Total G-3 Central Bank Control

Tue, Aug 29, 2017 - 4:10pm

There's a lot of amazement and wonder at how the "stock market" can be up today with the devastating news out of Texas and the latest North Korean missile launch. Longtime readers of TFMR know exactly how this market levitation is accomplished so this post is designed as a public service in order to better educate and inform everyone else.

Let's just keep it simple...

In 2017...and, actually, since 2008...the "markets" don't actually exist. Oh sure, there are trades and prices but in terms of what the markets were 20 years ago?...those days are long gone. Instead, what we have now is total HFT domination. Over 90% of all volume on the NYSE and NASDAQ is now done through HFT machines that swap positions back and forth. This is common knowledge and if you and I know this, then you can be assured that The Fed, The ECB and the BoJ (known henceforth as the G-3) know this, too.

To that end, since the G-3 are dedicated to market stability and the wealth effect, these central banks clearly seek to influence the direction of the equity markets by influencing the two key drivers of the HFT machines. And what are these drivers? The currency pair of USDJPY and the volatility index known as the VIX. Simply stated, if your wish is to drive "the stock market" higher, all you need to do is buy the USDJPY while at the same time selling the VIX. It truly is that simple.

To that end, daily observation of trading patterns allows us to observe a clear and obvious, algo-driven program in the all-important USDJPY. Because of the sheer size of the forex market (up to $7T/day), any algorithm put in place to manage this pair could only come from pockets deep enough to make it happen....namely, the G-3.

And what does this computer-based, G-3 buying program look like. Again, in the simplest terms, this program sets up a USDJPY floor at some pre-determined or even random level. Once a bounce is initiated, a buy program then follows after the pair have come back down to a newly-discovered double bottom. For today (Tuesday, the 29th), it looked like this:

By driving a rebound in the USDJPY and selling off the VIX, the G-3 get the desired impact of a recovering "stock market". These screenshots were taken earlier today as the equity bounce was in progress:

Now, lest you think this was some kind of one-off and that my tinfoil hat is on too tight, please check the charts below. Here's a chart of the USDJPY from last evening after the Nork news hit:

Here are three charts from last week:

Here are just four from earlier this month:

And here are just a handful of occurrences where we caught the G-3 redhanded in July:


What you see is an illusion and a mirage. Since the financial crisis of 2008 and particularly since 2012, the global central banks have moved to assume nearly full control of the global markets. They do this through influencing the key inputs which drive the HFT machines that control nearly every "market". So going forward, when you're perplexed as to how the stock market could be up on a day when the news is all so bad, just simply check the all-important USDJPY and VIX and you'll have your answer. And yes, we have now reached the point where the stock market won't decline even in the face of a nuclear event or natural disaster. So long as the USDJPY and VIX are unchanged, the S&P will be unchanged too, regardless of a nuclear bomb in Times Square, an earthquake in Tokyo, a massive bank failure in Europe or any other type of "disaster".

Lastly, what does this have to do with Comex Digital Gold? Well, as we first discovered and reported back in 2014, The Bullion Banks have their own algorithms which have tied the price of "gold" to the USDJPY , as well. Simply put, if you want the gold price to go higher, you need the USDJPY to fall. Period and end of story. All other technical and fundamental factors are largely meaningless. See the charts below where the inverse USDJPY is plotted in candles and Comex Digital Gold is a blue line.

One day (Today, Tuesday 8/29):

One week:

One month:

Six months:

One year:

Five years:

HFT now controls everything and the global central banks (but primarily the G-3) seek to control the HFT. Once you admit and understand this, the daily action of the "markets" will no longer confound you.


About the Author

turd [at] tfmetalsreport [dot] com ()


Aug 29, 2017 - 4:22pm



When the elites want to crucify Trump, they will do so by punishing the people. The stock market support algos will then be turned off.

Aug 29, 2017 - 4:23pm


It's a conspiracy, I say! Once again, I refuse to accept the results of this comment chain! #resistance #putindidit

Real Money
Aug 29, 2017 - 4:28pm


YES the G3 control everything for now. How much longer who knows. That day where they lose control is near. There is a great scene in the movie Crimson Tide where LT hunter( Denzel Washington) says we have to get the message transmission from central before we can determine what to do. One of his leuitenants argues we don't have time for this Russia is fueling there nukes. Hunter argues and the Leuitenant says you don't put on a Condom unless you are planning to F__k! China and Russia didn't buy all this gold for nothing. They have a plan and it is very close. The comex can only hold on for so long.

Aug 29, 2017 - 4:29pm


Last two days of data science consulting job...

Turdites! It's just the algos dictating decisions

Aug 29, 2017 - 4:48pm

Pugs have a terrier personality with some differences

I babysat one of my stepdaughter's friends pug for many months and fell in love with her.

(Oh, I mean I fell in love with the pug, not my step daughter's friend.)

Aug 29, 2017 - 4:51pm

Denver Dave weighs in...

"The financial exposure to the tragedy in Houston is conservatively estimated at several hundred billion. Insurance companies off-load a lot of risk exposure using derivatives. The potential counter-party default risk connected to this could dwarf the defaults that triggered the AIG and Goldman Sachs de facto collapse in 2008. The stock “market” should be down at least 20% just from the probability of this occurrence. "
Aug 29, 2017 - 4:54pm

Great stuff as always TF

I discovered two things recently that literally made me laugh out loud:

  1. The JPYUSD traded on CME Group also has a "fix" - similar to the London Gold Fix. One of the times - you guessed it - is the same time as the London afternoon fix - 10 am EST.
  2. Each CME Group contract on the Yen-dollar pair is structured to be in lots of 12.5 million Yen. That sure simplifies the "value at risk" for bullion banks - especially if they want to oscillate around a gold value of $1,250 per ounce . . . they can buy a JPYUSD each time they sell a gold future, and significantly reduce their VAR.

Maybe *my* tinf0il hat is on too tight . . .

Aug 29, 2017 - 4:54pm

I agree, Russia and China found themselves levitating

in a financial sense from 2007-08 and didn't like it. The pertinent question to ask back then is what can be depended upon?

So I suggest that all asset classes are going to be tested again for the "values" that they are currently being assigned. If the word "value" can be attached to something, it will be tested.

Aug 29, 2017 - 4:56pm

And Just How is it all Controlled?

My thoughts and prayers for all the Houstonites really suffering at this time. Aussies know something of the devastation of these storms (we call them Cyclones here). Cyclone Tracey levelled one of our capital cities ( seen in the movie 'Australia') on Christmas Day 1974. It took decades before the city recovered and rebuilt.

Sometimes, it is difficult for an outsider to understand how the US Govt is controlled and what are the consequences for local and overseas markets. This ex CIA insider presented one of the best explanations I've heard yet.

Apparently, there's a difference between the 'deep state' and 'shadow government'. The whistleblower explains it exceptionally well...accompanied by a very useful power point presentation.

New: CIA Agent Whistleblower Risks All To Expose The Shadow Government
Aug 29, 2017 - 4:59pm

There are no markets

There's only Bit Coin In Bit Coin we trust. All hail Bit Coin The almightly and powerful Bit Coin rises 6.35% today. Bit Coin Bit Coin uber alles. It will make the blind see, the dead arise from the grave, the savior of all humanity

Ok, Ok I'm being an ass. But reading this article after seeing BTC shoot up 6 plus % when everything we hold near and dear is going into the shitter, including what little sanity we/I retain, I think I got just a tad unhinged half an hour ago

A knock at the door. Wifey answers. I hear a male voice--"I'm from the Internal Revenue Service' Shit fire and save matches, sparky, they's come fer me.

I immediately go to the door to see what's up. This field agent is dressed like some urban schlub; kind of over weight. Close to my height. I boost my revolver behind me because I don't know who it is, even with ID

Turns out he's asking us questions about our neighbor across the street. We call them the Mole People. They only come out at night. 3 sighting in 4 months.

FYI In 40 years being in the credit and finance world; 8-10,000 loan clientele, I can count on one hand the number who got a visit from a field agent. The IRS rarely makes house calls. Why do I know this? Because I always ask about Close Encounters of the Worst Kind. Visit from the Fed's goon sqaud.

I certainly never met one who questioned us about our neighbors whom we do not know.

Something serious is up with our neighbors. That said, if you get a visit from a field agent the next call is to your attorney and CPA Pronto

Just saying but being that close to a tentacle of the Beast is unnerving to say the least.

Key Economic Events Week of 2/17

2/18 8:30 ET Empire St Manu Idx
2/19 8:30 ET Producer Price Idx
2/19 8:30 ET Housing Starts & Bldg Perms
2/19 2:00 ET January FOMC minutes
2/20 8:30 ET Philly Fed
2/21 Fed Goons all day at Chicago Conf.
2/21 9:45 ET Markit flash Feb PMIs

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Key Economic Events Week of 2/17

2/18 8:30 ET Empire St Manu Idx
2/19 8:30 ET Producer Price Idx
2/19 8:30 ET Housing Starts & Bldg Perms
2/19 2:00 ET January FOMC minutes
2/20 8:30 ET Philly Fed
2/21 Fed Goons all day at Chicago Conf.
2/21 9:45 ET Markit flash Feb PMIs

Key Economic Events Week of 2/10

2/11 10:00 ET Job Openings
2/11 10:00 ET CGP Hump-Hawk House
2/12 10:00 ET CGP Hump-Hawk Senate
2/13 8:30 ET CPI
2/14 8:30 ET Retail Sales
2/14 9:15 ET Cap Ute & Ind Prod
2/14 10:00 ET Business Inventories

Key Economic Events Week of 2/3

2/4 10:00 ET Factory Orders
2/5 8:15 ET ADP Employment
2/5 9:45 ET Markit Service PMI
2/5 10:00 ET ISM Service PMI
2/6 8:30 ET Productivity & Unit Labor Costs
2/7 8:30 ET BLSBS
2/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 1/27

1/28 8:30 ET Durable Goods
1/28 10:00 ET Consumer Confidence
1/29 10:00 ET Pending Home Sales
1/29 2:00 pm ET FOMC Fedlines
1/29 2:30 pm ET Powell presser
1/30 8:30 ET Q4 GDP first guess
1/31 8:30 ET Pers Inc and Spending
1/31 9:45 ET Chicago PMI
2/2 10:00 pm ET Chiefs win SB LIV

Key Economic Events Week of 1/13

1/14 8:30 ET CPI
1/14 9:00 ET Goon Williams
1/15 8:30 ET PPI and Empire Fed
1/16 8:30 ET Retail Sales and Philly Fed
1/17 8:30 ET Housing Starts
1/17 9:15 Et Cap Ute and Ind Prod

Key Economic Events Week of 1/6

1/7 8:30 ET US trade deficit
1/7 10:00 ET ISM Services PMI
1/7 10:00 ET Factory Orders
1/8 8:15 ET ADP employment
1/9 8:00 ET Goon Chlamydia speech
1/9 1:20 ET Goon Evans 2:00 ET Goon Bullard
1/10 8:30 ET BLSBS
1/10 10:00 ET Wholesale Inventories

Key Economic Events Week of 12/16

12/16 8:30 ET Empire State Manu Idx
12/16 9:45 ET Markit flash PMIs Dec
12/17 8:30 ET Housing Starts and Bldg Perms
12/17 9:15 ET Cap Ute and Ind Prod
12/19 8:30 ET Philly Fed
12/20 8:30 ET Final guess Q3 GDP
12/20 10:00 ET Pers Inc and Spending
12/20 10:00 ET Core Inflation

Key Economic Events Week of 12/9

12/10 8:30 ET Productivity and Unit Labor Costs
12/11 8:30 ET CPI
12/11 2:00 pm ET FOMC fedlines
12/11 2:30 pm ET CGP presser
12/12 8:30 ET PPI
12/13 8:30 ET Retail Sales
12/13 10:00 ET Business Inventories
12/13 11:00 ET Goon Williams speech

Key Economic Events Week of 12/2

12/2 9:45 ET Markit Manu PMI
12/2 10:00 ET ISM Manu PMI
12/2 10:00 ET Construction Spending
12/4 9:45 ET Markit Services PMI
12/4 10:00 ET ISM Services PMI
12/5 8:30 ET Trade Deficit
12/5 10:00 ET Factory Orders
12/6 8:30 ET BLSBS
12/6 10:00 ET Wholesale Inventories

Key Economic Events Week of 11/25

11/25 8:30 ET Chicago Fed Nat'l Idx
11/25 7:00 pm ET CGP speech
11/26 8:30 ET Advance Trade
11/26 9:00 ET Case-Shiller home prices
11/26 10:00 ET New home sales
11/26 10:00 ET Consumer Confidence
11/27 8:30 ET Q3 GDP 2nd guess
11/27 8:30 ET Durable Goods
11/27 9:45 ET Chicago PMI
11/27 10:00 ET Pers Inc & Cons Spndg
11/27 10:00 ET Core inflation
11/27 2:00 pm ET Beige Book

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