The Plunge Protection Team...

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posted on Nov, 16 2005 @ 08:21 PM
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... is also known as the "President’s Working Group on Financial Markets".

Their market interventions have been written and talked about by sources such as the Wall Street Journal, Euromoney magazine, USA Today, ABC’s Good Morning America, The New York Post, The Observer, The Guardian, The Evening Standard and many others. (1)

Membership is reputed to include government agencies (i.e. the pivate FED
), stock exchanges and large Wall Street firms. (1)

It's a private club and in addition to ensuring the stability of the domestic stock market...



A 1989 Wall Street Journal op-ed piece written by former Federal Reserve governor Robert Heller may be the blueprint for the government’s preferred method of equity market stabilization. Heller suggested that the central bank be empowered to stabilize plunging stock markets by purchasing stock index futures contracts. Such a move would force the underlying index to rise. Of note, a 1992 New York Post article quoted a former National Security Council economist as having confirmed that the government supported the stock market in 1987, 1989 and 1992. The article indicated that these interventions were conducted in the manner proposed by Heller. (1)


... they also directed large banks to prop up the international currency markets to diffuse the global currency crisis caused by the collapse and failure of Long Term Capital Management in 1989. (the firm applying the Black-Scholes formula started by one of the recipients of the Nobel Prize for that work - wiki)

A recent roundtable broadcast Nov. 5/05 by Financial Sense (with invited market analysts - well known gold bugs actually) is titled "Are the Markets Rigged?" and discusses the PPT further. A very good listen.



We believe the stability of domestic stock markets is considered by the U.S. government to be a matter of national security. Interventions are likely justified on the grounds that the health of the U.S. financial markets is integral to American pre-eminence and world stability. This conclusion flows from an extraordinary financial war game exercise conducted by the Council on Foreign Relations in 2000 and attended by key policy-makers. (1)


So this team is responsible for putting out fires and keeping the whole financial house of cards from collapsing.

The new FED chairman, Ben Bernake, is famous for his views on "helicopter money".
Helicopter Ben advocates turning on the printing press full speed whenever there is trouble in the markets.

Last week the FED announced that they would no longer publish M3 in March.

Here is the statement in its entirety:




Discontinuance of M3

On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.

Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks). - federalreserve.gov


M3 is the money supply.

"M3 is the most important money aggregate for economists, analysts and Fed watchers to get an idea at what speed the (electronic) printing press is running." (Unpleasant M3 Trend - FED Counters by Stopping Release of Money Supply Data)

So starting in March, no more numbers.

The timing sure is interesting. I wonder what is happening in March that may take some serious market intervention by the Plunge Protection Team?

Oh yeah...

The Iranian Oil Bourse is slated to go live in March.

 


Reference:

(1) "Move Over, Adam Smith - The Visible Hand of Uncle Sam" A Special Report by Sprott Asset Management, August 2005, 41 pages PDF
.


[edit on 11/16/2005 by Gools]




posted on Nov, 16 2005 @ 09:43 PM
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Originally posted by Gools
The new FED chairman, Ben Bernake, is famous for his views on "helicopter money".
Helicopter Ben advocates turning on the printing press full speed whenever there is trouble in the markets.

Scary thing here, I thought that is exactly what they do---just print more


Very good piece, Gools.

I've long thought the market was manipulated. I'm not sure I'm glad to see my thoughts become facts, though



posted on Nov, 20 2005 @ 11:33 AM
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Thanks DTOM.

Printing money is not a problem as long as it is done to keep pace with real economic growth and to provide necessary liquidity for the markets. Have a look at this M3 graph:



The money supply has been growing (on average) at over twice the growth of the economy and has grown around 40% in the last five years alone!

The prosperity we think we have is an illusion. Manufacturing is long gone (witness the "rust belt") and major corporations are floundering all over the place (airlines and auto manufacturers for example).

My parents bought their first house for $27k in the early 70's. Brand new, 1800 square feet and on a 1/4 acre lot. Good luck finding that for less than $200k today! That's inflation!

Yet we have heard about the fight against inflation since the eighties. Most people mistakenly think of inflation as the rise in consumer prices when the real economic definition is the increase in money supply and the FED (and other central banks) have been inflating the crap out of the economy.

As anyone will tell you the fiat currencies we have are valued based on "confidence". Well how confident can people be (and other central banks) when they can't see one of the most important numbers in the economy?

Something really bad is about to happen that needs major intervention hidden from the public or the situation has already been happening for a while now and is comming to a climax.

I wonder how other central banks will react to this, or are they all in on it? The Plunge Protection Team seems to have acted in concert with the Japanese according to that PDF report I referenced.

.

[edit on 11/20/2005 by Gools]

[edit on 1/10/2006 by Gools]



posted on Nov, 20 2005 @ 11:43 AM
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Excellent work gools. Thank you.


NOT what I want to think about when I have a sinus heache tho, and am evaluating the possibility that it's incipient bird flu, albeit the non-fatal variety. However, trudging on...





Something really bad is about to happen that needs major intervention hidden from the public or the situation has already been happening for a while now and is comming to a climax.

I wonder how other central banks will react to this, or are they all in on it? The Plunge Protection Team seems to have acted in concert with the Japanese according to that PDF report I referenced.




I vote coming to a climax. ...One or another of the predicted looming catastrophes soon will strike - bankruptcy laws ensure ordinary people will NOT get out from under - and the time is ripe to appropriate everything, and turn everyone into indentured servants under the new corporate regime.


.



posted on Dec, 17 2005 @ 04:41 PM
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Interesting article, but how can you prepare against it if you believe it to be true?



posted on Dec, 18 2005 @ 04:32 AM
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I track my finances with MS Money and noticed this oddity this morning. I am wondering if it is indicating something going on or is it a glitch in the program.

This is in the portfolio analysis where all my retirement accounts are set up. All my mutual funds are predominantly stock funds, yet on recent update it is showing the following:

As of this month your investment portfolio has 72.49% in Money Markets. Is money analyzing the current contents of my mutual funds when they make this statement? Have the mutual funds I've invested in suddenly switched large chunks out of stock holdings into money markets?

I went to my bank's site to see if I could see this, but the information posted about the funds shows the data for November, and my largest "Capital Growth" Fund still shows 99% invested in stocks for November. This fund alone, if 99% invested in stocks would prevent such a high percentage of Money Markets.

Am I seeing something going on here or does MS Money have some sort of glitch? Just thought I'd post this here to see if anyone can confirm this might be some indicator that something is looming in the near future. Anyone else seeing this type of thing going on?

Edit: Okay, I have just looked at the rest of my funds to include the smaller ones that might be more heavily weighted in "cash & equivalents" and what is showing for November just does not support the percentage Money is reporting.

[edit on 12/18/2005 by Relentless]



posted on Dec, 18 2005 @ 11:05 AM
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Call you bank and ask them what is going on!!! It's your money not theirs and you have a right to know.

IMO if you do not understand how your money is being invested and used you should not be invested with these people.

As for protecting yourself, all I can recommend is get out of debt as fast as you can and stay out of debt. Stop consumming throw away stuff and invest in real assets that will serve you in the longterm (especially in an economic downturn). I'm currently saving my money for strategic investment and buying a piece of countryside.

As for the PPT being real, I have no doubt it is. Not much we peons can do about it though. Just keep in mind that when these poeple talk about "free markets" they are being grade A hypocrites.

They do not have my or your financial interests at heart. Only you are responsible for that. It's your choice whether or not you want to take part in the ponzi scheme. Just know what you are getting into and be careful where you invest you money.
.



posted on Dec, 18 2005 @ 11:31 AM
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Originally posted by Gools
Call you bank and ask them what is going on!!! It's your money not theirs and you have a right to know.

IMO if you do not understand how your money is being invested and used you should not be invested with these people.



For the record, I have my funds at one of the most trustworthy institutions (though most of you would never have heard of it) and my funds are all highly rated by Morningstar and performing well considering the markets. There is no doubt in my mind that if they have moved the investments that it was done to protect the investors.

I am only bringing it up in case it has anything to do with what you are discussing here. (But thanks for your concerns
)



posted on Jan, 7 2006 @ 02:20 AM
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Originally posted by Gools
... is also known as the "President’s Working Group on Financial Markets".

Their market interventions have been written and talked about by sources such as the Wall Street Journal, Euromoney magazine, USA Today, ABC’s Good Morning America, The New York Post, The Observer, The Guardian, The Evening Standard and many others. (1)

Membership is reputed to include government agencies (i.e. the pivate FED
), stock exchanges and large Wall Street firms. (1)

It's a private club and in addition to ensuring the stability of the domestic stock market...


perhaps they are not publishing the m3 in march anymore because they are raising the debt ceiling in march and dont want anyone to get wise to their out of control spending...

washingtonpost.com

this practice is intriguing to me... instead of saying, "hmmm we are at our debt limit, perhaps we should stop spending." they just change the limit..

i wonder if i can do this with my credit cards..
now if you'll excuse me i'm going to go buy some gold and silver..


mod edit to shorten quote. please review how to quote here
www.abovetopsecret.com...

[edit on 7-1-2006 by DontTreadOnMe]

[edit on 5-3-2007 by DontTreadOnMe]



posted on Jan, 10 2006 @ 07:43 PM
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THE FED'S MONEY SUPPLY ARMAMENT IS UNDERWAY

M-3 has been launched into outer space, up another $56.3 billion last week, up $92.4 billion over the past two. This is some real horsepower.

Over six weeks, ... is up $177.8 billion. These annualized growth rates are 28.7 percent, 23.6 percent, and 15.3 percent respectively. Those are the seasonally adjusted figures. The raw, non-seasonally adjusted, figure is up $293.3 billion over the past 12 weeks, on a pace to add 1.2 trillion in money to the economy. Wow. There must be a need for this. Maybe the master Planners see a coming need to monetize our debt? To support markets? They tell us the economy is good, so clearly they cannot be stimulating our way out of a recession. There’s a lot of money flooding the economy and it has to go somewhere. Right now it is lifting markets.


Ahhh... what a nice send-off for Greenspan no?



... if the Dollar were to tank — and the Iran oil Bourse should push the Dollar in that direction — it puts pressure on Treasury Bonds and other U.S. financial assets to fall as well, since they are denominated in a declining-value currency. In this event, the Fed would have to step up its buying of U.S. financial assets to lend support to these asset prices — to stabilize U.S. markets. In other words, the Fed would have to monetize the U.S. Treasury’s debt, and also monetize equity markets (be the buyer that keeps prices from falling). This would take so much fresh money that the Fed would need to create it in secret. Thus, they would have to announce that they are no longer going to transparently reveal the level of the money supply, but will hide it. The alternative is to punish Iran for — and make no mistake about this — effectively declaring economic war against the United States.

If this speculation is true, then the Master Planners are likely preparing accordingly.


Glad to know I'm not the only one connecting dots in this way.

The markets are now flush with new cash and The Plunge Protection Team is being primed and readied to go.
.



posted on Jan, 10 2006 @ 08:47 PM
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The PPT is very real and was created by Executive Order 12631.

It is composed of four members:


(1) the Secretary of the Treasury, or his designee;
(2) the Chairman of the Board of Governors of the Federal Reserve System, or his designee;
(3) the Chairman of the Securities and Exchange Commission, or his designee; and
(4) the Chairman of the Commodity Futures Trading Commission, or her designee.

As with all other legal documents understanding its real world implications requires a very deep look at the exact words.


Sec. 2. Purposes and Functions. (a) Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation's financial markets and maintaining investor confidence


The stated purpose of the PPT is to protect the financial markets.


(c) The Working Group shall report to the President initially within 60 days (and periodically thereafter) on its progress and, if appropriate, its views on any recommended legislative changes.


And to tell the President what laws they want passed.


(c) To the extent permitted by law and subject to the availability of funds therefore, the Department of the Treasury shall provide the Working Group with such administrative and support services as may be necessary for the performance of its functions.


And they have as much money as the debt limit will allow to do with as they please.

Its a formula for blind robbery of the people.

Money, created out of thin air that every other American and I are obliged to repay, is pumped through derivative markets to the Bankers that control the people on the PPT.

So says the Prez.

[edit on 10-1-2006 by ArchAngel]

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[edit on 10/1/2006 by Mirthful Me]



posted on Jan, 17 2006 @ 02:01 PM
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Originally posted by turbokid
perhaps they are not publishing the m3 in march anymore because they are raising the debt ceiling in march and dont want anyone to get wise to their out of control spending...

*link*

this practice is intriguing to me... instead of saying, "hmmm we are at our debt limit, perhaps we should stop spending." they just change the limit..

i wonder if i can do this with my credit cards..
now if you'll excuse me i'm going to go buy some gold and silver..

[edit on 7-1-2006 by DontTreadOnMe]


Very interesting point.

I read the link you posteed, and found the end of this portion of it very interesting:

Treasury Secretary John W. Snow said yesterday that the United States could be unable to pay its bills in early 2006 unless Congress raises the government's borrowing authority, which is now capped at $8.18 trillion.

Snow, in a letter to lawmakers, estimated that the government is expected to bump into the statutory debt limit around the middle of February.

"At that time, unless the debt limit is raised or the Treasury Department takes authorized extraordinary actions, we will be unable to continue to finance government operations," Snow wrote.

If the department were to carry out various accounting maneuvers -- as it has done in the past to avoid breaching the limit -- that would free up finances and allow the government to keep paying its bills "no longer than mid-March," Snow wrote.

So no matter how they organize things they will no longer be able to pay the bills by mid march, and in march the fed will stop publishing the M3 numbers! What a coincidence


[edit on 5-3-2007 by DontTreadOnMe]



posted on Jan, 18 2006 @ 06:43 AM
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to keep the thread going i found an article about inflation that is pretty good.

www.financialsense.com...

in there it says...


"By unilaterally printing money whenever it wants to, without either explanation or public debate, the government is in fact defrauding its constituents by diluting the purchasing power of their money. And this ability to increase the amount of monetary instruments in circulation is the fatal flaw of all fiat currencies, for there has never been a successful fiat currency.

Not one."


-And it goes on to say.-



"Interestingly, the life of a fiat currency can be chronicled in rough stages based on patterns of behavior that have been repeated ad infinitum over the centuries. Reduced to its simplest terms, the sequence goes something like this:

1. A government prints a little extra money (or issues a little extra debt) to finance this emergency measure or that budgetary shortfall, and the effects on the value of the currency go largely unnoticed.

*snip*

4. The worse inflation becomes, the more unstable the government becomes as it resorts to ever more extreme measures to mislead the public regarding the effects of the money it has created and to deflect the public’s attention to other matters, thereby allowing the practice to continue. Astute individuals start protecting themselves by trading the fiat currency for real assets to preserve their wealth.

*snip*

There have been variations of, but no exceptions to, this pattern."



"Looking back into history, economic data was only kept a secret in failing economies, e.g. the Soviet Union."( -bank manager in response to the fed not publishing the m3)


hmmm.


[edit on 5-3-2007 by DontTreadOnMe]



posted on Jan, 18 2006 @ 01:28 PM
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This is a very good article on the Iranian oil bourse, and what effect will potentially have on the USD, which is one of the reasons I think the M3's will no longer be published

www.energybulletin.net...



posted on Jan, 21 2006 @ 01:16 AM
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My limited knowlege of the money formula in the USA looks something like this

MV=PT


Stating that M or money supply multiplied by the velocity V equals

Prices or P multiplied by the number of transactions T


This looks like a supply = demand formula but it is not.
They are saying that spending = spending or purchasing =purchasing.

Supply and demand will equal each other in a free market but they will not equal themselves in our market because we do not have a free market.

What experts like to decieve us with is that what they often teach is that there isnt real big movement in velocity ..or V...nor are their big movements in Prices or P..nor are there big movements in Transactions or T.

Therefore the controlling factor is M or the money supply.
Mostly they are correct in this until you factor in government deficits.

Government deficits are the creation of new M or money supply for whatever are the latest politics of the day.

What history records in nation after nation...is that with the unchecked creation of new M or money supply especially by deficit...without any new product/production or market offsetting it...you now have a increase of velocity ..or V..
Instead of the normal velocity of two or three times in a given period ...changing hands suddenly people start hot handing it off and the velocity goes to five or more times in a given period. This acts the same as the creation of new M....or money supply increase. When you have increased M or money supply in the economy it acts like an auction...with alot of people bidding on a limited number of goods...and then P goes up ..prices rise...because the money doesnt buy as much as it used to and more people are bidding in the economy with the new M or money supply. People are hot handing it off in competition...because they sense...V..the velocity is rising. The next thing you know in this hot handing it off...the T is rising also..the number of transactions to get rid of the money is occuring.

When you read books like John Maynard Keynes and his "Economic Consequences of the Peace" about the effects of the german inflation following WW1...he states after a long series of explanations .." the best way to destroy the capitalist system is to debauch the currency"
This is exactly what is happening to the American Dollar. It has been happeing for over 40 years now and is accelerating now at a rapid rate.
I had a suspicion years ago when the Japanese seemed to be buying up so much of America. This was recorded over and over in the news with some new purchase of some traditionally American corporation or company. What the public was never told and became obvious to me is that the Japanese even back then wanted anything of value other than dollars. They knew the dollar was going down in value even back then...and wanted anything but dollars. When you see the average American looking to buy gold or silver...anything but dollars...you have V rising and the rest will follow.
The problem the government has is how to keep the public from knowing that V is rising due to the creation of more M or money supply. They will tell you anything but this...and I mean anything. There is more to this but it will suffice for now.

One more thing of importance about economic experts...the correct term for inflation is depreciation..the loss in purchasing power of the money. Inflation is a term used to keep people from catching on. Inflated money supply is always money which loses its purchasing power.
The appearence of increase of the value of your homes etc ..is the loss of purchasing power in dollars...find a economic expert who will tell you this. Economic experts are in on the deception ...just like the government itself ..to keep you from seeing when V rises.

Gools has made some excellent points in thier posts particulary about "real" economic growth verses the increase in the money supply by printing or deficit.

Thanks,
Orangetom



posted on Jan, 22 2006 @ 11:37 PM
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Orangetom I totally agree with the points you make in your last post. You are right that inflation is a fancy word for devaluation of the money. I guess it comes from more money being added which inflates the money supply thus devaluing each dollar to some extent. While I agree that increased equity in people’s homes is a bit inflated, I don't think people's purchasing power has gone down proportionally "yet".


If you read that last think I posted the article talks about the US inflates their money to tax the world. They have a monopoly on oil in the sense that everyone has to use them to buy oil, and then the dollar is inflated and people get taxed whether they realize it or not! now that the M3 won't be published they can really let the presses rip and how will people gauge inflation?

The other danger is if Iran can successfully start selling oil for euros foreign companies, governments etc.. may start dumping dollars creating some problems.


[edit on 22-1-2006 by warpboost]



posted on Jan, 23 2006 @ 12:53 AM
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I agree too..with the use of your term "yet".

By the time most people recognize the increase in V it will be to late. The purchasing power will decline rapidly. This is what happened in Mexico..in the late 1970s or early 1980s with their rapid inflation. It allowed people with more valuable currencys to come in and buy up the nation or what was valuable to them in Mexico for a song. They set up new industrys in Mexico for pennys on the Dollar.I think this was planned by someone with the ability to carry it out.
The purchasing power has declined ..but it is not apparent to most people..they are asleep at the wheel. The appearence of increases in realestate values is one of the first big telltales.

Thanks,
Orangetom



posted on Jan, 23 2006 @ 01:28 PM
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Orangetom, only time will tell but it should be interesting. The scariest thing to me is that the average person doesn't care!!! If I were to mention a subject like this around most people they would make comments like who cares
Sometimes I feel like saying "you will once its too late! once you realize you don't even have a pot to piss in, you can't even afford a loaf of bread
then you'll care, but by then it will be too late to react proactively!

I hate to be some doomsday prophet and hope it never happens, but when I think about what stuff like what the fed is doing, the Iranians planning to sell oil for euros, US jobs being outsourced, US consumers maxed out to the seems with debt, increasing energy prices and an article like this one about how 50% of college students lack the ability to comprehend common tasks that could be considered complex like comparing credit card offers etc.. I really have to wonder what the future will hold?

So Orange what do you think the best investments are? Actual Gold or Silver? Or Gold and or oil stocks? I know actual gold is pretty much fail safe regardless what happens, and stock are riskier especially if worst case the market collapsed, but they also allow more leverage so what do you think is the way to go? I was even thinking buying some stable neutral currency like say swiss francs probably wouldn't be a bad idea. I just think saving dollars is a pretty dumb thing to do these days, and if inflation gets crazy like it might its really a bad idea.

[edit on 23-1-2006 by warpboost]



posted on Jan, 23 2006 @ 01:50 PM
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This is a very interesting article it brings me back when I took economics many moons ago. The article actually brings a good point.

One of the conspiracy about the Iraqi war was that Saddam was going to “Go Euro” on his oil imports.

Now the article tells that Iran another country with vast oil reservoirs is going to do the same.

And now we have seen the treat that he has become to the world, perhaps the treat is not on “Nuclear capabilities” but far worst too the US economy and the oil barons.

I imagine that if they are planning to they most be stop just like Saddam.



Iran had originally scheduled to open its bourse (or stock exchange where oil could be sold and bought in Euros) in 2005. That obviously hasn't happened, but now the date is set for Spring 2006. Exactly when the Fed says it will stop printing statistics of how many dollars are in existance overseas.



I agree that US has been paying a lot of attention to Iran “Evil doings” lately, but to be honest I guess is a reason why Iran wants to arm themselves with nuclear weapons, perhaps to protect their natural resources from the evil oil barons of the world and from the countries that they come from.

I guess when it comes to money and power only the few are allowed to control the markets.

www.abovetopsecret.com...

US has to do anything to keep supremacy of the markets like the article said is a " Matter of national security"

Going into war with countries that can be a treat to our markets is well founded.



posted on Jan, 23 2006 @ 03:53 PM
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My personal opinion is that someone here in the west or perhapsed working in concert with others...has always had Iran in their cross hairs..their target sights. The objective has always been Iran. Iraq is just a stepping stone to get there. Afganistan was the stepping stone to get to Iraq.

There is and has been for many years now..a war between banks , Industrialists who go to these banks for loans for control and hegomony for the worlds rescources...raw materials and the energy to manufacture them into usable forms for sale and shipment. This war has been going on for about 4 to 5 hundred years..now..since the Spanish Armadas..etc...Religionn is only one facet of it..the most important facet...the one which ties all the other ones together. It is not the religion for which it is advertised. It is another religion altogether. Most havent a clue.
These groups have used governments and peoples to do their bidding under the guise of thier "True Religion."

Money is only one facet of it....a very important one but one of the facets for making and breaking nations. The history of England and the Empire is a textbook study on this..and the money lenders.

Thanks,
Orangetom





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