Presenting The Exchange Stabilization Fund In 5 Parts: Is This The Real "Plunge Protection Team"?

Tyler Durden's picture

When it comes to the fabled President's Working Group on Capital Markets, also known as the Plunge Protection Team, the myths about the subject are certainly far greater than any underlying reality. To be sure, vast amounts of popular folkflore has been expounded into the public arena, with most of it being shot down simply due to it assuming conspiracy theories of such vast scale that the human mind is unable to grasp the complexity, and ultimately the inverse Gordian Knot makes an appearance with the claim that vast conspiracies are largely untenable simply because it is impossible to keep a secret from so many people for so long. Yet what if the secret is not a secret at all but is fully out in the open, and is only a matter of interpretation, and contextualizing? Why just 3 years ago it would appear preposterous to allege the capital markets are a ponzi and that the Fed does everything in its power to keep stocks higher. Well, what a difference three years make: now the Chairman himself in a Washington Post OpEd has admitted that the sole gauge of Fed success is the loftiness of the Russell 2000, neither unemployment nor inflation really matter now that the Fed's third mandate has been fully whipped out. Furthermore, Keynesian economics, and the entire top echelon of the educational system have also been accurately represented as a paradigm which merely perpetuates the status quo as the alternative is the realization that the whole system is a house of cards. As for the global capital markets being nothing short of a ponzi, we merely point you to the general direction of Europe, the ECB and the continent's banks, where the monetary interplay is nothing short of the world's biggest pyramid scheme. Yet the PPT, or whatever it is informally called, does not exist? Consider further that only recently did it become known that the former SecTres Hank Paulson himself was exposed as presenting material non-public information to a bevy of Goldman arb desk diaspora hedge funds, headed by with none other than the head of the President's Working Group on Capital Markets Asset Managers committee David Mindich. So, if contrary to all the evidence that there is some vast underlying pattern, if not a conspiracy per se, one were to take the leap of faith and take the next step, where would one end up? Well, most likely looking at the Exchange Stabilization Fund, or ESF, which Eric deCarbonnel has spent so much time trying to unmask. Is it possible that the ESF, located conveniently at the nexus between US monetary policy, foreign policy and last but not least, a promoter of the interests of the US military-industrial complex, is precisely the  organization that so many have been trying to expose for years? Watch and decide for yourself.

As a reminder deCarbonnel is not some tinfoil hat clad sub-basement dweller - it was his input that led us to the realization that in attempting to control the Treasury curve, the Fed will, and already has, experiment with selling puts on various Treasury maturities in an attempt to generate reflexivity whereby the synthetic determines the value of the underlying (something ETFs are now doing so very well), the value naturally always being higher, higher, higher irrelevant of what underlying demand there is (and as we showed last week, with a record amount of international outflows in the past month, the demand, at least from abroad, is just not there). So what does Eric assert?

Quite a bit as it turns out.

After months of work, the video series on the Treasury's Exchange Stabilization Fund is finally finished!


Why you should watch these five videos:


It is impossible to understand the world today without knowing what the ESF is and what it has been doing. Officially in charge of defending the dollar, the ESF is the government agency which controls the New York Fed, runs the CIA's black budget, and is the architect of the world's monetary system (IMF, World Bank, etc). ESF financing (through the OSS and then the CIA) built up the worldwide propaganda network which has so badly distorted history today (including erasing awareness of its existence from popular consciousness). It has been directly involved in virtually every major US fraud/scandal since its creation in 1934: the London gold pool, the Kennedy assassinations, Iran-Contra, CIA drug trafficking, HIV, and worse...

So while nursing that New Year's Day hangover, take some time and watch this series of videos. If nothing else, even if they are merely the extended ramblings of some person that one can quickly dismiss as just the latest fringe lunatic, they do present an alterantive reality to what so many may be accustomed to. After all at the end of the day imagination, the ability to think outside the box, and to see patterns where previously there were none, is the greatest threat to the falling and declining status quo by far.

Part 1

Part 2

Part 3

Part 4

Part 5

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Urban Redneck's picture

That's funny, but by that time the game of musical chairs had landed Don over at the White House at the Chief of Staff's desk, where it was his job to tell his boss to "Speed it up", and ironically it was Baker (who had just vacated the Chief of Staff chair) who was running Treasury... In addition to running ML, the ominous voice in the video could have pointed out Don Regan had done time at the FED before moving to Treasury and the the WH, where he happily arranged the bank bailout of Continental Illinois... So I'll stand by what I wrote.

KickIce's picture

Confused me as well.  I was wondering if he was talking about the Treasury at inception.  IMO, Timmy is just another pawn along with the majority of our politicians.  Too much legislation that makes it legal for them to steal, and even when they get caught with their hands in the cookie jar it's just a slap on the wrist says different.  Not to mention all the money that rolls in for campaign donations.

slewie the pi-rat's picture

tyler writes: "...the Fed's third mandate has been fully whipped out."

2012, BiCheZ!  

if i get the HIV virus i'm gonna blame the monkeys at the NY FED!

DrunkenMonkey's picture

Having now read some of the source material the poster quotes in his videos, I'm starting to feel pretty scared.

Hansel's picture

This was an excellent piece by Eric.  I transcribed most of one of the articles he used in his videos, Gold Data: Lesson In Artful Dodging, from the WSJ in 1967, which you can find here.

scatterbrains's picture

btmofodip bitches!   but accumulate phizz with any gains for when these c*ck s*ckers lose control of things. This technique beats them at their own game.


Pretorian's picture

Next time we experience FAT FINGER we know who is running that algorithm!


GeneMarchbanks's picture

It's articles like these that totally embarrass me for not donating on a monthly basis...

Georgesblog's picture

This is a lot better than watching football. It is interesting that the ESF coincides with the State of Emergency in Agriculture. 1934 is an important year in history. The Federal corporation took dictatorial control of the economy. That State of Emergency has never been rescinded and is in force, today. It's purpose has been stated in the Preamble to the Congressional Record in 1953 and 1973.

oldmanagain's picture

The supporting vidoes, almost without exception, are the worse of junk science.  Allegations without any substance whatever.  Which explains the acceptance of this trash. Many vids have nothing to do with allegations made in the main video. This baggage destroys the message.

The reality is that Austrian econ has been usurped by wingnuts.  Quoting nutcases does not support his case.There is a case that tax cuts do not pay for themselves. There is a case for collective endeavors thru taxes to achieve improvements and goals for the common good.

Snakeeyes's picture
Great trial run for when the rest of the world has to bail the USA out. Which may be sooner than you think. The Federal (Un)Balance Sheet – $65 Trillion Financial Hole = $550k Per Household
Or $2.2 million per de-facto taxpayer, take your pick!

Yardfarmer's picture

WOW! this is incredible and in my book already one of the best of 2012. groundbreaking analysis and an in depth and far reaching exposé of the convoluted incestuous matrix of corporate/government collusion in criminal enterprise. Kudos to Eric, many thanks to ZH and best of luck in the Mayan Nether Year.

Urban Redneck's picture

What is so shocking here, other than the number incorrect linkages drawn from a given subset of facts and events (and a few errors)?  I actually think those clips are worth watching, but it is folly and delusion to accept them as gospel.  On the subject of the delusion of crowds and seducing the masses - the intelligence community has a "black budget" - it is a well known fact, but every budget has both a revenue and expense side, so why is the "black budget" any different?  Intelligence has both an information and a disinformation component (among a dozen other pie cutting paradigms), this has been widely known since well before Sun Tzu, and given the sheer size of the US intelligence budget, do you really think they left out, or underfunded, the disinformation side?  Although it was very refreshing to hear that Paul Krugman is a paid CIA tool - it would really say something bad about the USA if a Nobel Prizing winning economist actually believed the Keynesian BS he pushes.  

STATECRAFT is both the intersection & union of financial, trade & industrial, military & intelligence, domestic & legislative, and foreign policy- and yet the education system tries to silo the disciplines, then media & historians try to explain developments which fit this paradigm, and can be viewed through those lenses.  In the US, there is a presumptive hierarchy of the President, Vice President and then x number of subservient, separate, and somewhat equal cabinet silos, with a parallel and distinct legislature.  One could construct an equally digestible or appealing conspiracy theory tracing all the way back to the Founding Fathers about how the Constitution was an ingenious Masonic plot to disguise the true hierarchy and inter-relationships, if one were so inclined and willing to devote the effort.  But when all your problems are politicians, diplomats, bureaucrats, bankers, and industrialists- all your problems can start to look like ESFs... 

In the end- the search for boogeymen and conspiracy in economic development is eerily similar to the debate over evolution versus intelligent design in human development.  How did we get where we are?  Is it possible things got this complex and sophisticated all by themselves, or must the hand of God or the Devil intervened to steer events? And if so, what is that God or Devil's name?  The ESF is important but it isn't the Holy Grail.  Limiting the scope of one’s vision to exclude non-MIC government spending, the balance of global trade flows, the presence of a gold standard, backing, or convertibility doesn’t help anything- other than the case that the ESF actually is the incarnation Mammon, which is an entirely understandable aim when Grandpa was attending the freak show on Jekyll Island.

Pseudo Anonym's picture

I'm simply shocked that it took so long for Eric's work to tweak zh's attention while for most of us who follow lewrockwell, gary north, etc. incorporated this piece of information into our mosaic ages ago.  But, better late than never...

Ralph Spoilsport's picture

Gary North? Remember all the insane, batshit crazy fear mongering he did about Y2K? He has less than zero credibility and was the biggest running joke in IT for the years leading up to and following Y2K.

flattrader's picture

...not to mention he is a Christian Reconstructionist idiot.

lolmao500's picture

Why is there no post on Obama signing the NDAA and putting the US on the verge of armed insurrection?

Yardfarmer's picture

try this. culled off a forum. "mr. prestidigitator, ever since you crawled up out of the sewer of Chicago politics you have worked for the cabal of investment bankers controlled by the Rothschilds and their satraps; Goldman Sachs, JP Morgan Chase and God only knows whatever manner of corrupt and unholy vipers preying upon the people of this nation. Your CIA pedigree is well known to those of us who have bothered to research and document the shadowy, unsavory, and criminal path that has led you to the pinnacle of the temple where you bowed in obeisance to the prince of this world and accepted his offer of dominion over this fallen world. This New Years greeting to the American people is only the latest step in your lackluster and abysmal capitulation to the degenerate old white pederasts that you so assiduously serve. You are a traitor to human beings white and black, Christian, Jewish, and Muslim, and the people and Constitution your have sworn to serve, You should not only be impeached but tried for high treason. May God have mercy on your forsaken soul".

FeralSerf's picture

What's wrong with your up and down arrow? Did you piss someone off?

earleflorida's picture

because zh's are tired of old news -

stay [a]breast the teat my friend, lest it dries up

chindit13's picture

Let's get the year started off right.  I'll set the standard by which down arrows are measured.  Come and get me, RobotTrader.

This is an absolute pure bullshit article undeserving of space on Zerohedge---but probably good for clicks given the proclivities of the audience here---and is a perfect example of why rational and fair-minded people are losing to the semi-competent and totally self-serving powers that be:  chasing ghosts instead of flesh and blood reality.  So long as people choose to be batshit crazy and believe in fairy tales and fantasy, the PTB win.

I throw up my hands, embarrassed, exasperated and disillusioned.  These people are so woefully naive of reality, yet fancy themselves so "awake" and so cutting edge.  Terribly disappointing.  Where is Charles Darwin when you need him?  Time to evolve beyond the intellect of monkeys.

EhKnowKneeMass's picture

I try to keep an open mind. I don't negate everything and I don't accept anything. I let the story sink in, then, do my own diligence to ascertain the facts. I read all your posts with great interest, as you are one of the ZH's originals. Could you please tell us why you consider this to be a pure bullshit article. He hasn't conjured up the story from thin air; his original article has most of the links from which these videos have been created. So, what is it that is bullshit about the videos? Has he been selective in presenting the content or are the source of these videos fake and without any merit?

Urban Redneck's picture

Because the ESF isn't anywhere near big enough to continually finance the annual black ops budget in the US, much less the US trade deficit.  Because just like weed, opium poppies take time grow, and didn't just materialize overnight even before the US had substantial uniformed boots on the ground, and because the global supply of cash rich heroin addicts would have to increase by several factors in order to generate enough drug profits to satiate the spending habits of the chronically addicited legistalors in Washington.  BECAUSE INTENTIONAL CURRENCY DEVALUATION- WHETHER THOUGH OFFICIAL GOLD REPRICING OR RAISING THE DEBT CEILING, IS HOW CONGRESS HAS BEEN EXPLICITELY FUNDING ITS ANNUAL SPENDING BING FOR THE LAST CENTURY. Guns vs Butter is not a national security secret, it's a national security issue.  I  could go on, but I would have to sit through those videos all over again to do a point by point.       

LowProfile's picture

It would sure be nice if you had an actual argument as opposed to using ad hominem and the appeal to authority fallacy (with yourself as the authority).

chindit13's picture

Would it make one goddamn bit of difference?  If I told you I was really Barack Obama or Ron Paul and had first hand and contradictory knowledge of everything of import in this article, and provided all the necessary bonafides and blood samples to prove who I was, you would still believe what you are wont to believe.  For those who buy this article, their ignorance is their passion is their absolute reason to be.  I cannot change that, but it does not prevent me from putting a voice to my exasperation.

Again I say the same thing:  I know why the PTB are winning, and always will so long as the masses chase phantoms.

i-dog's picture

As soon as I saw the content of the videos, I immediately thought this article would bring out ZH's very own resident Wurlitzer virtuoso ... and, no surprise at all, here you are [again]!

Play us a few more tunes, maestro! LOL


slewie the pi-rat's picture

actually, Lo_Pro, his authority is chas.Darwin

he "believes in" "evolution"

and probably such other misunderstood bromides as "progress", "education", and "safe nuculer energy"

SillySalesmanQuestion's picture

 + 1

Zing! That is going to leave a mark...

Mr Lennon Hendrix's picture

Is there not such an entity as the ESF?  Is there not such a thing as the PWG?  If there is, and there is, then Central Planning has taken hold, and we have no democracy, however inept it would have been.

So pray tell, you support this system?  You like the Central Planning?  You think it works?

scatterbrains's picture

Is this why some of the biggest spikes higher on the spoo come on economic data that is the easiest to cook up.. like conference board confidence numbers etc ? Really only being handy plausible excuses to conduct spoo pumping operations.


MrBinkeyWhat's picture

Hiding in plain sight. The perfect camoflage.

Gin was introduced to the British populace as it is poison. Kill off the useless feeders. Never tin foil hat is silver plated. A much better conductor!

Here is to 2012 CE. Should be a wild ride.

digalert's picture

In a word...


In two words...mutha fuckers!

Bernank Sheeple's picture

The ESF guys think they do no wrong. They are doing GOD's work. Where did I hear that before?

The_Euro_Sucks's picture

Here a nice critique of this series This video series on the ESF brings a lot of great ideas to the forefront, but leaves the who is responsible for the massive Ponzi scheme that is about to collapse. Just saying....

Lord Peter Pipsqueak's picture

A little dificult to take this guy seriously when he keeps referring to the Brenton Woods Agreement and the BBCI despite highlighting these words in red in his own video?!!!

WonderDawg's picture

Yeah, especially since he kept saying BBCI when the graphics said BCCI.

El Turco's picture

Date: 12/27/2011

Jim O'Neill: US equities markets could rise 20% in 2012 

Date: 12/23/10

O'Neill anticipates strong stock market gains of 20% in the year ahead (i.e. 2011)

  Can you fucking believe this asshole? Repeating the same shit over and over again...and he is still employed...

JR's picture

As the New Year trembles in the fear of a false flag that would drag us into world war again, here, cloaked in the mantle of the core monetary issue, could be the false flag to deflect our alarm from the real danger to the FAUX danger.

Where does our monetary danger originate: IMF, SDR, or ESF?

None of the above: it’s the FED. Eliminate the ESF, and you still have the problem.

The central source of this world crisis is the private owners of the Federal Reserve now running the world after Congress illegally transferred its right to coin money to the Fed. IOW, the problem is not who, it’s what.

Fed historian G. Edward Griffin defined the problem: “The Federal Reserve is the starting point of the pessimistic scenario. The chain of events begins with fiat money created by a central bank, which leads to government debt, which causes inflation, which destroys the economy, which impoverishes the people, which provides an excuse for increasing government power, which is an on-going process culminating in totalitarianism.

Eliminate the Federal Reserve from this equation, and the pessimistic scenario ceases to exist. That is the…reason to abolish the Fed: It is an instrument of totalitarianism.”

Sir Josiah Stamp, president of the Bank of England and the second richest man in Britain gave this warning in the 1927:

Bankers own the earth. Take it away from them but leave them the power to create money, and with a flick a pen, they will create enough money to buy it back again… But if you want to continue to be the slaves of bankers and pay the cost of your own slavery, then let bankers continue to create money and control credit.”

When Americans lost their prerogative to control their own medium of exchange and to set the value thereof to a super-national cabal of globalist central bankers who could print free money for themselves for which the rest of mankind must toil or trade assets they forged the chains that now bind them.

Ralph Spoilsport's picture

G. Edward Griffin still seems to be one of the more credible critics of the Fed. I started to wonder about him when he started appearing in Alex Jones productions though.

bankonzhongguo's picture

What a great video to start the New Year.


Nobody is coming to help you or your family.


Help Ron Paul Save America. 


Vote Ron Paul.


Good luck to everyone.



Seasmoke's picture

Brother Nathaniel

blindman's picture

fantastic research but he has an axe to grind
and it clouds his conclusion. the fed, the cia, the "banks",
the esf = same thing. just tentacles of the same squid.
they are all collectives at the service of particular
persons, the elite. these persons have access to
all the tentacles in coordinated compliment if they
choose. the effect of these expressions of power on
the other people range from total destruction to torment
to rewards a plenty. everything from the lemonade stand
to the defense department is subject to the demands and accounting
of the fiat fantasy in shadow land. the system is the message,
who has access to the window of fiat. the whole thing is just a
legitimization of the exercise of unjustified power over resources
and people, that is why there is a system, to affect that power.
the funny thing is these assholes then want respectability too.
public-private partnership, institutional functioning, accomplishes
this. the private banks need the treasury to issue the sovereign
money that can be printed endlessly and delivered at no cost to their
private accounts. everyone else can then line up to borrow at interest.
the banks need the cover of "government" to outlaw alternate barter
or rebellion against inevitable private bank tyranny.
the purpose of the media is to keeep the populations hypnotized and
impressed with illusions of the stature of the imbeciles selected to
deliver them to the slaughter, varying degrees.
2012 - the year of massive limited hang outs.
anyone else smell something fishy concerning jim rickards latest
war with iran scenario? his premise " iran cannot have nuclear weapons, period."
and jumps right to the conclusion that this must end in war. maybe world war?
apparently he is convinced that iran is working on nuclear weapons, diplomacy
is now futile, so war is inevitable? someone spoke to him?
when it comes down to it people don't need money or gold or anything like it.
they need commodities, their word and good will. the utility of natural resources
unencumbered by tyranny. this is what the elite have and don't want to give
back to the rightful heir.

cherry picker's picture

After watching these videos, it has become apparent if Ron Paul wins, his life expectancy wil be very short lived and he seems to be healthy.

As I have come to understand, there is truth and non truth in all things, yet these videos appear to be more truthful and no one with any intelligence can walk away from the unanswered questions of building #7 and assume it was what big brother wants us to believe.

The only thing that this will produce the world over is passive resistence and a black market for those who wish to survive.  Living under the radar, so to speak.

They would like it to end in a humungous war, but can anyone think this world will be remotely the same after the nukes and biological weapons are unleashed?

It only took one bomb for Hiroshima and one for Nagasaki.  Those bombs do not come close to the firepower that is available today.

Any civilized society which insists on making weapons of of mass destruction for mass population and infastruction annihalation when there are other ways and means of self defense is insane, as it is only a matter of time before innocents will feel the heat once they unleash these things.

You don't build them and think they will never be used, do you?

beenburnedtwice's picture

If even half of these video conclusions are true RP stands no chance whatsoever.  A $6 million 'bomb' versus $60T in fiat?

And even if RP wins in Iowa, doesn't he do so at the whim of CIA-controlled news media from which these videos so carefully connect?

You must take care of yourself and your family the best you know how and reach your own conclusions in how to prepare.

neuman's picture

Heavy dose to take those five videos! Show me a real piece of BS in someone's thesis and I would not trust the rest. Maybe a lot of it or indeed most of it is true, but the BIG BULL K-KA which I can spot is the AIDS not equal HIV. In Africa, most AIDS victims are women. The virus has different strains, spreads differently in different population pools, etc., etc. Being a physician well versed in infectious disease and AIDS as a big picture, his view on this topic is laughable, so I cannot trust anything else in all five videos.

Tyler Durden's picture

Curious: have you read this NSC memo from Henry Kissinger in 1974, titled: Implications of Worldwide Population Growth For U.S. Security and Overseas Interests

Oddly enough, to quote Chuck Palahniuk from "Rant":

Neddy Nelson: Have
you read that Kissinger report he's supposed to have submitted to the
National Security Council in 1974? The one where Henry Kissinger warns
that the greatest threat to the future of Americans is overpopulation in
Third World countries? How's it go? We need the minerals and natural
resources of Africa? Pretty quick now, those banana republics will fall
apart as their populations rise too high? The only way America can
protect its prosperity and political stability will be to depopulate the
Third World?


Should we be surprised that the AIDS virus showed up about 1975?


Do you understand what the term «depopulate» means?