posted on Jul, 20 2010 @ 10:57 PM
Working Group on Financial Markets
(AKA the plunge potection)
The W.G.F.M. was established in 1988 by the Reagan administration in response to black monday in 1987.
Original Washington Post Story
As established by Executive Order 12631, the Working Group consists of:
The Secretary of the Treasury, or his designee (as Chairman of the Working Group);
The Chairman of the Board of Governors of the Federal Reserve System, or his designee;
The Chairman of the Securities and Exchange Commission, or his designee; and
The Chairman of the Commodity Futures Trading Commission, or his designee.
Plunge Protection Team
"Plunge Protection Team" was originally the headline for an article in The Washington Post on February 23, 1997, and has since become a colloquial
term used by some mainstream publications to refer to the Working Group.
Initially, the term was used to express the opinion that the Working Group was being used to prop up the markets during downturns...
According to many researchers, the PPT's main goals are to:
1) Keep the stock market from going down
2) Keep the value of the dollar up by controlling gold prices
Also according to research, they have the funding and resources to do one of the two, but not both. Obviously in these economic times, the group is
The reason I'm writing this thread is because recently the group has shown its hand in some major events, as well as everyday trading. In the last
few days the stock market has moved up with gold and other precious metals, and then the next day it has moved down with metals while the dollar goes
up in value. Unless you account for PPT and other manipulation, this seems senseless. Why would gold only go down when the market goes down? And
vice-versa? Because they don't have the ability to manipulate the market and gold simultaneously. Holding one together can be enough of a challenge,
Anyway, just wanted to bring this to ATS's attention, so you can watch for it in the market data in the future. They are hanging on for now, but if
gold goes up a lot and the market goes down a lot at the same time you will know either
a) they gave up or were told not to intervene, and the economic S is HTF
b) they failed, and the economic S is HTF