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The Masters of the Universe Are Also Universal Manipulators

20 | By Shah Gilani

Dear Wall Street Insights & Indictments Reader,

Just look at the market today, any market, anywhere in the world. They’re all higher.

That’s what happens when the true Masters of the Universe, the puppet masters at the U.S. Federal Reserve, twiddle the strings to manipulate markets for their purposes.

What are those “purposes” and how much “control” does the Fed really have?

The short answers to those questions will sicken and frighten you…

Market Eruption

But first, a word about surging equity markets.

U.S. markets leaped higher yesterday propelled by molten lava (heated by the Fed), which blew the top off the cone of equity malaise capping stocks in the first days of 2015.

Asian markets took notice this morning and immediately joined the party. Not to be outdone – and without a doubt the guests of honor who were being liquored up in the process – European stock markets popped their own corks and soared higher. So, when U.S. markets opened a few hours later, it was one for all and all for reaching for the moon.

Grab your glass and get your boogie on – it’s a world party!

The molten lava forcing the blow-off top in equities bubbled out of the Fed’s December 16-17, 2014, meeting minutes, which were released yesterday morning.

In a highly unusual public pronouncement (sure, they were minutes of the Fed’s private meetings, but they are made public, so they were public pronouncements), the Masters of Manipulation warned they were worried about slow economic growth outside the United States.

Specifically, the Fed said it was worried “foreign policy responses [to slowing growth] were insufficient.” That’s “Fedspeak,” over a loudspeaker screaming to their counterparts at every other central bank on the planet, for “PRINT MORE MONEY, YOU IDIOTS.”

But it’s not slowing growth the Fed is really worried about. It’s how artificially pumped-up equity markets (courtesy of the trillions of dollars of already printed money, aka stimulus or, more colloquially, quantitative easing) will react if the free-money ride slows down or stops.

How do we know that’s what the Fed is afraid of? Because it said so. The Fed minutes warned financial markets are “importantly influenced by concerns about prospects for foreign economic growth and by associated expectations of monetary policy actions in Europe and Japan.”

That means frenetic equity markets will crash if they don’t get more cocaine up their snouts.

That’s how Masters of the Universe pump up stock markets – by masterly manipulation.

So, what is their “purpose” and how much “control” does the Fed really have?

Unless your existence in the equity bubble has left you deaf, the Fed has for years openly articulated a “wealth-effect” policy. It wants to pump up stock prices to make us all feel wealthier. Some of us are wealthier, if we own a lot of stocks. Most of us don’t own enough stocks or any stocks, so we only feel the rich getting richer.

But, whatever, that’s the wealth effect.

As long as equity prices are rising, banks’ equity capital is worth more and they make more money in rising equity markets from investment banking, mergers and acquisitions (M&A), and trading.

Of course, the juice for all that activity comes from low interest rates.

At the same time, the Fed is carrying the deficit-ridden U.S. government by buying its debt.

That’s the purpose of zero interest rate policies (ZIRP) – to pump up equities, enrich big banks and monetize government debt.

That’s the purpose of central bank “stimulus” all over the world.

Control Fantasy

The problem is in the “control” mechanism.

If the Fed loses control of U.S. equity markets, if other central banks lose control of their equity markets, it’s game over. The wealth effect will disappear, and banks will collapse.

So, here’s what the Fed intended by incorporating the language it did in its most recent minutes, for the world to read.

The Fed warned other central banks to keep the free-money hoses turned on in order to force equity markets higher. Markets read that and rallied, because the Fed is the Master of the Masters of the Universe and just proved to its counterparts that stimulus is the way forward.

However, the last word on “control” goes to the markets themselves. Try as central banks might, as big as they are, as much capital as they pretend they have to spray on stocks, they are not anywhere near as big as the markets.

Control is a fantasy.

Of course, equity markets are higher. They’re all Pavlov’s dogs.

But one day, the atavistic tendencies of markets, meaning their animal nature, will prove the distorted headline “Man Bites Dog” was a misprint.

20 Responses to The Masters of the Universe Are Also Universal Manipulators

    • Charles C. Harris says:

      This is one of the very few writers that openly speaks of The Masters of the Universe. More needs to be written by enlightened people re: who really has and does make the real decisions that control nations. In general, few Americans, even the most intelligent ones, know anything about the secret organizations that have been around since before our republic was established, the tax free foundations and world banks. There is a massive movement evolving before our very eyes that has the single purpose of establishing a One World Government. The United Nations is the vehicle being used and we are rapidly moving in this direction.

  1. Steve West says:

    Hello Shah, thanks very much for the insights into the financial markets.

    What, if any, indicator/s would you suppose would be first to show the markets turning on the central banks?

  2. Alice Maxwell says:

    Once again you have given the best resume re the Fed and its actions worldwide! The contrlo of the cash spigots is all important to keeping our world working.

    Of course, it takes collusion with government to work this scheme successfully. The 1974 Congress contribution of the ERISA law has aided and abetted this control since every corporation with pension agreements re employees is involved. The Pension Guarantees given to private plans facing dissolution as business must cease due to obsolescence makes it de rigueur that every company involved in any pensioning device today must rush in and support its stock price or face confiscation by the US Government. This fact was impressed on industry when Obama took over General Motors because its stock fell below the minimum allowed by ERISA.
    This explains the immediate turnabout constantly in our markets and is the reason that industry is sitting on cash and not spending it to increase its footprint, hiring more employees, etc.

    We live in a cartel world where everything is managed with the government having the upper hand. It is government running our world, led by the numbers boys and gals who provide the ammunition to effect what the givernment wants..

    The Banks are not the culprits. They have been taken over, transformed into this New World Order.. Where it goes nobody knows!

    • Charles C. Harris says:

      Central banks are one of the MAIN culprits. JP Morgan, the Rockefellers and others have been among the greatest supporters of One World Government. They have been involved in controlling the destinies of countries around the world, including China and Russia. One of their own is always selected to lead the US Federal Reserve.
      We are only pawns that are to be led by the controlled media into believing everything is being done for the common good. The end of national boundaries, democracy and individual freedom is rapidly approaching.

  3. Ralph Wood says:

    I think your logic is irrefutable but no one seems to be able to get a handle on the timing. Have you any thoughts?

  4. Edouard D'Orange says:

    I can’t figure out when the party ends. One investing service has one analyst predicting “DOW 31,000” and another predicting a big fall in stocks.

  5. Charles C. Harris says:

    Is it really true that bankers and others have controlled world events for at least the last 100 years or maybe since the founding of our republic? Is everything still controlled by those that are seeking or bringing about One World Government? Have world politics and even wars been controlled by these same forces?
    Are we as citizens of the USA and the world only pawns that have been and still are fed propaganda by the controlled media so as to generate public opinion that is beneficial to these forces? Weren’t many of our past business moguls; Carnegie, Rhodes, Henry Ford, Rockefellers, etal, along with presidents and political leaders part of these One World Government advocates? Do these world banking leaders have ulterior motives that undermine the financial security of nations, making them more susceptible to crashing down and thus giving up our sovereignty?

  6. ALAN STEINBRONN says:

    Telling people the US Govt has unpayable ‘debt’ – is ‘broke’ – is ‘out of money’ – depends on ‘taxes for its income’ is FALSE.

    Think about it.

    How can ANY sovereign govt go broke, be out of its money, or depend on taxes for its income when IT, the sovereign govt, is the SOLE SOURCE of its currency?

    It CAN’T.

    It can NEVER, EVER, go broke, be out of its money, or depend on taxes for an income of its own currency. It creates its own currency.

    This uninformed, uneducated talk about how & why a sovereign govt’s own currency is created and how & why it’s used to stimulate its economy has GOT TO GO.

    I’m a little surprised that Shah Gilani is one of those uninformed, uneducated people who simply repeats a monetary concept that doesn’t apply to how modern nations operate.

    Of COURSE a nations central bank MUST create its nations currency! Where else is the nations currency going to come from? How ELSE is the nations’ people going to be compensated for WORKING-PRODUCING?

    I’ll tell you how – from the currency created by their nations BANK.

    I could go further into how a nations financial-economic-productive system operates but, you need to digest THIS information first.

    Fact is, our nation has NO DEBT that can’t be paid or a productive economy that can go bust.

    • Brad M says:

      I think you may need the economic lesson. Sure the government can print the currency to pay off the debt ( via the Fed )… creating a devalued currency and inflation. There are essentially 2 ways a government pays off debt with out losing big time in real terms.. that is to inflate the currency or simply to default. Both would lead to a devalued currency in that nation. Look at the Weimar Republic ( Germany between WWI and WWII ), that government and central bank had the same basic theory you do.

      • ALAN STEINBRONN says:

        And I think you FAILED the class of How Fiat Currency Creation Works.

        Where do you get the ridiculous idea that ‘printing money’ causes inflation? Governments MUST print their currency to activate all the productive activity their people are itching and crying out to do. What is their nation supposed to pay them with – seashells?

        Fiat currency = Social Production. They are two sides of the same coin. One represents the other.

        If a government doesn’t create ENOUGH currency to activate the productivity of its citizens, well, you get economic implosion and Deflation.

        Does AUSTERITY ring that bell in your head???

        Your example of Wiemar Germany as an Inflation poster child shows your ignorance of the fact that Germany was on a GOLD standard.

        EVERYONE who understands fiat currency mechanics knows that Gold (or ANY other commodity-currency) is a finite, restrictive, and limiting mechanism for creating and activating SOCIAL PRODUCTION. And enslaves humanity to the Gold Owners.

        The price of gold in Wiemar times was CHOKING the economic and productivity demands Germany needed. Gold price was WAY too small to reflect the true value of social production. FDR and the Gold confiscation of 1933 proved THAT. And even THAT had to be adjusted later.

        And just FYI, Inflation is a natural and automatic result of an INCREASING population. Increasing Demand for inadequate Supply = Increased Value (ie. HIGHER PRICES).

    • chalzer says:

      Mr. Steinbronn,

      If you need a 20th century example (modern by most standards, given the long history of failed fiat currencies, ~600 and counting) of failed currencies/economies, look at the once powerful German economy of the early 20th century. Some of us Americans think because we’re the chosen people and have bought the Krugman theory, as you seem to have, that nothing could permanently go wrong under the present regime. WRONG! We as a society can choose just as wrongly as the Germans and others before us. I doubt this will sway you into further and less biased research but at least others may not be moved to embrace your specious theories and beliefs.

      • ALAN STEINBRONN says:

        May I suggest you read my reply above to Brad M ?

        I hope it helps.

        And just FYI, ‘the Krugman theory’ you point to goes WAY before the time Paul Krugman was a thought in his parents minds, or even his parents parents minds.

        State created currency is an age old practice that has been misused by commodity-money confused people.

        In truth, state created currency is FLAWLESS.

    • Jorjann says:

      It’s all an illusion. The emporer has no clothes. There is an end to this game, no one knows exactly how this system will crash, not even you.

      • ALAN STEINBRONN says:

        An ILLUSION?

        Really?

        The work activities you do, whose value is represented by the units of currency you receive, are an ILLUSION?

        Are you for REAL??? (or an illusion?)

        Not only is the emperor NOT naked, he can have a MUCH clothes as he’s willing to WORK FOR. Period.

        The ONLY way this ‘game’ ends is for governments to STOP creating the units of measure to represent the Will of The People for Social Production.

        When the CURRENCY stops coming out – ALL the people shut down and wither away.

        or – REVOLT.

  7. HYMN says:

    AUDIT the Fed and our Gold ! Then abolish the fed, or at least give it no more power than any other Private Bank.

  8. LIA VASSALLO says:

    Of course it’s fantasy. Why do they do it? The crash is imminent but why should 100 million poor or near Americans care? Good article.

  9. Ed Schaffer says:

    Well done and I find your articles to be most enlightening and informative! Now I better understand why “pullbacks/corrections” in stock market prices have been so small in recent years, they are being manipulated. The Quantitative Easing baton is now being passed to Europe to keep the worldwide global economy going, just as you have said, when the Fed shouts, the ECB and others listen!

  10. RUSS SMITH says:

    Hi!, Patrons Of Shah Gilani’s Wall Street Insights And Indictments Et. Al.:

    How will the shifting sands of OUR present trend towards World

    Hi!, Patrons Of Shah Gilani’s Wall Street Insights And Indictments Et. Al.:

    How will the shifting sands of OUR present trend towards World Government end? If my understanding of OUR Lord’s Prayer can be taken to become the leading indicator, then OUR own individual, personal nervous systems hold ALL the answers do they not? His prayer asks for US to be delivered from every kind of evil; give us OUR daily bread (from sufficient jobs etc.), because His is the Kingdom & The Power forever. So, are we not asking that love do the rescuing, because we are told in the Gospel that God IS love? He has asked US to fear not and to ask that we might receive making OUR JOY full. INTERPRETATION: He created OUR very sensitive nervous systems for experiencing JOY not FEARS and when His promised JOY arrives in fact not in promise only, then we will have His answers and be delivered from all evils including World Government will we not? Even OUR LORD, Jesus, explained to everyone that He Himself could do nothing but that it was the Father dwelling within Him (LOVE) that accomplished everything that He did to help others He met on the roads of life!! In reality would any of us actually/really want it to be any different for any of the rest of US today, in the midst of all the World’s economic distresses including political power structures etc.? Do we actually/really want war which tears into the very hearts and souls of OUR brothers’ and sisters’ lives destroying their peace, prosperity, liberties and JOY, to bring about all the various answers to each of the modern day concerns that plagues mankind worldwide or is His love truly the designed, divinely proposed and worldwide acceptable answer for each of US to want to live daily?

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