Rigged?

June 24, 2010

By Jim Deeds

Are all the world’s financial and monetary markets now totally rigged in a massive propaganda / personal greed effort to “narrate” America’s remaining savers and investors into complacency or confusion in an effort to hide the real truth?

That’s a long question with a short answer: yes.

Richard Maybury (Early Warning Report) has written a fine geo-political and investment newsletter for over 20 years. In his June/July issue he may have unconsciously given us a really short answer to a perplexing question:

“In the past I’ve mentioned that when someone asks me where they should put their money, my first reaction is; you tell me what the Federal Reserve will do, then I’ll tell you where to put your money. It’s all about psychology. If we had a perfect blueprint of the thoughts and emotions of every Fed official, we would be able to predict their behavior, and thereby have the most important piece of make-or-break information about how to configure our investment mix.”

Maybury – at times a very creative thinker in looking into our possible future – is simply saying:

All markets in America (and now probably in the entire world) are manipulated on a daily basis to meet pre-determined governmental goals. This is done through both direct market manipulation and control and by on-going never-ending “narration.” Narration of course means, tell a story often enough and the people will believe it.

A personal observation: When I gradated from college in 1956, 75% or more of American markets were still “free markets.” Even then, it was illegal to own physical gold (the world gold price had been “fixed” by FDR at $35/ounce to back the American dollar as the world’s reserve currency – a “gold-backed” dollar, for 24 years). Farm prices even then were controlled by our Department of Agriculture through the use of agricultural “subsidies and price supports.” The Fed adjusted interest rates and “easy money” (the ability to borrow at banks) in response to a somewhat normal business cycle that consisted of four years of growth and then a business recession (very mild when measured in today’s terms). But financial markets, both stock and bonds, had independent, free-acting buyers, sellers, investors, and speculators, who acted of their own free will in their attempts to realize personal goals.

In 2010, this has all changed!

It will take a book, not a brief article, to properly explain the transformation of American business over the past 60 years. It has gone from a free-market driven, productive enterprise into a government-dictated, socialized, totalitarian-controlled state. But the prime factors in this 100% reversal of previous free-market enterprise are easily identified and would include:

1. Fed monetary policy is used as a dictatorial force to influence both Presidential and Congressional elections.
2. An all-powerful Plunge Protection Team (PPT), originally used by Greenspan, is now greatly expanded to work in secret collusion with the Fed, Treasury, and President.  It directly influences both U.S. and world markets in overnight reaction to any crisis, real or perceived. Easy recognition of the PPT agents and their actions in all financial and monetary markets can be seen in the government-sponsored financial actions of Goldman Sachs and JP Morgan. Those institutions bombard currency, bond, stock, and commodity (particularly gold and silver) markets on a daily basis, if needed, to emphasize in dollars and cents the narration of official government (Presidential) policy.

The rigging of markets is usually accomplished while we sleep. The Fed/PPT Wall Street agents are given large short-term credit from the Fed or Treasury so they can quickly overwhelm the thin overnight commodity or stock futures markets and move them in a direction favorable to government. By placing very large buy or sell “market orders” in thin pre-opening market trading, the DJ highly-leveraged futures indexes can be manipulated up 100-150 points before our markets open in America. In reverse fashion, a slug of gold contracts can be sold in thin overseas “paper gold futures markets,” forcing the gold price down $20-25 before the U.S. commodity market opens. Then, with a “tip” to their favored hedge fund clients, Wall Street agents quickly extend the trend in the day’s trading on Wall Street.

In an oft-noted occurrence, a programmed speech by Obama or Capital Hill appearance by Bernanke or Geithner is always accompanied by favorable “market action.”

As you can see, we could go on with factual revelations of how all world markets are now rigged by local or the U.S. (empire) “market control authorities.” It’s all there! If I were Bob Woodward or Carl Bernstein, a best selling book would already be in the works.

CONCLUSION

Whether you believe these market-rigging conclusions or not, remember:

You can fool all of the people some of the time, and some of the people all of the time. But you cannot fool all of the people all of the time!

A final warning? Both Obama and you and I should beware, for opposite reasons:

“The best laid plans of mice and men sometimes go oft awry.”