Online Bible King James Version

Corrupt Mechanisms Explained


Market Operations

What Everyone, Including Every Investor
And All Corporate Management,
Should Know And Understand.

THE DYNAMIC LAWS

          Adam Smith (1723-1790), a Scottish political economist and philosopher, wrote "Wealth Of Nations" (1776).   Therein Smith described basic dynamic laws relating to natural Supply and Demand.   However, price manipulation by Market Operators exacerbate adverse volatile conditions in individual situations to make individual situations very, very obvious.   It's like walking outside in the pouring rain or on a beautiful sunshiny day.   You know when it's raining and you know when the sun is shining and you should know when the Market Operators have been heavily selling bogus receipts to adversely manipulate price ... that's if you take time to monitor individual situations and/or the overall picture.   It's way past time to rid the market place of the vile thieves and their protectors.

          For example, the natural supply and demand curves versus price over a longer period of time form an 'X'.   On the left, the demand curve is high and supply lower; whereas, on the right, the supply curve is high and the demand is lower.   Thus, an 'X' is formed.   The center of the 'X' represents the value of the item relative to a host of factors.   The value is where public supply naturally balances public demand.   Therefore, the value may rise or fall relative to price depending on whether favorable or adverse factors predominate.   Price, of course, follows a squarish clockwise pattern around the 'X' either converging or diverging as the value moves up or down relative to price.   Thus, as the value moves the whole 'X' moves up or down and changes shape accordingly.   Meanwhile, the unmanipulated price naturally seeks the center of the 'X' where public supply and demand are in balance.

          Now as the price moves around the long term 'X', price in a natural situation also follows a short term 'X' pattern as price on a daily, weekly, or monthly scale seeks the interim value of a short term 'X'.   That is, when price is above the value established by public supply and demand sellers tend to predominate and when price is below the interim value then buyers tend to predominate.   If price were to follow the value then the supply and demand would remain in balance and public buyers would balance public sellers.

THE IMPOSSIBLE

          Now let's add a Market Operator, a dealer, satisfying public demand (public buying) at lower prices and absorbing public supply (public selling) at higher prices.   He would be constantly acting opposite the public; therefore, he would always be selling at low prices (requiring an endless supply of legitimate receipts) and buying at higher prices (requiring an endless supply of money) neither of which he has.   If he were more honest and upright he'd lose his proverbial shirt on every day on every transaction.   That is, it would be impossible for an honest dealer, a buyer and seller, acting opposite the public to even break even.   Therefore, logic and evidence say that the national markets are operated on chicanery, deceit, fraud, swindle-some dealings, theft, adverse illegal price manipulation, selling bogus counterfeit receipts, falsified reports, grand larceny, protection of the thieves, deliberately engineered bankruptcy or other destruction of assets represented by receipts, etc.   All are in violation of the laws of the land.

          Again, checkout Jeremiah 5:15-17; Isaiah 10:13-14; Daniel 8:23-25; etc.




Price Path Relative To Natural Supply And Demand

Price Path (1,2,3,4) Relative To
Natural Supply And Demand



O.K., BACK TO OUR 'X'

          When the supply is limited the legs of the 'X' are steep and the 'X' is narrow.   The value tends to move up or down more easily.   Conversely, when the supply is abundant the legs of the 'X' are flatter and the 'X' is broader (wider).   Here, the value tends to move relatively slow and in smaller increments.

          Refer back to the Price Path Diagram.   The price line orbiting around the value:  starting at (1) tends to be horizontal as it traverses from left to right across the top between the upper portion of the two legs.   That is, if price goes higher people won't buy, there are a predominance of public sellers, and if price goes lower there are plenty of public buyers.   Then (2) when the price crosses the supply line (upper right) price commences to drop as supply (public selling) predominates.   Public selling then continues to predominate as price drops to the demand line (lower right) where people won't sell at lower prices and the demand (public buyers) absorb the supply.   Price then (3) traverses horizontally from right to left until it reaches the supply line (lower left).   Note while price remains beneath the supply line public sellers predominate excepting when price drops below a point where people won't sell.   This situation continues until price crosses over the supply leg to where public demand exceeds supply.   That is, hereafter public sellers will no longer satisfy demand.   Price then rises (4) until it hits the demand line (upper left) where public selling satisfies demand and people won't buy if price were to increase further.   The natural cycle then repeats with price constantly seeking the value determined by the balance of public supply and demand.

          Again, this is the natural dynamics of price versus public supply and demand according to Adam Smith and economic logic.

THE DYNAMICS OF PRICE MANIPULATION

          Begin with price line (1) on the Price Path Diagram.   The Market Operator may hold price below the price line to induce a predominance of buyers or above the price line to induce a predominance of sellers and/or to virtually shut down public buying.   Much depends on the short term value and long term value.   Again, by holding price close to the short term value the public buying temporarily balances public selling.   Remember, if the Market Operator holds price up he must buy at higher prices and if he holds price down he must sell to satisfy public demand at lower prices.

          At price line (2) public selling predominates and the Market Operator again can regulate the degree and type of public activity by where price is held relative to the short term value now moving down.   By moving price down more rapidly the Market Operator slows public selling as price is held at or below the short term value.   Again, the Market Operator is constantly taking the side opposite the public and theoretically is "losing his shirt."

          At price line (3) across the bottom the same scenario prevails.    Holding price above the short term value induces a degree of public selling and a price below the short term value induces public buying.   Yes, the Market Operator still takes the side opposite the public and therefore buys high and sells low relative to the short term value.

          At price line (4) where price rises the Market Operator is faced with selling to the public to satisfy public demand and raising price accordingly as the short term value moves up and up.   If the Market Operator restrains price at this stage the public buying increases accordingly, etc.

          So, how do the Market Operators and their fellow conspirators serving International Organized Crime (I.O.C.) keep getting rich, rich, and richer?   Simple, the Market Operators utilize two or more accounts.   One, a trading account, for public view and the others, secret omnibus unaudited accounts, through which the "suckers'" wealth flows into the thieves' coffers (See U.S. Congressional Reports).   Thus, holding prices below the short term value induces public buying to keep the public wealth flowing into the thieves' pockets and the bogus counterfeit receipts keep flowing into the public's hands.   And none are the wiser as the supply of watered stock grows and grows.

          The artificial Dow Jones Industrial Average helps orchestrate and "justify" the thieves' price manipulations.   And before the Dow is dumped the more heavily watered issues are mysteriously dumped well in advance.   The common excuse is that the all knowing public foresaw the coming correction and unloaded in advance.   The truth is that the Market Operators methodically manipulated price down (3 steps down and 2 steps up) while the public keeps buying, buying, and buying on-balance while few if any are inclined to sell ... at least not until later when they can be induced to sell by adverse excuses or whatever.

          While this is going on (i.e. price being artificially moved down in the face of public buying), every time the DJIA turns upward the public buys even more heavily in the heavily watered issues as they appear to be good deals, excellent investments, etc. but price almost always fizzles and troubles are maliciously created.   Meanwhile, the professional excuse makers have entered the picture.

          Furthermore, if future prospects for a corporation's long term value are to rise, such as for the youthful growth corporation, public selling will be diminished under most circumstances.   Conversely, if prospects for the long term value appear precarious then public selling would tend to predominate.  Thus, if adverse economic conditions, adverse publicity, adverse business prospects, and an adverse DJIA (bear market) are created then public selling can be induced to predominate.   Therefore, these are all among the "tools" of I.O.C.'s servants protecting the Market Operators.   This includes the Federal Reserve established interest rates, etc.   Yes, national economic conditions can be easily regulated by influencing elements impacting only seven basic factors.   So, I.O.C.'s servants can easily alter a national economy to bring great harm and deprivation upon any nation ... if they are allowed to do so.

THE MANIPULATED 'X'

          Heavily watered growth corporations reflect narrow, steep sided supply and demand curves ('X') especially when the price is manipulated down and severely restrained.   When the DJIA is moved upward and individual corporations' prospects appear fantastic, the value moves up and up too.   Meanwhile price is restrained contrary to public buying which induces even more public buying.   Yes, that's when the public is buying most heavily and the Market Operators are having a hey day getting richer selling untold bogus, counterfeit receipts.

          Thus, when you go outside and it's raining "cats and dogs" you know it's raining.   And, one glance at individual issues when the Market Operators are doing their thing should be just as obvious.   Yes, at times it's like when the thunder is booming, lightning flashing, sky darkened, and the rain and hail are pelting everywhere ... you know it's raining heavily.

SERVANTS OF THE TRADE

          Goliath's servants, The Gang, even include certain people placed in various corporate positions, certain officers of the company, and certain key members of the Board Of Directors.   Their real job is to set the corporation up for the kill, to prepare the way for eventual bankruptcy, to steal corporate secrets, and to act as spies for International Organized Crime (I.O.C.) running the show.   So, corporate management and stockholders ought to beware.

          For example:  Prescott Bush, father of George H.W. Bush, and George H.W. Bush's sons are very notable for such services for I.O.C.   Yes, the Bush brothers were obvious plants when it came to certain Savings and Loans being bankrupted.   Then the name of the game was to transfer blame and liability to naive victims while the real culprits were protected and moved on to bigger and better things.

          Oh, yes, Government and industry contracts fatten the coffers of many corporations whose securities were largely owned by the Market Operators and other members of The Gang who are routinely tipped off as to the Market operators' plans for these particular corporations.   Rewards for serving I.O.C. are bountiful but "the cup" is about to change hands.

          Then there's the corporation with preferred stock whose owners get to share the carcase when a corporation is bankrupted.   Then it suddenly gets healthy and starts over.   Meanwhile, the common stock holders get nothing as their property has been sold over and over and over.   And, if bankruptcy courts were to give something to legitimate stockholders then the thieves would have to ante up the difference to the myriad holders of the bogus receipts.   This the thieves are not about to do.   Yes, one pie can be sold hundreds if not thousands of times.   And the thieves get their victims' money up front and are well protected by The Gang.

          And, the watering of a corporation's stock can include both small and large corporations, the young and old.   So, smile!   Yes, the antismoking purge, for example, is more for the benefit of the Market Operators and I.O.C.   For years they have watered the tobacco stocks and now the public who bought high is being induced to sell at low, low prices.   Smile some more!

          Unions also serve I.O.C. to cripple various corporations and/or their suppliers.   Indeed, a malicious strike can be induced through union leaders and/or corporate management to do extensive damage in the service of corrupt I.O.C.

ON-BALANCE TICK VOLUME (OBT)

          In the early 1970's and perhaps earlier and later Harry Langford, Wichita, Kansas offered a service to investors by providing a multitude of charts wherein price and on-balance tick volume pertaining to individual issues were plotted together on a host of individual charts.

          Interesting observations were that these graphs fell into categories which may be identified as category 1, 2, 3, 4 for discussion purposes.   Categories 1 and 2 we'll call growth companies with a smaller amount of legitimate securities available to the public.   Categories 3 and 4 we'll call larger more mature corporations with a greater supply of common stock in public hands.   Categories 1 and 2 were categorized by larger scales that revealed more fluctuations in price versus Categories 3 and 4 which due to smaller scales provided more of a smooth curve of price motion.   Thus, it was obvious that Categories 1 and 2 could be grouped together and Categories 3 and 4 could be grouped together based on the relative scales used to plot price.

          Within each group the on-balance tick volume (OBT) either:  (1) conformed more or less with price motion or (2) rose sharply contrary to price declines and generally did not parallel price.

          In certain issues OBT fluctuated considerably to reveal a large scale and that a smaller volume prevailed.   Whereas, in other issues OBT had little fluctuation (i.e. a smoother flowing line) to reveal a smaller scale and a much larger volume of activity.

          Thus, a smooth flow with a rising OBT when price was declining revealed extensive short selling (i.e. selling bogus receipts) by Market Operators who were manipulating price down in the face of public buying.   Subsequently, many of these corporations endured bankruptcy.

          Similarly, issues with more fluctuations in the OBT line revealed a larger scale was being used and that short selling by the Market Operators was somewhat less although it obviously was happening.   This also foretold of future troubles for these corporations.

          Whereas, when the price and OBT moved together it revealed that price was more or less conforming with the short term value.   Public buying more or less balanced public selling in those issues.

          Laws governing Market Operations required Market Operators to short sell (i.e. sell their bogus receipts) either on up-ticks or zero plus ticks of price (i.e. a zero plus tick involved an unchanged price following an up-tick).   This, of course, conformed more or less with the natural propensity of dealers to raise price to buyers.   Note:  after communications to each U.S. Senator and to the Nixon White House in 1973 that rule was officially abolished in mid - 1974 or '75 in an obvious effort to try to conceal matters.   However, the natural propensity for Market Operators to raise price for buyers still exists so the OBT records should still reveal what's going on relative to individual issues.

MULTIPLYING WATERED RECEIPTS

          When a youthful growth company needs extra cash either to research and develop new ideas and innovations, to double production facilities, to purchase another company, to distribute and promote new products, to expand markets, etc. they have several options such as issuing bonds (getting loans which saddles them with interest payments and debts that eventually must be repaid), cutting costs which usually limits their abilities and income, selling assets which again limits corporate abilities, or selling additional stock (selling additional legitimate receipts) which officially dilutes the existing owners' equity in the company.

          In the latter situation, if the price of corporate receipts are relatively high, management may elect to split their stock perhaps even 5 for 1.   That is, management may issue four additional receipts for every one share of existing stock and at the same time price is divided by five.   So, for every 100 receipts selling for $100 each, each owner would then have 500 receipts selling at $20 each.   Essentially, on the surface nothing would change:  the 100 old receipts were worth $10,000 and the 500 new receipts are still worth $10,000.   However, the cost per receipt has suddenly dropped into a price range where a whole new group of potential buyers exists.   That is, 100 new receipts now cost only $2,000 rather than $10,000 for the old.

          Thus, stock splits are a standard practice for growing corporations.   This is especially important in a global economy with global communications as people around the world now have easy access to purchase a company's stock.

          But let's consider what really happened in the growth company whose receipts had been heavily watered.   Assume there were 15 million legitimate receipts and 150 million bogus counterfeit receipts that the company doesn't even know exist.   A 5 for 1 split multiplied the 15 million legitimate receipts to 75 million new receipts.   However, it also multiplied the bogus receipts from 150 million to 750 million.   And it also lowered price to where the thieves would be selling that much more bogus counterfeit stock.

          Eventually, that company would be forced into bankruptcy to eradicate the thieves' liability to repurchase the flood of bogus receipts.   Oh, it might take ten to twenty years more or less; but, the thieves, their agents, and toadies in Government will "do the trick" if people and corporations don't demand an immediate clean up. 

Return To: SCAM #2




Prepared By
Father - Son Team
          George & Dana Brown
          P.O. Box 320932
          Cocoa Beach, Florida
          USA  32932-0932
         Email: brianshouse@yahoo.com