In Conspiracy Fact or Theory news we ask our readers to consider the possibility that the 1000 point crash and subsequent recovery within a 30 minute time period was not a “fat finger” mistake, but rather, a clear message to our lawmakers that someone else, and not the American people, is in charge of America. This was a $1 trillion dollar move in stock markets, do you really buy that it was an accident as reported by the mainstream?
Watch the video below to get a basic understanding of the circumstances that may have been involved. This is not a lone theory and other analysts and financial commentators have similar views, as cited below.
What was the manipulation about?
We believe that it may have been a clear message sent to our elected officials, resulting in major changes to Ron Paul’s Audit the Fed bill, essentially gutting the provisions that we require transparency and disclosure about the Federal Reserve’s global monetary policy.
Ron Paul is not too happy about the changes:
Congressman Ron Paul (TX-14) expressed disappointment that his landmark legislation to audit the Federal Reserve Bank- which passed by a wide margin in the House Financial Services committee and has over 319 House co-sponsors- was threatened by a compromise in the Senate today.
More specifically, Paul’s language (passed by the House) to audit the Federal Reserve has been stripped from the Sanders Amendment to the Senate financial reform bill. Instead, the Sanders Amendment now contains softer compromise language that exempts monetary policy decisions, discount window operations, and agreements with foreign central banks from Government Accounting Office (GAO) audit.
So, the new amendment pretty much eliminates transparency where we actually need it.
All of this seems to have occurred AFTER the stock markets made their largest intra-day decline in history. The timing is nothing short of amazing, and we’d suggest that the two events (stock market crash and the subsequent stripping of the bill) or very much related.
The Fed is likely engaged in the largest Ponzi scheme of all time and we’re not talking mere billions like the Bernie Madoff scheme. We’re talking about tens of trillions of dollars across the entire globe shifting hands. Any truly transparent audit bill would threaten those in power, including beneficiaries of trillion dollar swap schemes and bailouts that include massive banking institutions, as well as whole nations.
The Theory: Why Congressional officials may have been blackmailed:
A hypothetical scenario, written by Zero Hedge contributor Cognitive Dissonance, gives us a look at what may have happened on Thursday. The names have been changed, as this is a fictional account:
John [TPTB REPRESENTATIVE]: We were hoping you’d reconsider your position. Some of your political support is wavering and while the public might think a Fed audit is a good idea, that’s just populist poppycock and you know it. There are a lot of powerful people who’d like to see this problem go away. You might want to think twice before pissing them off.
Howard [SENATOR WHO INTRODUCED AUDIT BILL IN SENATE]: Cut the crap John, you’re not talking to some teary eyed freshman here. I’m fully aware of who and what I’m up against and I’m not backing down. You and your puppet masters have gone too far this time and while you might eventually gut me on this one, I’m willing to take that chance. There’s strong support in the House for Paul’s version and while things are still up in the air in the Senate, I’m certain with elections coming I can pull together a super majority to get this passed. Face it John, you’ve lost. Take that back to your people with love from me.â€
John: These are serious people we’re talking about Howard. People who’ll stop at nothing to see their interests furthered. You’ve seen some of their handy work yourself; you know what I’m talking about. Why can’t we compromise on this one? I’m sure we can find some language that will satisfy everyone with no need for blood to be shed.
…
Without waiting for an answer John reaches across the desk and grabs Howard’s office phone, pulling it over to his side of the desk as he punches in a phone number. Howard notices that it’s well over 15 digits, indicating John is accessing a secure network. John looks up at the TV while waiting for the first ring and Howard, seeing John’s attention shift, does the same. It’s now 2:10 PM and the S&P is down 26. The CNBC repeaters are looking a bit frantic as well. Howard feels a cold chill run down his back. What’s going on here? He knows these people are powerful but is John about to do what Howard thinks he’s about to do?
[source: The Call “ A Fictional Look at the 25 Minute Market Crash]
Did it happen like this?
Did The Powers That Be temporarily crash our stock markets as a way to show what they could do if Congress moved forward with the Audit the Fed Bill and the Brown/Kaufman amendment which would have required banks to follow strict guidelines to protect America from a systemic financial crash?
No, they wouldn’t do that – they wouldn’t crash markets or threaten us with martial law and tanks in the streets if they don’t get their way.
If TPTB did manufacture this crash, does anyone believe that they won’t go ahead and bring the system down when they are finished doing whatever it is they are up to? What if the eventual goal is just that – a complete destruction of the US dollar and the United States of America as we know it today?
Whoever these people were have no problem wiping out $1 Trillion in wealth in a single day. If it was your retirement account that got wiped out, do you think they would care that everything you’ve worked for your entire life was gone?
There are conglomerates of interested parties – business, political, personal – that will stop at nothing to achieve their goals. They’ll take everything you have, everything you’ve ever earned. They’ll collapse our economic system and change our political structure, even if it means wiping out millions of lives in the process. And, if necessary they’ll send you or your children to war to do their bidding.
This is serious business. You can feel free to cover your eyes and discount this as conspiracy, but what if….?
Related:
Was Yesterday’s Stock Market Glitch Really Big Banking Blackmail?
Death of Brown/Kaufman a Huge Blow [Rolling Stone]
Congressman Paul Supports Vitter Amendment to Dodd Bill [Ron Paul Press Release]
This is not just about us ( USA) this is about the world. These people have no borders, no loyalties, no countries. This is absolute power.
And the American people have way to much wealth. Houses, cars, boats, tv in every room including mommies van. Look how the rest of the world lives. Pennies a day. Americans can live like that too.
We have to much to bitch about. Everything from softer toilet paper to dry bread. Let us (meaning those in charge) give the people something else to worry about. Like how will they eat today let alone tomorrow. This is the way of power. It has always been this way with just moments of rest for the weary. You don’t think so? Go turn your electric power off for a month don’t pay your taxes this year. Teach those greedy oil companies a lesson and don’t buy their high priced gas this summer. And while your at it teach those giant agri-business people a lesson too. Show them just how long your strong will will not let you starve.
Wake up people. Our hay ride is over. It will be the way they want it even if they have to destroy a house, a town, or a city or a country. There is no wall or fort or nation that has not been breached. No army to big or to strong that has not been conquered. Just read the history books. Wealth and power have always won. And it always hasn’t been the good guys either.
There is no Last Valley.
And we will sit around our stock piles of guns, gold and grub. we can hold off 2 or 3 guys with ease maybe 5 or 6. We can give 10 or 20 people a real good fight but can you fight off 500 0r 5000 people wanting your 3 G’s ? . There is not one acre on this Continent that doesn’t have a footprint on it. And if they can’t find you by google your neighbors will rat on you. Somebody knows where you are.
But there is just something in us that says: “Come get some”
The biggest threat to American wealth, sovereignty, and way of life is on our Southern Border. Those 40 million “soldiers” boasted of by La Raza, are not investors.
They are invaders.
Whether or not “they” intentionally crashed the market to “pound their chests” so to speak is not the most important question/issue here.
In my opinion, what people (at least those who own a decent amount of stock) should be asking themselves is what the stock market, at least here in the U.S., would look like right now if not for high frequency/quant trading by major financial institutions over the past 13 months.
Put it this way – To what extent has “real investor/organic” demand driven the rally since March ’09?
As I’ve said many times here, I don’t know jack – but my gut tells me to agree with those who have opined that this rally has, in large part, been fueled by nothing more than “a game of musical chairs” being played by “them.”
…and when the music stops, if you can’t grab a chair (i.e., sell that stock you just bought for at least what you paid for it), you are going to be stuck with a bunch of crap that you paid WAY too much for.
As long as the music keeps playing, you can probably still make a buck or two on this charade…
The question to ask is which version of  McLean’s “American Pie” are they playing right now? The long or the short?
Ray, come on there buddy. You want us to “just give up”. Boy, it really makes you wonder about the little “mind games” being played on this site. I”m NOT giving up. You go ahead and report to the “FEMA” camp, get you number and go meet your maker. I’ll meet mine too, but I’ll be fighting “THEM” until that day. You might want to bow down to the powers. The majority of us don’t. Stop playing the “all is lost” game. With people like you, THEY certaintly will win.
Man-o-man, you may plant “that seed”, but it ain’t sprouting in “my” mind. More Jewish BS.
Sadly, all of this stock market shit is for show. Most of the volume of the trades is program trading, more or less PPT crap, hasn’t got anything to do with reality. It’s there to bilk the last five bucks out of the terminally GREEDY amongst us who think there is such a thing as SOMETHING FOR NOHTING!
Too bad the average person isn’t buying into this charade, they might as well be holding seances in cemeteries, for all the good it does, the market is a sham and nobody is making any real money. It’s all for show and it’s all a bunch of HORSE MERDE!!
This “scenario” pretty well outlines my thoughts and gut feeling about Thursday’s event.Â
This was no mistake … this was a warning.
Good article by Max Kaiser (click thru) with a couple of comments from Ritholz, who I find pretty balanced, along with the HFT table (look at Goldman’s principal trading … they’ve had higher but this is still staggering).
http://www.ritholtz.com/blog/2010/05/manchurian-candidate-market/
The next Farceidential election, the candidate that promises raising taxes on the rich, increases entitlements to the moochers will win the election. Obama’s 2nd term will be the disaster that destroys the entire world economy.
60+% of America is the moocher class.  When the legalize the illegals that number may be closer to 70% moochers.
What America needs is to end the Fed, cut non-SS/MC entitlements by 100%. Bye bye freebees, unemployment insurance, student grants for being a certain color. We need to end all forms of taxation at all levels (local, county, state, federal) and the IRS and initiate a single flat tax on all purchases only. No more refunds, no more moochers.  We need cut off all aid. No more bailouts.Â
…but if a candidate ran on these principals he would only get 40% of the vote, 0% from the moochers.
That is why the candidate that promises the most to the moochers will win and America and the world economy will collapse 2013-2015.
Relax now but prepare for the 2nd American Revolution.
Everything is going to hell in a handbag.
http://www.bloomberg.com/apps/news?pid=20601009&sid=aSVzucla6Dh0
Interesting theory, and completely plausible. Another theory might be that since the majority of stock trading today is computer programs and black box algorithms that the Greece debt issue was the Black Swan that triggered a series of cascading margin calls and sent stocks hurtling through multiple technical levels which only caused the computers to sell even more. But that couldn’t happen could it?
Then the PPT is there to buy it all back from an off-shore account and save the day once again.
Greed is what is preventing this market from collapsing. PURE GREED. The fact is the financial condition of not only our country, but the world overall is horribly devastating. The printing press is the only thing that is keeping the markets alive. All because of GREED. GREED and the printing press can only keep the markets afloat for so long. Then BOOM. THE BIGGEST WORLD MARKET CRASH EVER.
Everything is starting to deteriorate at a much faster pace than I thought. This ultimate crash is now plausible within the next twelve months.
-Mortgage giant Fannie Mae suffers $13 billion in losses in first quarter, asks Treasury for $8 billion infusion
Everything is going to hell in a handbag…….
As long as it’s Gucci, (or a real good Chinese knockoff), I don’t think the majority will even notice until it’s too late. The road to hell is indeed paved with good intentions.
Themis Trading New White Paper: Data Theft on Wall Street
Must read for anyone who still has a shred of faith in the American capital markets. A true restoration of credibility in US equities, which are nothing than thoroughly fragmented and two-tiered as they stand currently, will require a complete bottoms up overhaul. Unfortunately for that to occur, the current regulators and even the current bought and corrupt administration will need to be replaced.
http://tinyurl.com/2cnjbnm
Great report Mac. Much appreciated. You show that political change is no longer possible.
The productive sector needs to take matters into its own hands, not with violence (that’s what the oligarchy most wants), but with rejection. Doing it is absurdly simple — stop using the USD, and create a diversity of productive sector currencies.
If the airlines paid invoices and payroll with ‘miles’ and unfailingly redeemed them, at par, for flights, you’d have the first global private currency. They’re too controlled to do that, of course, (90% of their income is dribbled to them by the credit card companies) but small towns can do it!Â
The ‘general store’, the neighborhood handyman, the doctor, the dentist : any & all could pay their bills with their own notes, as long as everyone knew they redeemed them faithfully. The reputable would prosper. The disreputable would see their notes discounted 10%, 20% — 90%
The more you consider that, the more you will realise that that is the ONLY fully viable liferaft when the current eye of the hurricane passes and the tail-end blasts all our rickety structures to tinder and toothpicks.
I think this was another shot across the bow. As well as the BP incident. There are forces at work here that very few have knowledge of. Oil rigs don’t just blow up and the fingers on Wall Street are nimble, not fat. It may be time to declare a war on sociopaths.
As someone with a little bit of knowledge about oil and gas, I promise you, Clem, O&G wells do blow up. Not very often, but they do indeed blow up. The front end investment in off shore, deep well drilling is enormous. If production is not captured there is no profit. Only losses.
No boogyman there.
This is a very important video that must be shared!
Congressional cowards! They are pathetic. There is no hope now.