July 28th, 2014
Jeff Nielson: Regular readers have heard the term “Hostage Markets” frequently in commentaries over the past year. However what has not been articulated during that time is the precise mechanism by which this total and complete control over all markets is achieved, except for a single commentary, written several years before readers were introduced to this label (and paradigm).
It all starts with the One Bank’s Pied Piper trading algorithm, what the propaganda machine calls “high-frequency trading”. It is a Master Algorithm which rules the trading (and traders) for anyone and everyone who use any of the “HFT” programs created by these Big Banks.
The Corporate media jabbers on extensively and exclusively about the speed of these automated
trading programs. This is deliberate disinformation, to draw attention away from the obvious manipulative potential of these trading algorithms. It is inconceivable that our market “regulators” could not be aware of this manipulative potential, more strong evidence of the endemic corruption of these so-called regulators.
trading programs. This is deliberate disinformation, to draw attention away from the obvious manipulative potential of these trading algorithms. It is inconceivable that our market “regulators” could not be aware of this manipulative potential, more strong evidence of the endemic corruption of these so-called regulators.
What makes this the perfect time to explain the Master Algorithm (and its manipulation) to readers is a report which has just surfaced concerning a new, class-action law suit against the Chicago Mercantile Exchange. The evidence which the plaintiffs claim to possess would not only conclusively establish the existence of this Master Algorithm, but they also claim to have “secret witnesses”, prepared to provide insider, smoking-gun evidence about this trading-algorithm manipulation.
[Case citation: U.S. District Court for the Northern District of Illinois. Civil Docket #: 1:14-cv-02646 William Charles Braman, Mark Mendelson and John Simms v. Chicago Mercantile Exchange]
What is the nature of this “evidence”? Nothing less than the claim that 50% of the 12 million “contracts” (i.e. trades) each day at the Chicago Mercantile Exchange are simply phony (and illegal) “wash trades”. Six million phony and illegal trades are alleged to be generated each day at the CME to bludgeon all of the world’s commodities markets in whatever direction the OneBank desires.
This amounts to somewhere around 2 BILLION phony/illegal trades per year. In order for readers to understand the true, monstrous scale of such market-manipulation; let’s compare it to what the Corporate media is calling a “massive trading scheme”, also based upon phony/illegal “wash trades”, and also conducted in the commodities markets of the CME.
The bank involved was the Royal Bank of Canada, and the “massive trading scheme” involved mere“hundreds of transactions”. In comparison, the illegal market manipulation alleged in the law suit against the CME is millions of times larger than the alleged, RBC “massive trading scheme” (i.e. seven orders of magnitude). That is massive.
In fact; it’s so massive that no entity other than a “one bank” could possibly perpetrate a market-manipulation operation this large. RBC is (by itself) a Big Bank. Only the One Bank could perpetrate a market fraud more than a million times larger than an identical form of that fraud, perpetrated by one of the world’s “Big Banks”.
Understand that the sheer volume of this phony trading would be – by itself – conclusive proof of not only the existence of this Master Algorithm, but also its overwhelmingly dominant influence on markets. It makes no sense for one entity to be generating six million phony trades per day at the CME unless all those phony trades are controlled by a single computer program. Otherwise, competing programs would cancel-out each other, reducing the One Bank’s capability to manipulate markets.
to manipulate markets.
However, even the perfect trading algorithm could not create Hostage Markets – by itself. The second, integral component is a Corporate media oligopoly, broadcasting a single message of propaganda: our so-called “economic news”. It is only through the combination of these two ingredients that Hostage Markets can be produced.
Why? Because algorithms simply process data. In a sane, legitimate society, with a (genuine) “free press”; the business media is generally a cacophony, and thus so is the economic reporting. Occasionally (generally at times of dramatic events) there is near-unanimity of opinion amongst a free press, but the rest of the time there is a spectrum of opinions – reflecting the contrarian nature of the human species. In such a legitimate society; a trading algorithm would have only marginal/infrequent manipulative capacity
The absence of this cacophony, and the appearance of a monolithic herd – which drones precisely the same message, day after day – is conclusive proof, by itself that we no longer have a “free press”. Rather, we effectively have a media-monopoly (ruled by a single banking cabal) with an obvious agenda: total control of all the world’s markets.
cabal) with an obvious agenda: total control of all the world’s markets.
It is only through producing this single, clean “message” day after day, which maximizes the manipulative potential of these trading algorithms, that a master trading algorithm can exert complete control over markets, 24/7. As with most of the One Bank’s financial mega-crimes; this systematic, endemic market-manipulation is achieved through brute force.
of these trading algorithms, that a master trading algorithm can exert complete control over markets, 24/7. As with most of the One Bank’s financial mega-crimes; this systematic, endemic market-manipulation is achieved through brute force.
First the master trading algorithm is distributed to all of the One Bank’s Big Bank tentacles. Likely each Big Bank as their own, different name for the Master Algorithm, so that the One Bank’s minions employed at these tentacles are (supposedly) unaware of the systemic manipulation taking place.
All they know is that their trading algorithm has an incredible, impossible rate of success in producing “winning trades”. How impossible? At one point the arrogant Lloyd Blankfein of Goldman Sachs boasted that his traders had produced 90 consecutive days of “winning trades”, a statistically impossible feat – in honest markets.
in producing “winning trades”. How impossible? At one point the arrogant Lloyd Blankfein of Goldman Sachs boasted that his traders had produced 90 consecutive days of “winning trades”, a statistically impossible feat – in honest markets.
Belatedly, the One Bank realized that it was not a good idea for its Big Bank tentacles to boast about winning their bets every day with their market-rigging, because even the brain-dead Sheep would (eventually) begin to realize that “something fishy” was going on. So, since that time, the Corporate media has explicitly pointed out that occasionally these Big Bank tentacles lose on their serial, mega-gambling in markets.
every day with their market-rigging, because even the brain-dead Sheep would (eventually) begin to realize that “something fishy” was going on. So, since that time, the Corporate media has explicitly pointed out that occasionally these Big Bank tentacles lose on their serial, mega-gambling in markets.
Other (greedy) traders/companies in the marketplace see this impossible success rate, and so they obtain “their own” trading algorithms, again unaware that all of these algorithms are simply versions of the one, Master Algorithm. The more traders who (unknowingly) enlist in the One Bank’s trading army, the larger and more-potent the legions (and the manipulation) grow.
Meanwhile, by sending one, single, overwhelmingly dominant data-stream from the Corporate media each day for the Master Algorithm to process, this ensures maximum potency – i.e. maximum manipulative potential. The actual manipulation itself is achieved in two ways.
First, as all regular readers know, our “business news” and “economic statistics” are heavily-doctored to suit the agenda of the One Bank, which is simply to manipulate markets in the desired direction. Naturally, the One Bank’s minions are (subtly) informed in advance which way the Corporate media’s so-called news will be moving the markets – enabling those traders to “win their bets” with that impossible rate of success.
news” and “economic statistics” are heavily-doctored to suit the agenda of the One Bank, which is simply to manipulate markets in the desired direction. Naturally, the One Bank’s minions are (subtly) informed in advance which way the Corporate media’s so-called news will be moving the markets – enabling those traders to “win their bets” with that impossible rate of success.
In most markets; this means marching them up and down, as such yo-yo trading patterns allow the One Bank’s criminal traders to maximize their ill-gotten gains. However; in the silver and gold markets, there is a more-overriding agenda: permanent price-suppression. But more will be said about that (and how it connects to the Master Algorithm) in an upcoming commentary.
their ill-gotten gains. However; in the silver and gold markets, there is a more-overriding agenda: permanent price-suppression. But more will be said about that (and how it connects to the Master Algorithm) in an upcoming commentary.
For now; what readers need to realize is that these “2 billion” phony/illegal wash trades only relate to the One Bank’s manipulation of commodity markets. How many billions of phony/illegal trades does this Master Algorithm create to manipulate U.S. equity markets? How many billions of phony/illegal trades does the Master Algorithm create to manipulate the markets of London, and the rest of Europe?
? How many billions of phony/illegal trades does the Master Algorithm create to manipulate the markets of London, and the rest of Europe?
Then there are the sovereign bond markets, and corporate debt markets, and we can’t forget the “derivatives market”; a private, unregulated, rigged casino, somewhere in excess of 20 times the size of the entire global economy. All of these markets are now dominated by the One Bank’s, Pied Piper “HFT trading” – and thus its Master Algorithm.
. All of these markets are now dominated by the One Bank’s, Pied Piper “HFT trading” – and thus its Master Algorithm.
One computer program, operated by One Bank, generating billions and billions of phony trades each year in markets around the world, requiring countless $trillions in dirty money just to fund such an operation: manipulating all the world’s markets. Each day more evidence emerges to both prove the existence of this one, obscenely-gigantic financial crime syndicate – and the unprecedented mega-crimes it commits on a daily basis.
program, operated by One Bank, generating billions and billions of phony trades each year in markets around the world, requiring countless $trillions in dirty money just to fund such an operation: manipulating all the world’s markets. Each day more evidence emerges to both prove the existence of this one, obscenely-gigantic financial crime syndicate – and the unprecedented mega-crimes it commits on a daily basis.
This article is brought to you courtesy of Jeff Nielson From Bullion Bulls Canada.
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