Are Markets Manipulated All The Time?

QUESTION: Mr. Armstrong; Some people say you will not admit markets are manipulated all the time. Yet you stood up and had all the evidence that would have damned the whole lot of the New York bankers for manipulating markets. This is very confusing how you can be against them in public yet people claim you refuse to admit the markets are manipulated all the time between the central banks and the New York bankers. Can you shed any light on this paradox?

 

 

ANSWER: I am a student of markets. I do not make up bullsh*t. I am of the school of Adam Smith – assume nothing – prove everything. Claiming markets are manipulated all the time  is impossible. Marx tried that with communism and the free markets still won. This claim is merely a cop-out for admitting someone does not understand how markets function. Sure the banks manipulate markets individually. They cannot and do not do this systemically. Even in LIBOR they rig the game to make consistent profits but that does not mean they are capable of manipulating the entire trend. Even the central banks can control short-term rates within a trend but not long-term. This is why they then buy in long-term paper trying to INFLUENCE the long-term – they cannot dictate the price or trend. They have no direct power over markets. They can suppress the short-term like communism but the free markets will blow them out of the water when the Sovereign Debt Crisis hits. Why people put out this bullshit is amazing for if it was true then why buy gold at all for the system cannot ever collapse if it is all perfectly manipulated. This is just total gibberish from people who have ZERO experience inside the markets or behind the curtain. I had more than half the equivalent of the US National Debt under contract for advisory. I think I saw things no analysts has ever dreamed of no less understood. These people make up stuff to hide their inexperience – plain and simple. The banks told the government I manipulated the world economy BECAUSE they lost every time from Orange County, Solomon’s manipulation of US Treasury Auctions to the DOT.COM bubble and the 2007 Real Estate crisis. They ALWAYS blow up every time and run to government to get bailed out. How is this someone who manipulates the markets everyday? They should never fail if true.

You get mislead people swearing gold will rally to $10,000-$30,000 any day and when it falls out of bed they blame manipulation for being wrong. If the markets are manipulated ever day, then why trade against the trend using theories that purport the world will collapse any day? This is the real paradox to me. How can you say buy gold and when you are wrong you do not admit the mistake but blame manipulation? If it is manipulated then why tell people to buy something that can never rise?

We always tracked manipulations. I knew ABSOLUTELY every single one they did. We monitored the manipulations very carefully. The various manipulators hated my guts just like the goldbugs who will not listen. They tried to get me to join them figuring that when they lost it was because I had more followers than they did and therein started the allegation of manipulating the world economy that I had to defend against a subpoena from the CFTC demanding I turn over all names of clients worldwide so they could prove I was more powerful that the banks they protect. I defeated them in court. My lawyer at the time Chris Lovel stood up and told the judge even if I did manipulate the world, where was the law that said I could not no less how was it the domain of the CFTC?