THE NEWEST FLASH CRASH... THIS TIME IT WAS THE BRITISH POUND

THE NEWEST FLASH CRASH… THIS TIME IT WAS THE BRITISH POUND

Remember the flash crash of May, 2010, when suddenly certain stocks on the US market began to plunge almost straight down, while hysterical announcers were shouting like chicken little? The event caused something of a minor rumble and even became the subject of investigations. Recall, also, in this context my blog from a few days ago about how some believe that the entire internet is being "reconnoitered" as if someone was probing to learn how to take the entire thing down in a cyber-attack.

With that in mind, consider this story about the most recent flash crash, this time against the British pound sterling (shared by Mr. S.D. and many others):

Algorithmically challenged: the computers driving trading

Now, let's look at what the article actually said happened to British sterling on last Friday, Oct. 7:

Facts are collected, analysed and a -generated decision is made based on an investor's pre-set wishes.

If a price moves to a pre-determined level, the computer starts selling, driving the price down as all the other algorithms join in.

The selling continues until the price hits the preconfigured "buy" level, and the computers reverse course and send the price back up.

These algorithms mean currencies and stocks can be bought and sold at specific prices in a matter of seconds, all without human intervention.

Algorithm-based trading tends to save on labour costs and takes human emotion out of the investing equation. They can also analyse vast amounts of information far quicker than humans.

But algorithms aren't perfect and they don't always get it right. Sometimes they over- or under-react to events.

'Perfect storm'

That may have been what happened with the pound during early morning Asian trading hours when New York investors were getting ready to turn in and their Tokyo colleagues were about to start a new day.

So there you have it; it was all the problem of "faulty algorithms." Nothing to see here, move along.

But... what if it wasn't? And herewith my high octane speculation of the day: What if this was a probe of financial  trading and clearing systems similar to those I blogged about a few days ago in terms of internet probes? Or, alternatively, what if this was a "shot across the bow" to Great Britain in the aftermath of the Brexit referendum, which is mentioned in the article itself? Now imagine the unthinkable: imagine a flash crash not directed against specific currencies, commodities, or stocks, but rather, a general phenomenon across the board, and couple that to an internet "take out" attack: crash the markets of certain countries, corporate stocks, commodities, and thereby erase billions, and then crash the net, and perhaps even conceivably erase the transaction logs and ledgers via EMP(electromagnatic pulse) or some other method, and one has a scenario of cyber-economic warfare of devastating proportions. One could, for maximum effect, time such events to elections, and electronic voting.

Of course, we're assured that there are :"kill switches" and "safeguards" to prevent all this from happening. But I'm unconvinced. No technology is invincible or foolproof, but some are more "sturdy" than others, and perhaps, just perhaps, such scenarios are in the minds of the Chinese and the motivation behind their recent launch of a quantum communications satellite, for such methods would provide a measure of security to financial transactions and other communications the current system does not.
In short, and for whatever it's worth, my intuition tells me that there may be more going on here with this latest flash crash than meets the eye. Someone, I suspect, ran a little "proof of concept" experiment and chose Great Britain and sterling to run it on, and perhaps, to send a message to.
And my guess is that it wasn't Russia or China...
See you on the flip side...

14 thoughts on “THE NEWEST FLASH CRASH… THIS TIME IT WAS THE BRITISH POUND”

  1. trump may have already provided the excuse to emp and flash crash it all. who’d a thunk a candidate would substantiate what every google capable child already knows about the clintons’ history of rape and misogyny?

    and trump did it without even getting into the pedophilia. so how and why is it suddenly ok with tptb to let their puppets declare on the msm what previously is restricted to the internets? what else is going to get thrown out there from the alt media? and which alt media?

    is harridan killery dead enough (for flies to land on her) that bernie can come back and run? hilarious at this late stage bernie would prolly blow out the rump. not that any of this matters other than to figure out why the ptb are playing their giant pipe organ this way.

    1. I think the confusion status of the US election process is, as Dr Farrell has suggested, indicators of the in-factional fighting amongst TPTB. They are not united. That’s why we see so many angles, agendas, and statements about everything.

      I guess they’re also playing their many parts in the great Metaphor.

  2. Well who knows, we might well be driven back to the 19th Century before too long.

    I suspect this ‘crash’ is another practice run for an even bigger crash that TPTB hope will create a big enough void to introduce their new paradigm currency: a paperless and digitally monitored economic system.

    If my research serves me well, I think it will happen as an after-the-fact event if Trump wins the presidency. TPTB, in their standard desperation to stay in power, will usher in their war with Russia Obama will find some legal right to prevent Trump from occupying the White House, and the Demoncrats will end the republic.

  3. What if this was a second-level ‘game’?

    The first level is the algorithms themselves, built to shave the last cent of profit for the big investors. Tuned to a fair-thee-well…

    The second level comes in by gaming the algorithms. Once you can feel-out the decision points in the algorithms, you can take the whole system for a ride, ‘pointing’ it in any manner you choose. One ‘trend’ will kick-in another. It used to be called a ‘positive feedback’ system. Think of it as ‘weaponizing’ trend software. No human firewalls wanted or required, thank you. (AI heaven.)

    (In a certain manner of speaking, it reminds me of the Boeing and Airbus ‘augmented’ autopilots that are also subject to outside ‘gaming’, for good or ill…)

  4. While this is strange, they do it to, you guessed it, to gold all the time. As soon as gold starts to rise, they dumb massive amounts of sell orders, and whamo, gold takes a dive. Now I’m not saying that this is the same action, but it PROVES the elites can do just about anything they want.

  5. Hopefully, this is an indicator that the PTB are having internal issues. This may be related to all the “dead bankers”. But, we’ll have to wait and see. Note: The Systemic Weasel, Finnagle and Swindle may be catching up w/ the TBTF/J institutions.

  6. Memories of stock trades in both MF Global as it was “taken down” and the NYSE on 9/11-9/17/01 give full support to your high octane speculation. It has been done before and you can dang well imagine it happening again and SOON. CAF has been predicting a market correction of 25% while the bull market is being pressed upwards against absolutely no equivalent corporate value. When my options trader husband died in the early 1990’s, he moaned that a high of 10k in the DJIA was idiotic because it meant a complete overvaluation of stocks. How could a options trader attempt to trade if there was no value gauge upon which to “guess” the trend. (Hint: Insider trading and algorithm manipulation) Today, it is pushing 20k. Ridiculous.

  7. And the economist-alchemist want the World to go to a credit-debit card economy. The masters of creative accounting are devouring their deadly fantasies cooking the books. A game of economic chicken anyone strap in we’re in for a wild ride through hell with these fools.

  8. Dr Farrel. I sent a story of this year’s Nobel prize winners for exotic matter to you due to it strumming several high keys in my whammymeter about conducting electricity across surfaces, due to Dr Farrel’s theory about the Pyramid and it using the stone causeways as electrical pathways…
    — “”One of the most exciting technological implications is in insulators that don’t carry electricity normally but can be forced to carry electrical current at the surface,” — Like big huge slabs of quartz laden Granite for exemple??
    These guys are pinching Nishgizzidda’s ideas.. Marduk will not be happy.
    link : http://www.reuters.com/article/us-nobel-prize-physics-idUSKCN1240VO

    Real-life applications: Quantum computers.. and with Quantum computers come qubits.
    And with the technology getting to a point where data teleportation is no longer Science Fiction but Science Fact..
    Bring in the Qubits….

  9. I have a different take on this and I think it has to do with the UK breaking the shackles from the US. All last week I watched from my currency platform an epic battle between the currency traders in London and New York. At the start of each of the afternoon trading sessions in London, the traders absolutely monkey hammered the EUR/USD and GBP/USD crosses. A weak pound is good for the UK export market but a strong dollar causes severe problems for US exports and US banks who have made foreign loans in dollars and this dollar strength makes it difficult to service those loans. Everyday after London closed the NY traders pushed prices back up causing dollar weakness and yet again at the afternoon London session, traders there would drive it back down. London drove the EUR/USD cross down to at one point to the 1100 level. If you drive this cross down causing dollar strength the GBP/USD pushes lower. Friday after London closed the NY traders finally drove price to the 1200 level. So today I will be watching the afternoon London session and see if all this play out again. This is why gold also went down as dollar strength causes across the board commodity weakness including gold and silver. Tuesday when the traders at the Comex saw London was causing dollar strength, they piled on the shorts and rode price weakness back down. This up and down battle between the two cities and their currency traders lasted all week long. Exciting times indeed!

    1. Possibly (mother) England doesn’t care for her child’s (USSA) criminal behavior.
      If you crash the entire system, who benefits and who loses? Those with the money can ride it out with little problem, those without stand to lose everything. In the end, it comes down to the “golden rule”; those with the gold make the rules and become the defacto rulers. If this is “economic warfare”, it won’t be debt ridden nations who win.

      1. Debt ridden countries? You mean like USA, UK, Germany and France? Who the heck owns all this debt? How the heck can this STILL be happening after the recent crashes?? When the heck are we going to see bankers heads rolling on the floor? That is to say.. other than those being currently exterminated (or multiple gunshots to the head suicides..) to keep Darthillary on the path of power..

    2. Currency wars at their finest. It’s simply a race to the bottom. The devaluation of every currency will send us all into eventual hardship as everything else inflates around us and pay rises remain non-existant. It’s slow demolition of the middleclass while the very wealthy remain insulated.

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