There Are No Free Markets Anymore

There are no markets anymore, just interventions – Chris Powell, GATA

I cannot phrase the current state of the global markets any more succinctly than Chris Powell did in the title of his fantastic article for GATA.org.

First, let’s consider this Bloomberg report that the US, Europe, and Japan devised a plan to prop up the dollar in mid-March – with the fruits of their labor resulting in this massive dollar rally.

Also, an article by Vincent Bressler at GoldSeek.com. I’d highly recommend a read – here’s a brief excerpt:

For the last month the US Treasury, in conjunction with the CTFC, SEC, Goldman Sachs and others have conspired to annihilate gold and silver on the futures exchanges of the world in conjunction with massive intervention to prop up the US Dollar vs other currencies.

Let’s you and I, dear reader, review the Federal Government’s ailments entering this summer:

1. Prop up the stock prices of the financials. With equity prices depressed, the financials would be sunk, as they wouldn’t be able to raise more capital without severely diluting their existing shareholder base. FED RX: SQUEEZE THE FINANCIAL SHORTS
2. Prop up the dollar. FED RX: COORDINATED INTERVENTION WITH OTHER CENTRAL BANKS.
3. Control the prices of gold and silver. The dollar cannot be viewed as a “safe haven” if gold and silver are doing moonshots. FED RX: DRIVE THE PRICES OF GOLD AND SILVER DOWN SO SHARPLY, THAT ALL LEVERAGED TRADERS ARE FORCED OUT.

#1 – Check…#2 – Check…and #3 – Check, plus extra credit for all of the leveraged traders that have been busted

Ha – I’m still standing you bastards! 🙂

So the million dollar question (priced in gold, of course) is…how can we “invest” in markets that are being manipulated in such a grave fashion? Especially when we’re opposing the House!

Should us commodity nuts just give it up, and start buying shares of Apple and Google?

Call me an old school, free market, libertarian kind of guy – but even in this hour, a very dark hour for free markets – I don’t think, for one second, that these bastards are going to be able to manipulate these markets over the long term. And I plan to trade accordingly, and make all the money I can, while I’m still allowed to do so.