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High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over the United States

May 10th, 2010 | Filed under Economy, Hot List, News, Politics & Government, War . Follow comments through RSS 2.0 feed. Click here to comment, or trackback.

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By David DeGraw & Max Keiser, AmpedStatus Report

The following article is the third-part of a six-part report titled: “The Financial Oligarchy Reigns: Democracy’s Death Spiral From Greece to the United States.” The full report is available here.

III: Financial Terrorism Operations: 9/29/08 & 5/6/10

Financial Terrorism Operations:  9/29/08 & 5/6/10In the aftermath of Goldman Sachs’ public flogging before the world in Congress, and while under investigation, on the very day that Congress was voting on the “break up the too big to fail banks” amendment and cutting behind the scenes deals to gut the audit of the Federal Reserve, the stock market had its greatest sudden drop in history, plummeting 700 points in ten minutes – shades of September 29, 2008 all over again.

If you recall, back in September ’08, as Congress was voting down the first bailout, the big banks made the market plunge a record 778 points in one day. Fear and panic then led Congress to pass the bailout. Trillions of our tax dollars, the money that we desperately need to keep our society functioning over the long run, then went out the window and into the pockets of the very people who caused the crash.

What happened on September 29, 2008 will go down in history as one of the greatest acts of terrorism ever.

9/29/08 proved that when you have so much power concentrated in the hands of a few, you can manipulate a computer algorithm and make the market and economy go whichever way you want it to go. So on 5/6/10, just as the power of the big banks was again threatened on the floor of the Senate and a deal on auditing the Federal Reserve was being negotiated, in came a sudden and unprecedented ten-minute 700 point market drop, a precision-guided High Frequency Trading (HFT) attack to show Congress who’s boss.

If you think the massive sudden drop happened because one lowly trader hit one wrong button, if you actually believe that the entire stock market can plunge because of one mistaken key stroke by a low-level trader, you are stunningly naïve. I hate to burst your bubble, but this was a direct attack.

In a market where 70% of all trades are executed by computer algorithms via High Frequency Trading (HFT), Goldman Sachs has the power to make the market crash or rise at will. In fact, Goldman has a major Weapon of Mass Destruction in its Program Trading monopoly of the New York Stock Exchange, as Tyler Durden described on Zero Hedge:

“Goldman’s dominance of the NYSE’s Program Trading platform, where in addition to recent entrant GETCO, it has been to date an explicit monopolist of the so-called Supplementary Liquidity Provider program, a role which affords the company greater liquidity rebates for, well providing liquidity, and generating who knows what other possible front market-looking, flow-prop integration benefits. Yesterday [5/6/10], Goldman’s SLP function was non-existent. One wonders – was the Goldman SLP team in fact liquidity taking, or to put it bluntly, among the main reasons for the market collapse….

… here is the most recently disclosed NYSE program trading data….

What is notable here is that of the 1.4 billion in principal shares, or shares traded for the firm’s own account, Goldman was the top trader by a margin of over 100% compared to the second biggest program trader.

We have long claimed that Goldman is the de facto monopolist of the NYSE’s program trading platform. As such, it is certainly the case that Goldman was instrumental in either a) precipitating yesterday’s crash or b) not providing the critical liquidity which it is required to do, when the time came. There are no other options.”

For further investigation, I turned to Max Keiser, who has written and authored similar Program Trading and HFT computer algorithms. I asked him if he thought this was an attack. Here is what he had to say:

“May 6th was an unequivocal act of domestic financial terrorism in America. A day that will live in infamy.

To scare the lawmakers, themselves large owners of the very banks and stocks that they are supposed to be regulating, a financial Weapon of Mass Destruction was put to their head and they acquiesced.

As the inventor of the continuous double-auction, market-making technology (VST tech. US pat. no. 5950176) that is referenced 132 times by program trading and HFT patents since 1996, I can tell you that Goldman, JP Morgan and the gang simply pulled the ‘buys’ from their computer trading programs and manufactured a crash. And when the coast was clear, and it was clear the politicians were not going to vote for anything that would break up the ‘too big to fail’ banks; all the ‘sells’ were pulled from the computers and the market roared back.

This is a Manchurian Candidate market where program trading bots start the ball rolling in whatever direction Wall St. wants the market to go – and then hundreds of thousands of day-traders watching Cramer on CNBC jump on the momentum bandwagon and commit the crime for the Wall St. financial terrorists, who then say, ‘It wasn’t us, it was ‘the market!’”

On Friday, the next day, after the “break up the too big to fail banks” amendment was soundly defeated by a 61 to 33 margin in Senate and a deal was struck to eliminate key provisions from the audit of the Federal Reserve bill, Goldman was meeting with the SEC to work out a settlement in their case against them. Once again, Goldman proves that crime pays. Welcome to the New Mafia World Order.

Other than the two major operations carried out on 9/29/08 and 5/6/10, we must also recall a smaller attack on January 21st and 22nd of 2010, when Obama had a press conference and came out in favor of the Volcker Rule, which would have limited these HFT and “proprietary trading” schemes. At that time, the market dropped 430 points. Soon after this attack, all follow-up talk on the Volcker Rule faded away and this reform has not been seriously addressed by Obama since then.

The bottom line: the United States has been taken over by a financial terrorism network. Let’s face it, we are all hostages of these financial terrorists and their puppet politicians would rather be in on the scam than defend our interests. If these terrorists don’t get their way at all times, they have the power to throw their tremendous weight around and turn millions of lives upside down in a matter of minutes and, as they have shown, they have no hesitation in executing that power, no matter how many millions of lives they destroy.

They set off this crisis with a wave of bombings in their initial Economic Shock and Awe campaign two years ago, resulting in massive devastation. Just to name a few of their greatest hits within the U.S.:

* 50 million Americans are now living in poverty, which is the highest poverty rate in the industrialized world;

* 30 million Americans are in need of work;

* Five million American families foreclosed upon, 15 million expected by 2014;

* 50% of US children will now use a food stamp during childhood;

* Soaring budget deficits in states across the country and a record high national debt, with austerity measures on the way;

* Record-breaking profits and bonuses for themselves.

Like other terrorists, they don’t use IEDs, they use CDOs. They don’t use precision laser-guided missiles, they use High Frequency Trading. They don’t have WMDs, they have derivatives. Let’s also not forget that they have toxic assets and dirty debt bombs just waiting to be deployed upon the American public once there is any true growth in the economy. Their nuclear arsenal includes hundreds of Trillions in secretive derivatives and hidden debt bombs, just ticking away, waiting to be set off… at their whim…

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    Previous Comments:

  1. [...] CONTINUED HERE [...]

  2. [...] Read: ‘High Frequency Terrorism’ (David DeGraw & Max Keiser)… [...] So on 5/6/10, just as the power of the big banks was [...]

  3. [...] High Frequency Terrorism: How the Big Banks and Federal Reserve … [...]

  4. [...] High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over th… Amped Status, May 10th, 2010 at 1:11 am [...]

  5. [...] High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over the… [...]

  6. [...] under Economy, Hot List, News, Politics & Government, War . Follow post comments through the RSS 2.0 feed. Click here to comment, or [...]

  7. [...] under Economy, Hot List, News, Politics & Government, War . Follow post comments through the RSS 2.0 feed. Click here to comment, or [...]

  8. Zack said:

    Wow! You guys really don’t fuck around! Amazing work! Let’s see if the sheep can catch on. Probably too much for people to handle…

    z

  9. Simon said:

    You guys kick ass! Are we going to see more joint efforts from you two. I’ve seen the two TV interviews you did together. They were excellent! Exactly what we need!

  10. [...] David DeGraw & Max Keiser, AmpedStatus Report: The following article is the third-part of a six-part report titled: “The Financial Oligarchy [...]

  11. Jim said:

    Maybe this is the way they could bail out the euro over the weekend?

    Jim.

  12. Randyrocker said:

    Could this have been a steal of a Trillion USD to finance the Euro collapse with the situation in Greece, trying to also, create a parity of currency before another round of New World Order discussions to save the planet from entering an era of poverty, as painted by the financial czars of the day? Its quite obvious that the markets are used to terrorize Americans into being fearful and ready to accept this massive theft, as the President and his political brethren look the other way.

  13. Erica said:

    Let’s also give some props to ZeroHedge. DeGraw, Keiser and Durden, throw in Matt Taibbi and Nomi Prins and we have the makings of a TRUE UPRISING.

    Let’s do it people!

    Down with the Oligarchs!

  14. [...] David DeGraw & Max Keiser, AmpedStatus Report: The following article is the third-part of a six-part report titled: “The Financial Oligarchy [...]

  15. [...] shores. As our dear leaders have explained, this warrants “enhanced” law enforcement. Max Keiser and David DeGraw expose the financial terrorists in our midst. If you think the massive sudden drop happened because one lowly trader hit one wrong button, if [...]

  16. [...] it here. Then continue reading, I’ll [...]

  17. Janis said:

    this is so true: “they don’t use IEDs, they use CDOs. They don’t use precision laser-guided missiles, they use High Frequency Trading. They don’t have WMDs, they have derivatives.”

  18. [...] via High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over the…. [...]

  19. [...] High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over the…. [...]

  20. TraDex said:

    Excellent points! Saw this referenced on Business Insider and Ritholtz. just a matter of time before they can parse the data and prove you correct!

  21. [...] AmpedStatus Report: The following article is the third-part of a six-part report titled: “The Financial Oligarchy Reigns: Democracy’s Death Spiral From Greece to the United States.” The full report is available here. [...]

  22. [...] High Frequency Terrorism: How the Big Banks and Federal Reserve … [...]

  23. High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over the United States…

    By David DeGraw & Max Keiser: The stock market plunge on May 6th was an act of domestic financial terrorism in America. A day that will live in infamy….

  24. [...] David DeGraw & Max Keiser AmpedStatus.com Monday, May 10th, [...]

  25. [...] David DeGraw & Max Keiser AmpedStatus.com Monday, May 10th, [...]

  26. [...] David DeGraw & Max Keiser AmpedStatus.com Monday, May 10th, [...]

  27. [...] } Quoth Max Keiser: “May 6th was an unequivocal act of domestic financial terrorism in America. A day that will live [...]

  28. [...] Oligarchy: Lessons from History ——-II: The Second Civil War: Financial Reform 2010 ——-III: Financial Terrorism Operations: 9/29/08 & 5/6/10 ——-IV: Economic Imperialism and Blowback ——-V: Propagandized in America ——-VI: Save [...]

  29. [...] High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over the United States By David DeGraw & Max Keiser – AmpedStatus Report [...]

  30. [...] friends, go to High Frequency Terrorism and check out the article written there by Max Keiser and David [...]

  31. S Huast said:

    There will be guillotines for these people!

  32. [...] High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over the…. Share and [...]

  33. [...] trades, and computer systems, blaming it on a single computer glitch is a joke. As Max Keiser likes to say, “This was a false-flag attach by the finiancial terrorist on [...]

  34. [...] High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over the United States Posted on May 11, 2010 by Beyond The Curtain David DeGraw & Max Keiser Amped Status [...]

  35. BLKTIP said:

    I’m not sure why there are no real posts above me but thank you for revealing, once again, the huge obstacles, if that’s even a fitting word, to the problems we face today. I feel like I’ve been asleep for the past 33 years and I’ve finally waken to the absolute greed that has crippled and systematically destroyed our country. Where once there was a place of refuge from the poverty and evil of the world now it it nothing more than a haven for the corrupt and evil. Can I ever come back home? Please don’t give up the reporting. I know that Max Keiser has given us KarmaBanque as a way of fighting back but we need some more ideas on how to financially and, as patriots, a means to fight back. It’s one thing to expose the elements and another to lead us into a revolt.

  36. [...] blaming it on “fat fingers” or a single computer glitch is a joke. As Max Keiser likes to say, “This was a false-flag attack by the finiancial terrorist on wall-street. They just set off [...]

  37. Jeff said:

    This is what life is like in a rigged market economy. Goldman and JP made a profit every week this quarter. That alone is proof enough. That’s what happens when you have financial terrorists running the market.

  38. Novista said:

    @ BLKTIP: “It’s one thing to expose the elements and another to lead us into a revolt.”

    True enough. However, did you know 33 years ago that the Federal Reserve System was (a) not Federal but private, (b) there are no reserves, save fiat money backed by the full faith and credit of nothing, and (c) the system serves itself?

    Even longer than that, I learned the truth of the Fed and telling other people then only led to polite skepticism or full-on conclusion that I was a TinFoilHat wearing Conspiracy Theorist. Well, when facts start crawling into the public consciousness, it’s no longer a theory. It’s no mistake that the 16th amendment was passed in 1913, (Fed.) and the Federal Reserve Act (Dec.) which began with a secret meeting in 1910.

    “The truth is out there”, sometimes so far out that few want to believe it. But the truth will set you see — first you have to know what it is. Those who ‘expose the elements’ are like the farmer who plants the seeds — the harvest comes later.

  39. [...] Story HERE [...]

  40. Dave said:

    The really creepy aspect of this terrorism is that it is almost impossible to discuss the ethnicity of the tribe that’s behind it…Jews.
    What type of terror is scarier and presents a bigger threat than the one where nobody even discusses which group is behind it?
    Hilarious!,my guess is that when we have a majority of the same “tribe” on the supreme court(if Kagan is allowed in it will mean 44% Jewish) then we who are of the “non chosen” may get a taste of what they experienced in the Soviet union after the Bolshevik revolution(same tribe was behind that as well).

  41. [...] article High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over the United States by David [...]

  42. jay wesand said:

    This is yet another wake-up call to all thinking Americans. Sadly, the American public really isn’t paying enough attention. Once we are convinced of a problem area the next step is to do something constructive to remedy it.

    Financial terrorism is only one area in which the citizens of this nation are being terrorized by those within our own nation. Our national leadership; the U.S. Congress, the Supreme Court and the President and his administration are clearly not operating in the best interest of this nation or the majority of its citizens. We have been abandoned by those whose self-interest, warped ideology and allegiance to partisan interests have actually led them to sacrifice this nation and its people.

    Recognizing the multiple problem areas confronting us truly seems overwhelming until we are able to accept the identity of the real demon in the national closet. That demon is the lust for unprincipled and uncontrolled political power.

    It is that which has been with us since the founding of these United States. It is that lust for power that wasn’t satisfied by individual men of good will and patriotic love for this nation and its well being working together for a common goal. No, it was brought into being by the recognition that an organization with the power of many votes was required to attract the support and financing of selfish interests. It was given birth by these selfish interests and it has deteriorated into the quagmire of corruption that exists today.

    This demon, and enemy of any nation that is foolish enough to allow its existence, has morphed into the Partisan Political System of today. It is that which exists because of its own self-interest and that of those who support it. It is pure self-interest that was given substance by being given the dubious credibility of an organization. It has brought this nation to its knees and may well be the cause of its demise.

    This system appeals to the base instincts of those who serve in politics. It attracts those to politics who should not be remotely connected with a leadership position. Is it any wonder our government and our economy are in the shape they’re in?

    How can we correct this mistake that has decimated this nation and corrupted our leadership?

    Change your partisan preference to independent prior to the election this coming November. In the election; Vote every incumbent OUT OF OFFICE. Where possible vote for the Independent candidate. We CAN destroy the corrupt Partisan System by offering NO SUPPORT for its candidates.

    Those politicians who support this corrupt system by being a part of it, truly DO NOT DESERVE OUR VOTES.

  43. Joe said:

    F***ING disgusting the lengths the POWERS THAT BE will go to hold onto power and create profits. 50% of children will at one time in their childhood be on food stamps? That is a VERY sad statistic. One that I cannot help but feel sorry about. Ashamed actually that in America so many children are in a terrible situation. It really makes me angry. We need to organize and fight the elitist S.O.B.s and change things from the ground up! Not just by voting in another group of scumbags on the take but from the community level up to the highest office. Otherwise, if we do nothing we are not that much better than the scum who perpetuate financial terrorism.

  44. [...] here to read more about high frequency terrorism. var addthis_language = ‘en’;var addthis_options = ‘email, favorites, digg, delicious, myspace, [...]

  45. Dark Markets said:

    Timely and excellent overview of the Financial Terrorism being perpetrated against America’s and world economies.
    Actually, this is just old-time colonial conquest – imperialism – targeted at domestic victims. Don’t forget, for all the diefication of America’s “founding fathers,” as icons of morality, four out of five of the first U.S. presidents were slave owners. Today’s rape and pillage of American and world markets is merely the continuation of the economic system whereby some people try to enlarge their fortunes, at the expense of others.
    For an excellent introduction in the modern world of High Finance, I highly recommend an unusual source: Fredrick Morton’s flattering (some say “fawning” or even “sychophantic”) biographical history of The Rothschilds: A Family Portrait.” While focused on the 5 sons of Amschel Rothschild (founder of the dynasty), the bio gives a terrific overview of international finance.
    For example, how the Rothschilds’ first big fortune was amassed in close cooperation with the Prince William of Hesse-Kassel – more famous to history as the Prince who hired out Hessian mercenary soldiers to European rulers… including King George III’s efforts to suppress the American revolution. It is widely acknowledged that he Rothschilds profited from Prince Williams hiring out of his mercenary killers a half world away in America, and here it is, over 2 centuries later, and nothing has changed!
    The Rothschilds financed both sides – Napolean and the English, Prussian, & Austrian allies – during the Napoleonic wars, Indeed, Nathan Rothschild financed the entire British war in Portugal and Spain, Wellington’s “Penninsula campaign,” which laid the foundation for Wellington’s later, most famous victory over Napoleon at Waterloo. And of course the most famous Rothschilds legend is that Nathan, leaning on his “Rothschilds pillar” at the London stock market, had news from his private intel service that Wellington and the Prussians had defeated Napolean at Waterloo. After informing the British government of the victory, Nathan proceeded to the stock exchange, where he instructed his brokers to _SELL_ his British bonds, IMPLYING that he knew that Wellington had been defeated, and that Napoleon had won. Using perfect market pyschology and timing based on his INSIDER INFORMATION, Nathan reversed his sell-off at just the right moment – at the peak of the “sell” PANIC that HE HAD INSTIGATED – and started buying huge lots of outstanding bonds, mere moments before the official, government word of Napoleon’s defeat arrived at the stock exchange.
    INSIDE INFORMATION based on private “intel” (spy) networks; DECEIT, market psychology and herd mentality; financial cartels working ABOVE and beyond the reach of “sovereign” governments; BULLING bonds and INCITING panics – all the above revealed, even in Morton’s flattering bio.
    Even more important is to discern the close relation between Big Money and WARS: the Rothchilds’ first fortune was based on William’s mercenaries; their great financial coup was based on advanced knowledge of Napoleon’s defeat; and indeed, Nathan and his brothers had FUNDED the ENTIRE British army in Spain, and thus were “entitled” to many of the profits of the British empire; including the OPIUM trade FORCED on China…. and the profits from the STARVATION policies imposed on English occupied Ireland. (The “Great Irish Famine” is, in American and English perceptions, blamed on the “potato blight” of 1845; but even a cursory examination – Europeans did not even have potatoes until the were brought back from “the New World” by Columbus in 1492 – reveals the cold truth: The Irish Famine of 1845-52 was the result of (Catholic) Irish being “ethnically cleansed” from the great estates, and grain fields, that had sustained life in the isles for all the centuries up to 1800s. Wiki helpfully has a (relatively new) entry that explains how RIGGING the legal code – on behalf of British lords and absentee landlords – led to the Great Famine, over 1 million perished
    http://en.wikipedia.org/wiki/Great_Famine_

    High Frequency Trading, corporate war profiteering, mass media manipulation and corporate propaganda (which support more wars, police state powers, and more “deregulation” or dark markets), and inciting panics, bubbles, colonial conquests, and even mass famines – its all there, 200+ years ago, today merely updated by electronic communications & trading.

  46. JC said:

    I’ve heard a rumor going around that this coming Labor Day Weekend (Sep-2010) people should just take the entire week off work, call in sick, just not show up, essentially go on strike, letting the Federal Gov’t know exactly who they are supposed to represent.

    I don’t know if it’s Tea Partiers sponsoring this or what. Has anyone else heard about this?

    Personally I think it’s a great idea.

  47. Boise Idaho said:

    Sounds like a novel. Hard to believe these backroom deals really do take place. Too bad no one has the guts to get list of all the names, call them out and seize their personal assets.

    Living the Dream in Boise Idaho!

  48. [...] Keiser only today explained that “Black Thursday” was an event of financial terrorism. He explains that the black box [...]

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  50. [...] This piece was originally published on May 10, 2010 by AmpedStatus.com. [...]

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  53. looking at these cyber monday deals dont see nothin special yet

  54. [...] peek into the Fed’s secret operations. (Remember, remember the 6th of May, HFT, flash crash and terrorism. “Hey, David, Homeland Security is on the phone! They want to ask you questions about some [...]

  55. [...] peek into the Fed’s secret operations. (Remember, remember the 6th of May, HFT, flash crash and terrorism. “Hey, David, Homeland Security is on the phone! They want to ask you questions about some NYSE [...]

  56. [...] peek into the Fed’s secret operations. (Remember, remember the 6th of May, HFT, flash crash and terrorism. “Hey, David, Homeland Security is on the phone! They want to ask you questions about some NYSE [...]

  57. [...] peek into the Fed’s secret operations. (Remember, remember the 6th of May, HFT, flash crash and terrorism. “Hey, David, Homeland Security is on the phone! They want to ask you questions about some NYSE [...]

  58. [...] peek into the Fed’s secret operations. (Remember, remember the 6th of May, HFT, flash crash and terrorism. “Hey, David, Homeland Security is on the phone! They want to ask you questions about some NYSE [...]

  59. [...] peek into the Fed’s secret operations. (Remember, remember the 6th of May, HFT, flash crash and terrorism. “Hey, David, Homeland Security is on the phone! They want to ask you questions about some NYSE [...]

  60. [...] peek into the Fed’s secret operations. (Remember, remember the 6th of May, HFT, flash crash and terrorism. “Hey, David, Homeland Security is on the phone! They want to ask you questions about some NYSE [...]

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