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The Mechanics Of Manipulation

Tyler Durden's picture




 

From Bill Buckler of The Privateer

The Mechanics Of Manipulation

The “markets” chose to ignore the strictures put on the ECB’s ability to make good on its September 6 promises by the German Constitutional Court’s ruling on September 12. They have also ignored all the certain future damage to be done to the US and global economy by the Fed’s decision of September 12-13. All they can or want to see is a never-ending stream of new “money” issuing from the central banks to replace the “money” which has already gone up in smoke with their existing malinvestments. They know that they stand or fall on this stream being perpetual. They refuse to accept any prospect other than it will be perpetual. Without this “money” and the ability to “borrow” it without cost, their “assets” literally bear no relationship to what is going on in the economy whose life blood they claim to be.

The Fed has claimed that their new round of printing will revive the “economy”. They propose to continue on their path until their contention is “proved”. How will it be proved? By means of statistics put out by government departments which pretend to “measure” the prosperity of the economy and the level of unemployment in that economy. It has been a long time since these concocted statistics bore any resemblance to reality. Now, it is a safe bet that the distortions will greatly increase. If Mr Bernanke and the Fed do finally realise that they are skating in the middle of a melting iceberg and panic, they are going to have to have a justification for “reversing” their policies. That justification would be provided by the government further falsifying their “measurements” to the extent that the Fed could claim “victory”.

Thus, the chasm between official claims and reality is set to widen even further than it already has. The point will inexorably come when the long-suffering denizens of “Main Street” will rebel with the same combination of designed apathy and weary disgust with which the people of the East Bloc turned irrevocably away from their own rulers. The first “victim” of this abhorrence will be the Fed.

 

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Sun, 09/16/2012 - 09:38 | 2800272 Precious
Precious's picture

Four score and 20 QE ago ... 

Sun, 09/16/2012 - 09:43 | 2800281 lakecity55
lakecity55's picture

Eventually the shit piles too high to hide by the Bagdhad Bobs of the fascist news media.

Long and Short Martial Law.

Sun, 09/16/2012 - 11:04 | 2800479 A Lunatic
A Lunatic's picture

Drone wars, bitchez..............

Sun, 09/16/2012 - 09:44 | 2800283 BoNeSxxx
BoNeSxxx's picture

Time to make war to distract the populace from another financial collapse...

3, 2, 1,... 

Sun, 09/16/2012 - 09:56 | 2800310 bigbwana
bigbwana's picture

The Illuminati planned all wars. The Illumiati planned the current financial disaster, which is intended to be more disastrous. All in their evil plans for a NWO which would've, with a false flag, wiped out 6,500.000 Souls. This, the Galactic Federation promises, will never happen. The GF are here at God's behest, and the countless Souls on our planet, who pray for Peace every night, and cannot tell a lie. Our prayers have been answered. Thank you One. And thank you God. 

Sun, 09/16/2012 - 10:26 | 2800390 BoNeSxxx
BoNeSxxx's picture

Pardon me, but, what???

You lost me after "The Illuminati planned all wars."  Yea, OK I'll grant you that.  Maybe not the Illuminati per se but, hey,... a rose by another name would smell as sweet (or foul, as the case may be).  What's a little poetic liberty among friends?  Masons, Monied Powers, Elites, Establishment, Money Changers, Joos, whatever you want to call them...

But then (again) what???

Sun, 09/16/2012 - 11:12 | 2800496 bigbwana
bigbwana's picture

The Illuminati have been manipulating our population for centuries.  Only now, do they have the technological means to take total control. Or did. Until they were halted in their evil tracks. They have underground tunnels, linking major cities around the globe, inside which travel 'trains' at Mach 9. 6,900 mph! Landing on Mars is pure mirrors to entertain the masses. The Illuminati, thru Monsanto, et al, has been poisoning our food. They poison our skies, meaning us, with chemtrails. They have destroyed the financial markets. Their evil is unsurpassed. All will pay for their crimes against humanity. And they know it! Spread the Light. Spread the Love. We, with God's grace, have defeated the Dark.

Sun, 09/16/2012 - 11:15 | 2800506 JamesBond
JamesBond's picture

is this a quote from, "The Master"?

or are you on mushrooms today?

 

jb

Sun, 09/16/2012 - 12:51 | 2800680 bigbwana
bigbwana's picture

only magic ones. the2102scenario.com, and many more, reveal the Truth!

Sun, 09/16/2012 - 20:34 | 2801764 snakeboat
snakeboat's picture

you're good for a laff, but again, WHA?

Sun, 09/16/2012 - 09:45 | 2800287 Long-John-Silver
Long-John-Silver's picture

Manipulation always leads to scarcity. Scarcity always leads to hoarding. Hoarding always leads to price gouging. Price gouging always leads to manipulation.  

Sun, 09/16/2012 - 09:51 | 2800292 Cognitive Dissonance
Cognitive Dissonance's picture

"Thus, the chasm between official claims and reality is set to widen even further than it already has."

It will most certainly get much worse before it ever has a chance of getting better. 

"Without this “money” and the ability to “borrow” it without cost, their “assets” literally bear no relationship to what is going on in the economy whose life blood they claim to be."

Bingo! The ultimate vapormarket. Remove the helium and there are no fundamental reasons for the "markets" to be at this level.

Eventually and inevitably......"Down goes Frazier, down goes Frazier, down goes Frazier."

Sun, 09/16/2012 - 09:52 | 2800299 RacerX
RacerX's picture

You hear that MrAnderson?... That is the sound of inevitability...

Sun, 09/16/2012 - 09:48 | 2800293 chunga
chunga's picture

Tyler, I'd like to make a request.

Can you help us find the pictures of this topless Kate gal?

Sun, 09/16/2012 - 10:00 | 2800320 otto skorzeny
otto skorzeny's picture

man that bitch is scrawny. although English guys like their women on the "boyish" side- if you know what I mean.

Sun, 09/16/2012 - 10:02 | 2800326 chunga
chunga's picture

LOL! I was only kidding.

Apparently, there is tremendous interest because my Alexa toolbar has been blinking "topless kate" for a few days now.

Sun, 09/16/2012 - 11:30 | 2800538 williambanzai7
williambanzai7's picture

Alexa toolbar....why do you call it that ;-)

Sun, 09/16/2012 - 11:37 | 2800545 chunga
chunga's picture

"Foolbar" fits too.

At the moment the #1 link is a video about lingerie football star Nikki Johnson.

My head hurts.

Sun, 09/16/2012 - 12:39 | 2800650 Bam_Man
Bam_Man's picture

She's "topless" alright. Man, those are bee stings.

Sun, 09/16/2012 - 09:48 | 2800294 AUD
AUD's picture

another historic day for policymaking, for markets and for the perpetuation of history’s most spectacular financial mania.

http://www.prudentbear.com/index.php/creditbubblebulletinview?art_id=107...


Sun, 09/16/2012 - 09:53 | 2800305 Ungaro
Ungaro's picture

QEternity = peak vapor. Bullets come next, the ones with lead in them, not the Powerpoint kind.

Sun, 09/16/2012 - 09:57 | 2800309 otto skorzeny
otto skorzeny's picture

War is good for business. Thinking we may get some kind of 1917 Russia type internal revolt event here in the US if the world gets involved in another big war. This country would be economically crippled and mass protests/economis upheaval would result.

Sun, 09/16/2012 - 10:34 | 2800413 A Middle Child ...
A Middle Child of History's picture

Couldn't happen soon enough as far as I am concerned. The problems we are facing cannot be fixed through ordinary means and the time to have done so was several decades ago. Anything which prolongs the day of reckoning will only allow their control measures to become stronger and the inevitable fall to be that much greater.

Plus, I would like to see at least some of those responsible for this mess suffer the consequences of their poor choices. It remains for the young generations, the middle children of history as it were, to clean up the mess and take out the trash left by their elders' wild partying.

Sun, 09/16/2012 - 09:55 | 2800311 Winston of Oceania
Winston of Oceania's picture

The Central Planners have managed to drive a massive number of people along a broad swath of the economy underground. We are becoming more like Greece every day.

Sun, 09/16/2012 - 10:01 | 2800322 holdbuysell
holdbuysell's picture

Who is John Galt?

Sun, 09/16/2012 - 17:50 | 2801370 Dr. Sandi
Dr. Sandi's picture

You are John Galt.

Now get off your ass and do something different.

Sun, 09/16/2012 - 10:25 | 2800386 A Middle Child ...
A Middle Child of History's picture

Yes, we pretend to work and they pretend to pay us.

If the underground economy leads to a serious decline in receipts then we should expect to soon see anonymous tip lines to alert IRS to non-compliers, or public payouts to those who snitch on their fellows.

Oh, wait; we already have those things...

Sun, 09/16/2012 - 09:59 | 2800318 kito
kito's picture

Thank the good Lord that this will all turn out ok.........

Sun, 09/16/2012 - 12:41 | 2800654 Bam_Man
Bam_Man's picture

"Allah will provide."

Sun, 09/16/2012 - 09:59 | 2800319 I am Jobe
I am Jobe's picture

So do you really own your home- Dumb fucks are all led to beleive in the so called dream. Yeah it brings memories u dipshits.

Mortgage cops taking tough stance
Office of Inspector General on the prowl for strategic defaulters

http://www.chicagotribune.com/classified/realestate/foreclosure/sc-cons-...

Sun, 09/16/2012 - 10:06 | 2800341 holdbuysell
holdbuysell's picture

Nice find. From the article:

""We're not just going to demand repayment," he said. "We're going to lock (people) up.""

More proof of the rule of law collapsing when considering the banksters, yet perfectly intact for everyone else.

Ridiculous.

Sun, 09/16/2012 - 10:06 | 2800343 insanelysane
insanelysane's picture

Let's hunt for strategic defaulters now that we got rid of the robo signing bs by slapping the wrists of banks.

Sun, 09/16/2012 - 10:08 | 2800349 chunga
chunga's picture

How many millions of rounds of .40 JHP will FHFA need?

If there is any indication that you falsified information on your new loan application, the OIG is "absolutely" going to refer you for criminal prosecution, Wolfe said. "We're not just going to demand repayment," he said. "We're going to lock (people) up."

Sun, 09/16/2012 - 17:52 | 2801377 Dr. Sandi
Dr. Sandi's picture

So surely, in the interest of fair play and all that is good about America, they will also lock up the people who brokered the mortgage with falsified information, no?

 

Sun, 09/16/2012 - 10:04 | 2800335 Vince Clortho
Vince Clortho's picture

I do not think Bernanke believes for one second that QE Indefinitum is going to benefit the economy.  He is doing the same thing he has been for the last 4 years, kicking the can down the road, trying to postpone the inevitable collapse of this wretched economic system.

Sun, 09/16/2012 - 10:06 | 2800342 I am Jobe
I am Jobe's picture

U are right. He will leave office and the same crap will go on just like Greenspam

Bend OVer Amerika

Sun, 09/16/2012 - 10:08 | 2800348 rufusbird
rufusbird's picture

Without QE interest rates would go up. When interest rates go up, the ponzi falls down.

Sun, 09/16/2012 - 12:32 | 2800639 LMAOLORI
LMAOLORI's picture

 

 

Does it really?  Think about that during the last great depression there were people who had money, jobs and the bankers took the homes then. It won't necessarily fall down there will be alot of people who will make obscene amounts of money when the interest rates rise. The plebs will be the ones to pay the price again and I don't know why anyone is surprised this has been the NWO plan all along bringing the middle class down to the level of other third world countries. Just be glad they haven't been able to accomplish disarming us yet.

Sun, 09/16/2012 - 15:14 | 2800944 rufusbird
rufusbird's picture

If the banks plan it and it happens, you are right. They will have hedged accordingly. If it is a surprise to the banks when it happens, the banks take the hit. I really don't know which way it will go. But I will say this, the surprise can come from different directions. That is what all the debate is about here. The Mainstream media notwithstanding.

When interest rates were in the teens, the majority argued that interest rates would never go down again, and I didn't get much respect for emphasising bonds, long term CD's, Zero coupon muni and Gov't bonds, and Preferred Stocks.

It turned. The pendulum has swung the same direction for about 25 years now. The momentum is about to give out and it will swing back the other way despite attempts to hold it up. I suspect we are in a final mode of managing perceptions and expectations.

If there is a rise in interest rates, I can imagine a scenario where the Banks can survive it (by hedging and restructuring their portfolio), and I can also see moves the Fed can take and survive (by offloading the long term debt). But I can not come up with a solutioni where both the banks and the Fed portfloio survives.

They are at a dead end. Their mutual survival depends on the continuation of present policies. Now, how is the rest of the world going to respond to that? That is what they cannot control.

Thank you for your comment. Good diaolog is apreciated.

 

Sun, 09/16/2012 - 10:29 | 2800400 AynRandFan
AynRandFan's picture

For the sake of his own legacy he is feeding the American people into the grinder of unlimited monetization, even though he knows the chances of it working to revive the economy are small.

That is the problem with a dictatorial agency.  Hamilton was wrong.  Jefferson was right.

Sun, 09/16/2012 - 13:45 | 2800628 LMAOLORI
LMAOLORI's picture

 

 

The biggest dictatorial agency is government itself. The Fed is bad but it is that way with the blessing of our politicians who use it to hide their spending. The politicians could end the Fed but they won't because then they couldn't keep spending and that is why Ron Paul wants to end the fed.

 

"Once you understand the details of modern central banking, you are able to step back and see that it truly is a way for the government to use the printing press to pay its bills. All of the complicated process of targeting interest rates through buying Treasuries simply hides this essential point — and perhaps deliberately so."

http://mises.org/daily/4029

Behold The "New Normal" Buyers Of First, Last And Only Resort

 

Sun, 09/16/2012 - 10:05 | 2800339 I am Jobe
I am Jobe's picture

Pussification of Sheeples began a long time ago thru entertainment and manipulation. Yeah, buy the house, buy the cars, fill the garage up with crap, have 4 or 5 TV's, boat, soccer, baseball camps and let someone else take care of things for you, guess what they fooled the sheeples and the sheeples are sitting around kitchen table going wtf am I going to do?

Sun, 09/16/2012 - 10:16 | 2800360 Winston Churchill
Winston Churchill's picture

Who said they couldn't build a better mouse trap ?

Sun, 09/16/2012 - 17:55 | 2801385 Dr. Sandi
Dr. Sandi's picture

Prickfication of Sheeples more like it. Pussies aren't the ones who fuck things up, they're the ones who kiss the booboo and make it better. So the prick can go out and fuck up some more.

Sun, 09/16/2012 - 10:14 | 2800356 GlomarHabu
GlomarHabu's picture

 

(oriiginally posted yesterday re: The crux of the matter)

In reading the posts many contributors have offered insights worthy of having but of marginal utility to recognizing and addressing the one ,major issue.  Global power.

 

The difficulty with almost all of them is that the insights are so totally tangential to the realpolitik that they must be taken for what they are: inconsequential.

 

On this globe nations that have for century’s prized individual freedom are now in serious jeopardy. Nations that prize a statist centrally planned life for the individual are ascendant once again after a very brief period of what most thought was their death following the putative collapse of the Soviet Union and the West's gross misinterpretation of "new" Chinese freedoms brought on by that nation’s bastardization of capitalism. A return to global totalitarianism is now in the very high probability range.

 

This failure to recognize the lessons so brilliantly illuminated during the Enlightenment and it's consequential establishment of a social contract placing the individual first is a fatal myopia.

 

We are back to raw, naked power global politics: the gun, the bomb, and the realignment of power. All else is a presentation of what is really happening, if followed, can never be brought into focus, and is simply hastening the loss of freedom for it’s replacement ……. the installation of slavery.

Sun, 09/16/2012 - 10:19 | 2800370 Winston Churchill
Winston Churchill's picture

The biggest irony is that we are now reliant on Muslim diissidents to maintain any

freedom in the west.

Sun, 09/16/2012 - 11:13 | 2800498 A Lunatic
A Lunatic's picture

"If you can't beat them, join them" comes to mind here, and does seem to be the chosen road (rather than an unintended consequence) from here on out.

Sun, 09/16/2012 - 10:26 | 2800389 AynRandFan
AynRandFan's picture

My liberal friends see nothing wrong with monetization -- government taking care of us.  Maybe all liberals don't feel this way, but it bothers me that there is a political consensus on the side of a policy that promotes "something for nothing".  As a country have we reached the point where self-reliance does not matter anymore?  How the mighty have fallen.

Sun, 09/16/2012 - 17:59 | 2801392 Dr. Sandi
Dr. Sandi's picture

 

Maybe all liberals don't feel this way, but it bothers me that there is a political consensus on the side of a policy that promotes "something for nothing". 

From my post-political view, liberals are more willing to let government take their stuff in order to have a better world. Conservatives are more willing to let business take their stuff in order to have a better world.

The theme here is that there's always somebody taking our stuff so that we can have a better world. But at the end of the work day, we never seem to have a better world and somebody has taken our stuff.

Sun, 09/16/2012 - 10:28 | 2800392 mendolover
mendolover's picture

I'm looking forward to the day when we will find out just what all these hell bound criminals have on each other.

Sun, 09/16/2012 - 10:40 | 2800425 Cheeky Bitch
Cheeky Bitch's picture

Tyler: I just watched Sean Stone direct his dad Oliver Stone in Gretystone and it captures spooks. Its on VOD..

Sun, 09/16/2012 - 10:46 | 2800439 tony bonn
tony bonn's picture

"The Fed has claimed that their new round of printing will revive the “economy”. "

it will revive only banksters....the us government is for the banksters by the banksters and of the banksters....everyone else can eat cake or shit....the world has been made safe for banksterism....sacrifice your life for some make believe war on fake terrorism...sacrifice your liberties for safety - because you have nothing to hide, including your 2 inch two dick.....but the fed is no terror threat because it shares all of its information, bailouts, and crimes in real time - after all it has nothing to hide...

Sun, 09/16/2012 - 11:16 | 2800509 Blegoo
Blegoo's picture

This is straight from Krugman Bible: 

Stimulate! If it works, I was right!

If it doesn't, it wasn't big enough.

So with Fed. Will continue QE until economy improves... at some point, with or without the Fed, economy will improve. Thing is... QEInfinite will delay the recovery - simply because it has no end.

Sun, 09/16/2012 - 12:50 | 2800673 shovelhead
shovelhead's picture

Yup,

The Fed buying banksters crap MBS's to save their saggy asses makes me so confident in the future that I'm ramping up production and hiring double the workers in anticipation of the new boom this will bring to America.

Bernanke= Winning.

Don't be late to the American Renaissance.

Sun, 09/16/2012 - 13:43 | 2800752 TrustWho
TrustWho's picture

Something in the financial system SCARED Daddy Bernanke. In, June, they started a new QE twist that would end December 2012. Before program gets to midway point, Daddy Bernanke starts QE Infinity and promises more QE until hell freezes over and promises to keep QE flowing AFTER they start seeing recover. This policy GUARENTEES inflation!

The banks are having a liquidity problem somewhere in the system. Maybe in Europe, Maybe in USA, or Maybe both. If one thought some fisical policy was being executed to refinance every USA mortgage underwater, this program will have ZERO impact on unemployment. Daddy Bernanke knows fisical policy is No Go until after election; therefore, Daddy Bernanke is SCARED! 

Sun, 09/16/2012 - 18:01 | 2801396 Dr. Sandi
Dr. Sandi's picture

My guess is that the collateral being offered by banks is too crappy to gamble on, so the boys with the presses are just saying no to obvious default baited loans.

Sun, 09/16/2012 - 13:47 | 2800759 Marigold
Marigold's picture

It is not complicated at all .... Just GOLD GOLD GOLD and SILVER SILVER SILVER ... Physical of course. There problem solved. The Privateer is a sturdy captain and bless all who sail with him.

Sun, 09/16/2012 - 16:41 | 2801211 RockyRacoon
RockyRacoon's picture

Bill Buckler has been steering me right since the late 1990s.  It was tough hanging in there and accumulating metals when all the pundits are telling the populace that it has been a bubble since gold was under $300/oz.   I knew I must be crazy buying the stuff at over $400!   Only The Privateer helped me see the bigger picture.

Sun, 09/16/2012 - 18:02 | 2801399 Dr. Sandi
Dr. Sandi's picture

I'm guessing your tree stump is starting to bulge with shiny chunks of metal by now.

Sun, 09/16/2012 - 18:23 | 2801440 RockyRacoon
RockyRacoon's picture

At my age the stump only bulges under extraordinary circumstances.

Sun, 09/16/2012 - 13:54 | 2800777 Atomizer
Atomizer's picture

 

 

Kind of hard to believe someone who is sweating profusely. Gee, did I heard that right? Wanting to know how it’s like to live thru a depression?

Paul Krugman on the Return of Depression Economics

Sun, 09/16/2012 - 14:51 | 2800867 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Bernanke looked like tricky dicky Nixon in the Nixon-Kennedy debates!

http://www.time.com/time/nation/article/0,8599,2021078,00.html

Sun, 09/16/2012 - 14:32 | 2800821 Snakeeyes
Snakeeyes's picture

Consider the Fed's recent manipulation: $40 billion per month agency MBS purchases. It drove down Fannie Current coupon spreads over 10 year Treasuries to 37 basis points. So, MBS now has a risk premium of just over 25 basis points?

https://confoundedinterest.wordpress.com/2012/09/14/fannie-mbs-current-c...

Now, THAT is manupulation.

Sun, 09/16/2012 - 14:42 | 2800844 resurger
resurger's picture

The end game is near, very near.

Mon, 09/17/2012 - 01:52 | 2802380 honestann
honestann's picture

Yet always further than we expect... unfortunately!

Sun, 09/16/2012 - 19:27 | 2801550 xear
xear's picture

When I saw Bernanke's press conference there was something oddly familiar about his demeanor, and then I realized where I had seen it before.

One day I was going out of town for the weekend... I asked my girlfriend how much money she was going to need for expenses until I got back on Monday. She examined the idea for a few moments and then realized she could come up with no limit on the amount of money she would need.

Sun, 09/16/2012 - 23:34 | 2802186 q99x2
q99x2's picture

'The first “victim” of this abhorrence will be the Fed.'

Pretty sure they plan to kill us all first to prevent that from happening. Maybe in October. Anyhow its long enough away not to worry about making preparations. I hate to have to work.

Mon, 09/17/2012 - 01:00 | 2802316 bunnyswanson
bunnyswanson's picture

http://www.dailykos.com/story/2012/09/16/1132628/-Thousands-Have-Retaken-Zuccotti-Park-Ahead-of-Occupy-Wall-Street-s-One-year-Anniversary

 

Take the day off tomorrow and join other Americans who have found the courage to return to the battlefield in New York City.

Do NOT follow this link or you will be banned from the site!