America Sells, Government buys
Don StottMonday, July 15th, will go down in the history of stock market trades as the pinnacle of manipulation. July 15th will be used as the classic case of the PPT in operation. The PPT, to the uninitiated, is the so-called "Plunge Protection Team," which was formed by executive order under the Reagan administration, after the panic of 1987, to stop further erosion of the stock market. The PPT has been in use quite often, but never so brazenly as it was on Monday, July 15th. The market started out bad from the beginning, and went from bad, to literally "falling out of bed." An hour or so before close, the Dow was down over 440 points, and fading fast. Then, miraculously, it began to climb. By close, it had regained about 400 points. Wasn't that great? Tuesday, July 16th, the pundits all said how miraculous it was, and things weren't so bad after all. Oh yeah?
For a stock market to regain 400 points in less than 60 minutes, there had to be the PPT in operation. It wasn't "miraculous" at all, but your government in operation. The modus operandi isn't hard to notice, when there is a down day on the market. It is down, down, down, and suddenly, near the close, it jumps up to either the positive side or barely negative. On July 15th, the same thing happened, with bells on. The PPT had done its work. Or do we think that several million Americans suddenly decided it was really not so bad after all, they had been wrong earlier, and decided to buy back what they had sold, and at an additional loss? If you believe that, I have a bridge to sell you that spans the East River in New York. When the PPT buys calls, goes long, or whatever is necessary to make the stock market just ever so nice, cozy, and well worth the risk, it always loses its shirt. Whose shirt? Easy. Yours. There can be no more doubt about the PPT, than there can be about the sun rising in the morning, or leaves dropping from trees in the fall.
According to Bloomberg, Japan is now investing its yen in places other than America, and others are gradually selling off their American paper investments, and not buying more. The PPT hasn't been able to stop that.
Where will it end? I don't know, except that when anything is manipulated, it will fail, long term. Take gold as an example. Gold going ever higher, indicates several things, and among them is the fact that paper money, bonds, and stocks are losing the confidence of their holders. You can bring into the picture the fact that there have been millions of ounces of gold loaned, which must be repaid. Both give ample reason to manipulate prices. High gold prices, means the dollar is in the dumps, as well as other fancy pieces of paper, wonderfully imprimatured with intricate engravings, which seem to give them credence. I have a lot of old railroad stocks that are grand in appearance, with fancy locomotives and tangent tracks. They became worthless, as will all such items coming off printing presses. It isn't, "will it happen?" but "when?"
Government must keep this rickety system going for as long as possible. Remember the comic strip "Snuffy Smith?" He lived in a shack in the mountains with boards falling off, parts of the roof missing, and a real comic disaster. The entire world's economic system is as shallow, rickety, and as much on the brink of disaster, as could be imagined by any cartoonist. It is all paper and ink. Paper and ink, with empty promises scribbled on them, and grand engravings that mean nothing, when it all comes down. Humpty Dumpty sat on a wall. Humpty Dumpty had a great fall. All the Kings men, and all the Kings forces, couldn't put Humpty together again.
One can't blame the fraudulent 'economists' hired by the fed, and Greenspan himself, for trying to keep it all going. One can understand the PPT, if it can Scotch Tape the mess together for a few more months. When it goes, its fall will be so immense, as to dwarf anything that has gone before. When Germany failed in 1924, due in part to reparations that had to be paid, it was only one small nation, the size of one of our states. The thought of an American collapse boggles the mind. They've got to keep the no-profit stock market going, even with P/E ratios far too high, thousands of layoffs, corporate CEO's, auditors, and even the American President, guilty of frauds. They've got to give the whole mess a semblance of solvency, or it will fall down like Humpty Dumpty or a row of Dominoes. One always attempts to maintain one's position, as that is a common human trait. Men buy hair pieces, women dye, plastic surgeons get rich, and people run credit card debts to the sky, all to maintain an appearance of dignity, youth, affluence, or solvency. People buy new autos on time, to impress their peers or neighbors. It is human nature to attempt to preserve something, even though it may be a mere shadow of its former self, or a sham. To do otherwise, would be contrary to human nature. Can we expect less of government? It will do anything to preserve itself, and its economic system, regardless of the fraud and deception that may be required to do it.
I believe the gold manipulators have about had it with their paper gold schemes. A few bucks is all they seem capable of now. The only other way to drive gold down, would be for governments to sell theirs, and Britain has learned its lesson from doing that. Gold in the vaults, is the only valuable thing governments have, and it is doubtful their holdings will be placed on the market.
"Of all the contrivances for cheating the laboring classes of mankind, none has been more effective than that which deludes them with paper money." Daniel Webster.
America sells its stocks, because of no profits, fraud at upper levels of management, bogus accounting, and a bad picture of corporate America in general. America sells, and government buys, is what the PPT is all about. Maybe it is on margins, with futures, or whatever, but as America sells…wisely, the PPT tries to keep it all up and going strong. Will the fed own more stock than the citizenry eventually? Will government own America's businesses, thanks to the PPT? You and I would love to buy huge chunks of gold and silver, but our pocketbooks are limited. We'd love to own one of the "America's Castles," as seen on the Arts and Entertainment network show, but we are limited by our assets. Is the PPT limited? Hardly, as they have the use of the Fed's printing press and checkbook. While most in my field seem to know about the PPT, has anyone ever thought about the possibility of the American government gradually taking over a corporation, or many corporations, by means of the PPT? These guys are operating under cover, and tell no one what they buy, what options they take, or how much they spend. Could they be taking over America's corporations? Far fetched, I know, but has government ever done outrageous things before, or lied? Does government falsely claim to own hundreds of millions of acres of burning national forests and BLM lands? Does government tell you what you can do with your land, and charge you taxes to "own" it? Does government control your every action, including your food, car, roads on which you drive, and every segment of your life? Why is it impossible for them to be invisibly buying control of corporations, with their PPT?
If America is selling, and government is buying, to keep the market up, do they sell, or keep the stocks? I don't know, but don't put anything beyond their actions. After all, the "war on terrorism," is depriving us of our freedom and privacy, and allows government goons to enter our homes without permission, under the guise of this "war." Where could it stop?
The gradual diminution of America, is occurring by means of worthless paper money, trying to be the policeman of the world, ever increasing governmental power, influence, and size, and now the TIPS, ("Terrorism Information Prevention System) which is trying to make one in four, spy on the other three. Is Uncle Sam turning into Uncle Joe Stalin? Is it really too far fetched, for the PPT to be gaining control of America's business? We can all hope not, and they will deny it, just like government decided the plane crashes were the fault of "wind," "wiring," and nonsense of all sorts, rather than terrorism. If there ever was an opportune time for a "whistle blower" to appear, and expose the PPT; it is now.
In Friday's Denver Post, is a very pertinent cartoon by Mike Keefe, showing Saddam looking at a paper noting the stock market's plunge, and thinking to himself, "Why do I feel an air war coming on?" After all, FDR got us into WWII after promising not to, because it was the only way to get us out of the depression. It did. Is Dubya going to war with Iraq, without Congressional Approval, to get us out of the current one? Stranger things have happened.
For goodness sakes, protect yourself! The government cares about itself, not you.
July 22, 2002
Don Stott has been a precious metals broker since 1977, has written five books, hundreds of columns, and his web site is www.coloradogold.com
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