Ex-Plunge Protection Team Whistleblower: "Governments Control Markets; There Is No Price Discovery Anymore"

Tyler Durden's picture

One year after the great stock market crash in 1987, US President Ronald Reagan launched the "Working Group on Financial Markets." Conspiracy theorists believe, however, that the real task of this committee is to protect against a renewed slump in the stock market. In the jargon of Wall Street, the working group is known as the "Plunge Protection Team."

One glimpse at a few days suring 2007/8 and it is clear that 'someone' with infinitely deep pockets was able to support markets on several critical days - though, of course, anyone proclaiming intervention was propagandized away as a conspiracy theory wonk. However, as Dr. Pippa Malmgren - a former member of the U.S. President’s Working Group on Financial Markets - it is not conspiracy theory, it is conspiracy fact: "there's no price discovery anymore by the market... governments impose prices on the market."

*  *  *

In this 38 minute interview Lars Schall, for Matterhorn Asset Management, speaks with Dr Pippa Malmgren, a US financial advisor and policy expert based in London. Dr Malmgren has been a member of the U.S. President’s Working Group on Financial Markets (a.k.a. the “Plunge Protection Team”). They address, inter alia:

Full interview:


Source: GoldSwitzerland.com

*  *  *

Still don't believe?

Here is Scott Nations in 2008 getting "Schiff'd" by the CNBC anchors (Liesman) and some other guest muppet when he dares to suggest the Fed is intervening and that the President's Working Group (i.e. Plunge Protection Team) is hard at work...

"look at the market action on the 10th and 28th and tell me what else might have generated a 100 point rally in the S&P under that situation?" Liesman fobs him off as some conspiracy wonk...

Yep looks normal to us... 10/10/2008


and 10/28/2008


Those are 100 point moves on a 700/800 S&P!! Nothing to see here eh Liesman, Kiernan, Quick?

*  *  *

And of course there's last October's Bullared bounce... the longest most consistent trend higher in stocks ever.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
nope-1004's picture

Governments "impose" prices, yes, but the other side of that trade is the fact that the pricing mechanism used is a debauched currency.  This thing will fail spectacularly.

Watching everyday for the last 15 years has been entertaining, to say the least.


COSMOS's picture

A natural consequence of removing gold as a standard for currency.

Cognitive Dissonance's picture

This is not the Plunge Protection Team you're looking for you dirty rotten commie conspiracy theorist.

Clueless Economist's picture

Wow, I had forgotten how hot Steve Liesman was in 2008 with a little more hair.  I always wanted to kiss his sweaty dome and play with his tummy fat.

gmrpeabody's picture

Wait..., what...,

you mean they lied...?

Never One Roach's picture

What do you mean, "debauched" currency? My $100 still buys $60 worth of food. It will really get bad when I'll need $100 to buy a $1 item of food.


The devastation coninues on a daily basis.

bwh1214's picture

That depends on where you timeline starts.  If you go back 90 years you get your 100 to 1 ratio.  


Great explaination of how we got here on this site -->  http://debtcrash.blogspot.com/2015/02/history-and-introduction.html

Pinto Currency's picture



Riggging of gold and silver on the LBMA has gone on for decades which allowed interest rate suppression - the primary tool for inflating the global debt market and financial asset bubbles.

Bay of Pigs's picture

The stock pumpers and COMEX paper humpers are going to get it good and hard one day. Can't say they haven't been warned. What a bunch of useless pricks (the PPT, SEC, CFTC, and others), that have ruined any semblance of normal market action.

Four chan's picture

only a fucking idiot would think todays markets are not completely manipulated.

disabledvet's picture

some serious heavy metal playin in these here parts of late.

I like it.

"American Psycho" meets "Swan Lake."

All I have to say is gold is still a standard. Don't know if you can still take your nugget right to the mint, have them refine it and certify as pure (for a nominal fee) still...but if Janet Yellen wants to "move the market" she could start by saying the Fed welcomes certifying your gold as 100% pure and then giving it back to you as such.

Other than that I really don't understand the use of the place really...

knukles's picture

Careful.... Pippa's got some interesting affiliations.  (from Wikipedia).   Don't make her right or wrong, but some interesting relationships.  In fact, I agree with her premise all's fucked and controlled in one fashion or another....
Is there a nail gun in her future?

She has served on the Board of Advisors of the Oxford Banking Forum, Mount Vernon College, the Aspen Institute in France, and the World Economic Forum Environment Project. She has lectured at the London School of Economics, Tsinghua University in Beijing, the MIT Sloan Fellows, Oxford University, West Point, and Duke University Business School.

SMG's picture

Thank you Pippa Malmgren for doing the right thing and making this sacrifice.   Some of us out here do appretiate it.

NoDebt's picture

So, I guess we can all go home now, is what she's saying.


Pinto Currency's picture



It's the LBMA that accounts for 85% of global gold trading that is pumping and dumping and dumping and dumping.

Here's how messed up it is - and it has been going on for decades:



Malmgren's take-home message: blame the government.  That's the end of the story.  The government.  Say it again and again until you stop pondering the whole affair.

The trail goes no further, says Pippa.  The trail certainly does NOT go to the CFR nor its organizers nor the banks in which they hold shares.

Certainly, certainly not.

The government.

Richard Chesler's picture

Pippa could use a lesson in abstract algebra.

A binary relation R over a set X is transitive if whenever an element a is related to an element b, and b is in turn related to an element c, then a is also related to c. Transitivity is a key property of both partial order relations and equivalence relations.

In practical terms,

A - Banksters own gov lackeys.

B - Gov lackeys manipulate markets.

C - Banksters own and manipulate markets.


new game's picture

D - we are fucked til it crumbles due to exhausted lies and manipulation. that process could outlive me, hopefully. reason i say hopefully is simple. i don't want to be around for the great reset of the human civilazation. much to much blood and devastation for any one human to endure...

Sashko89's picture

Listened to her full interview she says: she thinks gold rigging is a conspiracy theory and has labeled it as such and said  "the officials  who are in power today are genuinely doing their best to make the decisions that are right today". She speaks 90 perent truth and gives 10 percent lies, so becarefull with her and what she says... she could say 99 perent truth in the begining and then throw in a 1 percent lie in the end. If you listen to her full interview she has negative feelings towards gold, and says that she doesn't think we will have a gold currency standard in the future for reasons that are less than solid. 

Squid-puppets a-go-go's picture

Im the sole chump downvoter here.

Because, whether or not the govt are the oligarchs puppets (which they are) , it is the govt which sets the price, by various manipulative instruments . so her assertions are not a falsehood, and im not sure whether she's been asked - or what her answer is were she asked - the question of in whose interests the govt manipulation are under. So its unfair to slam her for 'covering up' the real / ultimate conspiracy when the topic at hand seems limited to the role of govt in price discovery.


ZerOhead's picture

Actually she said come hell or high water they're going to inflate.

She also said that Volker told them once you start printing you can't stop and the financial system is now going to blow up and we are all fucked.

And she's not saying anything sensible about noone wanting to buy gold because the price is rigged or Russia now feeling free to use military aggression against the West. And that's just the price of membership in the CFR talking because I'm sure she was front-row center when Greenspan told them all to buy gold back in October 2014.

Other than that she's hot...

eatthebanksters's picture

Three words:  audit the Fed

SilverFish's picture

Bit of a waste of time at this point, isn't it?

fleur de lis's picture

It would be worthwhile to audit the Fed. The fact that they have fought off all previous attempts suggests they have mountains to hide. We all know the books are cooked but it would be interesting to see how creative they are with our money.

lucyvp's picture

Right all go home and buy more stocks and bonds.

AssFire's picture

A hot chick with a brain is a dangerous combination.

Weaponized pussy I tell ya- she knows "Plunge Protection" better than any presidential panel.

delacroix's picture

she didn't have to worry about obama hittin on her

I MISS KUDLOW's picture

Old picture of her she looks fat now

401K of Dooom's picture

Oh wow, can we have her on the panel for the next presidential debate?  Better yet, let's just ,make her our President.

Spitzer's picture

With that kind of resume, she must also be...

-Member of the Dominic Strauss Kahn sex party club.


Ballin D's picture

They have an 'unlimited paycheck' and shes the talent they come up with? This chick could barely explain the costs of maintaining this policy at 27:00.  She got higher taxes off the list fast, stumbled through reduced pension benefits, and concluded with reduced benefits in 'their' society. 


Not saying I disagree with her general points but shes just saying what people want to hear to sell her book.

napper's picture

Very good. Always be vigilant.


Hope she's an exception.

Tall Tom's picture

Nope. She is advocating a planned economy...a planned economic collapse.


Well as Mike Tyson says about plans...


Well this collapse will hit everybody like a punch in the mouth...


So much for her plans...

Sir SpeaksALot's picture

it s all staged, she is a part of it, "World Shepherds" need to bring on the collapse of the current system to make a room for NWO,

she is telling the "technical" truth but her intentions, considering the organisations she s a member of, are sinister. 

she s just another tool.

ebear's picture

Clearly someone discovered her price.

RadioactiveRant's picture

SOmeones padding out her Wiki entry. Chatham House IS the Royal Institute for International Affairs and the Reform Club is just an establishment drinking house.

DeadFred's picture

Every time someone distorts the market they create opportunities to exploit it. Everyone knows of BTFD but there are others. I hate giving away my cash cow but check out the low liquidity S&P components. It's seems clear that since October at least they (or someone) have been buying SPY or other ETFs whenever they want the market to ramp. If the market drops to some critical support and looks like it will break lower, or like today when they just needed it to break even someone starts buying more ETFs than are being offered. Those new shares need to be covered so the components start to be purchased. The low liquidity stocks shoot through the ceiling. Low beta stock will gain 1-2% in less than an hour with ease. But the Fed or whoever is doing it don't want to accumulate shares so they get sold back later and that fast gain becomes a fast loss. I don't get to do this often since I have real(er) things to do other than watch the market but I've yet to make less than 100% buying puts against these bogus manipulations and selling them a day or two later. EIX has been my favorite target but there are others. A scheme like theirs that opens up gapping holes is doomed.

ml8ml8's picture

I find this truly disconcerting as it goes straight to the heart of capitalism itself on the biggest capitalist playing field there is--American stock markets.  If your counterparty has unlimited resources, then there is no price discovery at the margin because there is no margin.  While there's been speculation about the Fed, other Central Banks openly buy US equities and have for years, yet few seem to care.  For example, the Swiss National Bank (a publicly traded company) owns about 0.35% of the entire market cap of the Nasdaq (~US$27b). Conveniently, they file 13-F's.  Want to know what they owned in detail as of 12/31/2014? Here's a link.


But even if CBs were banned from directly buying equities, they could easily buy indirectly, through investment funds as everyone who pays attention to such things already believes they do.   I haven't seen that the Bank of Japan discloses in detail (and in English) their equity ownership, but maybe someone can point me in the right direction.

Another very important issue this raises is voting of owned shares? Who votes these large blocks of stock in critical matters of corporate governance? Who exaactly makes those decisions and how? Do they just blindly follow ISS?

Rand Paul should add disclosure of direct and indirect equity or equity fund ownership to the "Audit the Fed" bill if he hasn't already.

NoDebt's picture

First off, we've never actually had free markets so who really knows what we've been missing out on.  More importantly, nobody cares if markets are controlled so long as they are always controlled in the right direction.

Like Dr. Engali says:  the markets are a policy tool.  And I think that's about the best explanation for it all.


LooseLee's picture

What you say has no relationship to 'Capitalism'. There is no 'Capitalism', only Crony-ism...(a marriage of Socialism, Fascism, and Communism as far as economics goes). Note no mention of Freedom. This is what you get in the ABSENCE of Freedom...

amadeus39's picture

If you believe markets are manipulated by our government, then the prudent thing to have done would have been to buy the dips for the last 5-6 years. Keep your money in the markets, your government has your back covered. If you missed out doubling or tripling your money, it's not too late. The government wll protect investors, just like it did in 2008 and 2009. If you don't have any money to invest, it's your own damn fault.


MeBizarro's picture

Until they can't and the storm surge finds even a very modest crack.

Tall Tom's picture

If you don't have any money to invest, it's your own damn fault.


Please expand on that idea...


The markets are rigged to enrichen THE BANKSTER and the STOCKBROKER, asshole.


You keep your illiciit gains. I will keep my Gold.




Or did I miss your satire???

amadeus39's picture

I resent the "asshole" ad hominem part of your reply. It demeans you, scumbag. Your detection of sarcasm is correct. Market timing is the name of the game. Unfortunately, timing is the most difficult part of the game. And one must not lose all of one's chips or game is over.




sessinpo's picture

Up arrow for you. I detest those that can't debate so they make personal attacks. It shows they are very narrow minded.

I'll probably be buying Tom's gold a fire sale prices as the price goes down. I've been doing it to other PM bugs.

LooseLee's picture

Said by a card-carrying member of the PINKO FASCIST COMMIE Clan...

HardAssets's picture

But a lot of folks will sell you 'technical analysis' stuff that'll let you predict where 'the market' is heading

amadeus39's picture

Yes making predictions is difficult..especially about the future. But that is what life is about. Don't sit on the sidelines and watch others play. If your a memeber of the American Fan Culture (AFC), you cannot win the game of life. No skin in the game.


Dapper Dan's picture

proof of that right here pinto,


Feb 24, 2015, 02:30 AM GMT 16m
US officials investigating at least 10 major banks for possible rigging of precious-metals markets, sources tell @WSJBreakingNews Read more on www.wsj.com