The End of Markets, Part III – Jeff Nielson


by Jeff Nielson, Sprott Money:
We no longer have markets, not in the sense of international exchanges for human commerce. What we have, instead, is a 24/7 computerized price-rigging operation – which has hijacked all of our market infrastructure.

The entity responsible for this enormous systemic crime is very familiar to regular readers: the One Bank . Part II of this series ended with a pledge to provide readers with evidence. Not evidence of (mere) manipulation. Such evidence exists in abundance, and a considerable amount of evidence was presented in the first two installments of the serial manipulation of the silver market.

The evidence to be presented here is evidence that we no longer have markets, at all. The proof for this assertion will come with several complimentary pieces of evidence.

1) Massive, serial manipulation of markets

2) A single Invisible Hand is controlling the manipulation

3) Examples of impossible trends in our pseudo-markets

4) A pattern of impossible behavior in our pseudo-markets

The outline above is a composite proof, with the objective to establish that we now have a computerized price-rigging operation in place of what used to be markets. To complete such a proof requires satisfying the conditions necessary to engage in such an endemic price-rigging operation.

It must be established that such manipulation is widespread, constant, and orchestrated by a single entity. This basic proof will be supported with overwhelming empirical evidence: impossible results which could not occur if we still had markets, and impossible behavior which could not occur if we still had markets.

Parts I and II detailed the extreme, long term manipulation of the silver market. A significant percentage of readers will find such an argument plausible, especially given the massive volumes of evidence to support such manipulation.

However, present the same readers with the assertion that all markets are manipulated, and (no matter the strength of the evidence) such a proof will be a hard sell. The human mind rebels at the concept of criminality, control, and sheer evil on such a scale.

The starting point in convincing such readers is to show them the evidence of widespread market manipulation, a subject which has received almost no academic scrutiny. Fortunately, research is finally beginning on this subject, motivated by the market abomination called “HFT trading”.

Part II introduced readers to these automated trading algorithms: the newest tool for financial crime in the One Bank’s arsenal. The obvious manipulative potential of these trading algorithms was noted. Specifically, it was noted that if any entity controlled the data being fed into these algorithms then it would/could control the results: the prices in our pseudo-markets.

Part II explained how the One Bank does control such data. It instructs our puppet governments to construct falsified economic statistics. Then the Corporate media oligopoly (which is one of the One Bank’s tentacles) provides a consistent, uniform stream of propaganda to “interpret” these falsified statistics.

Part III of this series will now complete the proof: showing how the One Bank’s control of all data is being used to control the prices generated in our pseudo-markets. “The Truth is out there.”

In March of 2015; a Zero Hedge article pointed to some of this Truth – an actual study into this criminalized “HFT trading”. The evidence was stunning and overwhelming.

“We find that quote stuffing is pervasive with several hundred events occurring each trading day and that quote stuffing impacts over 74{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of US listed equities during our sample period.”

…stocks randomly grouped into the same channel have an abnormal correlation of message flow

The United States Securities and Exchange Commission levied its largest ever fine against a stock exchange for giving “information about certain order types to only some members, including certain high-frequency trading firms that provided input about how the orders would operate .” [emphasis mine]

The first point to note about the study quoted above is that it was not looking for evidence that all of our markets were controlled by a single Invisible Hand. It was simply looking for evidence of a negative impact from “HFT trading” (automated trading algorithms).

The fact that they discovered market manipulation on a such massive scale surprised the researchers. When they found that “quote stuffing impacts over 74{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of US listed equities”, this was only one category of algorithm manipulation.

The findings here are not that only 74{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of U.S. equities are computer-manipulated. The findings are that at least 74{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of U.S. equities are manipulated in this manner. The conclusion was that this one form of algorithm manipulation was already being used to manipulate 74{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of all equities.

Note (above) how these servile stock exchanges are accomplices in the One Bank’s serial manipulation. Of equal importance is that the banking crime syndicate doesn’t care about all U.S. equities.

The One Bank is only concerned with controlling/manipulating publicly listed companies which are directly or indirectly of interest to its operations. Even if it controlled ‘only’ 74{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of all equities, this is more than enough to satisfy its criminal agenda.

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