Pervasive central banking market manipulation

Two more warnings of pervasive market manipulation

Submitted by cpowell on Tue, 2009-10-27 23:45. Section: Daily Dispatches

7:45p ET Tuesday, October 27, 2009

Dear Friend of GATA and Gold:

In a new essay Zero Hedge's Dan Ivandjiiski, writing as the pseudonymous Tyler Durden, explains how "the Federal Reserve has now managed to singlehandedly take over the entire capital market" via its Primary Dealer Credit Facility, which essentially subsidizes the major New York investment houses to buy equities of all sorts. The Zero Hedge essay has a few typographical errors but may be the most essential financial reading of the month if not the whole year. It's headlined "An Overview Of The Fed's Intervention In Equity Markets Via The Primary Dealer Credit Facility" and you can find it at Zero Hedge here:

http://www.zerohedge.com/article/overview-feds-intervention-equity-markets-primary-dealer-credit-facility

Meanwhile in commentary posted today at 321Gold, market analyst and newsletter writer Stewart Thompson elaborates on the manipulation of the gold market by the banking system. Thompson predicts that the trouble made by the U.S. Commodity Futures Trading Commission for exchange-traded funds in the energy futures markets is a test run for an attempt to break up or even expropriate gold exchange-traded funds.

If one suspects, as GATA does, that gold ETFs are not fully backed by metal and were created specifically to divert investment demand away from metal and into paper and thus suppress prices, the government action expected by Thompson would diminish rather than strengthen manipulation of the gold market. But Thompson's conclusion is the same as GATA's: Get out of gold ETFs and into real metal in a safe place if you can find one. (The moon? Mars?) Thompson's commentary is headlined "Gold Neckline Play: Easy on The Trampoline" and you can find at at 321Gold here:

http://www.321gold.com/editorials/thomson_s/thomson_s_102709.html

The new postings by Zero Hedge and Thompson suggest that the guy who remarked a year and a half ago that "there are no markets anymore, just interventions" (http://www.gata.org/node/6242) didn't know the half of it.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.