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How Would ‘I’ (if a CB) Manipulate Select Markets?

April 9, 2013

In my view, all the global markets are now being manipulated and propped up by our Central Banks and their Proxies. The valuation of assets and the rising Global  Stock Markets…which continue to increase in value daily (with minor corrections) are unreal…yet someone or some Source is propping these assets and markets up into illogical and imaginary levels. As I watch the American Stock Markets I chuckle at the comments of the media personnel who try to explain why the markets continue to elevate to unjustified levels. Their responses are so illogical and superficial! Yet, the official Authorities probably appreciate their logic and support as of now!

Given today’s computer technology and the high frequency trading that is now possible, I could maximize manipulation of the markets with just a few coordinated strategies. The Central Banks on this planet have access to ALL our imaginary money units (dollars, yen, pounds, euros, etc.). They can create and lend these virtual units to any PROXY that will help their schemes and goals. And since PROXIES desire to cooperate with these powerful CENTRAL authorities, there are many strategies available today to manipulate and control the markets for the short-term. Let’s review a couple of these strategies that I could use to control and manipulate the Silver/Gold markets.

Even though the strategy of selling via NAKED SHORTS is supposed to be illegal, I could use this strategy if I had access to unlimited monetary units from a Central Bank (say at a near zero interest rate). I could have my Market Maker (broker) execute this strategy in real-time via an ‘algorithm’…as settlement of any transaction could be delayed for a few days. Why borrow a stock (as is required under a normal ‘short’ position) when I can just sell SHORT (now) via a NAKED strategy. The key to a NAKED SHORT (where a stock is not borrowed) is immediate execution using ‘phantom’ imaginary shares for purposes of ‘suppressing’ the price of a particular commodity or stock.

This  ‘naked short’ strategy can create millions of phantom shares which enter the market from a mere mathematical algorithm. This then allows me to ‘suppress’ the price of a commodity like SILVER or GOLD in real-time. Manipulating markets (via ‘phantom’ transactions and shares) is now possible given our HFT computers and our algorithmic (math based) trading options. Trading to manipulate a particular commodity (like silver or gold) can be accomplished via speed of light execution and an approved margin account with an established broker. Our new HFT computers and algorithms have changed our markets totally! Real-time manipulation can now be ubiquitous for select Hedge Funds and Trading Desks…especially if backed by a Central Bank.

Another strategy that Central Banks could use is a Coordinated Control Strategy. The key Central Banks (on this planet) are the U.S. Fed, the ECB, the Bank of England, and a few others. If I could work with these entities (via an informal agreement) I could buy select stocks (say within the Dow 30) to prop-up the markets on a real-time basis. I could also work with these policymakers (via real-time communication) so that all Global Markets (especially those that count) could rise (irrespective of real fundamental conditions). I have learned at various Trading Conferences that traders (today) could care less about fundamentals. All they really desire is an INCREASE and/or DECREASE in the ‘price’ of a stock, derivative, commodity, or currency. PRICE changes are the total objective!

Traders, today, desire to maximize profits by following money flows which they witness on their computer screens. To maximize profits all that is necessary is to buy when the money flows are producing up trends and sell when the money flows are producing down trends. It’s all a Game of Money Flows as witnessed on the Computer Screen in Real-Time. Traders then liquidate all their positions at the END of the DAY. Today’s High Frequency Computers, along with Algorithmic Formulae, allow traders (including Central Banks) new options to manipulate the markets. Those of you who have not attended live Trading Shows (I attend two per year) are missing out on all these new gimmicks and strategies for manipulating markets. Our current markets operate much like a CASINO operation in Las Vegas…which create advantages for the few and total losses for the many!

So are the Markets manipulated today? I would suggest…ABSOLUTELY! Those who think otherwise need to attend a live trading show or watch the strategies of traders on YouTube. Just go to YouTube and insert High Frequency Trading Strategies. Watch the different traders as they manipulate their buy/sell strategies in real-time. Notice that PRICE is the focus of these traders. It’s a great education in our current Casino Economic Markets. Take the time to talk to some HFT traders about their strategies and their real-time trading options. It’s an education for a whole new world of trading and speculating.

Finally, let’s review a couple of ‘tidbits’ that many financial pundits are espousing today. Are the markets heading for Hyper-inflation? Do the QE policies of our Central Banks create this possibility? My personal view is that a COLLAPSE of investor and trader CONFIDENCE is much more likely going forward. This ‘collapse’ of confidence is likely to create a huge market CRASH prior to any real emergence of Hyper-inflation. Today’s markets are moving money flows at the speed of light from market to market…all in real-time.

Our Global Interconnected Trading System is very aware of the current actions of their controllers (the Central Banks). Money flows can shift direction in seconds today. And the ‘herding instinct’ of traders is much more likely to create a huge Deflationary Collapse of the Debt markets when their psychology changes from ‘Bull’ to ‘Bear’. All this can happen in seconds! The view that we will experience a Hyper-inflation within all these inter-connected markets seems rather unlikely to me. I am preparing for a Market Crash and then a Deflation within most markets going forward! That’s my viewpoint! Have a good day!  I am:

P.S. A couple of words of wisdom from Margaret Thatcher (who passed on April 8, 2013):

“Pennies don’t fall from heaven – they have to be earned here on this earth”

“Don’t fall into the trap of imagining that the West can remake societies”

“And when you fight – fight to win”

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