Another Monday has come and gone, and more of the same. I could complain about the blatant manipulation for hours, but the fact remains gold was $250/ounce in 2000, and today sits perched just under the KEY ROUND NUMBER of $1,750/oz, up sevenfold in just eleven years despite 24/7 price suppression. Conversely, the Dow is essentially flat over this period despite 24/7 price support, down significantly when including the four components conveniently dropped from the index when they became worthless (C, AIG, GM, and EK), and dramatically in REAL terms, no matter how you calculate inflation.
Today was another example of how the PPT – now GLOBAL in nature – works its manipulative magic. Walking into the gym this morning, I saw European equity markets down roughly 1.5% on fears of imminent Greek default, but as usual, the Dow was down by a fraction of this amount, in today’s case by just 50 points, or 0.4%. Gold was immediately walked down in the pre-market, as usual, and the Dow walked up despite ZERO news of any kind, and once the market opened, it was game over for the bears. The PPT stopped the Dow’s attempted decline in the first minutes of trading, then walked it up all day, replete with the usual “HAIL MARY” to end the day at its highs.
I guess we should ignore the fact that “the market” no longer exists, with GOVERNMENT HFT programs the most dominant “investor,” and potentially the only “investor” at the rate volume is declining…
…or that the “volume-less equity recovery” doesn’t gibe with the performance of other “risk assets” such as high yield bonds. Then again, when economic data such as Friday’s “FEBRUARY NFP FARCE” can be manufactured out of thin air, so can entire financial markets. Per the above, the U.S. government is becoming a larger and larger player in U.S. equity markets, while It is a FACT that the U.S. government has purchased 91% of new Treasury issuance over the past year-plus, and don’t even get me started on ESF intervention in the FOREX markets or Cartel manipulation of PMs.
The article below visually depicts a so-called “D-DAY” in the equity markets on August 5, 2011, when the U.S.’s credit rating was downgraded by Standard & Poor’s. After this date, HFT computer algorithms took over the markets, completing the “silent coup” they had commenced several years before. The beginnings of the government initiative to commandeer the equity market was late 1987 when the “President’s Working Group on Financial Markets” was formed, unofficially transforming from a defensive organization charged with staunching major declines to a 24/7 offensive operation the day the market re-opened after 9/11. In the late 2000s, when HFT trading was perfected by criminals such as Goldman Sachs (the #1 HFT trader), the “President’s Working Group” transferred their operations to the ALGORITHM world, completing their market takeover when “DEFCON 1” was reached during Global Meltdown II in August 2011.
In this context, my theory that a singular “D-DAY” in the Precious Metals mining shares occurred on November 9, 2010 looks a bit more plausible, doesn’t it? Starting that day, essentially 50% of all large-cap mining trades represented “new shorts,” if you know what I mean.
As for today’s travesty of Precious Metals “trading,” I was actually shocked to see gold rise $10 in Sunday’s opening hours (not a “melt-up” akin to the WATERFALL DECLINES gold experiences when it falls, but $10 over a five-hour period). Perhaps the Cartel was watching the Super Bowl, but more likely they were simply waiting until 3:00 AM EST for their regular wee hours attack – which is exactly what happened, of course.
Gold had been rising all night on safe-haven demand, with global equity markets and the Euro down sharply on fears of imminent Greek default, which is just as imminent now as it was then, if not more so. Yet, gold was SMASHED at EXACTLY 3:00 am EST, and when I got to the gym at 6:30 AM EST, watched the same “Dow / Gold x 2” ALGORITHM as always, repeatedly smacking gold a few bucks each time Dow Futures fell two or three points, then magically turning off when Dow Futures surged from -50 to -20. Again, the Cartel’s modus operandi is two-fold: 1) to fool investors into believing gold is not a safe haven during times of market stress, and 2) to make them believe gold can ONLY rise when the Dow is rising, although of course, the converse of the Dow falling when gold is falling is rarely allowed.
As you can see below, gold built some momentum in early COMEX trading, but just as it was about to turn sharply upwards it was SMASHED back down – what a shock, at EXACTLY the PM Fix at 10:00 AM EST. And finally, the coup de grace, deployment of the “cap of last resort” at EXACTLY 12:00 PM EST when gold once again attempted to turn positive and follow the PPT-supported Dow upward.
Today we witnessed one of the oldest Cartel “psy ops” weapons, which I coined “DLITG” roughly 7-8 years ago. During the pre-market hours, the Cartel routinely caps the “Gold futures” price showing on CNBC screens at the unchanged mark, as this is the most commonly watched media outlet at this time of day. Once the NYSE opens, the “DLITG,” or “Don’t Let It Turn Green” ALGORITHMS are shifted to the criminal ETF GLD, by far the most commonly watched gold proxy.
As is blatantly obvious by the below chart of today’s trading activity, the red line signifying unchanged was simply NOT ALLOWED to be crossed, an obvious follow-up to Friday’s pre-meditated “FEBRUARY NFP FARCE” attack. There is not a doubt that TPTB, just as Obama’s re-election campaign began, wanted the media to report “markets up and gold down on the unexpected surge in American jobs.” Thus, they would NOT allow gold to reverse its Friday losses, or, for that matter, to allow Friday’s stock gains to evaporate – even with Greek default a clear and present danger.
What was particularly irritating about today’s DLITG operation was PAPER gold’s sudden decline in the day’s last 15 minutes for no reason, just as the PPT was executing its usual “HAIL MARY” Dow goosing.
Better yet, the SLV silver ETF had been trading in positive territory for essentially the last five hours of the day, yet again capped hard at the same $34.00/ounce line in the sand that has accompanied the month long defense of $1,750/ounce gold. Silver is still just $0.30 or so below that level following two days of vicious suppression – acting better than gold at the moment – but is still under severe $34.00/ounce “lockdown.”
To demonstrate how devious the “DLITG” algorithm can be, I saw something today in SLV that, believe it or not, has occurred many times before over the years, as clear a Cartel footprint as any I’ve seen. As you can see, silver suddenly started declining in the last half hour of trading as well, and I kid you not traded positively until 3:59:59 PM EST, when it traded ONE PRINT at $32.68/share to close the day, DOWN 0.01. Not only that, the INSTANT that print hit (and trading closed), the bid was $0.02 higher. They simply made sure SLV traded “down” on the day, angering and frustrating PM and mining share investors alike.
And speaking of BLATANT CARTEL FOOTPRINTS, what’s this I see? Hmmm, gold “lease rates trading steadily for the entire month of January – when gold was rising – then suddenly PLUMMETED into negative territory on Thursday, the day before the “FEBRUARY NFP FARCE.” I mean, how much more obvious can they be?
Yes, negative interest rates are becoming all the rage, the peak of financial hubris and blaring signal of imminent systemic failure. The U.S. already has negative T-bill rates, negative gold lease rates, and if some Federal Reserve governors get their way, a negative Federal Funds rate. Better yet, look what else just went negative, per my ongoing commentary about the plunging Baltic Dry Index – which, by the way, is now officially down to its LOW of late 2008, at the BOTTOM of Global Meltdown I.
Lo and behold, SHIPPING RATES have now gone negative in certain areas, with shipping companies paying customers to lease vessels, and thus avoid costly idling and dry dock expenses. Oh yeah, the global economy is doing A-OK!
Remember that pesky little issue of Greece on the verge of default? You know, the issue that tanked European stock markets all night until the U.S.-led PPT propped them back up? It looks like the Greek Prime Minister is preparing to voluntarily exit the Eurozone, just as I have predicted for some time to deaf ears. Gee, I wonder if the ISDA will attempt to call a 100% DEFAULT a “non-default credit event.”
Then again, the only tools left in TPTB’s arsenal are PRINTING MONEY, MANIPULATING MARKETS, and LYING about anything and everything, including the unemployment rate…
…what really happened at MF Global…
…the true state of Japan’s “nuclear winter,” a year after the Fukushima reactor meltdown…
…and the fact that the ONLY profitable Wall Street business these days – aside from the upcoming Facebook IPO – are activities based on illegal HFT trading, fraudulent FASB-endorsed real estate accounting, and faux carry-trade profits generated from ongoing TAXPAYER funded bailouts via the Fed’s “ZIRP until at least late 2014” monetary policy. And if you want to know just how SCREWED the global banking system is, consider this.
The completely insolvent U.S. banking system is “only” leveraged by the incredibly dangerous ratio of 13:1, compared to 23:1 in Japan, 26:1 in France, and 32:1 in Germany (not to mention the soon-to-be “infinite to one” ratio in Greece, Portugal, and the other PIIGS).
Finally, the ONE AREA the government doesn’t lie about at all, it’s intentions to start a military conflict with Iran ASAP, likely igniting World War III in this humble RANTER’s opinion.