April 19th, 2014
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Tag Archives: Federal Reserve

THE GOLD FLASH CRASH!

On the sixth of this month, there was another market “flash crash”, this time in gold, recalling the May 6, 2010 “Flash crash” on the NYSE and NASDAQ.  On May 6th, 2010, Proctor and Gamble stock began to plummet, driven downward in a reckless spiral by computer-driven trades in a matter of mere minutes, to prices approaching a penny… The result was near panic, if one listens to various versions on You Tube:

After an investigation the SEC traces the panic sell-off to computer driven trades that was, so the “official version” goes, by trades apparently emanating from an investment firm in Kansas City. The panic evident in the announcers voice, while not evident in the various studies of the Flash Crash, are nonetheless the undertone.

Now, it seems that a similar incident has happened in the High Frequency Trading of gold, according to Zero Hedge’s “Tyler Durden”:

Gold Flash Crashes, Halts Trading As “Velocity Logic” Circuit Breakers Triggered

Now note something highly significant in this graph-laden study; note the statements in “Durden’s” article:

“Rumors of a ‘fat finger’ abound from the gold futures pits but the precious metals complex just collapsed instantaneously… and the market was halted for the now traditional 10 seconds as circuit breakers were triggered, only this time instead of Stop Logic the event was “Velocity Logic” or lack thereof. Of course, the timing is perfect as it occurs right before the first POMO of the new year.”(Italicized and bold-italicized emphasis added)

Now, before we get to the implications of the emphasized portions of the previous statement, a word about “Fat Finger” scenarios and POMOs. First, POMOs. POMO stands for Permanent Open Market Operations (See Permanent Open Market Operations – POMO) is the process by which the Federal Reserve System “buys or sells securities outright in order to permanently add or drain the reserves available to the U.S. banking system.” So the sudden computer driven “Gold Flash Crash” is more than a bit suspicious from that standpoint. The “Fat finger” is simply trading parlance for a trader whose fat clumsy fingers hit the wrong keys entering trades on their computers.

Clearly, the “fat finger” scenario does not work here, because as Durden indicates, the “precious metals complex just collapsed instantaneously,” and with the complete lack of trades, or “velocity” as the traders say (note now the analogous use of a physics term), there was no movement in the system, and with no movement, no energy.

This, as “Durden” notes, triggered an automatic trading algorithm – sort of – a “velocity logic” triggered after the the collapse of velocity automatically.

A moment’s reflection here will indicate huge implications, not the least of which was why similar automatic “shut offs” were not triggered during the May 6, 2010 Flash Crash. As I’ve mentioned in private correspondence to various individuals about the May 6, 2010 Flash Crash, it is not reasonable to assume that such safeguards were not built in to the system…

(Here comes the High Octane Speculation part):

…and that implies that someone reached into the system and initiated the Flash Crash. And we see evidence of this again with this recent gold “flash crash”, which has a much more dramatic graphic appearance, as if someone reached in and either cancelled or somehow removed all gold trades instantaneously and simultaneously from outside, or caused a systematic failure all at once. This implies vast computing power, knowledge of the trading system and algorithms.

In short, folks, someone is toying with the computerized trading world, sending messages, and the message is loud and clear: we can crash, and erase, the whole thing, any time we choose.

That has to have them burning the midnight LEDs at various intelligence agencies and banks… unless, of course, they’re the ones behind it, and I doubt that, since they’re the ones benefiting from that financial system. Nor does it make much sense for a foreign power to do so either. Sending messages that they are capable of crashing the economy that, like it or not, continues to be the locomotive of the rest, is more than a little suicidal. Of course, I wouldn’t put it past certain banksters or corporate fascists or their institutions to flirt with wholesale fraud and theft that such a capability would give them. Stupid parasites that many of them are, it would not be beyond them to kill the host that provides their own wealthy and comfortably corrupt existence. Still, most of them have minds, even if addled. So I think that scenario, too, is a bit weak…

Which leaves…

…see you on the flip side.

NEWS AND VIEWS FROM THE NEFARIUM NOV 14, 2013

Once again, folks, Germany is producing “too much” it seems, for the central banksters of the Anglo-sphere.  In this bit of historical deja vu, Joseph comments on the following article from Zero Hedge: EUROPE DEMANDS GERMANY EXPLAIN ITS ROBUST ECONOMY

THE PALTRY MISSING $9,000,000,000,000, AND BEARER BONDS SCANDALS (AGAIN!): SPAIN, RUMSFELD AND PROBLEMS

Well, it’s to the point now I just have to laugh. When former US Secretary of Defense Donald Rumsfeld announced – the day before 9/11 in fact – that the Pentagon was missing a mere $2,000,000,000,000, the story was buried by subsequent events.  We now seem to have the Fed admitting that it cannot find[More...]

NEWS AND VIEWS FROM THE NEFARIUM SEPT 26, 2013

Joseph comments on (1) Finland’s recent call to repatriate its gold (2) the theft of gold during and Air France flight from Paris to Zurich, (3) the theft of seven milliseconds from the Federal reserve, and the possible wider context and connections between them: Here’s the articles: Finland Latest to Join Gold Repatriation Movement Gold[More...]

NEWS AND VIEWS FROM THE NEFARIUM AUG 22 2013

Joseph comments about a recent meeting between the BO administration and the weasels of Wall Street, connects some dots to credit unions, and also comments about the spreading of the meme that the NSA electronic eavesdropping ability represents the ultimate insider trading mechanism from Catherine Austin Fitts and our own blogs, to RT and the[More...]

THE GOLD STUFF YET AGAIN

On Friday’s News and Views from the Nefarium (May 3, 2013), and again yesterday, I presented the thesis that the vast hidden system of finance developed after World War Two must be viewed in the larger context of what it was used for, namely, a vast political covert operations slush fund and the creation of a black[More...]

PAUL CRAIG ROBERTS ON THAT GOLD THING

Former advisor to President Ronald Reagan, Paul Craig Roberts has weighed in on the big sell-off in paper-gold and paper-silver last Monday that occurred suspiciously prior to the Boston Marathon Bombing, and this one is worth p0ndering folks: Update to the Update: The Attack on Gold — Paul Craig Roberts Now, I have to doff[More...]

EVEN ALAN GREENSPAN IS CHALLENGING THE RATIONALE FOR THE FED

This article at The Daily Bell is worth pondering closely and carefully, for it might be indicative of further fissures and faultlines within the international banksters’ globaloney “community”, or it might be indicative of what they’re really up to (we’ll get to that after the article), or it might be indicative, in that quintessential Hegelian way,[More...]

MONEY MISCELLANIES, OR, SIGNS THAT NOT ALL IS WELL IN BANKSTERDOM

What has been very interesting to me in recent months is how the dynamic of this site has changed, and the give-and-take and feedback that occurs here, as so many of you are sending me articles that, in the group dynamic of things, I never could possibly have found on my own.  One of the[More...]

TIDBIT: THOUGHTS ON THE KENNEDY BEARER BONDS FROM A READER

This email came to me from Mr. M.W., and with his permission, I am sharing it here with all of you, because I thought the ideas and thoughts in it were very much in line with the thinking I’ve been developing in the Bearer Bonds story. Here’s Mr. W.’s email: Hello Joseph Farrell: I am[More...]