• Tag Archives Manipulation
  • Yesterday, All My Market Troubles Seemed So Far Away…

    We’re finally here. About 9 years after QE1 began, QT is about to start. If one believes that the stock market still is a discounting mechanism, then have nothing to fear with QT and that maybe it will actually be like ‘watching paint dry’ as Fed members so desperately want it to be. After all, the S&P 500 is at an all-time high. If you think, like me, that the stock market is not the same discounting tool as it once was because of the major distortion and manipulation of markets via central market involvement and the dominance of machines that are reactive instead of proactive in response to news, then we must review again the previous experiences when major Fed changes took place. After all, they were all well telegraphed as this week’s likely news has been.
    Before I get to that, let me remind everyone that the 3rd mandate of QE was higher stock prices. Ben Bernanke in rationalizing the initiation of QE2 in a Washington Post editorial back in November 2010 said in regards to QE1 and the verbal preparation for QE2: ‘this approach eased financial conditions in the past and, so far, looks to be effective again. Stock prices rose and long-term interest rates fell when investors began to anticipate the most recent action.’ He then went on to say ‘higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion.’ Yes, the belief in the wealth effect which hasn’t worked in this expansion. Hence, the record high in stocks last week and the 2.9% y/o/y rise in core August retail sales, both below the 5-year average and well less than the average seen in the prior two expansions.

    This post was published at FinancialSense on 09/18/2017.


  • Euros, Dollars and Central Bank Manipulations

    Peter Schiff has been talking a lot about the weakening dollar. In a recent Schiff Report video, Peter said he sees the ‘mother of all dollar bear markets’ on the horizon. The dollar has already dropped about 12% on the year, and it’s on track for its worst year since 1985. That was the beginning of a decade long bear market for the dollar. Peter says he thinks this one will be worse.
    I think this one is going to be the mother of all dollar bear markets, and I think the dollar is going to fall much further than it did in any prior bear market.’
    The following article by economist Dr. Daniel Lacalle, published at the Mises Institute FedWatch, provides some further insights into monetary policy by looking at the strength of the euro in relation to the dollar. His analysis sheds light on the relationship between strong and weak currencies, and the cost and benefits of each.
    The primary purposes of the incorrectly named ‘unconventional monetary policies’ are to debase the currency, stoke inflation, and make exports more competitive. Printing money aims to solve structural imbalances by making currencies weaker.

    This post was published at Schiffgold on SEPTEMBER 14, 2017.


  • You Live and Breathe Economics

    ‘Economics puts parameters on people’s utopias.’
    Yes. That’s exactly it. That’s why the politicians hate economics. That’s why the media are so… selective over which economists they call on to talk about policy.
    That’s why the economics departments in colleges are put down by the sociologists, philosophers, literature professors and just about anyone else who has romantic longings for a coerced utopia.
    ‘The teachings of the principles of economics should inform as much on what not to do, perhaps even more than providing a guide to public action.’
    That’s it again. Don’t control prices. Don’t socialize medicine. Don’t raise taxes. Don’t inflate the money supply. Don’t put up trade barriers. Don’t go to war. Economists just keep bursting people’s bubbles. And it’s because economists say these things that the ruling class wants them to shut up.
    It’s been going on for hundreds of years. Every generation for the past 500 years has seen the battle wage between those who want to use the power of the state to fit some daydream on one hand and the economists who have seen the futility in this manipulation and warn against it on the other.

    This post was published at Mises Canada on SEPTEMBER 8, 2017.


  • GOLD HAS BROKEN OUT – DON’T BE LEFT BEHIND

    The coming gold and silver moves in the next few months will really surprise most investors as market volatility increases substantially.
    It seems right now that ‘All (is) quiet on the Western Front’ as Erich-Maria Remarque wrote about WWI. Ten years after the Great Financial Crisis started and nine years after the Lehman collapse, it seems that the world is in better shape than ever. Stocks are at historical highs, interest rates at historical lows, house prices are booming again and consumers are buying more than ever.
    HAVE CENTRAL BANKS SAVED THE WORLD?
    So why were we so worried in 2007? There is no problem big enough that our friendly Central Bankers can’t solve. All you need to do to fool the world is to: Print and expand credit by $100 trillion, fabricate derivatives for another few $100 trillion, make further commitments to the people in forms of pensions and medical, social care for amounts that can never be paid and lower interest rates to zero or negative.
    And there we have it. This is the New Normal. The Central Banks have successfully applied all the Keynesian tools. How can everything work so well with just more debt and liabilities? Well, because things are different today. We have all the sophisticated tools, computers, complex models, making fake money QE, interest rate manipulation management and very devious intelligent central bankers.
    Or is it different this time?

    This post was published at GoldSwitzerland on September 7, 2017.


  • The world’s most powerful bank issues a major warning

    In 1869, a 48-year old Jewish immigrant from the tiny village of Trappstadt in Germany’s Bavaria region hung a shingle outside of his small office in lower Manhattan to officially launch his new business.
    His name was Marcus Goldman, and the business he started, what’s now known as Goldman Sachs, has become the preeminent investment bank in the world with nearly $1 trillion in assets.
    They didn’t get there by winning any popularity contests.
    Goldman Sachs has been at the heart of nearly every major banking scandal in recent history.
    The company has settled lawsuits on countless charges, ranging from exchange rate manipulation, stock price manipulation, demanding bribes from their own clients, front-running retail customers, and just about every shady business practice that would put money in their pockets.
    Yet throughout it all, Goldman Sachs has been protected from any serious punishment by its friends in highest offices of government.

    This post was published at Sovereign Man on Santiago, Chile.


  • Wyoming’s Money Grab Against VW Dismissed

    A Federal Judge Breyer ruled against Wyoming and in favor of Volkswagen (VW) dismissing the claim that because of VW’s manipulation of diesel emissions, they caused environmental damage and should pay damages to the State in addition to individual car owners. Judge Breyer stated that despite the fact that VW was indeed responsible for manipulation. However, since these were carried out during the production of the diesel cars, the Congress had decided that the EPA, rather than the individual federal states, was in the best position to deal with damage regulations.

    This post was published at Armstrong Economics on Sep 5, 2017.


  • A2A with Chris Powell of GATA

    Chris Powell and Bill Murphy formed the Gold Anti-Trust Action Committee in 1998 and they’ve been stalwart allies in the fight against gold price suppression and manipulation ever since. What a pleasure it was today to get caught up with Chris and get his thoughts on the current state of the global market for gold.
    As you listen, you’ll quickly be reminded that Chris is still one of the most informed and well-spoken advocates for our cause. Over the course of this webinar, he addresses a number of current issues including:
    the most important lesson he’s learned in the 20 years he’s followed the gold market the strange occurrence of SecTreas Mnuchin visiting Ft Knox and the equally strange television interview of Terry Duffy, the CEO of the CME Group whether the US government would financially benefit from revaluing the price of gold how physical demand will paly a role in finally ending the tyranny of the central banks and bullion banks and much, much more!

    This post was published at TF Metals Report on Thursday, August 31, 2017.


  • SHOCKING COMMENTS BY TRUMP, STOCK MARKET UNAFFECTED | Rob Kirby

    The following video was published by SilverDoctors on Aug 9, 2017
    Rob Kirby returns to Silver Doctors to discuss recent geopolitical tensions. He says we’re “redlining” right now, but markets are practically unaffected. The U. S. Treasury acting in conjunction with the Federal Reserve is manipulating the markets, Kirby says. Why are so many oblivious to this manipulation? “Most people are not going to complain about a stock market that is higher than it should be.”
    But one market that is not manipulated is Bitcoin – and Bitcoin recently broke above $3000. “The cryptocurrencies are showing us what precious metals should be doing, and would be doing, if they were in a free market,” Kirby says.


  • DIGITAL TYRANNY: Google and Facebook’s Automated Censorship Program (I Hope You Can Speak Chinese)

    21st Century Wire says…
    Based on their own reports and public statements, it was clear that both Google and Facebook, and others, were engaged in formulating a wide program of censorship in order to ‘tackle’ what the corporations deem as ‘offensive speech’ or ‘hate speech’. Although based on the political biases of members of these corporations, the actual administration of this will be done by fully hidden and unaccountable automated computer algorithms.
    According to new reports, the new method are not merely the manipulation of metrics used to downplay content. These are incredibly clandestine and very sinister measures: without visibly shutting down an account, this new automated censorship process will simply make an account holder’s posts invisible to their friends, fans and followers, in what Google/YouTube is calling ‘a limited state’ in order to ‘isolate and contain’ a targeted user – even if they have NOT violated the user terms of services. This is designed not only to ‘disappear’ important opinions and information – but also to frustrate users, in the hopes that they will eventually abandon the platform as a viable content distribution network.

    This post was published at 21st Century Wire on AUGUST 6, 2017.


  • Our Brave New ”’Markets”’

    One thing is clear: These aren’t your daddy’s markets anymore.
    Why? Because about 10 years ago the Rise of the Machines (aka high frequency trading algorithms) completely altered the terrain of what we call the ‘capital markets.’
    Let’s look at this as a before and after story.
    Before the machines, markets were a place that humans with roughly equal information and reflexes set the prices of financial assets by buying and selling. Fundamentals mattered.
    After the machines took over, markets became dominated — in terms of volume, liquidity and pricing — by machines that operate in time frames of a millionth of a second. The machines and their algorithms use remorseless routines and trickery — quote stuffing, spoofing, price manipulations — to ‘get their way.’
    Fundamentals no longer matter; only endless central bank-supplied liquidity does. Because such machines and their coders are very expensive and require a lot of funding.
    The various financial markets are so distorted that I first resorted to putting that word in quotes – ‘markets’ – to signify that they are not at all the same as in the past. In recent years I’ve taken to putting double quote marks – ”markets” – in attempt to drive home their gross distortion. Not only are todays ”markets” something the human traders of a generation ago would fail to recognize, they’re no longer a place where human actions of any sort have much of a remaining role.

    This post was published at PeakProsperity on Friday, July 28, 2017.


  • Against Irredeemable Paper – Precious Metals Supply and Demand

    The Antidote
    Something needs to be said. We are against the existence of irredeemable paper currency, central banking and central planning, cronyism, socialized losses and privatized gains, counterfeit credit, wealth transfers and bailouts, and welfare both corporate and personal.
    When we write to debunk the conspiracy theories that say manipulation is keeping gold from hitting $5,000 (one speaker here at Freedom Fest claimed gold will go to $65,000), we are not trying to defend the Fed. When we discuss the flaws in predicting that kind of price, and the error in expecting to profit from it, we are not expressing a pro irredeemable dollar view.
    We are saying there are good arguments against the regime of irredeemable paper currency – but this is not one of them. Irredeemable currency has two fatal flaws. One is the interest rate is unhinged.
    It can skyrocket as it did from the end of WWII through 1980, or collapse as it has been doing since then. Two is there is no extinguisher of debt. Debt grows – must necessarily grow – exponentially. As it has been doing for many decades.

    This post was published at Acting-Man on July 25, 2017.


  • Who Is Most Likely To Lie On Their Loan Application: A Surprising Answer From UBS

    According to conventional wisdom, or at least logic, the less income one has the more likely they would be to lie on a loan application due to disproportionate and non-scaled needs to obtain capital as well as the willingness – statistically speaking – to do so at any cost, even if it means lying. And while that would have been accurate 6 months ago, the latest quarterly UBS Evidence Lab survey of consumer credit reveals something surprising.
    As UBS’ Matthew Mish writes, “the manipulation of risk estimates appears to be continuing for non-mortgage consumer loans. Specifically 26% of respondents (vs 25% in Q1) describe the factual accuracy of their loan applications (student, auto or card) as inaccurate.”
    Translation: while the overall percentage of potential “cheating” borrowers is increasing, the chart below shows the unexpected finding is that while the proportion of those making $40-$99K in June responding their loan applications were inaccurate declined from March 31 to June 30, the percentage of respondents in the $100K and higher bucket spiked from 20% to 24%, which means that the wealthiest Americans are – as of this moment – as likely to lie on their loan applications as those making as little as $40K. Just as disturbing is that the incidence of lying on loan applications among the “richest” bucket Americans has jumped by far the most YTD, from 17% at the start of the year to 24% currently.

    This post was published at Zero Hedge on Jul 18, 2017.


  • Dollar Continues Fall While Metals Offer Ratio Plays | Golden Rule Radio

    The following video was published by McAlvany Financial on Jul 13, 2017
    This week we talk about how the Dollar continues to fall, and we’ll discuss the recent bear raid on Silver. We look at gold, Platinum, Palladium price movements this last week and emphasize the importance of Ratio Trade opportunities. Janet Yellen of the FED believes we won’t see another Financial Crisis in our lifetime….. Is that even possible and what levels of manipulation are the FED willing to take. Thanks for listening to Golden Rule Radio our weekly precious metals update. Be sure to subscribe for more.


  • The Gold Industry is in a Massive State of Dysfunction, Delusion and Denial

    In 1980, the Financial Deep State realized that there existed an extraordinary opportunity for serial plunder and profiteering: the manipulation of the gold and silver markets. They immediately mobilized to exploit it.
    During the subsequent 37+ years (we are now well into the 38th), the Deep State manipulators have criminally looted the gold and silver markets, pocketing astronomical profits for themselves in the process, all of which have come from real victims on the other sides of their fraudulent trades. While literally billions of people worldwide have been financially damaged by this crime, many of them severely, not one of the perpetrators has spent so much as ten seconds in jail for the global looting spree they have conducted. This is because precious metals price fraud is a state-sponsored crime.
    While in this article we will concentrate on gold from here on, the exact dynamics we describe also apply to silver. The only difference between the two is that the price carnage in silver has been far worse than it has been in gold, on a percentage basis.
    As a consequence of the unrelenting gold price manipulation, gold has been thrust into two severe bear markets that have lasted for more than 27 of the past 37 years, or more than 72% of the time.

    This post was published at GoldSeek on July 11, 2017.


  • THIS TRAIT SHARED IN COMMON BY INTERNET TROLLS AND POLITICIANS IS WHY WE CAN’T HAVE NICE THINGS

    Sport to some, digital bullying to others – whether you abide online trolling or find the inflammatory, sometimes cruel, practice repulsive – the Internet’s myriad disparate troll armies are apparently here to stay.
    Seeding malcontent, disputation, division, needless provocation, and, often, chaos, trolls merit their characterization by the hordes as the bane of the Internet.
    But, upon examining the psychology of these ruthless keyboard provocateurs, their likely detriment to civil discourse – already evinced in the mimicry of youth – sounds a warning not to be ignored.
    Trolls, researchers found, possess a worrisome psychologic profile, laced with psychopathy and sadism, as well as a dearth in empathy – all of which they employ in online manipulation to sow mayhem, an ultimate reward for their mischief.
    Researchers at Federation University in Australia queried 415 participants, approximately two-thirds of them female, with a median age of 23, to determine their levels of psychopathy, sadism, and empathy – such as gauging trolls’ agreement with the statement, ‘People would enjoy hurting others if they gave it a go.’

    This post was published at The Daily Sheeple on JULY 10, 2017.