No Markets, Just Manipulations

Mon, Jun 29, 2015 - 11:19am

Chris Powell of GATA once famously quipped, "there are no markets, just manipulations". Never has that been more clearly displayed for all to see than on Monday, June 29, 2015.

Please understand, I'm not simply complaining about the ever-present metals manipulation. That's just an everyday fact of life and you saw it again today shortly after the Comex open. No, no, no. What I'm talking about here is manipulation on a GRAND SCALE, the type of thing very few people are able to comprehend or even willing to recognize. The central banks of "the west" are now attempting to completely control the outcome of each and every global market through their "interventions" in the currency and fixed income arenas. By doing so, they are unnaturally setting "prices" and "values" and the consequences of these uneconomic distortions will be catastrophic in the end. For now, though, it's just business as usual. CNBS can report that "the latest Greek crisis has been contained" and LIESman et al can continue pumping the story of global recovery and bliss.

So how did this all play out? Once again quoting Inigo Montoya, "let me, there is too much. Let me sum up":

In response the rapidly-unraveling Greek situation, the euro opened dramatically lower versus other currencies late yesterday when trading resumed. This plunging euro sent the POSX higher but it also sent the yen higher relative to the dollar as funds that were exiting the euro were desperately flowing to almost any other currency. There was also a small unwind of the risk-based "yen carry trade" that caused yen buying. Because of this rally in the yen, gold was poised to open higher, which it did by $10, and it eventually extended those gains to $15 in the first few minutes of Globex trading.

The first central bank to act was the Bank of Japan. Unwilling to see an appreciation in the currency that they had worked so hard to debase over the past 36 months, Mr. Abe and Mr. Kuroda immediately unleashed the hounds and began to sell yen--buy dollars. You can see this on the USDJPY chart below where rising values mean a falling yen:

And why move to intervene so aggressively? A number of reasons. Obviously they'd like to perpetuate that carry trade however, as you can see below, they also managed to keep the JPYUSD within the range that we've been following, thereby avoiding the picture of a rising yen that had seen a blowout low near 80 and was now recovering and moving higher. Without the BoJ intervention, would the JPYUSD be back above 82 this morning? Yep, very likely it would be.

The more egregious intervention came from the Swiss National Bank, however. Promptly at 2:00 am New York time and 8:00 am in Bern, the SNB began to "intervene in the franc" as the euro was tumbling very quickly against it. THIS IS NOT SPECULATION OR CONSPIRACY THEORY. Instead, this action was later confirmed by Thomas Jordan himself, the head of the SNB. &

  • From the ZeroHedge summary (

    "As the SNB president admitted: “There was an increased demand for francs” over night, Thomas Jordan says at conference in Bern. “The SNB intervened in the market to stabilize it.” In other words, without the SNB, the situation would have been truly dire."

    PLEASE CONSIDER THE SIGNIFICANCE OF WHAT IS HAPPENING HERE! Global central banks no longer allow the "free market" to set price and flow funds. Instead, in a desperate attempt to maintain the veneer of normalcy, these central planning goons create an alternate reality...buying and selling their own currencies (their citizen's currencies) in their efforts to effect outcomes.

    This is outrageous and it will NO DOUBT one day cause a massive destruction and reset as Economic Mother Nature re-asserts herself and a normal/natural economic equilibrium washes back ashore in a tsunami of revaluation.

    In the end, I couldn't care less what the paper price of gold is today. As you can see on the chart below, price isn't influenced by anything fundamental or tangible. It's all nonsense and shenanigans, instead. Does it matter that Europeans are flocking to mints to buy physical gold? No. Does it matter that one of the world's largest fiat currencies may be on death's door? No. Does it matter that more, global QE is assured as central banks desperately distort and contort to maintain their power? No. All that matters is the flagellations of the central banks and bullion banks and the ripples they send out to every other "market".

    So, let the global goon squad do their thing. Ignore them and ignore the paper, fiat-conversion price. Just keep stacking and preparing for the disaster that lies ahead. Have you seen the pictures from Greece? If you don't think that scenario is coming to a neighborhood near you...well, then, you've just been willfully duped by the central bankers and you deserve what coming to you. All the rest of us will remain situationally aware, preparing accordingly for The 100% Inevitable End of The Great Keynesian Experiment.


    About the Author

    turd [at] tfmetalsreport [dot] com ()


    Jun 29, 2015 - 11:21am

    A first?

    Can't be right.

    Jun 29, 2015 - 11:22am

    Furst ?

    Crap! Have to take a secund. Now to read.

    Jun 29, 2015 - 11:23am

    And from ZH

    Here you go. Mission Accomplished. Euro back to unchanged!

    Jun 29, 2015 - 11:26am


    Yes I am!

    Dr. P. Metals
    Jun 29, 2015 - 11:28am

    Marchas? FURTH

    ...missed it by THAT much... sorry pardner...

    Jun 29, 2015 - 11:29am

    Turd, Much appreciate

    all that you do to keep us turdites informed during times of voltility

    Jun 29, 2015 - 11:30am
    Jun 29, 2015 - 11:30am

    Yes, indeed

    Even a blind person can see today how ridiculously manipulated these markets have become. Even Gold does not anymore react worth mentioning to such a dangerous situation as we now definitely do have particularly since last weekend. But I see it this way: The more they manipulate this highly complex market the more dangerous it becomes. It is like a bunch of school holidays students need to control a nuclear reactor after the professionell staff has left the plant for holiday. As long as it runs in automatic mode everything operates well. But, once there occurs an issue then the game is over. And I am sure, there will be an issue in the not too distant future.

    Jun 29, 2015 - 11:32am
    Jun 29, 2015 - 11:34am

    Thanks, TF

    This is the best!! 

    Have you seen the pictures from Greece? If you don't think that scenario is coming to a neighborhood near you...well, then, you've just been willfully duped by the central bankers and you deserve what coming to you. All the rest of us will remain situationally aware, preparing accordingly for The 100% Inevitable End of The Great Keynesian Experiment.

    Puts it in perfect context, at least for me.

    It would be great to be a fly on the wall in Putin's or Xi Jinping's office to hear the conversation between those two after seeing this "market illusion" for the past 24 hours. 

    Jun 29, 2015 - 11:34am


    DenverDave begins his summary with the same Chris Powell quote that I used. Addle minds think alike!

    Jun 29, 2015 - 11:42am

    classic MSM spin

    Clarki Stomias
    Jun 29, 2015 - 11:42am

    Good WallStreetOnParade Article on Greece Contagion

    And a great quote at the end:

    “…the humiliation now being heaped upon a proud and ancient country is a salutary lesson to all member states – that without the power to make their own decisions they are always at the mercy of the unelected bureaucrats and financiers who run the institutions. The democracy that was born in Greece more than two millennia ago no longer applies when control over the currency and economic policy is handed to a supranational body. The question of whether the price is any longer worth paying is not one for the Greeks alone to answer.”

    Jun 29, 2015 - 11:49am

    So, nothing freaking happened....

    Looks like I am right (so far) in my assertions that Greece is not big enough to break the system. Then again, we are still in the early stages. I think Bear Sterns failed some time before Lehman, if memory serves. This morning, I'm feeling very anti-climatic. And I had my hopes up from all the indications we were getting in the wee hours this morning. Oh well, the stack is still safely sitting at the bottom of deep water not rusting or turning to dust. Back to your regularly scheduled program.

    Jun 29, 2015 - 12:01pm


    You're falling for the lies and normalcy bias. "Greece not big enough to break the system" --- where would we be, right at this moment, without today's extreme OVERT interventions by the central banks?? The "system" is already is simply being aggressively maintained on life support.

    Jun 29, 2015 - 12:02pm

    Just got this from Ned

    Quote below from a NYT article in 1976. Sound familiar??

    “Two years ago gold bugs ran wild as the price of gold rose sharply. But since cresting two years ago it has steadily declined, almost by half, putting the gold bugs in flight. The most recent advisory from a leading Wall Street firm suggests that the price will continue to drift downward, and may ultimately settle 40% below current levels. The rout says a lot about consumer confidence in the worldwide recovery.

    The sharply reduced rates of inflation combined with resurgence of other, more economically productive investments, such as stocks and real estate have combined to eliminate gold's allure”.

    Jun 29, 2015 - 12:04pm

    Everybody likes Jim Willie

    but nobody listens to him. He has said repeatedly that the PM's will be released not through the FX market but through the Trade side, i.e. the Gold Trade Note.

    Craig, it would be a great point to clarify with him this weekend.

    Hopefully he doesn't say, "Only goombas and #@%!!'s watch the daily gold price" ( I admit, I'm one of them )

    Jun 29, 2015 - 12:10pm

    lipstick on the pig

    The current stock market conflagrations are so similar to what we are being told about Fukushima... it's all fixed and there is nothing to worry about. Yep, just go on back to sleep you little sheep... it will all be wonderful in the morning.

    Jun 29, 2015 - 12:15pm

    Buying Spree

    Sending my wife out buying tomorrow with strict instructions to come back with HK$100K in physical gold to add to our existing stack.

    Jun 29, 2015 - 12:15pm

    Classic / Denver Dave

    Best Quote:

    "…when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed. – Ayn Rand, “Atlas Shrugged”

    Dr. P. Metals
    Jun 29, 2015 - 12:17pm

    From Holter

    I think this summarizes things quite succinctly:

    "Bill Holter says:

    June 29, 2015 at 11:05 am

    we will now see many strange things transpire."


    Jun 29, 2015 - 12:18pm

    Here's the problem with that Turd...

    Life support or not they have not lost control today and do not appear to be losing control over Greece. Lots of the week left but the fact remains these interventions will keep working until we the goldbugs figure out a way to create our own exchange or system. I look forward to your presentation on bit gold because I really think theres a greater potential for change there then with these "markets."

    It doesn't matter if reality should be one thing. This reality were living in is the truth regardless of whether or not it should be. The PPT has an unlimited press at their backs and thats proved more powerful than the fundamentals for the last 4 years so why should anyone expect something different now?

    silverflower TF
    Jun 29, 2015 - 12:19pm

    @Barfly @Turd: 100% true.

    If e.g. only the ECB stopped their monthly 60 bill. printing program the party would stop immediately. I am wondering what these criminal idiots at the cb's of this world think how this game will end? Yes, I know the answer: on the day of reckoning theirs friends will short all this gambling.

    Jun 29, 2015 - 12:19pm

    turd question

    Hey turd - do you think commercials covering shorts today, gold is up marginally but should be up much more, seems like they could be covering today, what do you think? thx - same with silver i'm guessing....

    Steve Silver
    Jun 29, 2015 - 12:21pm

    Gold and silver will break the KKKenysians backs!!

    Since the KKKeynsians can print money they can buy and sell paper to manipulate any market and of course they are. They can buy bonds so that we have a bull market in US bonds going back over 30 years to the point of utter insanity. You have to be certifiable to lend ameriKKKa ever harder to earn money for 30 years with so little return and such high risk.

    They are printing money to buy stock futures creating an arbitrage which levitates the stock market whenever there is a risk of the market breaking down. 

    They can print money and sell paper gold to drive down the price of gold and silver whenever there is the possibility of a mover higher generating western demand.

    But paper gold isn't physical gold. There has been persistent backwardation in the gold market for the last few months. This shouldn't be possible if there wasn't a growing concern that you can't get your gold back if you buy a futures contract orrrr lend your gold to a central bank. 

    There is no question that the Greek tragedy this weekend created huge physical demand for gold. So the banksters responded by selling enough paper gold to keep the price rise under control. Can't have people think that gold is THE safe haven. Surprisingly the spread between physical and paper gold actually narrowed over night by about .25 cents per ounce. 

    The explanation is that the KKKeynsians we forced to sell significant tonnage of their depleting actual physical gold stores in order to keep the spreads from exploding. The spread has already started to rise back to where it was Friday before this weekends collapse of negotiations re Greece. 

    The backwardation shows that manipulators are running out of physical gold. They had to use up a significant amount of physical last night to get the gold market back under control. The challenge of keeping the gold and silver market under control will continue to drain whatever actual physical specie the banksters have left. We will see the backwardation increase until they lose control of the gold and silver market. 

    Events like Greece and China bring that time much closer. Newtons third law will crush the KKKeysians. 

    Jun 29, 2015 - 12:22pm

    Did you know...

    ...that president Lyndon Johnson used to review the GDP reports before the Commerce Dpt. (CD) could release them ? He would send them back, like you do an undercooked steak, to the CD and kept doing it until the CD "got it right"...Does that still go on ? You have to wonder, don't you ?

    Chuck Butler from "Daily Pfennig".

    Jun 29, 2015 - 12:23pm

    I really have no idea

    I don't even want to venture a guess, at this point.

    Jun 29, 2015 - 12:25pm

    US$ down 1% against Japanese Yen

    So where are the algos that should be driving gold up? Maybe they only work on the way down. So is the silver short squeeze dead or just on hold?

    Jun 29, 2015 - 12:25pm

    On going fiasco

    I guess there is no such thing as a good old fashion stock market crash anymore. Market can't take a serious poop because it has no bum hole. Only feeding tubes, heroin and algo pacemakers. This is what we are watching, Rome at it worst. I always knew this would not be some overnight event. But holy hell, it wants to suck every ounce of common sense out of you before giving us a glimmer of light at the end of the tunnel. 

    Jun 29, 2015 - 12:26pm

    WSJ: Greece to DEFAULT tomorrow

    Not sure HOW this can be spun any other way, just CERTAIN that it WILL be spun another way in order to avoid CDS triggers etc.

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