Many people have already decided to protect their savings with gold and silver. Gold and silver have traditionally been safe haven assets of choice for those forex white label software looking to protect their wealth against the ups and downs of financial markets. And they traditionally perform well during times of weakness in markets.

I found a few things and shared it with Art and share it with you today. Or it goes back to what it has been doing for the past 25 years, and floods the economy with new debt to boost contain the property crash, stabilize the economy and normalize the soaring youth unemployment. The only question is how much pain will Beijing suffer first before it capitulates.

1. The truth is that the Working Group on Financial Markets is the open collaboration of the most powerful group of financial entities in the United States.
2. Now if you don’t know Art, he is full of fun stories and knows more jokes than anyone I know.
3. It does create trillions of dollars out of the nothingness and it uses them to purchase securities and change interest rates.
4. Conspiracy theorists have speculated that the group execute [sic] trades on several exchanges when prices are heading downward, collaborating with big banks, such as Goldman Sachs and Morgan Stanley in unrecorded transactions.

The difference, of course, is that the Working Group on Financial Markets is composed of U.S. government officials, and the U.S. is supposed to operate on a free-market system. Though not exactly a secret, the Plunge Protection Team isn’t widely covered and doesn’t release the minutes of its meetings or its recommendations, reporting only to the president. This behavior leads some observers to wonder if the government’s most important financial officials are doing more than analyzing and advising—in fact, that are actively intervening in the markets. On Monday February 5, 2018, the Dow Jones Industrial Average (DJIA) experienced a drop that was twice as large as its biggest point decline in history.

Why was the Plunge Protection Team created?

And if there is anything Beijing fears more than anything in this world, it is 1 billion angry lower and middle-class Chinese heading toward Beijing, armed with torches and pitchforks. In other words, what was already a nationalized stock market is about to get even more nationalized, and instead of ad hoc interventions by the Plunge Protection Team, such market purchases by official state authorities will now become institutionalized. According to the Fed’s breakdown of its swap outlays which currently total $444.89 billion, the lion’s share of $219.8 billion is with the Bank of Japan. According to the Bank of Japan’s balance sheet, as of April 30, it held $292.57 billion in Exchange Traded Funds (which include stocks); $6.5 billion in outright stock holdings; and $31.8 billion in corporate bonds. On March 16, the Bank of Japan announced that it would be dramatically increasing those asset purchases.

The Fed Has Stopped Talking About Recession: 3 Reasons That’s a Problem

Some have attributed the buying to the Plunge Protection Team (New York Post and GoldSilver). In 1999, the team released a report advising Congress to request reforms to regulations of the derivatives market. It reconvened nearly a decade later to examine the 2008 subprime mortgage crisis. Most recently (as of June 2021), the Plunge Protection Team met on Christmas Eve, 2018, to discuss a bad run in financial markets.

There is also a fascinating degree of overlap with the individual actions of one of the group members – the Federal Reserve – which can create the same three types of investor losses as part of ongoing cycles of crisis and the containment of crisis. On Monday, February 5, 2018, the Dow Jones Industrial Average (DJIA) experienced a drop that was twice as large as its biggest point decline in history. The slang term “Plunge Protection Team” is used to refer to the Working Group on Financial Markets, a group of economists and government officials that periodically meets to discuss measures for the protection of financial markets in the United States. Many other nations have similar groups and they may also be known as Plunge Protection Teams after the term was popularized by the Washington Post in the late 1990s. Conspiracy theories swirl around these groups, as some people claim that they interfere in markets and engage in activities like price fixing. The Plunge Protection Team (PPT), officially known as The Working Group on Financial Markets, is a committee established by the U.S. government in 1988 to provide financial and economic stability during times of severe market distress.

In 1999, it issued a recommendation to Congress, mentioning changes in the derivatives markets regulations. The Plunge Protection Team’s latest gathering (as of March 2019) was on Christmas Eve, 2018. Treasury Secretary Steven Mnuchin chaired a conference call with different members of the group, notwithstanding https://traderoom.info/ delegates from the Comptroller of the Currency and the Federal Deposit Insurance Corporation. Taking factors like this into consideration is not part of traditional financial education. But, in these times of Plunge Protection Teams and unconventional monetary policies – perhaps it should be.

Gold

What’s the greatest risk involved with something like a Plunge Protection Team? The problem is that eventually the market is going to go where it is going to go. There is likely only so long that artificial manipulations can prop it up. This is because for any future stream of cash flows –  whether it be interest payments, dividend payments, or the future sales price – the higher the price we pay today for what the cash flow will be in the future, then the lower our future profits or returns. So the Plunge Protection Team becomes a form of circuit breaker. It keeps the markets from going to where they would naturally fall absent the interventions.

However, the team has continued to report to various presidents since that stock market crash and has met various U.S presidents on important financial matters over the years. We know that the ESF was previously part of a bailout operation for Wall Street when the mega banks on Wall Street crashed the entire financial system in 2008. What occurred then was that toxic subprime debt and derivatives began blowing up at financial institutions like Citigroup, Lehman Brothers and AIG and numerous others. Money market funds then began “breaking a buck,” that is, being worth less than $1 per share. This set off a panic and withdrawals across money market funds. If true, this sort of manipulation is not unlike the actions of consortia of private bankers and financiers in the late 19th and early 20th century who, during financial panics, would step in to shore up the stock market with massive purchases.

It would the Treasury, Fed, SEC and CFTC successfully doing exactly what they are supposed to be doing – by executive order of the President of the United States. At least temporarily interrupting the momentum of a major breakout to the downside that threatened financial stability is exactly what the WGFM is supposed to do, it is why the group was created in the first place. The “Plunge Protection Team” is the colloquial name for the Working Group on Financial Markets (WGFM). The Working Group was established by the executive order of President Reagan in 1988, in the aftermath of the stock market plunge of October, 1987. The average retail investor is often spoiled for choice when it comes to the financial markets. From brokerages offering you discounts on your trades, to low commissions, the marketing hype one gets…

The Growing Push to Ditch the Dollar

In actuality, the team is barred from market manipulation, just like investors, and it is primarily concerned with decision and policy-making rather than active intervention in ongoing market problems. The Plunge Protection Team is involved in decisions about closing the markets in emergencies and developing new policies to address ongoing financial issues. Expect the Plunge Protection Team to remain hard at work over the coming months, as stock markets want to and need to drop, but the government doesn’t want to let them. We’ve been warning investors for a while that what goes up must come down, but many didn’t want to heed those warnings. Now they’re learning the hard way that stocks can be subject to sudden corrections.

To understand what happened on Friday, you need to understand what Fed Chair Jerome Powell was methodically setting in place in February. The President’s Working Group on Financial Markets, known colloquially as the Plunge Protection Team, or “(PPT)” was created by Executive Order 12631,[1] signed on March 18, 1988, by United States President Ronald Reagan. Ever since she began contributing to the site several years ago, Mary has embraced the
exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and
spends her free time reading, cooking, and exploring the great outdoors.