The Plunge Protection Team Wags the Dog with Futures to Manipulate Stock Markets and Bitcoin

I was surprised after all these years to find a major conspiracy theory that doesn’t have a lame debunking article on Wikipedia.

Now that I’ve found one, I’m hopeful that Wikipedia is getting the message: People won’t support censorship outfits like yours, because you’re often wrong about important things (same as me and everyone else).

The non-debunked conspiracy theory I’m talking about is the real-world function of the The Working Group, also known as the “Plunge Protection Team.” The PTT was set up on March 18, 1988, by Ronald Reagan in response to “Black Monday” (October 19, 1987) when the stock market did a one-day black swan dive, the likes of which had never been seen before. This titanic yet brief crash was due to programmed trading by the primitive software of the era.

The Working Group’s existence is mainstream knowledge. Its official marching orders included this admonition: “consult, as appropriate, with representatives of the various exchanges, clearinghouses, self-regulatory bodies, and with major market participants [big stock traders] to determine private sector solutions wherever possible.”

In other words, “Now hear this: all you governmental market regulators and massive non-government stock trading institutions (the 16-ish Fed-favored banks and the gigantic funds like BlackRock, Vanguard, Charles Schwab, State Street Global Advisors, and Fidelity Investments), the new 1988 official government policy is that you people WILL artificially prop up the US stock market during major crashes. Capeesh?”

OK, that’s a paraphrase, but it’s the message.

Ten years later in 1997, The Washington Post came up with the nick name for The Working Group: “The Plunge Protection Team.” Soon other people woke up to the reality that the US stock market is being propped up artificially during downturns in response to an official government mandate.

One of these awakening elites was, in fact, a former FED member, Robert Heller, who not only believed that the whole fraud was happening, but he thought it was a good idea and suggested a better way to dishonestly and covertly prop up a falling US stock market…

To quote Wikipedia (gag me): “Former Federal Reserve Board member Robert Heller, in the Wall Street Journal, opined that ‘Instead of flooding the entire economy with liquidity, and thereby increasing the danger of inflation [as Joe Biden recently did and Trump before him], the Fed could support the stock market directly by buying market averages in the futures market [the S&P 500 futures contract, symbol ES], thereby stabilizing the market as a whole.'” (This has nasty implications for Bitcoin, by the way.)

The thing these sorts of well-meaning experts don’t realize (or more likely they do realize it as part of their plan) is that when a country’s government takes over private enterprise, you’re left with a totalitarian government. Simple as that. Whether it’s communist or fascist makes little difference to the millions of people they tend to exterminate.

Knowing (from their dealings with England) all about the totalitarian instinct that dominates ALL human organizations from Christian Churches to secular Kingdoms, the “Founding Fathers” of the US did their best to segregate the forces of central power, giving us the separation of law makers, law enforcers, judges, and arguably “church and state” to some degree. Remember this old quote from the day they founded the USA:

“Well Doctor, what we got, a republic or a monarchy?”

“A republic,” replied the Doctor, “if you can keep it.”

Keeping it is today’s colossal struggle. It ain’t looking good, folks.

Today’s power-monopoly that the “Founding Fathers” couldn’t foresee and avoid was the takeover of the US government by corporate industry (through re-election bribes and threats) and the simultaneous government takeover of asset control by strong-arming the largest market participants with the creation of the Plunge Protection Team and its official mandate (to fight market crashes by “temporarily” ending free markets in the US).

The US experiment in freedom has been sweet, but it will be brief unless we citizens wise up in a superhuman way and stop voting for people who promise to give us expensive things that our great grandchildren will have to pay for, including the mainstream mirage of an eternally expanding money supply (through debt and central control).

The sweetness of free markets in the US is this: they have lifted the vast majority of poor people from life-threatening poverty into a relatively starvation-free type of poverty where obesity is now a problem among the poor. As far as I know, free markets are the only human experiment that has accomplished this incredibly hopeful feat. All other attempts, including communism, have failed miserably.

I suspect the success of free markets comes from the way they inspire people to work harder than they ever have before. We’ve seen this in real-time in China, for example, when they opened the doors a narrow crack to free market enterprise. In record time their country’s GDP skyrocketed and the poor began climbing out of poverty. Lately, unfortunately, the Chinese Communist Party has been frightened by the whole thing and seems to have pulled the rug out from under their own economy, but who knows what the truth really is in China?

The answer is, only their “president,” Xi Jinping, who has recently become a life-long dictator in response to his own human greed for power and control. He alone knows China’s truth because totalitarian governments throughout history have considered lies an essential tool, not an ethical gray area, and certainly not an inherently destructive force that destroys trust, trustworthiness, and love, the foundations of every stable culture, marriage, and friendship on Earth.

I think it’s well to remember that our loss of free markets in the US (and the resulting loss of the true democracy we once had) is just as likely to have happened as a manifestation of either

1. unintended consequences of well-meaning experts, or

2. the planned, bloodless takeover of western democracies by tyrants, possibly communists from China and Russia, and/or the well-intentioned sociopaths who run the World Economic Forum and seem blind to the “unintended” negative consequences of their wonderful sounding plans and dreams for a top-down utopia (owned and operated by wealthy stakeholders).

Hey, Klaus Schwab, the world has tried every sort of pseudo-democracy with wealthy elites running things. It does not work. Totalitarianism does not work, dude.

No matter who winds up at the top, the outcome is never sweet for the poor and the middle class.

Ironically, many, if not the vast majority of people in the US who openly favor totalitarianism are good-hearted, smart people whose sincere desire is to elevate the poor. But thinking critically about complex human systems while trying to see both sides of a political argument was not part of their education because US public schools and universities don’t allow it on campus.

At the moment, the latest addition to the “tools” of the Plunge Protection Team is the Reverse-repo Market that was created in recent years and later began collecting trillions of dollars in deposits from the FED-favored banks after the FED raised the free money (interest rates) they donate to their powerful puppets.

And since “there’s no free lunch” in this world, these lucky puppet banks, being part of the Plunge Protection Team, will be called upon to support the stock market when it crashes in 2023.

But they won’t be buying individual stocks or unleveraged exchange traded funds (ETFs).

Instead, as Robert Heller suggested (linked above), the Fed’s pet banks and obligated trading firms will simultaneously prop up the US stock market by buying stock index futures (mainly the ES). What Heller didn’t know is that they will also sell short the futures contracts of one specific asset that the public presently despises.

I’m talking Bitcoin. The government’s machine will be selling Bitcoin futures.

Here’s why.

The totalitarian instinct of all human institutions will kick in when they realize that Bitcoin could limit their plans for top-down micromanagement of the US citizen’s spending habits.

The US government is moving towards a central bank digital currency (CBDC) that will give them total financial surveillance over citizens as well as the ability to influence our spending and savings through “incentives” like “spend it now or lose it” and “you bought too much meat and used too much electricity last week, a $666.00 fine has been deducted from your account. Sincerely, Klaus Schwab.”

This hellish CBDC reality is on the way. If you’re a Democrat, imagine Trump wielding this kind of power. If you’re a Republican, imagine Biden with this level of instant and direct control over your bottom line.

The only competition to a US CBDC today is Bitcoin. It can’t be outlawed by the The Securities and Exchange Commission because (unlike Ethereum and nearly all other cryptocurrencies) Bitcoin is not a security, it’s an asset, vaguely resembling a platonic form of gold, and it’s 100% the opposite of a central bank digital currency because it cannot be artificially created or destroyed.

When the folks at the FED begin promoting their CBDC, they will need a way to keep the price of Bitcoin from rising and attracting the buying power of the masses. Before long, they will remember brother Heller’s advice on how to do this devious thing most efficiently by SELLING Bitcoin futures contracts (BTCZ2).

Bitcoin’s “tail”, the Bitcoin Futures contract, is so highly leveraged that big money can use it to manipulate the underlying asset (actual Bitcoin) and “wag the dog” with relatively small amounts of money. They don’t have to buy up most of the Bitcoin to corner the market and then trickle-dump a bit of it every time Bitcoin’s price rises. That plan was so last week. Today…

Big trading firms and Fed-funded banks working together in silent but legally mandated conspiracy can move the broader stock market indices, according to former FED member Heller.

And since they can do that, we know they can certainly control the price of Bitcoin and stop it from competing with CBDC and limiting the grip of the FED’s exciting new totalitarian powers, delivered to them through the glorious miracle of central bank digital currency.

Why do these things happen?

Well, some people probably come into this simulated version of Reality to learn what it feels like to be a power-hungry control freak in order to avoid being this way when they “die” and return to Reality.

The rest of us probably volunteered to come here for reasons specific to us and to those we love.

“To everything…There is a season…And a time to every purpose under Heaven.”

Hang tough and keep your faith in God, whatever worldview details you believe.

Decentralized Love,

Morrill Talmage Moorehead, MD

First-principle thinking on Bitcoin and Banks

Drawing from the video below, consider this:

If you parked your car at a fancy restaurant, gave your keys to the valet, went in for dinner and the restaurant went bankrupt while you finished your Tiramisu, you could still legally step outside, grab your car keys and drive home. The vehicle was your property the whole time you were eating, even though you gave the keys to the valet. Common sense prevails in this situation because elites don’t enrich themselves by complicating it. But…

The opposite is true at your bank and in your brokerage account. Your property rights in these arenas are NOT respected because slick predators have greased the wheels of Congress for a long time and have gained the legal right to take your money, your stocks and your bonds and use them as if they owned them. They can lend them out, leverage them, create derivatives from them and use them for collateral in their own investing and horse trading. When they go bankrupt, you can’t legally grab your car keys and drive off with what you thought was your property (your money, stocks and bonds). Heck no. You gave them ownership. They robbed you with a fountain pen as Bob Dylan called it years ago when he left New York.

Common sense and fairness mean nothing to corporate and institutional thieves because they “own” Congress through huge campaign donations and their revolving-door job policy for retired lawmakers on both sides of the political aisle, senators and congresspersons who created laws for them during their DC “public-service” careers.

The unfair, illogical practice of legal hypothetical ownership ought to have a name that people can remember, but no, it’s called hypothecation. The term seems to derive from the notion that an institution that borrows an asset (i.e. “holds” your money or your stocks for you) actually takes “hypothetical” (imaginary but legal) ownership of the thing they borrowed from you. If they go belly up, they don’t owe you a thing. All that stuff they lost was legally their own property. Your assets became legally theirs to lose when you signed below the fine print.

And you probably had no idea you were making a loan at all, let alone a stupid loan that gave them legal ownership of your property.

Truth is stranger than fiction, again and again. Red pills all around.

It’s as if you gave your keys to the valet and signed a document you didn’t have time to read or the vocabulary to understand and BOOM, the valet owned your car in hypothetical but legally binding terms. And that young kid can now go out and drive your Bentley, trade it, sell it, lend it to someone, or smash it into a brick wall and it’s all cool in court because you signed your name to the IOU below the strange word hypothecation.

Let’s forget the word hypothecation, then. It’s too much like the term UAP (unidentified aerial phenomenon), it was created to hide the truth.

Instead, let’s call it “H” (like heroin, close to pure evil).

As the video below explains, H happens like this: I borrow a candy bar from you and give you an IOU, then I loan the candy bar out to someone else who loans it out to someone else…. This goes on until your candy bar has been loaned out many times, creating the false impression that there are dozens of new candy bars in existence now, not just the one. This false impression of many new candy bars tends to lower the value (or price) of real candy bars via the market forces of supply and demand. (Banks do this with the dollars you “loan” them, reducing the buying power of real dollars, i.e. causing inflation.) At some point in the candy bar borrowing market, someone eats the candy bar and it’s gone forever. All the IOU’s are suddenly worthless. Everybody in the trail of debt (multiple IOU’s) has just experienced the legalized theft of their candy bar, made possible by the evil and absurd legality of H (hypothetical ownership).

Incidentally, the “person” who finally ate the stale candy bar will probably be the only one who gets bailed out by us tax payers because he/she/it will be considered “too big to fail” by DC lawmakers who are too busy raising campaign funds to sit down, read a book and educate themselves on money and macroeconomics. These people are not dumb, they’re just busy, dishonest materialists and variably “owned” by the heartless money machines we call giant corporations. And as you know, we’re talking about the “ownership” of all DC Democrats and Republicans, including your favorite, the cute ones and the ugly, tough, no-nonsense ones alike. Statistics might argue that there must be a good politician somewhere in DC. Fine, but it’s not apt to be the ones you and I keep voting back into office decade after decade as both sides continue to spend our grandchildren into poverty and lethal debt.

We should vote them ALL out at once. Both sides and soon. Then work together across the aisle with loving respect for all political ideas and opponents on both sides.

Here’s a video interview of a brilliant woman, Caitlin Long, the Founder & CEO of Custodia Bank, a next-generation Bank designed for a different world in which Bitcoin and it’s rapidly maturing Lightning Network will hopefully save us from our tradition of legalized theft through H (hypothetical ownership). Caitlin Long, by the way, predicted the fall of FTX way back in 2018, but she’s not a prophet, she an objective thinker who understands money better than the rest of us. Ya really gotta hear this woman explain things! Wow.

There are many people who just naturally tend to see the foundational causes of humanity’s big problems. They’re first-principal thinkers. They understand both the forest and the trees. This gives them an enviable talent for true objectivity in evaluating problems and pinpointing root causes.

Just as Elon Musk does this with technology and Ivor Cummins with Type 2 Diabetes and atherosclerotic heart disease, Caitlin Long is doing it now with Bitcoin, Banking and the problems created by fiat currencies.

She’s a new person on my radar, so check her out for yourself. Maybe I’m overly impressed or star-struck, but I doubt it after listening to her interview above.

Common Sense Love,

Morrill Talmage Moorehead, MD

“End the American Oligarchy”

I’ll keep saying this until I die, Democrats and Republicans need each other desperately.

It’s time to end the decades-long trend of economic theft by DC politicians who shrink the middle class and increase poverty while enriching themselves by way of legal insider trading. Both parties do hundreds of millions of it!

Here’s a guy who sees the shared predicament of middle and lower-class Democrats and Republicans. He gives us two possible solutions.

Awesome video!

It really should be a federal crime for DC lawyer-politicians to trade stocks against the US middle and lower class Democrats and Republicans using secrets about economic legislation.

But since both sides love money more than fairness, and since we voters are separated irrationally into two angry camps who vote with our limbic systems, it will take the miracle of Republicans and Democrats learning to love each other and value each other’s opposite opinions before we can vote together to stop our leaders from impoverishing the middle class and adding to the poor.

Until then…

Today I signed up for a one-month free trial of a service that claims to use public knowledge of the House and Senate’s insider trading. I have no idea of this service’s value (or lack of value) to investors and traders. The outfit requires a credit card for the free month’s trial, so if you sign up, please just paper-trade it for three weeks, and if it goes badly, cancel your “subscription” before your free month is over. Otherwise they will automatically charge you $30.00 for another month.

With that caveat, on top of a sinking feeling that the stock market is irrational lately, here’s a link to the DC insider service mentioned in the above video.

I hope these people are honestly trying to level the playing field for middle and lower-class stock traders and investors. We all must currently trade against DC insiders (in both parties) who live by the popular amoral deception that “fairness doesn’t work.”

If only all of us Democrats and Republicans could calm the hell down and really listen to each other the way normal people once did. It’s a dream that needs to come true or democracy won’t survive.

Fairness Love,

Morrill Talmage Moorehead, MD

By the way, I have no affiliation with quiverquant or anything/ anyone related to it.