----- Original Message -----
Sent: Sunday, November 20, 2005 12:01
PM
Subject: [RT] The Fed Announces it Will
Hide M-3 To Keep You From Knowing What?
Some interesting Sunday reading
from the 'From the Wilderness" website. The site has an email list that can
be? subscribed to free at?http://www.fromthewilderness.com.
I have no relationship to them. Just a periodic reader.
Eliot
[Safehaven is a market analysis and investment
website. Not having used their services, this reporter cannot comment on their
performance (which is the subject of this article?s second half, available at
http://safehaven.com/article-4108.htm). But this excerpt, like most of their analyses,
usefully describes the activities of the Plunge Protection Team. Like
Catherine Austin Fitts, Chris Sanders, and James Turk, these people help
explain that the financial markets are rigged, and the M-3 money supply is a
key tool in that practice. A good explanation of M-3 appears at
http://en.wikipedia.org/wiki/Money_supply. --JAH]
The Fed Announces it Will Hide M-3 To Keep You From
Knowing What?
by Robert McHugh
November 14, 2005
Safehaven.com
http://safehaven.com/article-4108.htm
The
Federal
Reserve announced on
November 10th, without explanation, and I quote, "On March 23, 2006, the Board of Governors of
the Federal Reserve System will cease the publication of the M-3 monetary
aggregate. It will also cease publishing the following components:
large-denomination time deposits, RPs, and Eurodollars. The Board will
continue to publish institutional money market mutual funds as a memorandum
item on this release."
Why? It's simple, really. So that the Plunge
Protection Team can hide its market manipulative, equity buying
activities. You see, one of
the key differences between M-2 (which it appears they will report) and M-3,
is repurchase agreements. This is perhaps the most obvious reporting item
where PPT market buying transactions show up. If they no longer report this
item, folks like us who monitor the growth of M-3 for clues as to when the PPT
is likely to buy the market, will have a harder time reporting that fact
before, or even as, the PPT buys. Investors will be left more in the dark as
to any secret rigging of the stock market. Why now? Apparently the Federal Reserve (a key
member of the Working Group, a.k.a. Plunge Protection Team) sees a coming need
to buy - or facilitate the buying - of markets, including the equity market,
incognito. Apparently, they
don't want investors knowing they are the ones doing the buying, keeping
prices up, or pushing them higher.
We
have continuously demonstrated the high correlation between growth in M-3 and
a rising stock market. We have also demonstrated that when M-3 either declines
or stays the same, the stock market is prone to decline. The Fed knows its
hypocritical hyperinflationary expansion of the money supply recently has been
publicized by Fed watchers, and that 12 percent annualized growth in M-3
during a time when the Fed is raising short-term interest rates aggressively,
and jawboning a determination to stop inflation, is nothing short of
illogical, bizarre Fed behavior. The reason for the dichotomy is quite simple.
The Fed can
electronically print money and hand it over to the PPT to buy this stock
market. That has to be why all the extra M-3 growth over the past several
months.
When
we presented the Hindenburg
Omen analysis several weeks
ago, we warned that the PPT would likely buy this market to stop the
higher-than-normal probability that the market could crash.
Why did we warn that the
PPT would likely buy this market, and stop any potential crash? Because of the
M-3 numbers. We could see
there was too much money being created. We know that the way money gets into
the economy is by the Fed buying securities. Inflation is too much money (M-3)
chasing goods. Well, GDP (goods and services) is growing annually around 3.8
percent, yet M-3 was being pumped at three times that rate of growth. The
difference had to go somewhere. It did. Into markets, and very probably equity
markets.
Why all the M-3? Undoubtedly because the PPT wanted to manipulate
markets at this time for reasons that are secret to everyone but them. We are
left to speculate as to those reasons. Is the economy closer to the brink than anyone
realizes? Or, is it politically expedient to goose markets? Do the corporatist
elitists want the big payback for backing the powers that be, and insist upon
a rising market into year end? Does Greenspan have an all-encompassing,
overriding desire to ensure his legacy by seeing the Dow Industrials at an
all-time high when he retires in January? We aren't privy to the reasons because the Master
Planners do not believe in the forthright flow of information. They believe
that bad news cannot be handled by the flock, that confidence must be boosted
at all costs, even if it entails manipulating the markets. Don't let the dead
be honored, instead sneaking them into Dover at night. Don't let the real
jobless figures be released, goose them with a phony birth/death adjustment,
and so on. Now we can kiss goodbye the most important Fed statistic computed.
Do you see what is happening folks? The Unpatriotic Act steals your civil
liberties. Three young girls from Kansas cannot board an Amtrak train to New
York unless they have a government issued photo ID. Not some futuristic sci-fi
plot. Now. It is called Corporatist Fascism. Next could be freedom of speech.
Then martial law. A computer chip under your skin. Eventually, your right to
vote. Then it is all over, game set and match.
Not a peep from Congress on the massacre of
M-3. Oh the figure
will be calculated. We just won't be allowed to know it anymore. Really begs
the question, once again, why? Obviously because the Master Planners
expect to have to increase the Money Supply very rapidly, to extraordinary
levels next year.
Obviously because they believe they are going to need to buy equity and bond
markets aggressively next year. Do they see a catastrophe coming that will
require hyperinflation to bail the U.S. out? Maybe. Every time we've had a
tragic event of mass proportions in 2005, the equity markets have mysteriously
risen out of the blue, sharply, taking shorts to the cleaners. London bombing,
Katrina, Rita, indictment of a top administration official, etc... Yes, the
Master Planners have learned that they have the wherewithal and the gall to
buy the markets - and get away with it. They have learned that at those times
when markets are at greatest risk, when shorts have their positions lined up,
a little S&P futures index buying, a select few large cap stock buys, a
leak to the trading floor that their golden boy trader is buying is enough to
send the shorts scurrying for cover and buy the market. You see, the PPT only needs to kick start the
buying. Then the shorts buy. Then the Hedge Funds jump on the bandwagon in
search of that elusive trend - either up or down - deciding it is going to be
up, and keep the rally going. But by the time the Hedgies are buying, the PPT is
able to get out (and their Wall Street friends who took the risk and bought
with them early) at a nice profit, the shorts are out licking their losses,
and we watch a waning rally with low upside volume, low advance/decline
ratios, and a high number of New Lows - kinda like right
now.
Yes,
don't let the technical analysts and Fed watchers know when the PPT is coming
in. That will spook the shorts out and the PPT needs the shorts
in. But the March 2006 M-3
announcement makes one wonder. What in the world are they going to be up to
next year, that will require hiding the growth of money supply from the U.S.
citizenry who used to own this country, who elected this
outfit? War? A big-time
war? Martial law? Could it be as simple and corporatist as merely wanting to
drive equity markets higher so weak political ratings improve? Maybe nothing
to do with national security at all? These are the types of questions every
thinking man and woman needs to ask themselves and their congressional
representatives, given the Fed announcement. Remember, the original mandate of the Fed was to ensure a
stable currency. Money. So now they aren't going to release their measure of
money to the public? One
thing that can be agreed upon, based upon our technical analysis work, is that
we are sitting upon an incredibly fragile moment in the markets, one that is
in no shape to psychologically withstand a catastrophic event on its own. It
would thus appear that the Federal Reserve, in tandem with the Master Planner
Team, is taking steps to prepare for the worst, and unfortunately that
requires secrecy from the people. Secrecy about how much money is going into
the economy. Secrecy.
