Veteran S&P Futures Trader: "I Am 100% Confident That Central Banks Are Buying S&P Futures"

Tyler Durden's picture

A Zero Hedge reader, and long-time futures trader, shares his views on the evolution of the "market", where it was, where it is, and where it may be going.

* * *

I have been an independent trader for 23 years, starting at the CBOT in grains and CME in the S&P 500 futures markets long ago while they were auction outcry markets, and have stayed in the alternative investment space ever since, and now run a small fund.

I understand better than most I would think, the "mechanics" of the markets and how they have evolved over time from the auction market to 'upstairs".  I am a self-taught, top down global macro economist, and historian of "money" and the Fed and all economic and governmental structures in the world.  One thing so many managers don't understand is that the markets take away the most amounts of money from the most amounts of people, and do so non-linearly.  Most sophisticated investors know to be successful, one must be a contrarian, and this philosophy is in parallel.  Markets will, on all time scales, through exponential decay (fat tails, or black swans, on longer term scales), or exponential growth of price itself.  Why was I so bearish on gold at its peak a few years back for instance?  Because of the ascent of non-linearity of price, and the massive consensus buildup of bulls.  Didier Sornette, author of "Why Stock Markets Crash", I believe correctly summarizes how Power Law Behavior, or exponential consensus, and how it lead to crashes.  The buildup of buyers' zeal, and the squeezing of shorts, leads to that "complex system" popping.  I have traded as a contrarian with these philosophies for some time.

The point here is, our general indices have been at that critical point now for a year, without "normal" reactions post critical points in time, from longer term time scales to intraday.  This suggests that many times, there is only an audience of one buyer, and as price goes up to certain levels, that buyer extracts all sellers.   After this year and especially this last 1900 point Dow run up in October, and post non-reaction, that I am 100 percent confident that that one buyer is our own Federal Reserve or other central banks with a goal to "stimulate" our economy by directly buying stock index futures.  Talking about a perpetual fat finger!  I guess "don't fight the Fed" truly exists, without fluctuation, in this situation.  Its important to note the mechanics; the Fed buys futures and the actual underlying constituents that make up the general indices will align by opportunistic spread arbitragers who sell the futures and buy the actual equities, thus, the Fed could use the con, if asked, that they aren't actually buying equities. 

They also consistently use events through their controlled media, whether bad or good price altering news, to create investment behavior.  The "ending" QE 3, and the immediate Bank of Japan QE news that night, and thus the ability to not quit QE using them as their front, and then propping our markets on Globex, like this is suppose to be good news, free markets totally dependent on QE, is one example.  Last night, Obama passing the amnesty bill, and the more great news about how Europe and now China are also printing money out of thin air and "stimulating" their economies with QE too, which in turn prompts the Fed to prop up overnight futures markets on Globex to make that look like great news as well.  I guess this is suppose to create a behavioral pattern for investors, that dependency on government gives us positive feedback and is good, much like Pavlov's dog and the ringing of the bell.

Why would the Fed prop up our stock market to begin with?  Weren't they just supposed to "stimulate" the treasuries market only, to keep interest rates low, indirectly, by an eventual direct purchase in secondary markets, keeping them propped up (for five years now!)?  Well, first of all as it relates to equities and utilizing the "Plunge Protection" mandate, why not just bypass the "plunge" altogether.  Can't the definition of Plunge Protection be just that?  Protection against a plunge instead of during a plunge?  Doesn't propping the market equate to "Plunge Protection" since propping alleviates plunge and "protects" us?  Does it depend on what the definition of "is" is?  And really, doesn't the Fed buying futures directly alleviate those bankers who take their money in TARP or however means and then this money doesn't make its way into the very heart of what the public deems as its consumption motivator, higher stocks and real estate?  Plus, buying futures is a means of then delivering fiat cash upon every expiration, therefore, "stimulus" to someone who receives it. 

The Fed boasts about having a printing press, and I guess this allows them to "fix" everything.  They "print money out of thin air" we keep hearing (which is true by the way) and with US taxpayer backing (fiat currency (always fails throughout history)), (perhaps post QE 3 there is an Executive Order for QE infinity), they sit on the actual bid and hold our treasury markets steady, and by buying out big sellers as they arise like Russia and China via their Belgium central bank franchise as an example, propping our dollar and then staying on that bid by other franchises, having constant bid flow into equity futures in real time hours and Globex overnite, all in order to retain US consumer confidence (since that is what we are suppose to continue to do) and the image of global strength to keep the dollar from losing its reserve status.  Their obsession of stopping a deflationary depression, has headfaked people like Bill Gross, formerly of PIMCO, and known to have started hedging long bond positions five years ago with the assumptions that Fed printing would be inflationary, and rates would move higher, but without the assumption of the perpetual direct bid in the market place by the Fed creating, "price discovery".  For now, that is.

In the end, which they know exactly when that is, the ultimate con is exposed through mass theft.  Americans finally find out what those guys on CNBC are talking about when they mention "inflation" and how it destroys buying power over time.  The end reflects the Fed stepping away from the bid in all markets.  Prior to this, of course, they prep their offshore fund accounts to take the other side and short dollar, short global equities, and short fixed income, with mass leverage for maximum gain.  I mean, why wouldn't they?  They are a private entity and are composed of non-US citizens with no accountability or oversight and they seem to be globalist humanists with a depopulation bent (Rockefeller Foundation). Why wouldn't they use our money to prop, their money to take other side in a massive global short play, then let it all crash by simply stepping off the bid of these markets.  They can then use the controlled talking heads who can relay the complexities of fiat money, index arbitrage, money velocity, currency and CDO swaps, with some geopolitical China worries, whatever, but really emphasize that the whole capitalistic system and constitution was flawed to begin with anyways, and that perhaps totalitarian fascism would be best for the country at this point since everyone's wealth is destroyed overnight and are literally hungry.  Perhaps Obama is just that person!  Maybe Dinesh D'souza was right about Obama.  This is the way to destroy us, or "equal" the playing field globally by taking us down to third world status, is it not?  Leverage the American people's money by trillions of dollars at the tops of capital markets, then bury them in a death spiral?  Maybe Thomas Jefferson knew what he was saying' "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."  

Why wouldn't anyone believe these words written here?  Perhaps you can't imagine someone being so evil?  Wasn't the Federal Reserve Bank concept initially funded by a Rothschild in the 1800s, who used the media to deceive the public and sway the London Stock Market down negatively, who then speculated against that panicking public's sell orders by taking long positions in stocks, then making a fortune when everyone found out that the news was wrong and positive?  Then later another Rothschild founded our Federal Reserve in 1913, and others like JP Morgan who supposedly bought the US stock market in a banking panic and "saved" America in 1909?  Aren't all of these Fed owners Fabian Socialists?

Details of this last market move:

This last 1900 point Dow Jones push upwards - and the Ebola events leading into it - it was so orchestrated and heightened at critical points but the ascent and push straight up in price, and sideways nonreaction after was completely unlike anything I've seen before.   After going up for a record breaking amount of time the last five or so years, in a nonlinear exponential mania type of ascent, there should normally be tremendous volatility that follows.  But, this isn't a tech-like mania!  There aren't any buyers here other then the Fed.  The shorts were all squeezed in 2009, 2010, 11, 12, and everyone who has ever wanted to buy stocks is in! 

Modern Portfolio Theory has reached it's pinnacle, leading 55% of the American public who partake in that "diversified" portfolio theory off an eventual cliff. The market acts more like a penny stock that has been pumped up and is "boxed" (boxed, meaning, the whole float is buying and holding and held with the promoter, one broker dealer, and thus this one broker dealer can control price "discovery"(regardless of actual fundamentals and using "press releases" to sway and create order flow they want and need from naive clients)) , and less like a free market.  The Dow runs up that much that quickly, then on Globex its down .02 percent at the most over night, multiple days in a row?  No pullback?  Are you kidding me!?  Then the actual trading days have very little volume, and the peaks in price intraday also exhibit nonreactions sideways, just a couple of tics from the highs.  This price manipulation reflects that they want to expunge all shorts on all time scales, to the point that there will be no point to try, and at the very end, there will be very few.  This also reflects that a group of very smart prop trader types, experienced behavioralists, perhaps off of a prior prop desk like a Goldman, are controlling this game, and not some government treasury/cftc/sec "plunge protect" type who doesn't understand this game. 

With the indoctrination of Modern Portfolio Theory, and the masses' epistemology from experience and from "experts" to never ever get out because "it always comes back", and from corporate buybacks, the actual intraday trading float has disappeared, thus, easier and cheaper to manipulate and find the perfect "price discovery" for every situation to control investor behavior, especially during off hours on Globex.  This past situation, during the break and runup, there would be thousands of opportunities for the Fed insiders using different variations of ways to front run (without using the focus dump then pump futures contract itself), making the HFT guys front running for pennies look like complete chumps.  Can you imagine all the different ways to bet the global markets at the height of the ebola scare, which just happened to be the height of the mass media hammering the public with fear about it(haven't heard a word since!), which happened to be the exact moment of a very large Dow Jones 600 points intraday range after falling 1000 points in 9 days, which also happened to be at the height of put option premiums expanding and call option premiums eroding quickly, by knowing that the Fed is now going to prop it back up, way back up, and quickly!  Shorting put premium globally for expiration in 7 or 37 days?  Buying way out of the money cheap calls, buying the underlying equities, shorting interest rates, buying inflation, buying emerging markets and all of their liquid securities, options plays etc...  on and on.  That prior knowledge ts worth trillions, is it not?  We all know that investment bank broker dealer desks take the other side of trades, and inventory the other side opportunistically.  Why wouldn't this "bank" too, especially now that they are intertwined with investment banks thus have gained their intellectual property in trading?  And why wouldn't they influence our idiot sheepish politicians to mandate the Fed Reserve, to encourage the Fed Reserve, to stimulate, whereas our Fed could use that for "the people", while at the same time, for themselves take the other side based on their offshore opportunistic mandate?  Today's current markets are completely manipulated, every market, all the time, with our money and political Keynesian (control) mandate doing the manipulation in order for their money to front run and profit from there opportunistic mandate. 

So if I am right, and my 23 years of experience trading equities, during manias enables me to know with certainty that I am, that they are allowed to directly be involved and have a perpetual standing bid in the secondary derivatives markets, they can then take the other side when they want (no need to publicly announce this, but to justify in their own heads).  So when they take the other side in the public markets upon themselves pulling the prior US citizen backed bids in all markets for the ultimate 80 year cyclical "end game" (btw, about 23 years past the Kondratief Cycle deadline which is one way to describe the inevitable delay in this ongoing natural economic system reset) of the US fiat backed paper print con capped off by mass leverage, wouldn't they make trillions on the bubble pop on the way down?  Wouldn't they also end up eventually owning the whole US since commerce would halt immediately, everyone would lose their jobs causing mass deflation (and hyperinflation due to our currency being booted as reserve currency, and imports becoming expensive overnight) causing mass defaults on their home loan obligations?  Where do our mortgages end up now post 2008, 2009 financial collapse?  Our governments coffers via FHA, FNMA, GNMA?  And who will place a lien on our government when they default on it's loans?  Wouldn't they be able to foreclose on America? 

The US mandate on allowing Plunge Protection enabling the Fed to stick their noses directly in the equities markets was written in 1988 and is public knowledge and found in the public forum.  And the attached "memo" shows incentives from the Chicago Mercantile Exchange for Central Bankers to use their equity futures markets. 

Write me if you have any questions or comments, or if you need me to join in your efforts help to expose this Ponzi scam. 

Moses

PM

Mozkickurbutt@yahoo.com

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ebear's picture

"reading this article was a waste of time"

For you, perhaps.  What about new arrivals that haven't yet figured out the game?   What about young people just starting out?  It's the young and unwary that fall for these snares.  You want to warn them, or just be another smug elitist?

IndyPat's picture

.....9 trillion dollars disapeared to in 6 years...

Like it was lost in the crack in the sofa? It was stolen.

Baby Eating Dingo22's picture

This has been obvious for quite some time

Additionally, they've admitted they are buying to keep this wealth effect going. They figure it's the cheapest way to stimulate, but deny the fact that it's only helping the 1% and pushing the rest to the crapper

Snoopy the Economist's picture

Can they destroy the dollar and thus turn us into a 3rd world country - of course.

But the US market is their playground - this is where most of the money is made - for the time being we still have the highest pay per capita in the world and likely the most investments to steal from.

If they destroy the US financially then where do they take their game? The BRICS will likely prevail as the world reserve currency - does Rothschild operate in Russia? I would think they operate in most countries but I can't see Putin allowing that.

Comments?

hootowl's picture

The Joos have been running Russia since the New Yorker Babylonians took over the Russian Revolution.  It is all a charade.  They are stateless master charlatans.

gonetogalt's picture

I'm not so sure of that. Putin speaks publicly and often of how bad he hates them and blames Russia's woes for the last 100 years on them. 

Listen to David Duke on this, he has plenty of utube presence.

Bangalore Equity Trader's picture

Listen Zero's.

I have to admit I only read the first 2 paragraphs. Sorry to disappoint everyone but for the love of god "STYLE" is important. Efficiency is the name of the game. Don't blather on. Tweet it the fuck out!

Thank you.
Raj from Bangalore.

whopper's picture

"Traitor Dan" would not agree with this guys opinion. He says the gold market is  fair and free from manipulation.

I Write Code's picture

 

Write me if you have any questions or comments, or if you need me to join in your efforts help to expose this Ponzi scam.

Expose?  Call me if I can get in on this Ponzi scheme!

This guy is so far behind the ball, he must be following Kim Kardashian.

luckylongshot's picture

Thanks for mentioning modern portfolio theory-the investment theory that emerged to manage risk that uses volatiility to represent risk as no one can define risk in a simple enough way to make it mathematically measurable. This has resulted in a series of outstanding examples of stupidity. My favourite is that the risk pyramid it is based on has never been reviewed despite it becoming effectively inverted in the last 30 years...still it was only ever a theory!

max2205's picture

Which also means if you're around 55 you should be 70 bonds and 30% staaaawks . They are not so the Fed will literally kill them off in a few months

mpath's picture

The question that I think is more important to ask-how did Woody Dorsey predict the top before Ebola weeks ahead-and then the bottom 3 weeks before?

Yes, this market is rigged-but maybe the master planners are turning things the way they want them at sentiment extremes-both on the greed side as well as fear.

Take a look-the full reports are open to the public. 

http://www.sentimenttiming.com/free/

 

migoy's picture

can't use it's properly?  no credibility

winchester's picture
winchester (not verified) Nov 22, 2014 11:50 AM

renminbi mother fuckers :)

disabledvet's picture

So the Fed nuked the dollar in 2008 and had no intention of doing anything but upon announcing "quantitative easing." Their only fear was of a hyperinflation so they took all of the "printing press money" and bought all the debt with it.

That meant...and indeed what in fact happened...was a stupendous rally in TREASURIES not equities as everyone let the Fed front run itself and then took the free money from the Fed (interest on reserves which still just sit there btw) and used it for...well, pretty much nothing.

Ironically enough however...

moneybots's picture

" After this year and especially this last 1900 point Dow run up in October, and post non-reaction, that I am 100 percent confident that that one buyer is our own Federal Reserve or other central banks with a goal to "stimulate" our economy by directly buying stock index futures. "

 

As we have seen over a 10,000 point rise, there is no wealth effect from the DOW, into the economy.  1,900 points is not going to change that.  Making a billionaire, even more billionairier, isn't going to do anything for the average person.

Took Red Pill's picture

So obviously that is not the goal, to help the average person. Their goal is to make the rich richer.

techstrategy's picture

They've done it all through the option manipulation pain trade.   Fed sells VIX.  TBTJ/PD/BB market makers sell company specific options.   They pump the bid and unload float scams into call OI.  They sell vol in LC tech/real investments,  but there they short and accumulate via put sale OI.  Now,  everyone is upside down.   Only they (and those of us aware of the behavioral investing tactics and watching the option games closely) know what they've really done.   Liquidate the trillions of float scams and buy gold and you will end their abuse forever.   They ate hyperlevered against fundamentals.   Don't use leverage.   Liquidate float scams $ for $ and they cannot win. 

moneybots's picture

"With the indoctrination of Modern Portfolio Theory..."

 

MPT- Modern Ponzi Theory

 

All Ponzi's end badly.

Ban KKiller's picture

When I went to work with my Series 7 it took about a month for it to sink in that the alleged "free" market was not. 

So...if you want to play where the rules are opaque, fluid and corrupted, then jump in. There are only two players. The dupes and the soon to be duped. 

Good article laying the blame where it belongs, the fascist oligarchy we call the FED. 

As a student of history I like PM. Yes, I am relic as well. 

moneybots's picture

"The Fed boasts about having a printing press, and I guess this allows them to "fix" everything.  They "print money out of thin air""

 

Money isn't created out of thin air- Debt has to be created. 

moneybots's picture

"Details of this last market move:"

 

It doesn't matter how they are doing it.  What matters is that it will end badly.  That is always the bottom line.  The American people will not be happy when that day arrives.

nostromo17's picture

Me too and even stocks sometimes...

buzzsaw99's picture

duh. they've been buyers of stocks and bonds since the 1980s (at the least)

there is no market there is only the fed [/buzzsaw99]

Hohum's picture

An article that writes "Dinesh D'Souza" loses a little bit of credibility.

gwar5's picture

Dinesh is great. Lois Lerner and Obama are the ones who ought to be in jail.

 

An Indian, a Jew and a black guy walk into a bar..... the Indian gets it. End of story?

moneybots's picture

"A Zero Hedge reader, and long-time futures trader, shares his views on the evolution of the "market", where it was, where it is, and where it may be going."

 

Where it may be going is much higher, but what difference will it make when it all comes crashing down?  It always ends the same way.  The time to have ended it was in 2000, rather than continuing to dig a much deeper hole.

Amish Hacker's picture

No one is surprised that corrupt bankers and politicians are enriching themselves illegally at the expense of everyone else. What else is new? But what really makes the whole scam feel hopelessly beyond repair is the role played by the corporate media defending corporate interests, while throwing the public under the bus.

Once you have lost the First Amendment, you might as well throw the rest of the Bill of Rights away. Without a free press, free markets and a free society are goners.

dexter_morgan's picture

Which is what makes the 2nd amendment so important.

SilverIsMoney's picture

Wow... I never thought i'd see the day when this site was filled with such trolls and dumbasses.

"This isn't a big deal."

Yea... not a big deal they create money out of thin air and then buy stocks with it, crash commodities, and completely destroy the pricing mechanism of the markets. No implications for that at all, none! Fucking morons...

So many of you are either straight up retarded, bought for, or begging to get your fucking faces ripped off when this unwinds because all you can see is the profits you've made off this fraud. You fucking dolts are seriously going to sit here and go "so what?" because you don't have any concept of how a market is suppose to function.

The entire point is price discovery for goods and services AND MOST IMPORTANTLY LABOR it's not so a bunch of ass hats can get rich off of gaming the price you dumb bastards... by corrupting the price signals it dooms the entire world economy to poverty and strips the earth of it's natural resources far faster than it otherwise should have been.

Go open up a book by Mises, Hazlitt, or Rothbard you fucking dolts and then come back here and tell me why this doesn't matter... the ignorance that now pollutes this site is fucking astounding.

dexter_morgan's picture

So many of you are either straight up retarded, bought for, or begging to get your fucking faces ripped off when this unwinds because all you can see is the profits you've made off this fraud. You fucking dolts are seriously going to sit here and go "so what?" because you don't have any concept of how a market is suppose to function.

hammer meets the nail head.

I am a Man I am Forty's picture

I've done pretty well based on the assumption that interest rates aren't going anywhere and central banks around the world are going to print, whether it is QE or something else, don't be distracted by QE (ending of), these fuckers are going to print.

ebear's picture

It's not a profit until you sell

hangemhigh77's picture

Did they know that Americans are STILL armed?  And, with a price on their heads and no cops to protect them, or greatly diminished, the masses will want some payback.

Dimon

Blankfein,

Bush

Clinton,

Rockefeller,

Soros

Gates

Buffet

 

We'll be coming for you as you float around on your yachts and hold up in your mansion fortresses. We WILL be coming.

Isotope's picture

You got one thing wrong. No bounty will be needed.

grekko's picture

You forgot the really big fishes, Rothchilds.

honestann's picture

TOTAL BULL.  Just because something should happen, and just because something is already insanely overdue, doesn't mean it will happen.

It has already been completely obvious for decades that the crowd you're talking about needs to be vaporized, deserves to be vaporized, must be vaporized for egregious death and destruction and poverty to be avoided.

And yet... nothing has happened.  Okay, I admit it, out there on that Nevada ranch was the one and only sign I've seen that anyone may be willing to take actions.  Though even then, they didn't actually take the actions we know must be taken, which is to treat predators of all species in the manner predators must be treated (to effectively protect honest, ethical, productive, benevolent beings).

While the people you call "we" have been waiting and waiting and waiting to act, the predators-that-be have been militarizing their police state, building tens of thousands of armed drones, installing tens of millions of cameras and spy devices, and generally preparing for the possibility that all the "we are coming" talkers finally decide to take action.

The time for action was in the past, when the predators-that-be were less prepared.  All you "we are coming" folks missed your window.  Either you'll realize this and never act, or when you act, you will find out in no uncertain terms that you waited many years if not decades if not 101 years too long.

Even if you "we are coming" folks do come, you have not been preparing like the predators-that-be have.  You could easily have been preparing, but you imagine that your emotions will be sufficient, that a disorganized, chaotic attacks will work.  They won't.  You should have been implementing combo intelligence gathering plus weapons mounted on remote-controlled quadcopters that you control, or taken some [many] preparations like these to actually be prepared.

Now, they are ready for you.  And you are not ready for them.  You are in the right, but that will not save you.  To succeed, you had to be wise, smart, do your due diligence, develop your methods and devices, and have a variety of plans ready for every eventuality.  You didn't.  You bought a few more guns, you bought some more ammo, and sat around waiting for the enemy to be overwhelmingly prepared and ready.

So, you may be right, but you are not prepared.  Which is why I got the hell outta dodge 3 years ago while the getting was still good.

I suppose one way to answer your post is to say that americans are indeed armed to some degree with weapons, but they are overwhelmingly disarmed intellectually, and overwhelmingly unprepared for any real battles much less revolution.

Which is sad.

PS:  Those people you mention are rich, and not stupid.  If you don't take them all out simultaneously, their well prepared defenses will rise and you're outta luck.  And be clear, even if you get a dozen of those predators, the other predators won't care (they're predators), and they will come down on you and everyone else on the continent like a gigaton of bricks (if not nukes).  Will you be prepared for that?  Will you be satisfied if all you can do is make "a statement" by taking out one or two or three predators... just before you are vaporized, and then you have provided the required excuse for the remaining predators to turn the entire continent into one huge death camp?

My point is, what you are talking about is not a game.  If you really mean it, and you're not just blowing off steam, then the people you talk about have only taken one of the many plans, actions and especially preparations that you would need to take to turn your righteous anger into success.  Make no mistake, an all out vigorous and diligent effort to make preparations could still work.  But this has not happening, not even in tiny bits.

Which is why those who really care about the issues you mention decided to get outta dodge for lack of others actually willing to take dramatic actions to prepare, and collaborate with others to be capable of effective coordinated action.  We did prepare, we did take actions, it did cost us a lot to move elsewhere.  But our choice of action was the only practical choice because obviously nobody is willing to actually prepare for what is to come... the extermination of everyone who refuses to fully accept their role as slave.

BTW, you never explained how "with no cops [or military, or private security/mercenaries] to protect them" comes to pass.  I can assure you that those rich folks can and will hire very hard-ass thugs willing to shoot to kill without a flinch to protect them.  Each of them will take out at least 100 random "armed angry citizens", partly because they are well trained (former seal team and their ilk), and extremely well prepared... unlike you and your buddies.

So I agree with your sentiment, but hope you wake up and smell reality.  And then either get the hell outta dodge yourself (since that can work), or start organizing in the kind of ways you must to have a chance in hell.

nathan1234's picture

I would say that thanks to Americans not rising to the occasion a long timer ago and throwing out these criminals in charge, their control has come into being.

In cahoots are the so called leaders in the EU like Cameron, Hollande, Merkel etc and those in the Middle East like Netanyahu. People who would rather hand over control of their countries to this criminal cabal.

But I must state that even the most carefully laid out plans do not progress in the required manner, due to unseen events which set a different course.

 

 

honestann's picture

In previous times, the predators-that-be did not have the kind of advanced technology they do today.  Furthermore, they did not have cooperative agreements with (or domination of) the vast majority of the predators-that-be in the other major nations.

Sadly, this time is different... for the reasons stated above.

Mankind is finished.  Just watch and learn.

But yes, the course may not be exactly as planned, but any detours will be minor and easily controlled, if not turned to the advantage of the predators.

dirtyfiles's picture

disagree...

even the most perfect system fails time to time and that creates the chain reactions they do not expect and are not prepare for

few example : Beriln wall and collapse of communism,collapse of Soviet Union (think Stalin with total control) DDR and RFN united (Germany)

this are things unthinkable just about decade ago.

honestann's picture

In previous times, the predators-that-be did not have the kind of advanced technology they do today.  Furthermore, they did not have cooperative agreements with (or domination of) the vast majority of the predators-that-be in the other major nations.

Sadly, this time is different... for the reasons stated above.

Mankind is finished.  Just watch and learn.

andrewp111's picture

-- How can the Fed conceal this activity on their financial reports? It is actually quite easy, if they are working in concert with other central banks. All they have to do is buy foreign equities and have their partners buy US equities/futures/options.  Then it gets buried as  "foreign exchange transaction" on the official statements.

-- How and when does it end? The Fed certainly can't run out of digits, but schemes like this require some measure of foreign cooperation to succeed. So, it has to end in one of 4 ways  (1) They deliberately pull the plug, (2) foreign central banks stop cooperating, causing currency movements that blow the whole scheme up, (3) an essential physical commodity (like energy) goes into real shortage, and (4) world war.

-- We are nowhere near #3 (if anything oil is more plentiful).  The Fed is stacked with Obama appointees, so #1 will happen if a Republican wins the WH in 2016. #4 may eventually happen, but is probably at least 5 years off, since the Islamic State isn't yet big enough to present itself as a true world conqueror. So, if the scheme blows up in the near term, I would bet on #2 or #1.

Imagery's picture

Andrew,

Gave you up arrow but have one point to pick with you.  The world is not awash in oil.  It is close to balancing supply and demand; however, one must understand that balance is only maintained thru "high-priced" shale oil.  Peak Oil is real and NOT running out of oil (no more so than we ran out of buggywhips or whale oil) but running out of $50/Bbl Oil. 

I guess ultimately, so long as fiat and rehypothecations and crazy Off Bal Sht SPVs and Derivs are allowed to infinitely leverage the system ad infinitum and enter into system thru some means, my point is a difference without significance but I'm a Petr Engr so welcome any thoughts along those lines.

Imagery

Imagery's picture

Not Likely.  Let's try and keep it in the fairway here.  ZH has been great at exposing clear frauds and thefts of Finance, WS, and District of Criminals.....Let's not give the Criminals Fuel to Discredit the Insightful and Intelligent Comments and Commenters here.

Joebloinvestor's picture

Not only are they trading, they are using HFT.