Interventions In Stocks And Gold Are Linked

When talking about the manipulation of gold or stocks, two questions always come up:

Why do “they” bother to suppress gold?
Where do “they” get the money to prop up stocks without it being noticed?

Believers in manipulation always try to answer them separately, and these answers never seem to fully satisfy critics. Surprisingly, in all the conspiracy articles I have ever read, I have never heard anyone suggest that the answers to these two questions is directly linked.

The connection between stock and gold manipulation

Unnatural (PPT) rallies in stocks always seem to coincide with strange activity in the gold market. Rather than try to explain, have a look at the graphs below. I have highlighted three PPT (Plunge Protection Team) interventions in the stock/gold markets following the Bear Sterns collapse, the Indy Mac Collapse, and the Lehman bankruptcy.

Looking at these two charts side by side, it should be obvious what is happening: the treasury/ESF funds its stock market interventions by shorting gold!

Two more observations:

1) One of the not-discussed motives to selling/shorting gold is to raise funds for other interventions. In fact, on some occasions, raising money to save the stock market might be the main motivation for shorting gold.
2) One reason everyone assumes that the Fed is involved in PPT efforts is that they think the Fed credit is used to bankroll these interventions. However, if the Treasury/ESF financing its intervention by shorting gold, then the Fed need not necessarily be involved


(Final note: for those of you who think I have changed my opinion of the Fed as a problem institution, I haven’t. I simply believe the Treasury/ESF is an even bigger problem)

Eric de Carbonnel

Market Skeptics

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