Interventions In Stocks And Gold Are Linked

When talking about the manipulation of gold or stocks, two questions always come up:

Why do "they" bother to suppress gold?
Where do "they" get the money to prop up stocks without it being noticed?

Believers in manipulation always try to answer them separately, and these answers never seem to fully satisfy critics. Surprisingly, in all the conspiracy articles I have ever read, I have never heard anyone suggest that the answers to these two questions is directly linked.

The connection between stock and gold manipulation

Unnatural (PPT) rallies in stocks always seem to coincide with strange activity in the gold market. Rather than try to explain, have a look at the graphs below. I have highlighted three PPT (Plunge Protection Team) interventions in the stock/gold markets following the Bear Sterns collapse, the Indy Mac Collapse, and the Lehman bankruptcy.






Looking at these two charts side by side, it should be obvious what is happening: the treasury/ESF funds its stock market interventions by shorting gold!

Two more observations:

1) One of the not-discussed motives to selling/shorting gold is to raise funds for other interventions. In fact, on some occasions, raising money to save the stock market might be the main motivation for shorting gold.
2) One reason everyone assumes that the Fed is involved in PPT efforts is that they think the Fed credit is used to bankroll these interventions. However, if the Treasury/ESF financing its intervention by shorting gold, then the Fed need not necessarily be involved


(Final note: for those of you who think I have changed my opinion of the Fed as a problem institution, I haven't. I simply believe the Treasury/ESF is an even bigger problem)

This entry was posted in Background_Info, Federal_Reserve, Gold, Treasury, Wall_Street_Meltdown. Bookmark the permalink.

7 Responses to Interventions In Stocks And Gold Are Linked

  1. Now that I think about it, to further test your point, you could correlate the price of gold with the different heads of the Fed and see if the correlation is better or worse than with changes at the head of the treasury.

  2. Anonymous says:

    Eric, are you still thinking the dollar collapse will happen within the next 5 months or so?

    I don't seem like a none believer, but how can the fed be saying that things are looking up, the bottom has come, and we will see growth by the end of the year?

    Also if you look at the selling of t-bills today, not many bought 30 year t-bills, yet gold went up, it wasn't typical behavior...

    It always seem the feds sell gold when no one buys t-bills, of course I could be wrong on this...

    Anyways, do you still believe the dollar will collapse this year?

  3. Gunther says:

    Hello Eric,
    Stocks and gold are competing assets and if you want stocks up the best way is to bring gold down by naked shorting it. As far as I understand the Bullion Banks do not need to have or borrow the gold if they sell gold futures. That is even better then printing money and buying stock futures because it makes one inflation or crisis indicator-gold-going down and saying “all clear.”
    As long as there is some bullion around to pretend that the futures are covered with metal and few take actual possession of their barbarous relic the system works. By removing an inflation indicator (and rig the CPI) it helps to keep interest rates low what further benefits stocks.
    Think which investment classes move in the longer run together and which move inversely.
    Looks like those who intervene know how to do it.
    Gunther

  4. Anonymous says:

    'As far as I understand the Bullion Banks do not need to have or borrow the gold if they sell gold futures.'

    that should be illegal, makes it very easy to abuse the market,

    and with rothchilds setting the gold price daily, how can true market level be reached...

  5. Anonymous says:

    Eric,

    Any theories as to what happened in the big markets (USD,Gold,Oil,Stocks) on July 14, 2008?

    On 7/14/08, all markets did a coordinated 180 turn on their previous trends, leading straight into the financial collapse in Sept/Oct.

    I'm surprised your thorough research on market manipulation has not pinpointed this specific day as very, very important.

  6. Anonymous says:

    Of course - this is not taking in the price of oil / value of the US Dollar. Both causing variable effects on the market.

    Although, I've said it in my own blogs for a while now that they use the funds from the selling of gold to prop up the paper markets (obviously)

    Suppressing gold, pushes the dollar up and oil down... a win win for the feds.

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