep” in this country. Robert Rubin’s role as Secretary of Treasury was to transition the Working Group on Financial Markets (PPT) from its stock market propping function into a full-fledged, all-encompassing market intervention mechanism.

A colleague of mine this morning remarked that after today the market intervention going on should become blatant to everyone.  I scoffed at this notion.  Most people in this country are either not aware of what’s going on in DC and Wall Street or don’t care.  I was watching CNN this morning and the Greek Tragedy was not even reported.  If you only get your news from CNN you have no idea that the EU could fall apart.  Therefore, you have no reason to believe that the stock market should be falling off a cliff and gold should be going parabolic toward the sky.

The markets have become unimaginably imbalanced in the degree to which the paper derivative securities misrepresent the underlying financial, economic and political reality. Yes, stocks and bonds are nothing more than simple derivatives in that they are pieces of paper which are supposed to “derive” their value from underlying entities that issue them. But the underlying entities are nothing more than cesspools of accounting fraud, criminality and Ponzi schemes designed to suck wealth out the system.

The financial markets – and specifically the U.S. financial markets – have become collectively the biggest Ponzi scheme in the history of the universe.  This condition has been made even worse by the fact that the people running these markets and our Government have become completely immune from prosecution or even indictment. They are criminals who are above the law.

Examples of this are becoming limitless, but consider that an open felon who, as Secretary of State, sold U.S. foreign policy to the highest bidders for her own personal gain is now the front-runner candidate to be the next President.  The only way that our system can become more distorted, debauched and depraved than that will be when the Government begins to herd malcontents and critics into “internment” camps.  Don’t think for moment that is not in the playbook…

…when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed.   –  Ayn Rand, “Atlas Shrugged”

 

22 thoughts on “Don’t Panic, The Fed Is Control Of The Markets

  1. The Gold stocks are absolutely comatose – they are actually in the red this morning … this really does prove that Paper Silver and Paper Gold is the ultimate cure all for financial crisis mngmt.

  2. It is impressive how they are able to continue to keep the game going. The day they fail or decide to withdraw support is when people are going to find out that being 1 second too late to leave is fatal.

  3. This just in: Treasury will announce Katelyn Jenner on the new
    ten dollar bill. The new three dollar bill will have Al Sharpton
    riding a unicorn. USA, USA !

  4. Absolutely mind blowing unbelievable corruption aided and abetted
    by main stream media who are either bought off or too lazy to
    investigate. The best thing anyone can do is go survival mode
    and prepare for the worst. Very bad times ahead.

  5. Looks like Greek Government Bonds have crashed this morning. Now trading at 15% WOW!
    Seems everybody and their dogs are trying to sell their GGB’s at any price point, before they become worthless and go no bid.
    I wonder how many OTC/CDS derivatives have been written and sold using GGB’s as the underlying, and who holds them? BOOM!

  6. I’m quickly becoming a huge kranzler fan. He really does his research better than anyone else on here. Go Dave!

      1. Dave I have to agree with Phees.

        There´s a lot to learn from a proffessional of your calibre and at the same time get lots of laughs visiting your page.

        About the things you wrote regarding the PPT – I wonder when they will run out of “rigging capacity” ?

        Could it be when the yield of the bonds goes so high that the price of money prevents them from this?

  7. Fascinating as this all is I am beginning to think they can keep this going longer than I can remain solvent.

    If I were to decide to “Collapse now and avoid the rush” do you have any housing markets to recommend?

    1. Olga–a nice 40+ foot trawler and perpetual summer at the town of New Plymouth, Green Turtle Cay, Bahamas. One hour flight to U.S. from Treasure Cay. Lots of Americans–English language and seldom is heard a discouraging word—and best of all–nobody cares, listens to or gives a damn how the U.S. does it.

    2. Start searching for housing markets in Iceland or Switzerland.

      There is nothing of any prospect here for quite a long time now, this place is finished.

    3. Olga, just seconds ago there was the greatest possible contrarian indicator to suggest that you should reconsider a home purchase right now. I tuned in CNBC yes, I was one of the five in america and heard Jim Cramer say, “Homes are a good investment again and higher interest rates won’t change that.”.

      I’m not kidding, Dave. That’s what he said.

  8. Dave, in all honesty, how much longer can the rigging continue? I want to believe that there is a limit to how much more the Central Banks can manipulate the precious metals down. But when I see such blatant manipulations occurring on a weekly basis, I almost want to throw-in the towel and give up. I can’t help but feel helpless in the face of giants that recklessly control the precious metals down.

    1. Donn’t know how long, but we know history tells us it will fail and the failure will occur with a force at least as equally as great as the force put into the rigging

  9. Those charts posted above are giving me a very sick, sinking feeling in the stomach, that:

    Whoever “logically” put their money into physical precious metals in their hands, are still not going to find it of much use for them during turbulence? Why???

    Sure, physical precious metals will be in great demand globally, especially in East. But over here, we will be ruled by such draconian fascism that it will be a moot point. Were ordinary citizen able to generate/preserve wealth in the form of precious metals during Stalin or Chairman Mao’s rule? Ask yourself that question. The 2 charts posted above tell me, what we’re going to get is going to be far worse than Stalin & Chairman Mao combined together. Stalin & Mao didn’t have access to kind of technology, today’s scum do.

    (Yes, I know…I’ve heard numerous time: Relax. A black-market for bartering with physical precious metals will organically mushroom, even if we get ruled by Nazi Soviets. How can such a market organically take shape, if all awake people in physical possession metals are not geographically clustered? They are very tiny minority of isolated micro-islands all over the country. An awake liberty-loving person with silver in his hand in Ohio won’t be able to barter with another awake liberty-loving organic farmer in Oregon. There will be no usable internet or communication medium for them to barter. TPP will have made an “open internet” obsolete.)

  10. Anyone remember watching Dad’s Army?

    Watch the Youtube video and see what the typical market maker is doing, starting at 0:09, and what the central banks want to declare at 0:38

    1. Oops, I meant 0:36 not 0:38, Consider what the two guys down below are holding as the derivatives market and it is even funnier, or more tragic as the case may be.

  11. Only a ‘purge’ will save some of this country……when tshtf only some will survive……yet most do not see this ‘coming’……and those that have caused this to happen…will be treated , as was Mussolini…..imho

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