I have been watching this exact same thing for a while now... "the PPT has been used by Washington to control the price movements of the NYSE through the buying of S&P futures as former Fed governor Heller advocated." "JP Morgan and Goldman Sachs are then designated as the brokers for XYZ Corp to act as the funnels to bring the "new money" into the economy via the PPT's "market stabilization activities." Thus, there are unlimited funds for use to short gold, buy dollars, and buy S&P futures whenever the markets look to be in jeopardy. " "Thus, the Fed and the Treasury accomplish two things that help them to keep their sinking ship afloat: 1) They shore up both the equity and dollar markets and put a cap on the gold market, and 2) they also inject billions of "newly printed" dollars into the economy, which helps them to counter deflation. " "So in the long run, the PPT's manipulatory tactics will not be able to stop the gold and silver bull market, nor will they be able to stop the continued bear market in equities. No government has ever been able to reverse or stop a "primary bull or bear trend" once it is launched. All government manipulators can do is delay the ultimate destination of the market and make for wild swings of high volatility. All they can do is buy some time, which is what desperate men always try to do when their backs are against the wall. What these manipulators don't realize is that a secular bear market is like a great northern blizzard. All we can do is try to calculate its duration. All we can do is hunker down and ride it out, while loading up on various storm shields that might gain value in freezing weather. The manipulators' efforts to stop the development of the blizzard will fail, but this doesn't keep them from trying to stop it, and in the process creating havoc and volatility along the way. Therefore, what we can expect from the Fed on an ever increasing scale in the upcoming years is an effort to "manage" the dollar down slowly so as to alleviate America's trade and current account deficits, while trying to keep the Dow from crashing, and also at the same time helping JP Morgan and its cohorts in New York to ease out of their short derivatives. Thus, the Fed needs to push gold down to a low enough price where JP Morgan, et al can buy their shorts back without too much of a loss. This buying back then causes the gold market to shoot up, which then necessitates that the PPT come in and push it back down to where JP Morgan, et al can then dump some more of their short contracts. Jim Sinclair thinks the recent rocket up to $390 in gold was the first big attempt by JP Morgan to close out some of their short positions. It put tremendous buying pressure on the price, and it had to be contained. So the PPT was brought in to push the price down again. (I am not saying that gold didn't get overbought; it did. But you can bet that the PPT was right there helping to push the price down once the market turned. And it will be ever with us into the foreseeable future trying its damndest to convince the world that gold as an investment vehicle is a fool's choice.) So the Fed's strategy is to try and keep the Dow above 7000 and gold below $400 until all the dangers are purged, i.e., until the New York banking cartel has eased out of its short positions and U.S. corporations are beginning to make profits again. That's why the Fed will be making liberal use of the PPT along with lots of rumors and smear campaigns over the next decade. This is a very dangerous game that these participants are playing, and we need to be aware of it. As stated above, the only thing such PPT rigging can accomplish in the long run is more WORTHLESS DOLLARS being funneled into the economy, which is just more of the paper money poison that is killing us. But such rigging will be able to buy the Fed and the New York cartel some time. If Greenspan can pull this off until June of 2004, he then retires, and can drop the whole mess in the lap of his successor. He can then escape to his knighthood and become an elder statesman. The crash will come on someone else's watch. So it's a good bet that such motives and manipulations are a prominent part of his present rationale."
To some extent this rally is an ILLUSION. Our stock market is priced in dollars, but the dollar has been falling FAST. So fast, in fact, that if you factor in the decline, the stock market "uptrend" disappears. I mentioned in another post that you might look at an adjusted SPX, created by multiplying the SPX by the US Dollar Index (I couldn't figure out how to post the chart.) In all the prior rallies the two largely moved in lockstep, making higher highs and higher lows together. In this rally alone, they don't - the SPX has made higher highs and higher lows, but when adjusted for the dollar's decline, it has NOT. There was a lower low in March and there has been no higher low or higher high since.
heres your chance to make a quick 100k. just prove the ppt exists. http://www.frontlinethoughts.com/article.asp?id=mwo040403 I hereby offer a $100,000 advance against 50% of the royalties to anyone who can "show me the trades." Give me names and dates. I will write the book, and we both become famous.
" If the Fed or Treasury or some slush fund did buy stocks, it would inject liquidity or more total money into the financial system or money supply. Since the Fed openly manipulates the money supply every day in transactions that everyone can see, in order for the Fed to hide the activity of the PPT, they would have to take out liquidity by selling treasury notes" Im sorry, but what did the fed just inject a whole lot of recently???? hmmmm could it be treasury notes??? nahhh There is your evidence right there