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The Manhattan Project

Financial Commentator & Former Stockbroker
January 5, 2015

Hopefully everyone is refreshed and ready to start the New Year after spending the holidays with friends and family!  During the holidays, I had a chance to shut down a bit and just observe what's going on.  For me, this is a good thing because normally I view things from a big picture perspective rather than up close.  Most people see the trees and miss the big picture of the forest, my flaw is missing the trees sometimes.

Before getting to my main topic "The Manhattan Project," it would be good to tell you about my New Year's Eve "informal poll." It has been many years since Kathy and I have gone out on New Year's Eve because the restaurant food is always the worst meal of the year due to the pressure on cooks to crank out more meals than any other evening. It is also a dangerous night to be out and about because every amateur and their brother are out on the roads guiding 2 ton missiles with beer goggles on. We decided to go to a neighborhood party just walking distance away.

I'm not trying to bore you, rather, I am trying to make a point.  I went to this party with a purpose.  A purpose my wife Kathy just cringed at.  My purpose was to see people's reaction to the truth as I see it.  To give you a setting, we live in a community of 300 or so homes, well away from any city or town.  In my opinion, we will in the future have a "community meeting" similar to this New Year's Eve party, only that meeting will be under similar circumstances to the "Jack and Jill" scenario I wrote of last week.

OK, the first person I saw when walking in the door was the "General."  He is a retired military officer who teaches concealed handgun classes (for free) to people in our community because he believes a well-armed community is a safe community.  We have spoken several times about "what" we believe will happen, he had already thought the defense strategy through before we had ever spoken.  He "gets it."  The "people" unfortunately don't.

While mingling through and meeting people, each time I would mention "we will probably see each other at the next meeting."  Each time I said this, it was followed with "what do you mean?"  It truly was funny, the looks I got each time.  I then would explain "you do know the banks are going down this year, right?"  Though this was not a broad sampling, 100% of whom I spoke to said things like "that will never happen" or "this is America, it can't happen here."  There was also another "100%" agreement when my response was "do you agree the government is broke?"  Each and every person I spoke to agreed, "the government is broke."  Almost no one even knew what a derivative is, every single person knew "something" is not right and every single person agreed "the government is broke" ... BUT ...it can nor will ever happen here because "this is America!" 

I wanted to relay this to you because it confirmed everything we had thought, the public is beyond clueless.  Not only clueless but in absolute denial.  I am sure there were some conversations afterwards about the "crazy drunk cowboy" who thinks the banking system "can" come down.  I am not sure what other than denial can explain the mental fog which covers our land, but covered it is! 

As for the "Manhattan Project," if you remember, this was a very large and far reaching plan to create nuclear weapons.  Thousands of people were employed, huge resources were used and yet, less than two dozen people knew what was really going on in the big picture.  There were hundreds of puzzle pieces but people only knew what their particular puzzle piece was.  They may have known a little about one or two connecting pieces but that is as far as it went.  The point is this, there was a grand scheme which many worked on but almost no one knew about. 

It struck me over the holidays, this is most probably the same concept in the financial markets.  There are traders which constantly buy and sell futures on "orders" from above.  Do they know why?  Probably not, but, their personal bonuses depend on it.  We have seen scandal after scandal such as LIBOR rigging.  Did the traders know "why" they were rigging these rates?  Some did, others probably not, other than the immediate effect which translated into their year end bonus.  Don't get me wrong, I do understand there are still those out there trading "for profit," however, the financial world is increasingly controlled by algorithms.  Do the creators of these algos understand "why" they are programming what they are or are they "following orders" so to speak?  Please don't write me and tell me I've fallen off my rocker into a conspiracy pit, we know now for a fact that central banks are trading S+P futures.  I ask you this, ...to what end?  And how many participants really know what "the end game" is?

The recent crash in oil prices is an interesting case in point.  Many financial writers speculated as to how or why the operation was undertaken.  I personally wrote, and still believe it was "our plan but not THE plan".  Meaning the U.S. believed they were crashing Russia's revenue ability while the reality is China filling her strategic energy reserves and the Sino-Russian partnership was actually crashing our financial system.  In other words, they are letting us shoot our own feet off!

This past week, we received a little news from president Obama which strengthens this thought process in my eyes.  Mr. Obama came right out in a speech and said it was a U.S. "rationale" to crash oil prices to tip Russia financially and economically.  Before going any further, if this is true and it was our "rationale," this equals an act of or a declaration of war.  I have no doubt we did collude with Saudi Arabia to glut the market, I never dreamed Mr. Obama would be so brazen, so foolish as to say this publicly.  He has probably already "said enough," maybe he will expand on these thoughts, who knows?  When I say he has already "said enough," I am speaking to "liability" and further "proof." 

Starting with "proof," did he not come right out and say they have manipulated the oil market?  If you were an oil exporting nation, haven't you now been screwed financially because the U.S. unilaterally decided on a lower oil price to punish Russia?  It is one thing to manipulate markets and set prices under the cover of "market forces" ...it is an entirely different animal to admit or even gloat that you in fact "did the dirty work!" 

As for "liability", what if Venezuela or some other oil producing nation decided to sue the U.S. in international court for lost revenues?  What if some big oil company whose market cap has shed billions of dollars decides to sue the U.S. for collusion and market rigging?  What about domestic drillers and producers?  Can they try to sue the U.S. for destroying their business?  Can they go after the SEC or CFTC for not doing their job of maintaining "free markets?"  Maybe not but the door has now been opened because of a narcissist who wants to take the credit for collapsing the price of oil!

Taking this thought process just one step further, what does this say to the rest of the world?  Our markets are not really "free and fair?"  Heck, just in the last month we have found out that central banks not only "trade" in stock markets but are encouraged via exchange rebates and sweeteners to do so!  Congress is now contemplating an "audit the Fed" bill which I plan to write about further this week.  What in the world would foreigners think if it turns out the Fed has in fact bought S+P futures to rally the markets?  What if it turns out it is the Fed who has been behind all of the paper dumping of precious metals?  What if the Fed has "splashed around" in the oil market?  So much for their so called "independence".  The obvious answer is investors will "take on the Fed" as they will understand values are out of whack.  Investors will take on the bank and trade against them with the full knowledge, sooner or later the bank will lose by trading against Mother Nature's tide.

My whole point in writing this piece was to get you to think bigger picture.  In my opinion, the entire global financial, economic and geopolitical systems are all one big "Manhattan Project" aimed at some sort of goal (NWO?).  The "goal" is of course unattainable because markets are being pushed against Mother Nature.  More and bigger lies along with more and bigger interventions are constantly needed to keep this thing on the track.  I believe 2015 will be the year where "control" is lost because there are now too many moving parts to keep track of and too many broken parts to sweep under the rug.  We will see ...

Bill HolterBill Holter writes and is partnered with Jim Sinclair at the newly formed Holter/Sinclair collaboration. Prior, he wrote for Miles Franklin from 2012-15. Bill worked as a retail stockbroker for 23 years, including 12 as a branch manager at A.G. Edwards. He left Wall Street in late 2006 to avoid potential liabilities related to management of paper assets. In retirement he and his family moved to Costa Rica where he lived until 2011 when he moved back to the United States. Bill was a well-known contributor to the Gold Anti-Trust Action Committee (GATA) commentaries from 2007-present. 

 


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