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More Evidence of the Master Trading Algorithm

US Commentary

Why is the assertion that “all markets are manipulated” generally greeted with scorn and derision? Because while manipulating any particular, single market is a relatively straightforward matter – using “tools” for financial crime honed through centuries of practice -- rigging markets collectively has always been viewed as an endeavour infinitely more difficult than herding cats.

Markets diverge. It’s what they do. While overall economic fundamentals affect all markets, and all sectors; these fundamentals affect markets/sectors/companies unevenly. Coupled with that; every individual sector/market has its own, unique collection of economic fundamentals – almost entirely independent of the general fundamentals of the economy.

This absolute absence of homogeneity means that in (legitimate) markets we will always see most sectors (and individual companies) moving not only with varying degrees of magnitude, but frequently in opposite directions. This is what must happen in any/all legitimate markets, on most days. It is only at times where the general fundamentals are extreme (i.e. extremely bad or extremely good) where we will ever see markets exhibit herd-movement patterns.

What do we see in the Western-dominated markets of the 21st century? We see this herd movement not just occasionally, but virtually every hour of every trading day, something which is absolutely impossible. Suddenly our herd of cats is behaving – every hour of every day – like rats following a Pied Piper. Obviously when we see a herd of cats behaving like rats following a Pied Piper, this directly and necessarily implies the existence of a Pied Piper.

Enter so-called “high-frequency trading” (HFT): the Pied Piper. The disinformation which both the general public and the puppet-regulators have been fed is that this market-rigging apparatus is supposedly aimed at nothing other than bringing greater “speed and efficiency” to our markets. The reality is that this was never more than a minor consideration, and the One Bank’s “HFT” innovations were always aimed at totally-and-completely manipulating markets: its virtual Pied Piper.

This is very similar, in kind, to the lies fed to us by the bankers when they wanted to introduce “short selling” into our markets. It would induce “better price-discovery” in markets, and thus “make markets more efficient”; they told us. The reality is that (until the One Bank perfected its Pied Piper trading algorithm) massive, manipulative short-selling was the bankers’ most-important and most-often used weapon for distorting (and thus rigging) markets.

These two, campaigns of lies, used to “justify” two of the banksters’ most formidable weapons for market manipulation have several factors in common:

1)  Both can/would only have a benign impact on markets if used in extreme moderation.

2)  Both have obvious manipulative potential.

3)  Neither have any legal/statutory limits as to the quantity of such trading which infests our markets.

4) Neither are subject to any meaningful degree of oversight by our blind/deaf/dumb “regulators”.

To call this a “recipe for disaster” is the ultimate of understatements. This is not merely allowing “the fox into the henhouse”. It’s allowing an unlimited/infinite number of foxes to enter the henhouse – all with unsupervised access. It is recklessness to an extreme which directly and necessarily implies corruption. No one can be this “blind”.

 

Invest in Food

Canadian Commentary

At first glance, the title to this commentary seems facile, especially to those readers in higher income brackets. The reality, however, is that “investing in food” is a risk-free means of generating an annual return on one’s investment that would likely exceed the return one could earn on almost any other investment – despite the fact that nearly all other asset classes carry significant risks.

Indeed, with many asset classes currently at extreme “bubble” levels in their valuations (notably stocks, bonds, and real estate), the term “risk” is gross understatement. Putting any new money into any such assets (or simply keeping one’s wealth exposed to these sectors) is nothing less than financial suicide. In comparison to financial suicide; the opportunity for a risk-free return on one’s investing today obviously merits further scrutiny.

It is in this environment of extreme financial risk and perpetually spiraling food prices where we consider the proposition of food as an investment asset class. We begin by looking at the “fundamentals” of this market/investment class. And what we see (from this perspective) is extremely encouraging: food prices consistently soaring by roughly 20% per year, and significantly more for some categories of food (notably meat products).

With soaring food costs being a serious drain on the budgets of most families, our challenge is to find some way of turning this financial drain into a means of preserving/protecting our wealth: by investing in food. Regardless of one’s economic bracket; this is an investment opportunity which can be pursued by all of us.

Even those living in small apartments almost certainly have at least one closet whose space can be ‘sacrificed’ in order to capitalize on this risk-free opportunity. For those with more expansive residences; perhaps they have an entire room (rooms?) which can be devoted to “food investment”.

The proposition behind investing in food is simple. With all of us being food-consumers; we would greatly benefit by being able to pay “today’s prices” for particular food products, rather than the inflated prices of next month, six months from now, a year from now, etc. The longer we were/are able to continue paying today’s price, the greater the future savings.

It is this “future savings” which represents the risk-free return on our investment. At that point; the total, potential return on our investment is the product of four factors:

1)  The total amount of space available for food storage (along with the types/categories of food one is capable of storing).

2)  The total “shelf life” of particular categories of food products.

3)  The annual “food inflation” rate.

4)  Our own monthly/annual food consumption.

With the majority of people now living in multi-unit housing of some sort, where the total living space is relatively modest; the first factor may be the greatest limitation on the potential return from this investment. For those (more fortunate) individuals able to devote entire rooms (or perhaps a garage) to such investing; the earning/savings potential will be significantly greater.

There is also the issue of what specific types of food products one is capable of storing. Obviously “non-perishable goods” is the general category of food product which immediately comes to mind. However, for those individuals ready/willing/able to devote freezer-space to their food investing, suddenly the opportunity for savings and earnings is considerably expanded.

 

U.S. Begs Russia to Remain in ‘SWIFT’; the One Bank Fails Again

International Commentary

Does it get any funnier than this? Well, arguably, we’ve already seen an even funnier episode from these financial “Wile E. Coyotes”. But let’s begin with a look at the most recent “botched operation” by the psychopaths of the One Bank.

To any readers with even a moderate comprehension of global events; it has been completely obvious that the Western financial crime syndicate which rules over us (the One Bank) has targeted Russia for (at least) economic destruction – and perhaps political destruction, as well. It has commenced this campaign by unleashing its most-ferocious attack dog on Russia: the United States (aka “the Fourth Reich”).

The political/economic terrorism against Russia began with the coup in Ukraine, which was fully and completely orchestrated by U.S. Neo-Cons (most unelected), who actually “run” the U.S. government. This was immediately followed by a two-pronged strategy, directed squarely against Russia itself.

One-half of the campaign was an enormous, steaming mound of anti-Russia propaganda, continuously defecated by the West’s corporate media monopoly. This absurd, nonsensical propaganda relentlessly attempts to “blame Russia” for anything-and-everything even remotely connected to the West’s cannibalization of the Ukraine, and often simply fabricates “acts of Russian aggression”. This has continued even as these fascists have ordered their Ukraine Thugs to perpetrate ever more-aggressive and barbaric acts, primarily against the large, ethnic Russian population within their own nation.

The other half of this campaign was massive, overt economic terrorism against Russia, in virtually any-and-every form which could be dreamed-up by the One Bank’s army of (financial) psychopaths. They first launched an all-out attack on the Russian ruble. They then deliberately/ruthlessly manipulated oil prices to ½ their previous level, because Russia is the world’s largest energy exporter.

They also had the U.S. pressure the West’s other Lackey Governments to adopt round after round of ever more-punitive “economic sanctions” against Russia, “punishing it” for supposed misdeeds which were nothing more than the fabrications of its own propaganda. Then, as the supposed coup de grace; they had ordered that Russia be expelled from “SWIFT”.

For those readers not familiar with yet another one of the One Bank’s “tools” for financial oppression/control; SWIFT is the Western created/controlled electronic system for managing most large, commercial transactions between nations. Living in the 21st century’s electronic/computerized era; this financial crime syndicate assumed that Russia could not survive (economically) without access to this system.

The psychopaths miscalculated, badly, in almost every respect of this operation. But before summarizing this chain-of-blunders by this pack of Wile E. Coyotes; let’s review what was at least an equally botched “operation”: the economic terrorism and economic blackmail which they perpetrated against the government (and people) of India.

Regular readers are already familiar with this episode, so this summary will be as brief as possible.

   

Legal Tender Coins Shed Clues On Bullion Racket, Part II

Silver Commentary

Part I of this series provided what (for some) is a revelation: the absurd, $5 face-value on our legal tender, minted silver coins is not some totally arbitrary anomaly. Rather, it was a part of the strategy of the One Bank to pretend that its fraudulent paper currencies were not (and are not) losing value at a catastrophic rate.

The banksters did this in a multi-pronged approach. They selected the approximate price for silver which existed at the time that Paul Volcker assassinated the gold standard, and used that number ($5) as their nominal face-value for our coins. Then they attempted to freeze-forever the market price for silver at that $5-level. It was never a viable long-term strategy; but being psychopaths, that didn’t stop the banksters from pursuing it.

While our mystery is solved with respect to our silver coins; what about our gold coins? Here we can be unequivocal: the face-value on our legal tender gold coins is entirely arbitrary – in absolute terms. At no time since Volcker assassinated the gold standard has the price for gold been lower than $200/oz, and for most of that time it was above $300/oz, many multiples of the ridiculous $50 face-value.

Those playing Devil’s Advocate could argue that the reason our coins currently have a $50 face-value in both Canada and the U.S. was because Canada originally chose that face-value when it began minting Gold Maples in 1979. The rebuttal to that line of reasoning is simple: when has the United States ever considered itself bound by any “standards” set by another nation(s)?

The One Bank has consciously chosen to have the U.S. act as a “rogue regime” in virtually every sphere of international relations. It regularly initiates unilateral acts of war, and while it regularly signs various treaties with other nations (i.e. trade pacts and arms-limitation agreements), it finds it impossible to abide by the terms of these international agreements for any length of time.

Clearly if the U.S. government (meaning the One Bank) would have preferred a different, arbitrary face-value for its own minted coins, it would have chosen that number – and then pressured Canada’s government/mint to accede to the American “standard”. We must therefore conclude that the nominal $50 face-value on these minted gold coins was a deliberate choice, and not merely some ‘accident of history’.

With the $50 face-value having absolutely no significance in absolute terms, we must look for relevance in relative terms, i.e. in relation to the nominal face-value of our silver coins. It is here where we gain further insight, in the form of the price ratio, 10:1.

Historically, over literally thousands of years, the gold/silver price ratio remained relatively constant, near 15:1. This price ratio is a natural reflection of the supply ratio of the two metals (within the Earth’s crust), 17:1. Yet we are told via the propaganda of the Corporate media that the “normal” price ratio for silver to gold is supposedly in the range of 50:1 to 70:1 – the perverted extremes which are/were the direct product of the One Bank’s serial suppression of the price of silver.

Even as the physical (supply) ratio between these two metals has steadily narrowed due to the destruction of silver stockpiles; the Corporate media has maintained this ludicrous fiction regarding the price ratio. Yet here we get a rare glimpse into the actual thinking of these banksters regarding the pricing of these metals.

 

Legal Tender Coins Shed Clues On Bullion Racket, Part I

Silver Commentary

One of the “mysteries” of our modern (i.e. fraudulent) precious metals markets is explaining the face-value of our gold and silver minted coins, meaning relating their nominal price to their actual value. The face-value on U.S./Canadian silver 1-oz coins is $5, and the face-value for our 1-oz gold coins is $50. For those investors (including this analyst) who began using precious metals as a vehicle for wealth-protection at a relatively late date; the face-value of these coins seems totally arbitrary.

However, given the endemic nature of both the price-manipulation and brainwashing employed by the crime syndicate which rules over us (the One Bank), the choice of prices for any asset class is rarely (if ever) arbitrary. An “explanation” for the nominal face-values of these coins has materialized, albeit in a particularly circuitous manner.

We start this analysis by first looking not at the nominal face-value of our gold coins, but rather our silver coins. The reason for this is because as detailed by precious metals historian Charles Savoie (in his chronology “The Silver Stealers”), it is the banksters themselves who consider silver to be the more important of these two monetary metals.

While gold is (intentionally) the focus of greater attention in the corrupted “markets” of today, this is mostly because gold is still officially a “monetary asset” (i.e. money) – despite the cynical propaganda of the banksters which claims otherwise. Silver, on the other hand, has been effectively “demonetized” in our societies, perhaps the single most-effective strategy by the One Bank in facilitating its systemic theft of wealth.

What does it mean to “demonetize” silver? It means we stopped using it as our (real) “money”, and began using the banksters’ fake-money, i.e. our fraudulent (and now worthless) paper currencies. What have readers been told, again and again? By getting us to hold our wealth in their paper – rather than silver, the peoples’ money – this is what allows the One Bank to steal that wealth (via so-called “inflation”).

It should therefore be of no surprise to informed readers that in looking for an explanation of the nominal face-values of these legal tender coins that we look to silver, not gold, as our starting point. It was in listening to a review by precious metals analyst “Brother John” that we see/hear (at roughly the 13-minute mark) how at least one of these nominal face values is by no means arbitrary. After producing a long-term chart for the (nominal) price of silver; he made this observation while analyzing that chart:

I’m going to use the $5 [oz] price. The reason I’m going to use that $5 price is you can see it is a stable price from about mid-1970’s/early 1970’s all the way through to the early 2000’s. [emphasis mine]

That chart has not been reproduced here, because while a chart analyst such as Brother John may see a “stable price” here; the gyrations in the price of silver over that 30-year span (particularly the anomalous spike in 1980) show little obvious signs of stability to the less-experienced eye. Indeed, had a $5 price for silver seemed obvious as “a stable price” over this period, there would have been little mystery concerning the nominal face value of these coins – since for our silver coins that face-value is $5.

But connecting the face-value of our legal tender silver coins (Silver Maples and Silver Eagles) to that (somewhat) stable $5 price is only the beginning of our explanation. Given that this banking crime syndicate can (and does) manipulate prices to any number it desires; why instruct our governments to choose $5? Why not $2, or $10?

   

Negative Interest Rates and Precious Metals

Gold Commentary

For many years; one of the standard lines of the Corporate media in its anti-precious metals propaganda was that “gold generates no income” (i.e. interest payments) in comparison to the dubious paper currencies of our “fiat currency” monetary system. Of course that feeble argument ignored the fact that (in the real world) our paper currencies were losing value at the rate of roughly 10% per year (the real rate of inflation), meaning that real interest rates on all Western paper were already deeply negative.

Then the corrupt central banks – led by the Federal Reserve -- took nominal interest rates to zero. The Big Banks were (and are) allowed to “borrow” trillions in dollars/euros/pounds at 0% (prima facie fraudulent transactions), while savings rates went to near-zero. This meant that for the people; real interest rates across the West roughly equaled the full rate of inflation (i.e. -10% per year), meaning that the Big Banks were already confiscating our (paper) wealth at the rate of roughly 10% per year.

Even then, the equally corrupt Corporate media refused to endorse precious metals as the optimal vehicle for wealth-preservation. This is despite thousands of years of history which shows gold and silver never lose their “value” (i.e. the wealth they preserve), while a thousand years of history shows that paper currencies always lose their “value” (i.e. the wealth they preserve) via so-called “inflation”. Indeed, it is a documented, historical fact that in the 100 years the Federal Reserve has been “protecting the value” of the U.S. dollar that it has lost more than 98% of its value over that time.

The feeble excuse of the Corporate media for refusing to endorse history’s most-certain form of wealth preservation (gold and silver) was that, as a practical matter, there were “costs” associated with holding gold and silver as a physical asset – storage and/or insurance costs. Thus when nominal interest rates were still at 0%; these charlatans could still pretend that precious metals (and not the bankers’ paper currencies) was the asset class which ate into our wealth, ever so slightly.

Now, however, the corrupt central banks are taking interest rates into negative, nominal levels. When rates were at 0%; this was only an implicit act of economic rape by the central banks. The theft of our wealth was hidden, being the difference between the 0% (nominal) rate of interest on our savings, minus the level of real inflation – the “inflation” which our puppet governments pretend does not exist. Now, with nominal interest rates negative; the economic rape is overt, meaning the criminality of this wealth-confiscation by the Big Banks/central banks is now overt.

This is the open theft of any/all wealth in the form of paper savings, combined with the hidden theft which already existed via unreported/unacknowledged inflation. Now the corrupt Corporate media is denied even a pretext for refusing to endorse and advocate preserving our wealth in the secure, time-tested form of gold and silver.

With our paper wealth now being stolen in nominal terms (in addition to the unreported “inflation”), with precious metals currently priced (i.e. suppressed) to a trough which is below the cost of production for most producers, and with its 2,000+ year track-record for wealth preservation; there can be no rational objections of any kind to employing gold and silver as our primary vehicle for wealth preservation.

 

$1,000/oz For Silver (Today): A Starting Point

Silver Commentary

Regular readers are well aware of an unresolved problem/issue which has permeated these commentaries for (especially) the past three years: the lack of any rational or objective means for pricing assets, most notably precious metals themselves. There are two enormous obstacles facing any analyst, in attempting to resolve this issue.

First of all; our economies are now operated with currencies which are not only worthless, but are absurdly fraudulent and worthless. With all asset prices denominated in one form or other of this worthless paper; this makes the absolute price for all hard assets “infinity” – with no means of differentiating between asset classes.

Compounding this enormous practical difficulty; the relative price of assets (in relation to each other) has also been skewed well beyond the slightest connection with “reality” (i.e. the economic fundamentals particular to each asset class) through endless, systemic, market manipulation. Previous commentaries have frequently noted that “we no longer have markets”, just rigged casinos. Thus the ridiculous prices generated through this systemic fraud have no relevance or legitimacy whatsoever.

Boiled down; the conundrum facing us in attempting to estimate (current) rational prices for assets is two-fold. Not only do we lack any obvious starting point for where to begin this process; we have no visible parameters to guide us in how we begin this process. How do you begin to estimate rational “prices”, in a totally fraudulent system, denominated in worthless currencies?

Enter Rob Kirby. In a recent interview for Sprott Money News; Mr. Kirby was in fact asked this specific question: how do we engage in the relative pricing of assets, with asset prices “skewed so severely through manipulation”? Here was his response:

I take the last 3,000 years, roughly. I put it on a yardstick. I ask myself for the greatest amount of that yardstick, what served as money? If you take the last 3,000 years and you put it on a yardstick, for about 32 inches of that yardstick somewhere between 40 and 60 ounces of silver was a solid upper middle class wage.

My question back to you is tell me exactly what you consider to be a solid upper middle class wage today? If you’re like me, you’re going to probably say that it’s around $50 to $60 thousand a year. Some might have a different number. I’m just going to take $50,000 a year, and I’m going to divide that by 40 ounces of silver…[it’s] more than $1,000 an ounce in today’s dollars. [emphasis mine]

Kirby’s response is ingenious, in that it addresses both how and where to begin in the relative pricing of assets, and he supplies us with an objective metric to use in beginning this process: the “average wage”. While critics can quibble, slightly, with the specific metrics he used in this calculation; the methodology itself is unquestionably sound.

The “average wage” is an objectively definable concept. The workers earning that average wage must be paid. Thus we can use that average wage to come up with a price for moneyreal money (i.e. silver and/or gold). $1,000/ounce for silver is a “starting point” (as noted in the title) in two respects.

   

Rothschild vs. Rothschild

International Commentary

Unsustainable. Self-destructive. Readers have heard these terms again and again over the past 6+ years. They accurately encompass the status of our societies/economies (unsustainable), and the process by which we are governed (self-destruction). But what happens after the “unsustainable” cannot be sustained for one more day/hour/minute? What happens after the banksters whom are destroying our economies succeed?

Previous analysis in this area has arrived at the conclusion that once this Old World Order completes the destruction of its own power base (Western economies), that (logically) it will lose power – at least partially, if not completely. However, this analysis will instead adopt the position of “Devil’s Advocate”, in honour of the Devils, themselves. What if the Rothschilds’ destruction of their own power base does not result in them losing their control (i.e. choke-hold) over our societies?

The key in such a hypothetical analysis is to be cognizant that we are dealing with psychopaths. This is essential, because psychopaths exhibit rigid, predictable patterns to their behavior. Specifically, their behavior is compulsive, i.e. they have little control over it, themselves. It can be easily illustrated, empirically, both that the Rothschilds are a clan of psychopaths, and that their conduct is “compulsive”, even when extremely detrimental to their own (long term) interests.

As was noted again in a recent commentary; when these banksters began their serious era of precious metals price-suppression (after Nixon assassinated the gold standard); this financial crime syndicate sat atop the largest (ill-gotten) hoard of bullion ever amassed by our species. Had their vehicle for financial rape, the One Bank, contented itself with merely controlling bullion prices; its bullion-manipulation racket could have been sustained in perpetuity, with no (long term) encroachment on their own hoards.

Instead, these financial psychopaths were (self) compelled to destroy the precious metals sector, bankrupting most of the mining companies, and creating a massive/structural supply-deficit – simply because they could. It was not merely malice without purpose, it was malice which severely undermined their own, long-term interests (by exhausting their own bullion stockpiles), the hallmark of psychopathic behavior.

No rational (i.e. sane/healthy) mammal defecates in its own bed. Yet what do we see continually reflected in the behavior of the Rothschilds? To gain further understanding here; we need merely refer to a definition of the phrase “power base”:

The area or group of people that provides the main support.

Obviously “power base” is synonymous with “foundation”. The Rothschilds have destroyed their own economic foundation (the U.S. economy, and to a lesser extent, other Western economies) because they couldn’t resist the compulsion to steal their own foundation.

 

The U.S. Economy is Dead

US Commentary

For the past quarter century; the most effective “stimulus” for the U.S. economy has been a fall in gasoline prices. This is no great surprise, given that the United States had been the most gas-guzzling nation on the planet – and by a wide margin. But times have changed!

After Barack Obama publicly admitted that the U.S. government had ruthlessly manipulated oil prices lower, as “part of its strategy” of economic terrorism against Russia; global oil prices have been cut in half. The only other time that oil prices have fallen so far or so fast in the last quarter century was the brief/temporary collapse in prices which accompanied the Crash of ’08.

Has this enormous economic stimulus kick-started the U.S.’s zombie economy? Not at all. Indeed, the collapse in the U.S. retail sector has accelerated throughout this plunge in oil/gasoline prices. This should not be possible. Economic stimulus from lower prices (in any sector) is supposed to be automatic.

What does it mean when an economy not only fails to respond to “automatic” stimulus, but continues to rapidly decompose? It means we are dealing with a deceased economy. This is a “surprise” to the irredeemable charlatans who have the audacity to call themselves economists, but it shouldn’t have been. Not if any of them were paying attention. Not if any of them lived in the real world.

Back in the real world; evidence of the U.S.’s zombie economy is both overwhelming and abundant. It begins with 0% interest rates. As has frequently been noted in the past; 0% interest rates are the economic equivalent of a defibrillator. As with a defibrillator; it is the most-extreme form of stimulus known to us. As with a defibrillator; it is a “therapy” option which is so radical/reckless that it is only ever intended to be used as a last resort, to resuscitate a patient on Death’s door.

Equally, as with a defibrillator; if it doesn’t “work” right away, it will never work (has anyone ever heard of a nation called “Japan”?). When a doctor attempts to resuscitate a patient with a defibrillator, and fails after a couple of minutes; does he continue to jolt the patient, again and again and again and again – year after year? Of course not. He quickly gives up, because it has become evident that he is no longer “treating a patient”, but merely charring a corpse.

This is what the U.S. government (and other Western governments) has been doing for the past 6+ years with its 0% interest rate: charring a corpse. Further proof that the U.S. economy is already dead comes from a chart of the heartbeat of the U.S. economy (and any capitalist economy) – it’s “velocity of money”.

As we see; the U.S. “heartbeat” (i.e. the flow of money) has nearly stopped, having fallen further/lower than at any time in recorded history. What does it mean when money stops moving, in a “capitalist economy”? What does it mean when the money (i.e. blood) stops moving in the heart of the greatest Capitalist Empire the world has ever seen? R.I.P.

   

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