Sunday, 21 December 2008

CNBC's Biased Reporting On The PPT

By Lee Rogers

The President’s Working Group on Financial Markets otherwise known as the Plunge Protection Team is a group that was created following the stock market crash of 1987 to ensure market confidence and stability. The existence of this group is not debatable. It was originally created by Ronald Reagan via executive order 12631 to include the Federal Reserve Chairman, the Treasury Secretary , the Securities and Exchange Commission Chairman and the Commodity Futures Trading Commission Chairman. George W. Bush has met with this group on more than one occasion this year to discuss what could be done in response to the myriad of problems facing the financial markets. This link to the Whitehouse's own Internet site describes one of those meetings. The bottom line is that in order to fulfill the group’s mandate of ensuring confidence and stability in the markets, it becomes necessary to facilitate some sort of intervention in the market. There is no other way around this and considering the bizarre market action that we’ve seen lately with the S&P 500 and Dow Jones Industrial Average spiking up at the end of trading hours with no real rationale behind the moves, it is logical to look at a group like the Plunge Protection Team which has the authority and the power to do something like this.

Of course that doesn’t apply to corporate controlled media outlets like CNBC. When guest Scott Nations from Fortress Trading brought up the idea of this group intervening in the market on the CNBC show Squawk Box, it was immediately dismissed as an Internet conspiracy theory. It didn’t matter that the CNBC talking heads had no factual information to dispute what Mr. Nations was saying, they just said that it was crazy to think that the government would manipulate the market. The video of the exchange is below and it is really quite an eye opener to see how uncomfortable the CNBC reporters look when trying to downplay the significance of the Plunge Protection Team.


Intervention in the market by the Plunge Protection Team and the Federal Reserve has been going on for a long time. In fact the gold and silver markets show all sorts of obvious signs that indicate market manipulation. Incredibly, wild price swings downward in both the gold and silver spot prices almost always seem to occur during New York trading hours. This usually occurs without any sort of real tangible event or news story that would normally be required to trigger such a sell off. The wild market activity that Mr. Nations was referring to on his CNBC appearance is just more evidence of the same type of activity. There is simply no way to explain away these events occurring unless there is an attempt by powerful interests to manipulate the markets.

Perhaps most disturbing about Mr. Nations’ appearance on CNBC is the reaction of the so called reporters. There was simply no objectivity by these people indicating their obvious bias. One of the talking heads even made the comparison of believing that the Plunge Protection Team is manipulating markets to the equivalent of believing that explosives brought down the Twin Towers. This was an obvious attempt to mislead the audience back into a mind controlled false reality. Of course there is a great deal of validity to the possibility that explosives brought down the Twin Towers and the Plunge Protection Team manipulating the market which is ironic considering the negative spin this was supposed to convey to the viewing audience.

The primary reason behind CNBC’s bias is the fact that their parent company General Electric has as their Chief Executive Officer a man by the name of Jeffrey Immelt who just happens to also be a member of the New York Federal Reserve’s board of directors. This proves conclusively that CNBC has a severe conflict of interest and their coverage of the financial markets and especially their coverage of the Federal Reserve and Plunge Protection Team cannot be taken seriously. Are the CNBC talking heads really going to provide unbiased coverage of the Federal Reserve or the Plunge Protection Team considering that their CEO plays a key role at the New York Federal Reserve? The answer is no. These talking heads aren’t going to go against the best interest of their boss and provide objective and truthful coverage on an institution and group that benefits off of their biased coverage. This is just basic common sense.

The Plunge Protection Team is real and one has to consider their role in all of this bizarre market activity that has taken place. To dismiss government intervention as a possibility is ridiculous considering that the Federal Reserve and the U.S. Treasury have combined already to dump trillions into the market. The market is a rigged game and anyone who thinks that we have a free market is living in fantasy land. There should be an investigation into the Federal Reserve and the Plunge Protection Team but clowns like these CNBC talking heads are preventing any legitimate discussion on this and other subjects by discrediting anyone who brings these topics up. Why aren’t they discussing the End the Fed rallies that are slated to take place this weekend? A bunch of angry people demanding the end to the Federal Reserve is a newsworthy item, but apparently they don’t think so because their boss is part of the corrupt system. It is all a big joke. CNBC’s so called reporters are nothing more than a bunch of high paid propagandists and spin artists. They cannot be trusted to provide the truth about anything related to the Federal Reserve or the Plunge Protection Team.

There are heaps of articles that cover the role of the PPT. I ask the question, when the market is being hammered, and there is only bad news, who in their right mind would step in and start buying up stock ? In the middle of a catastrophic plunge ? As stated at the top, to do their job, it becomes necessary for the PPT to step in and buy up stocks.

[Posted at the SpookyWeather blog, December 21th, 2008.]

No comments: