FOMC Day Gold Manipulation

So Federal Reserve manipulates gold. Everybody knows this, But one picture is worth a thousand words. The huge bars that coincide with the big sudden declines without any news happened in a matter of couple minutes for each of them. No one who cares about profits trades that way unless they are trying to bring the price down. And no one who is short and wants to bring the price down is short that much officially except for JPM and even for JPM these are some ridiculous sizes. Fed needs to be abolished or at least put under a leash. This is enough illegal activity - not mentioning the stock market manipulations they do.

Problem With Economists

so krugman at a conference in tel aviv says that inflation isn't a threat and the global economy needs more stimulus according to a bloomberg article. this is at a point when the mountains of sovereign debt is starting to cause a lot of trouble as the debt collapse has already started.

the problem with people on certain payrolls whether they are nobel prize winners or not -other than the obvious bias for favor of their feeders- is that they concentrate on a small portion of the population -the ultrarich that are controlling the majority of assets, especially the stock market- as well as inflation, a meaningless number that is the rate of change. What people need to concentrate on is purchasing power and living standards both of which have been consistently falling with the advent of fiat money. inflation is a meaningless number. Consider a situation where for 5 years prices rise 20% of the initial price, so the total price increase is 100% of the initial year. This is terrible, right? Constant high inflation. Now consider a situation where the first year prices double -an increase of 100%, and for the rest of the 4 years, they are stable. People would think the second scenario is better, whereas in reality you are better of in scenario one if you are part of the majority of the population where you earn wages for your services and do not own that much assets because you can accumulate more assets under scenario one.

An even better scenario is deflation for you where your purchasing power increases. Do not believe the lies that in a deflationary period unemployment rises. Look at history, look at Japan... It is not true. Of course if it is run away deflation and there is too much instability, that is a different thing, but an orderly deflation is welcome for prudent savers as well as the majority of the population earning fixed incomes and are not asset rich. So why are we secretly ruled (think Goldman Sachs aka Government Sachs) by a bunch of rich people that only pursue their own interest and ruining us all. Do these people not realize that by lying about the economy and a lot of other things they are pursuing all of us towards a second global French Revolution????

Michigan Lack of Confidence Number

There is no confidence left in the University of Michigan Confidence number. One can't help, but wonder, where they are doing the survey. Must be the hallways of Goldman Sachs or JPMorgan. With everything going on around the world, as unworldly as Americans are and how blind they are thanks to the horrendous media of the country that is controlled by certain interests, people must have heard of the Greek tragedy and the troubles with sovereign debt and unemployment numbers as manipulated as they are similar to the University of Michigan Lack of Confidence Survey. You're not fooling anybody and these little games will end poorly.

Fed Needs To Be Abolished

Fed is overdoing its gold manipulation and needs to be abolished and people responsible for all the illegal and manipulative operations brought to justice. This is hurting the American people and the world. Fed is practically an extension of Goldman and JPM, the latter of which was fined today by the UK authorities for mingling clients' money with the firm money (memo to those who think these firms are still solvent), and all three are grossly fraudulent and should be shut down and brought to justice.

Forget Flash Crash, Investigate Flash Rebound

I am sick of hearing about the flash crash. They should be concentrating on the flash rebound and who manipulated markets upwards. Flash crash came as a result of the market being where it is due to upward manipulation, gross overvaluation, and everyone being long the same things and a continued pushing things upwards by the quantitative trading momentum shops. Flash rebound on the other hand is the plunge protection team at work. That is ILLEGAL. That is the part that should be investigated. There was no fat finger, there are only fatheads who think there are fat fingers and other lying fatheads trying to blame fat fingers.

Complacency And Crash Correlation

There is a direct correlation between complacency and market crashes as well as size of the bubble and size of the crash. Given the ridiculous levels world and US stock and fixed income markets as well as industrial metals, the size of the crash will be one to be reckoned with.

Even Goldman which has lost its reputation by those who still foolishly respected it, rose today. This company will at the least lose a whole bunch of business both due to reputation and they will have to remain a little less fraudulent the next few weeks or months so as not to be completely shutdown. And as Goldman cannot make money without corruption and fraud, this company other than lying in its reports should disappoint in earnings. Of course they and the Fed could try to manufacture a small market downturn to scare the government off from shutting it down or auditing the Fed.

Dick Bove And Enron

On the market and Goldman cheerleader channel, CNBC, today Dick Bove came out saying that the SEC is creating a new financial crisis and it shouldn't.

One question Dick: Should we have let Enron go free just not to create a financial crisis????

What kind of logic is this? You are so shallow, Dick. And so transparent. Everybody knows what you are doing and whose payroll you are on. Since when bringing justice is a bad thing? We should be questioning SEC why they did not do this long time ago and why they are not still doing much more on topics like mark-to-market and other accounting gimmicks Goldman uses to hide that it is way insolvent. It is much worse than Enron.

CNBC and Dick Bove once again showed what they are made of.

CNBC Ex-Goldman Disgraces To Journalism Are Next In Fraud Charges

If the Goldman case goes anywhere, one of the next steps will be investigations into Cramer and the other speakers such as Erin Burnett or Mario Bartiromo and how they might have been involved in market manipulation schemes with Goldman as well as others. These people are rude and a disgrace to journalism and CNBC should be getting rid of them or should be shut down. The emails and phone conversations of these people should be monitored in the future and for past misconduct.

Here is a similar article from Zerohedge:

http://www.zerohedge.com/article/cnbc-guest-tells-truth-calls-cramer-shallow-yanked-air

Goldman Is Finally Getting Recognition For What A Fraud It Is

For all those doubters and people who did not believe Goldman was a fraud and said that they were just so smart, the recent news showed how "smart" they are. They are smart in a corrupt way. This has to go somewhere one would hope, but given their corrupt people are everywhere and they corruptly spend our, taxpayers', money on their corruption we know they will try to spend it again to get out of this in a corrupt way. They will try to blame the stupid little peon, the fabulous fab, to jail saying he is the one behind the corruption and try to get out of it. Everybody knows a VP decides on nothing and a 15-20 million dollar deal goes through the MDs if not through the higher up people. Considering John Paulson was involved, we can safely assumed a lot of high level Goldman people were involved. We'll see if that comes out.

Goldman needs to be shut down as it is both corrupt and insolvent.

Handing Over The Blog

Hi,

For those of you who know me, I will no longer be doing the blog. I am handing it over to a friend to continue. The blog will continue, but I will not be the person behind it. I have full trust in the person who will be taking it over.

I wish all of you the best.

Sprott On IMF, Gold, Plunge Protection Team And Fed Supporting Equity Markets

There is a very good reason why the Fed does not want to be audited and why a lot of its hidden things are trying to be hidden away as "national security" issues.

Here is the link to Business Insider:

"

Eric Sprott Talks To Us About Gold, GATA, The IMF, And The Plunge-Protection Team

Vince Veneziani | Apr. 7, 2010, 12:02 PM

Yesterday, we published an article about how the IMF wouldn't sell investor Eric Sprott any of the remaining 191.3 tonnes of gold it had left.

We spoke with Alistair Thomson of the IMF and he clearly explained his reasonings behind not being able to sell Mr. Sprott gold.

Among them:

• The IFM only goes through a specific broker.
• It only sells gold to sovereigns.
• Thus, Sprott's desire to purchase IMF gold did not comply with 'protocol'.

Of course we want to hear all sides of the story, so today we spoke with Mr. Eric Sprott himself on the matter.

Sprott says that around six weeks ago while in the process of selling the gold trust ETF, he approached the IMF about buying some of the gold they were selling. And why not? If there's a buyer and seller, it's a market. Sprott originally wanted to buy only a portion of the available gold for sale but later decided it'd be interesting to see what the IMF would do or say if he tried to buy the whole lot of it.

Says Sprott, "I was prepared to get the bazooka."

But ultimately, there was no way the IMF was going to deal with Mr. Sprott's interests. If the IMF wants to sell gold, then it should clearly explain on what terms without making vague references like "phasing out" sales over time. Phase out could mean anything to 2 tonnes per month to 50 tonnes per year. It's unclear and that creates distortion in the investment world.

On the state of the gold market, Sprott says the following:

"I'm a 100% believer that central banks have suppressed the price of gold. I find it hilarious today that they have these programs to sell gold - it's of no use. It's one of the dumbest decisions in the last decade."

He wonders why the IMF is even selling gold. Gold is tangible and will always have value whereas money is just paper and at this point, digits on a screen. The IMF is going to spend the next few years bailing out nation after nation (PIIGS, anyone?), so why is it even selling gold?

Turning attention to Sprott's gold trust ETF (PHYS), he tells us that unlike State Street's SPDR gold ETF (GLD), the gold in his trust is readily available for physical settlement*. As for insurance:  "All physical gold is held at the Royal Canadian Mint which has its own insurance procedures." Sounds good to us, unless of course another Die Hard With A Vengeance scenario goes down.

On a lark, we asked Sprott his views on the so-called "Plunge-Protection Team" or the Working Group On Financial Markets.

His response was quite intriguing:

"The Fed bought $1.7 trillion in bonds in the bond market. Who knows how much they've put into equities? Look at March 9th. The PPT came into the market in the 1987 crash. When things are unstable, the PPT steps in."

And there you have it.

Tags: Markets, Gold, Eric Sprott, International Monetary Fund, ETFs

Read more: http://www.businessinsider.com/eric-sprott-gold-etf-imf-2010-4#ixzz0kYJIG4wo

"

Market State

With one sentence the stockmarket is a castle in the air. As is the bond market, the US dollar, several industrial commodities such as steel. Steel for example is too high beyond demand and supply metrics similar to 2007 and people are not realizing that the reason for the steel price increase is that countries such as China are trying to get out of the dollar and would rather hold commodities than the paper as well as projects that have stopped in the past are continuing to be completed now that people have the illusion the crisis is over and credit is a little less frozen -at least in the senselessly risky areas, basically a time bomb- and demand seems to have picked up in the face of diminished production and inventory reduction by the iron ore and steel producers that were almost all going under last couple years due to over-leverage and too much debt. The same scenario is still going on and the crisis yet again around the corner any time. It actually is already here, but people don't want to see it and certain people just do not want you to see it. Those people include the banks, government, and mainstream media that is under the control of the prior.

Complacency and irresponsibility is hot and heavy and momentum trading is back with a vengeance. The crisis will be back with a vengeance, too. The market rally could possibly keep going and quite some distance, too, but at any point it can easily do another down 40-90% without a blink. I would not take this risk/reward structure even if it means I will miss out on some upside. The expected value is negative and the probability of it happening is higher than most people seem to realize. The system is broken and it is all downhill from now on. Of course it will not go without a fight, but gravity will win in the end. Do not get caught in this game of greater fool.