ANOTHER FLASH CRASH, THIS TIME IN US TREASURIES

In case you missed it, there was another "flash crash" on the markets, this time in US Treasuries, according to this article from Zero Hedge shared by K.M. (to whom a big thank you for drawing it to our attention):

Traders Jolted By Mini Flash Crash In Treasury Futures

The article, as you'll note, is relatively short, nor is there much speculation on what happened and what the implications might be, which I hope to remedy with today's high octane speculation. That said, however, the implications are clear if one indulges in a bit of "reading between the lines". From the very beginning of the article:

While traders are preoccupied by the accelerating meltdown in equities and especially tech stocks which just can't catch a bid, the real action this morning was in the US Treasury market, where just after 10am ET, a burst of selling in Treasury ultra-long bond futures on massive volume sparked a mini flash crash.

According to Bloomberg's Edward Bollingbroke, 10,000 of the June 2021 ultras contract were liquidated taking out all bids, and prompting more activity which eventually led to around 20,000 contracts trading over a 10-minute period. (Boldface emphasis added)

I suspect that I do not need to rehearse for the readership of this website that has been here for several years what I suspect about these flash crashes, for I've blogged about them before, primarily in connection to their occurrences in equities markets. I've pointed out the dangers of algorithmic (computerized) trading before, which may be comprehended under three heads: (1) to the extent that trades are automatically executed by computer algorithms in response to changing "market" conditions, to that extent "markets" no longer represent real life human assessments of risks and rewards for specific trades or investment planning. In a word, markets are increasingly non-reflective of real human trading and thus artificial, since the mechanism of price as a means of assessing risks and rewards is being badly obfuscated; (2) Similarly, to the extent that trades are increasingly placed and executed by computer algorithms, to the same or similar extent those trades can be used to cloak actual hidden human actors and agendas; and finally, (3) no cyber-system is ever completely secure, and hence, buy and sell and options legitimately placed are vulnerable to hacking, and subject to amendments of trades in any number of forms, from "adjustments" to the amounts bought or sold, adjustments to the timing of trades, and so on. As a simplistic example, a typical trade would follow the old adage, "buy low, sell high," and thus the algorithm might place a "buy order for US Widgets (do we honestly make anything other than widgets these days?) at price X, and sell US Widgets when the price rises to X+N."  Now imagine someone hacking into that order, and changing it to "buy at X+N, and sell at X." That's a simplistic model, but it illustrates the directed chaos that would ensue on the buyer if such a hack were successfully executed. Of course, we're assured that there are "safeguards" in place to prevent such things, but I remain rather skeptical at how successful they would be. Those electronic blips are every bit as likely to be transferred into some offshore account, thence to disappear, before the authorities can act or are even aware of the problem. After all, these trades are executed in mere nanoseconds, and a transfer of blips can similarly occur in mere nanoseconds, and be converted into cash and whisked away before anyone is the wiser. Lest anyone forget, we've already seen how Wall Street Hedge funds were blind-sided by some "little people" and "deplorables" who executed a number of small trades on GameStop stocks, driving its price up when the "big"  investors were trying to short the company out of existence.

This brings me to my high octane speculation concerning this flash-crash sell-off of US Treasuries. When reading the article, what was immediately evident was not so much what the article was saying, but what it was not saying, namely, what entities were allegedly behind the sudden and rapid massive sell off? In the absence of that information, the field is - for the moment - wide open for speculation, which I fully intend to indulge. In a geopolitical world where the USA is increasingly - and in my opinion rightly - perceived as an unstable player, sell-offs should be expected. But when one adds into this mix other players on the global stage that want to reinforce that view, and additionally in a world where some of those players are talking increasingly openly about abandoning the dollar, there would be sufficient motivation to "play with the algorithms" precisely in such a way as to create such sell-offs, making the US securities market itself look much more unstable than it actually is.

Time will tell, of course, if such a speculation is warranted. But I think it safe to say that this probably won't be the last example of a flash crash in sovereign securities. If the pattern repeats, or is extended to the sovereign securities of American allies, then that's a profound hint that a large game may be afoot, especially in a world where the current US administration has promised to send a clear and unmistakable "cyber message" to Russia. Perhaps we have ourselves just received such a clear and unmistakable message.

See you on the flip side...

 

Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".

34 Comments

  1. FiatLux on March 30, 2021 at 2:07 am

    Some of the flash crashes probably are AI run amok. But algorithmic trading would be the perfect cover for covert wars and breakaway civilizations…



    • Chris on March 30, 2021 at 7:33 am

      Manfred Zimmel of Austria, in his Amanita newsletter, expects all but the futures market to close by year end. The US empire is already fallen. Only psyops keep people believing otherwise. It is like a massive tree lying prone in the forest. What we see as corruption is actually quite healthy. Like fungus and larvae the politicians and ceos are disassembling the remains of the the empire, creating dirt for the young sapling adjacent its bulk. The new empire has its limbs and leaves lifted up to the giant hole in the canopy. The cycle is an ancient one.



  2. marcos toledo on March 29, 2021 at 7:39 pm

    There is a Cree saying ends you can’t eat money but since this is in the cloud digital there will be no colored paper to eat. The question will be who will be the Elois and who will be the Morlocks when the crash comes. This is not insanity it is worse it is stupidity.



  3. zendogbreath on March 29, 2021 at 5:11 pm

    https://www.youtube.com/watch?v=UBHzP5oswzs
    House of Rothschild Excerpt
    All digital and instantaneous now.
    Notable that yt resisted my finding this clip and when I did required a link below the video above the description of an Encyclopedia Brittanica entry on the Rothschild family and their influence over the last few hundred years in Europe.



    • Robert Barricklow on March 29, 2021 at 5:48 pm

      Fast forward to1913…
      and many an innocent life paid too dearly
      for the treason committed – on Christmas Eve,
      no less.



      • zendogbreath on March 29, 2021 at 6:43 pm

        notable: 5+ pages of search results all about the Calumet 1913 Christmas eve Italian Hall massacre where striking coal miners stampeded due to false calls of ‘fire’. If a young person knew nada of Jekyll Island, there is no mention of it by startpage.



  4. zendogbreath on March 29, 2021 at 4:48 pm

    Looks like we are now on a countdown to see how soon we are no longer allowed access to each other.

    https://taylormarshall.com/2021/03/662-pregnant-mother-arrested-mass-interview-dr-taylor-marshall-podcast.html

    https://www.youtube.com/watch?v=_2NmdrqpZW8
    ASTONISHING DEVELOPMENT ?‍♀️ Please SHARE & Save
    Alex Belfield
    @celebrityradio
    Mar 27
    @nottspolice
    ordered to take off collar numbers to arrest me. It appears all body cams turned off too.
    Arrested 4 accusation of a bomb threat BY THE BBC WITH NO EVIDENCE
    Released in 4 mins of interview.
    Witch-hunt. National scandal.



  5. Horizon03 on March 29, 2021 at 3:48 pm

    Early this month there was a warning from Goldman Sachs mentioning a problem with extreme numbers for the market at the end of this month. Could anyone retrieve this article.



  6. Robert Barricklow on March 29, 2021 at 11:59 am

    Ironically, in the globalized economic warfare of today; one has to include their very own governments, as enemies of the State “they” supposedly represent.



    • Robert Barricklow on March 29, 2021 at 12:41 pm

      That said.
      From this site[and others],
      the lightening algorithmic trading is its own worst enemy; and to prevent a runaway financial train wreck; a flash crash occurs.
      But, the treasuries are being offloaded by China and Russia Big Time!
      Perhaps the message to Russia was:
      Whatever “we” do to our State; you’ll be blamed.
      Remember; ALL nation states have to be taken out, in one form or another, for the NWO to step into the vacuum.



      • Wu Wu on March 30, 2021 at 11:51 am

        If( since) they are interior decorating the Moon( called Nisa in the Lakota language)-ship with noahide Arks, and the moon allegedly has a farside base called ADAM, then three possibilities spring to mind:
        a) they have been told to vacate the premises, and they are liquidating all assets and preparing( Op. “scorched Man”?) this planet for new/old Archon( lit., ruler, king) occupancy;
        b) they anticipate an accident( cascading crash in/with a flash), with one or more of their Deep Black projects( names of which are not even whispered), to occur, and possibly render this orb uninhabitable;
        or
        c) they are being hunted down( and they know it), and are trying desperately to flee with all their gains before Someone( which??) arrives. This also implies that they are willing to leave the rest of us to deal with just That.
        — And a merrie old time was had by all, which of course is only well if it ends well.



        • Wu Wu on March 30, 2021 at 12:22 pm

          Also implies that they plan( and we all know what happens with best-laid etc…) to Build Back( but only) Better somewhere else.



          • Sandygirl on March 30, 2021 at 7:02 pm

            Just add in thousands of people and children coming through the southern border to cause more chaos and confusion. One TX town said the new illegals are flooding their town. They get food at the churches and then are just waiting to be shipped out to another state. The border patrol can’t handle the crowds and check them in and let them go.
            Problems, reaction, solution.



  7. Roger on March 29, 2021 at 10:44 am

    If insiders thought a major war with another major world power was imminent they would likely sell off long term treasury bonds. Especially if they read in the script that the globalist planners decided we would lose this one.



  8. OrigensChild on March 29, 2021 at 9:50 am

    Others here will address who. I want to ponder the question, “Why? Why would the Department of the Treasury want to permit, or create, the illusion that their bonds are subject to the same market micro-crashes as the rest of the financial markets?” Well, the answer is immediate. If these were not vulnerable what is the point in installing a new financial system. In my mind this is all part of the game of a global, financial reset. This also means that the potential source of these crashes may well be closer to home than we expect. Mr. Global loves his Shakespeare as much as he does his fascist banking system, for when he surveys the new system of his secret manufacture, he can be heard muttering in the dark:

    How do I love thee? Let me count the ways.
    I love thee to the depth and breadth and height
    My soul can reach, when feeling out of sight
    For the ends of Being and ideal Grace.
    I love thee to the level of everyday’s
    Most quiet need, by sun and candlelight.
    I love thee freely, as men strive for Right;
    I love thee purely, as they turn from Praise.
    I love thee with the passion put to use
    In my old griefs, and with my childhood’s faith.
    I love thee with a love I seemed to lose
    With my lost saints,—I love thee with the breath,
    Smiles, tears, of all my life!—and, if God choose,
    I shall but love thee better after death.



    • OrigensChild on March 29, 2021 at 10:03 am

      Oops! Right poem but wrong author. Elizabeth Barrett Browning… Surely we require a way to edit. As one who commits a frequent faux paux when multitasking I could use a way to fix such errors.



      • Robert Barricklow on March 29, 2021 at 3:05 pm

        I’m afraid I beat you on that score.
        Even w/editing.
        And, w/o multi-tasking.



      • Wu Wu on March 30, 2021 at 12:05 pm

        If one really were to edit such a One as Elizabeth Barrett Browning, surely for the case of ‘Mr.E.Babylon, M.F.’ , one would have to first replace the notorietous word Love with “lust for”, and My Soul with “the hubris of my Ka”?



    • Krista tiffy on March 29, 2021 at 10:54 am

      Thanks for the poem by ms.browning.
      But this is no joke.
      They can already ‘walk the dead,’
      As The Bowie sang out to us in his 2013 anthem ‘where are we now ‘.
      To me this was a cry for help.
      AI is no joke.



      • OrigensChild on March 29, 2021 at 11:16 am

        Of course this is no joke…and this piece was not written as one. Metaphor and satire are legitimate forms for serious, reflective criticism. You will find a lot of this here–and not necessarily by my pen either.



        • zendogbreath on March 29, 2021 at 9:49 pm

          Gracias OC,
          Ran across this today and thought about some of Goshawks cautions to us about looshing entities. Not sure what I think of Steiner as I read he was a student of Blavatsky. Just the same, he does seem helpful in most of the contexts I’ve seen him in.
          https://nexusnewsfeed.com/article/spiritual-psychic/rudolf-steiner-describes-the-hostile-spiritual-beings-who-feed-off-your-fear-and-anxiety-2/

          “There are beings in the spiritual realms for whom anxiety and fear emanating from human beings offer welcome food. When humans have no anxiety and fear, then these creatures starve. People not yet sufficiently convinced of this statement could understand it to be meant comparatively only. But for those who are familiar with this phenomenon, it is a reality. If fear and anxiety radiates from people and they break out in panic, then these creatures find welcome nutrition and they become more and more powerful. These beings are hostile towards humanity.

          Everything that feeds on negative feelings, on anxiety, fear and superstition, despair or doubt, are in reality hostile forces in supersensible worlds, launching cruel attacks on human beings, while they are being fed. Therefore, it is above all necessary to begin with that the person who enters the spiritual world overcomes fear, feelings of helplessness, despair and anxiety. But these are exactly the feelings that belong to contemporary culture and materialism; because it estranges people from the spiritual world, it is especially suited to evoke hopelessness and fear of the unknown in people, thereby calling up the above mentioned hostile forces against them.” ~Rudolf Steiner



          • Roger on March 29, 2021 at 10:23 pm

            Hope Goshawks is ok. I suspect it is not so much as them feeding off fear so much as using the emotional energy of fearful belief in place of passionate belief to try and get you to resonate them and yourself into an alternate potential where they are more real and can manifest a little stronger in this dimension. They are trying to break through the veil by tricking their victim who believes in their potential to believe strong enough for them to become more real with even greater potential. I guess it could be viewed as feeding but it’s not. It’s like someone who does not make room for the potential of UFO’s and aliens and thus resonates in dimensions of consciousness where they don’t exist or are unlikely. Some individuals when they change their mind and passionately begin to see how the alien potential could be real begin to resonate consciously more into the conscious dimensions where they can experience a UFO sighting or alien encounter. Same with ghosts, demons, and other potential interdimensional potentials. Maybe some people are more useful in this endeavor than others for whatever reason and those are who they seek out. Sounds crazy to those who don’t allow for such and have never experienced such but not for those of us who have. Maybe some of us have more multi-dimensional potential resonances than others.



          • Robert Barricklow on March 29, 2021 at 10:43 pm

            No “reply tab” for Roger.
            So I’m replying here.
            I’ve too missed Goshawk’s replies.
            I spoke to his absence in the past; and he did come back from his usual presence here.
            I hope it was something like a move; and he’ll come back.
            Another here, whose presence I missed for a long time, was Marcos Toledo. Hurricane Maria also happened around that time. Was very happy to see him back.
            So, I too would like to see Goshawks back in action;
            if only to know he’s OK.



          • Robert Barricklow on March 29, 2021 at 10:49 pm

            [Just followed the thread and saw ZDB
            mentioning Goshawks as well]



          • Loxie Lou Davie on March 30, 2021 at 11:07 am

            Right on, ZDB!!! 😉



          • Sandygirl on March 30, 2021 at 7:30 pm

            Yes I miss Goshawks spiritual encouragement and energy.
            I think the opposite is just as powerful, where we truly love nature, earth and each other; we would Change our world, our reality into something new and beautiful. A peace that surpasses understanding.



    • Don B on March 29, 2021 at 2:33 pm

      A pretty good way of making a point.



  9. Peter on March 29, 2021 at 9:09 am

    Meanwhile, DJI up 500 points. So, the equity market is fake AI driven Federal Reserve, unaccountable, corporate garbage. Now what?



  10. DanaThomas on March 29, 2021 at 7:20 am

    Isn’t it odd that hawkers of “anti-virus” products of various sorts have not come up with anything for those failing, ailing algos….



    • Foglamp on March 29, 2021 at 7:41 am

      Perhaps someone should prescribe for the artificial intelligence an artificial “vaccine”? After all, sauce for the goose….



      • zendogbreath on March 29, 2021 at 5:12 pm

        They already have. To be released at their convenience.



    • Laura on March 30, 2021 at 12:19 am

      maybe they have : the algos need ‘ongoing training’ so the data model will continue to tend towards risk minimization, which could be similar to the story we will get when we hear the annual covid shot will need updating to account for variants.



      • Wu Wu on March 30, 2021 at 12:18 pm

        So, an implication of this is, the AI’s are in charge of everything, and no Man or human has any say in it, nor has had for quite a while?
        Then who or what is in charge of the AI’s??



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