Chris Powell: Admission Central Banks Secretely Trading in Futures Market is a Sensational Development

The CME Group’s most recent 10-K filing with the U.S. Securities and Exchange Commission (SEC) lists its customers. Included in that list are governments and central banks.   This is really a sensational development.
Nobody can trade against central banks, they create infinite money.   If central banks are secretly trading in the futures markets, there are no markets. 

 

Submitted by PM Fund Manager Dave Kranzler, Investment Research Dynamics

Chris Powell

The CME Group’s most recent 10-K filing with the U.S. Securities and Exchange Commission (SEC) lists its customers. Included in that list are governments and central banks.   This is really a sensational development. Nobody can trade against central banks, they create infinite money. If central banks are secretly trading in the futures markets, there are no markets.   – Chris Powell, Treasurer of GATA from his interview with Greg Hunter

What’s incredible is that the Fed doesn’t even attempt to hide the fact that it intervenes in the market. It’s almost like they’re taunting us with it. As I presented in the graph in this article: LINK, The Fed has tightly controlled the direction of the S&P 500 over the last 3 years. If you put a 50 and 200 day moving average on that graph, you’ll see that most brief sell-offs are not allowed to drop to the 50 dma and the sell-offs are followed by sharp “V” rallies. Occasionally the sell-off is allowed to drop to the 50 dma but the “V” move back up to all-time highs follows the drop. Every single sell-off has been followed by the “V” and the market is pushed to yet another all-time high.

I have no idea when the Fed will lose its ability to control the markets like this. It may not happen until the dollar collapses. But when it does happen, I suspect living conditions in this country will become quite unpleasant.