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Here's a hypothetical assessment of how such manipulation could be brought about. It's early Friday
morning in Washington D.C. around 7 AM. Some of the head boys in the PPT are pretty certain that
they are going to have to intervene into the markets today and do some price shoring up, as well as
some price suppressing. The UN Security Council is meeting, and some of the higher-ups at the
Treasury Department have let it be known that they do not want any embarrassing market plunges
today. Since the Dow looks especially vulnerable, and gold is threatening to break $360 (which would
requireWashington's banker buddies in New York to incur some big short position losses), it is
necessary to swing the PPT into action in a vigorous way.
Thus, some of PPT's senior members at JPM and Goldman are notified to begin heavy buying of S&P
futures if the market weakens today and looks like it may start crashing. JPM and Goldman both check
to make sure adequate funds have been wired from their special PPT offshore accounts to cover
"market stablization activities." They then alert their agents to be prepared to buy S&P futures and
sell Gold futures heavy.
Since both the equities and gold markets are especially threatening this day, and the PPT does not
want to take any chances of them blowing past its buy and sell efforts, its senior members decide to
help strengthen their MONETARY intervention with some PSYCHOLOGICAL pressure. They decide that "mood
enhancement" is also needed to turn around the heavy pessimism of the investing public today.
Such mood enhancement is decided to be carried off by the floating of a sensational rumor, something
that will inject a jolt of confidence into traders and stampede the equity shorts to cover and the
gold longs to dump. This will accomplish two things. Number one it will bolster JPM's and Goldman's
manipulation trades making them that much more effective while requiring less money. And number two,
it will provide a reason for the sudden turnaround, which will diminish any suspicion about blatant
intervention by all the cynics and conspiracy theorists.
Seeing that one of al-Qaeda's top operatives, Khalid Shaikh Mohammed, has just been captured in
Pakistan, it is decided that the rumor plant will be that two of bin Laden's sons have also been
captured. This will be positively electrifying to the market, because it will imply that the
apprehension of bin Laden himself is close at hand, and that al-Qaeda is just about finished.
To initiate the plan, PPT authorities call a low level CIA contact in Pakistan. They tell him to
plant the rumor that U.S. forces have just arrested two of bin Laden's sons in a fierce gun battle
near the Afghanistan border. The CIA contact is instructed to pick a local village politician to
relay the information to, someone he knows will spread it. Baluchistan Home Minister Nawab Sanaullah
Zahri immediately comes to the CIA contact's mind. Zahri is well respected among his peers, but not
overly sophisticated in the ways of the U.S. Government. So he readily believes the CIA contact when
he phones him with the false report about the capture of bin Laden's sons. Being human, Zahri is
eager to spread such startling news right away. Being a public official, he seeks to publicize it
and notifies several reporters in the area. Being human, the reporters accept the rumor as
"confirmed" because it came from a "public official" with CIA connections. They then rush it onto
the international wire services.
The frenzy begins as the news hits New York City about 11 AM and proceeds to make the rounds. CNBC
quickly picks it up, and being human, they run with it over the air. Flashing "Alert" graphics
appear on their telecast, and gushing talking heads spell out the wondrous news to millions of
investors throughout the world. The report streaks throughout the trading floor in the way
electricity lights up a city after a blackout. The story is reported and enhanced repeatedly.
"President Bush to soon make an announcement about the capture!" flashes on one of CNBC's bulletin
bands. Fear pulverizes the shorts, and they stampede to cover. Longs rush in to catch the train
before it leaves the station. Equities rally big time, while over at Comex just the opposite is
happening. PPT's banker buddies have shorted gold substantially and the price of all delivery months
tank over $10.00 in 30 minutes. The threatened move past $360 is defeated. Long closeouts descend
into the pits like balloons coming down at a political convention.
After the dust settles at days end, a different picture evolves, however. A Los Angeles Times story
reports on the wondrous news, "Although the latest report came out of Pakistan, Major Gen. Rashid
Qureshi, a presidential spokesman, accused anonymous U.S. sources in Washington of feeding, in some
cases, what he called false information to reporters."
In an interview on Friday Qureshi states, "I don't know how these reports based on Washington
sources are claiming that there have been arrests in Baluchistan. I have checked up with the
intelligence agencies, and there is absolutely nothing. I don't say that sources in Washngton are
liars, but they are certainly not telling the truth." [Reprinted in The Dallas Morning News, March
8, 2003, p. 18A]
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