The tighter your grip, the less you can control,
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What If The "Crash" Is As Rigged As Everything Else?
http://www.zerohedge.com/news/2015-08-26/what-if-crash-rigged-everything-else
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
Take your pick--here's three good reasons to engineer a "crash" that benefits the few at the expense of the many.
There is an almost touching faith that markets are rigged when they loft higher, but unrigged when they crash. Who's to say this crash isn't rigged? A few things about this "crash" (11% decline from all time highs now qualifies as a "crash") don't pass the sniff test.
Exhibit 1: VIX volatility Index soars to "the world is ending" levels when the S&P 500 drops a relatively modest 11%. The VIX above 50 is historically associated with declines of 20% or more--double the current drop.
When the VIX spiked above 50 in 2008, the market ended up down 57%. Now that's a crash.
Exhibit 2: The VIX soared and the market cratered at the end of options expiration week (OEX), maximizing pain for the majority of punters. Generally speaking, OEX weeks are up. The exceptions are out of the blue lightning bolts such as the collapse of a major investment bank.
Was a modest devaluation in China's yuan really that unexpected, given the yuan's peg to the U.S. dollar which has risen 20% in the past year? Sorry, that doesn't pass the sniff test.
Exhibit 3: When the VIX spiked above 30 in October 2014, signaling panic, the Federal Reserve unleashed the Bullard Put, i.e. the Fed's willingness to unleash stimulus in the form of QE 4. Markets reversed sharply and the VIX collapsed.
Now the VIX tops 50 and the Federal Reserve issues an absurd statement that it doesn't respond to equity markets. Well then what was the Bullard Put in October, 2014? Mere coincidence? Sorry, that doesn't pass the sniff test.
Why would "somebody" engineer a mini-crash and send volatility to "the world is ending" levels? There are a couple of possibilities.
1. The Shock Doctrine. Naomi Klein's landmark study of how manufactured crises are used to justify further consolidation of power, The Shock Doctrine: The Rise of Disaster Capitalism, provides a blueprint for how financial crises set the stage for policies that extend the power of central and private banks and various state-private sector players.
A soaring VIX and sudden crash certainly softens up the system for the next policy squeeze.
2. A "crash" engineered to set up a buying opportunity for insiders. When easy gains get scarce, what better way to skim a quick 10% than engineer a "crash," scoop up shares dumped by panicked punters and momo-following HFT bots spooked by "the world is ending" VIX spike, and then reverse the "crash" with another round of happy talk?
3. Settling conflicts within the Deep State. I have covered the Deep State for years, in a variety of contexts--for example:
Is the Deep State Fracturing into Disunity? (March 14, 2014)
The Dollar and the Deep State (February 24, 2014)
Surplus Repression and the Self-Defeating Deep State (May 26, 2015)
Without going into details that deserve a separate essay, we can speculate that key power centers with the Deep State have profoundly different views about Imperial priorities.
One nexus of power engineers a trumped-up financial crisis (i.e. a convenient "crash") to force the hand of opposing power centers. As I have speculated here before, the rising U.S. dollar is anathema to Wall Street and its apparatchiks, while a rising USD is the cat's meow to those with a longer and more strategic view of dollar hegemony.
Take your pick--here's three good reasons to engineer a "crash" that benefits the few at the expense of the many.
[Swami: So, consolidation of power, rigging for profit, and jockeying for power positions]
[Snips from the comments]
You got that right. Everything is rigged. Stage managed on a central scale. They are even preparing what nonsense to say after a sizable decline in the market and it won't make any sense.
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Everything is managed for control. They think they have control and can manage everything. They can't and then they lose control. They will lose control again. But the loss of control is not staged. Again, they think they can manage eveything. Their models fail. We are about to see a big failure. Some of you need to add another layer of tin foil added to your head. They will manage after the failure, again, because they think they know what they are doing.
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"They will manage after the failure, again, because they think they know what they are doing."
Could be because "they" have done it before. People should be taught who "they" are
"The Rothschilds were universally acknowledged as the wealthiest clan on the planet in the 19th century. They never lost that wealth. We simply lost all knowledge of it. The House of Rothschild has effectively erased itself from our (so-called) history books. That takes power.
Are children taught in our classrooms that most of the (endless) wars between European powers during the 19th century were examples of House Rothschild already “playing” the governments of Europe against each other, like puppets? Are the children taught that a basically unknown cabal of bankers created the Bank for International Settlements in the early part of the 20th century, so that these Western bankers could do the money-laundering necessary to allow Western industrialists to supply armaments to the Third Reich?
They certainly aren’t taught that one of those “industrialists” – Prescott Bush – was convicted of “trading with the Enemy”. Because if they had been, clearly it would not have been possible for both his son and grandson to be elected as presidents of the United States, where they could serve the bankers.
Postulating a group of ringleaders for this banking crime syndicate other than House Rothschild is problematic. It involves manufacturing an entire mythology around such hypothetical ringleaders, whereas with this clan of megalomaniacs, the historical, financial, and political context is already in place.
Their wealth is undeniable. Their intentions are unequivocal. The amoral malice they hold toward the rest of humanity is documented, historical fact."
How Western Governments Will Steal Your Land, Part III
"They" are Rothschild!
"People without homes will not quarrel with their leaders."
- The Bankers Manifesto of 1892
"Simply put, there was/is no other clan on the planet that already possessed the wealth and power to make the pledges contained in The Bankers Manifesto of 1892, in 1892 – and then to (finally) pursue that crime-against-humanity to (near) fruition, in 2015."
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They aren't that powerful. Why give them the benefit of the doubt? They (if there really is a they that has control) would like nothing more than for you to sit home whimpering, worried about how much control "they" have.
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I'm not so sure. This article might be spot on. Consider this:
Federal Reserve can print and create INFINITE digital and physical dollars. With infinite dollars, they can control EVERYTHING. Both UP and DOWN. We can't audit the Fed, how do you know their balance sheet is really 4 trillion? Because they say so? They could literally decide the prices of every single thing in dollar terms with unlimited dollars at their disposal.
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I don't think the Skxawng in charge have the organizational capability to pull off an event of this magnitude with any reasonable expectation of success. They manipulate where they can and surf the waves just like the rest of us...
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I truly wish it were all rigged… There could be some comprehensible intelligence behind all this disaster
Oh, no -- They were smart enough to wreck the machine in stripping out all its wealth, but THEY ARE NOT SMART ENOUGH TO UN-WRECK IT!
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"This Act (the Federal Reserve Act, Dec. 23rd 1913) establishes the most gigantic trust on earth. When the President signs this bill, the invisible government by the Monetary Power will be legalized. The people may not know it immediately, but the day of reckoning is only a few years removed. The trusts will soon realize that they have gone too far even for their own good. The people must make a declaration of independence to relieve themselves from the Monetary Power. This they will be able to do by taking control of Congress. Wall Streeters could not cheat us if you Senators and Representatives did not make a humbug of Congress... The greatest crime of Congress is its currency system. The worst legislative crime of the ages is perpetrated by this banking bill. The caucus and the party bosses have again operated and prevented the people from getting the benefit of their own government."
"The new law will create inflation whenever the trusts want inflation...they can unload the stocks on the people at high prices during the excitement and then bring on a panic and buy them back at low prices...the day of reckoning is only a few years removed."
"When the President signs this act [Federal Reserve Act of 1913],
the invisible government by the money power -- proven to exist
by the Monetary Trust Investigation -- will be legalized.
The new law will create inflation whenever the trusts want inflation.
*** From now on, depressions will be scientifically created. ***"
-Senator Charles A. Lindbergh
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it wasn't and will not be completely rigged, but is instead heavily influenced to move in a desired direction. market is the ocean upon which the ships of state travel. they can steer the ship out of a storm or take it to safer harbors, but they can't significantly change the ocean or the waves.
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Rigged or not, you can bet they ran the supercomputers through every scenario to make sure they don't miss a nickel, no matter what the market does. All citizens have to do to stop the shenanigans is pull all their money out and turn it to PM in a safe place. Nobody at the tables, casino closed. Have a nice day.
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But if you offer a helping hand..
