Last week on Thursday February
5th, 2009, The President’s Working Group On Financial Markets held their
first official soiree with former New York Federal Reserve Bank President,
Timothy Geithner, installed as President Obama’s pick as Treasury
In the spirit of “Change
has come to America” and transparency, cameras were invited in for the
‘proverbial photo-op’ in what was no doubt an attempt to
demystify this shadowy organization. You can see this press conference for
yourself beginning at the 3:20 minute mark of this video
Twenty-one years ago, the President's Working Group on
Financial Markets [colloquially known as the Plunge Protection Team]
was created by Executive Order 12631, signed on March 18, 1988 by United
States President Ronald Reagan.
The Group was created in
response to disastrous events in the financial markets surrounding October
19, 1987 ("Black
Monday") to give recommendations and pose solutions
to ensure that a repeat does not happen. It was also designed to
"enhance the integrity, efficiency, orderliness, and competitiveness of
[United States] financial markets and maintain investor confidence."
The Group is constituted of the
- The Treasury Secretary
- The Chairman of the Federal Reserve
- The Chairman of the Securities and Exchange Commission [SEC]
- The Chairman of the Commodity Futures Trading Commission [CFTC]
Over the past decade, much has
been written and documented regarding claims about what the Working Group
really does. While the mainstream financial press generally dismisses these
activities as conspiracy theories, preferring the romantic notion that free
markets really exist, the Working Group acts in concert with its agents [J.P.
Morgan, Goldman Sachs et al] to:
- manipulate currencies,
including precious metals
- manipulate stock markets and bond markets using various means
like “moral suasion” or falsified / massaged economic data
- surreptitiously change benchmarks, utilizing data keepers like
- purchase and sale of stocks and stock idex futures
- utilize various derivatives icluding interest rate swaps in close
co-ordination with Federal Reserve Open Market Operations.
Taken together, these
activities are more akin to Central Planned “economies” than that
espoused by free markets and the Constitution for the United States of
Policy makers justify these
acts of malfaesence in the name of “National Security.” The
majority of these nefarious financial perversions promote the false illusion
of strength in the almighty U.S. Dollar – an irredeemable fiat currency
backed by nothing but a financially bankrupt government, a morally and
ethically bankrupt Central Bank and a criminally complicit cadre of
Regulators. These same financial perversions are at the root of the current
malaise of our financial system. TARPS, money printing and other delusional
debt hoaxes do not address our fundamental problem – irredeemable fiat
money draws its sustenance from faith – and that faith is now lost.
The reason most often cited by
pundits as to why claims of market manipulation[s] cannot be taken seriously,
and are therefore not worthy of mainstream news coverage, goes something like
“Surely, if markets were being
interfered with on a scale such as claimed – it would be obvious to
everyone and especially REGULATORS. Therefore, large-scale systemic market
malfeasance is virtually impossible.”
Eight years ago, a
whistle-blower and Independent Financial Fraud Investigator & Analyst
named Harry Markopolos took his concerns and findings regarding fraudulent
activities at Madoff Securities to the Securities and Exchange Commission
Astonishingly, after repeated
claims by Mr. Markopolos, the derelict SEC failed to take action for over
Last week, Mr. Harry Markopolos
gave sworn testimony to Congress regarding his crusade to share his insight
and expose to the SEC the scandal that we now know as The Madoff Affair. In
sworn testimony Markopolos stated,
gift-wrapped and delivered the largest Ponzi (Madoff) to them."
Congress and the whole world
Markopolos testified that he feared
for his life because he knew that Madoff Affair had ties to the rich and
powerful as well as shadowy organizations and operators. You can watch and
listen to his testimony
You can watch and listen to
Dem. Congressman Rick Ackerman question SEC leadership / legal counsel why
the SEC – having been delivered the Madoff fraud on a silver platter -
failed to act in the public interest here.
A little more than 10 years
ago, a Cornell graduate and commodity trader by the name of Bill Murphy
– after conferring with close knit group of knowledgable associates
– realized that something was seriously, systemically amiss in the gold
market. Murphy began a crudsade of his own, writing essays detailing his
concerns and findings and presenting them to law-makers, regulators and the
Like Mr. Markopolos, Murphy and
his cohorts were and continue to be ignored, too.
To inform the masses of these findings,
he started a web based investor community – Lemetropolecafe.com – and along with a newspaper editor named Chris
Powell, they founded GATA – the
Gold Anti Trust Action Committee.
On January 31, 2008, at a cost
of $264,426.26, this full page advertisement sponsored by GATA was published
in The Wall Street Journal. You can read about it here:
Amazingly, for the last eight
to ten years, Bill Murphy and the GATA associates have compiled overwhelming
evidence that the gold market is surreptitiously manipulated by the U.S.
Government, Federal Reserve and their various proxies in furtherance of
government economic policy. Central to this policy has been maintenance /
dominance / perpetuation the global U.S. Dollar hegemony. The resulting
catastrophic systemic problems to the banking and financial system were
accurately forecasted by Murphy and GATA years ago and are now manifesting
themselves in the current financial turmoil.
The highly documented gold
price rigging campaign that Murphy and GATA have brought forward is a key
element in a series of systemic financial abuses which has all been foisted
upon us in a vain attempt to perpetuate the life of something inherently
unstable which is destined to die – our fiat money system.
Everyone deserves to know that
irredeemable fiat currency systems possess an impeccably perfect record in
that every one that has ever graced this earth [there are over 3,800 past
examples of paper currencies that no longer exist] – has failed.
While ALL irredeemable fiat
money systems eventually fail – GOLD endures.
Gold bugs who understand this
concept often articulate the process by which fiat money fails by saying,
the end, all paper burns.”
So, as all of us – the
little people – sit and suffer through the last few gruesome,
fraudulent scenes being played out on the make-believe silver screen in this
financial-house-of-horrors constructed for us by our Friends on Wall Street,
we can rest assured that as the movie house continues to fill with toxic
smoke, The Plunge Protection Team is hard at work, discrediting the virtues
of gold, blocking the exits:
Overseas equity markets began
the week on a sour note with Japan’s Nikkei Index giving up 107 points
to close at 7,969. North American markets ended the day mixed with the DOW
losing 9.7 to 8,270.90, the NASDAQ giving up .15 to 1,591.56 and the S &
P edging up 1.30 to close at 869.90. NYMEX crude oil futures finished the day
at 39.90 per barrel – off .27 on the day.
Benchmark interest rates: the 5
yr. U.S. government bond finished the day at 1.99% while the benchmark 10 yr.
bond edged up to 3.01%.
On foreign exchange markets the
U.S. Dollar Index fell .44 to 84.78.
Precious metals were in a funk
all day with COMEX gold futures losing 14.40 to close at 898.00 per ounce
while COMEX silver futures lost .26 to end the day at 12.90 per ounce. The
XAU Index fell 3.54 to 126.18 while the HUI Index gave up 7.90 to finish at
On tap for tomorrow, at 10:00
a.m. Dec. Wholesale Inventories data is due – expected -.7% vs. prior
Wishing you all happy investing
and a pleasant evening!
Kirbyanalytics.com are profiting from paid in-depth research reports,
analysis and commentary on rapidly unfolding economic developments.