Big money: pump and dump as a way of life
Bubble, bubble, toil and trouble
Vampires on Wall Street and Main Street
Capitalism vs. meta-capitalism
by Jon Rappoport
June 29, 2015
(To read about Jon’s mega-collection, The Matrix Revealed, click here.)
“Imagine this: you want to buy and own Product X, which is valued at $10,000. You’re in a rare position. You can make that product sell for $1. You can do that. Then you can buy it and own it. In fact, you can do that with lots of products. Now, instead of products, imagine you can do that with whole companies, with industrial sectors, and even with large chunks of nations. You can spend $1 instead of $10,000. But wait, there’s more. You can re-inflate what you just reduced to $1. You can make it worth $10,000 again and you still own it. You can go up and you can go down. You control both sides of the mountain, the upside and the downside. This is money-management, Globalism-style. This is day-in, day-out manipulation. It’s done with the same routine configurations as making and having breakfast. A few of these configurations are called trade treaties.” (The Underground, Jon Rappoport)
Let’s start with the analogy of the stock market. To boil it down, here is how the game is played by insiders:
They acquire many, many shares of a stock and then they push the price up, up, up, and then they create a top, crash it, sending the stock price off a cliff to a dismal bottom.
They profit greatly on the way up (pump), and then, selling short (dump), they pile up more profits on the way down.
Getting away with it is like having a license to print money.
But this single pump and dump doesn’t have to be the end of the game. As the crashed stock creeps along a new discouraging bottom, the insiders quietly buy it again, preparing for a repeat cycle—up, up, up, top, top, top, crash, crash, crash, down, down, down.
Now imagine this pump and dump strategy applied to companies. Better yet, imagine it applied to a number of companies within a given industry all at once.
This is euphemistically called a bubble.
For instance, the dot-com bubble of the 1990s. The conventional wisdom was, overenthusiastic investors jumped on the new Internet dot-com bandwagon, put money into every crazy company they could find in this sector, all the companies were vastly overvalued, and then came the crash.
Of course, this was a false picture. Insiders propagandized the (false) worth of the dot-com sector, pumped the stocks, lured mad investors and speculators to the table, created a top, and then busted it, causing a collapse. Then, the insiders bought up these companies (the outfits that had useful technology) for pennies on the dollar…and began a second trip up the ladder…this time with a seriousness of purpose and the intent to create a viable dot-com sector. Which they did.
The same thing has happened to the “genetic sector.” Many companies promising breakthroughs possessed no real science; what they had was a group of shills who drew in investors hoping to make a killing. When those companies failed, insiders bought the ones that did have some technological promise. The genetic biotech sector has experienced several such bubbles, and there will be more—because in most cases the promise of results far outdistances what the science can produce.
The current trade treaties (e.g., the TPP) coming to a vote purposely embody a pump and dump for the near future: look to the pharmaceutical and robotics-automation sectors for boiling bubbles.
Smaller drug companies will be edged out of the new trade advantages Big Pharma enjoys. Those smaller outfits will crash, and the big boys will buy some of them up, for pennies on the dollar.
In robotics-automation (for factories), something similar will happen. Certain companies, sensing “the revolution is at hand,” will overextend themselves with huge loans, only to discover their profits don’t justify the expenditures for reconfiguring their assembly lines. They, too, will drown in red ink, and their mega-competitors will buy them up and initiate a far more successful robotics revolution.
The bigger swallow the smaller.
It’s all about pump and dump, bubble, bubble, rise and fall, and absorption into the “greater body.”
The Globalist plan to a T. Put more and more assets, human talent, and money into fewer and fewer hands. Top-down economic rule.
What I’m describing in this article could be called meta-capitalism. That’s my name for it. Capitalism is merely the voluntary exchange of money for non-harmful goods and services. But at the meta-level, you have predators, on their perches, looking down at the marketplace and devising concealed ways to manipulate the global flows of money and assets.
Consider the 2007-8 financial crash. Many people had bought houses with what they thought were fixed-rate mortgages. But they didn’t realize that only the monthly payments were fixed. That was the come-on, the con. Lurking below the surface, in the small print, was another part of the loan they’d taken: it was for the down payment, and that piece was variable.
So when banks closed in on home owners and told them their down payments were suddenly far higher now…the roof fell in. The home owners couldn’t make their payments. They were foreclosed on.
At the same time, all these mortgages were being traded like stocks—packaged and rolled up into bundles.
The insiders, of course, knew this trading operation was a bubble; they’d created the bubble and they knew the bundles were “faulty,” to say the least. They’d pushed the trading prices higher; and they sold and got out with their profits before the crash.
Some of the insiders were the banks who had been both offering the “faulty” mortgages and trading the bundles.
These banks knew they were too big to fail. They knew the federal government would bail them out.
A highly successful variation of pump and dump.
In turn, the federal government knew it could rely on the Federal Reserve to keep inventing money out of thin air. So rescuing the banks was no problem.
Very, very cozy. Yes, there was a bit of stare-down, high-stakes, poker-bluffing along the way, but the ultimate outcome was assured.
Part of that outcome was: banks now held many properties on which they’d foreclosed. This is was made to appear as a negative factor for the banks—but if you know you’re going to be bailed out, it’s really not.
In fact, you could say the entire crash of 2007-8 was a massive distraction, engineered in order to cover up a much larger, ongoing, long-term Globalist crime: the overwhelming leakage of jobs from industrial countries to underdeveloped countries where slave labor, land, and resources were available.
That job transfer is the meat and potatoes of Globalism. This is what all the trade treaties guarantee. This is how free-floating international mega-corporations continue their plundering operations.
And of course, the result is disastrous unemployment in the industrial nations. Anyone with a few active brain cells can see that.
Therefore, a cover story needed to be adopted and promoted. A story that would shift blame away from the mega-corporations and the Globalist trade treaties (e.g., NAFTA, CAFTA, GATT).
And that cover story was the 2007-8 crash.
It pointed the accusing finger for the horrendous and ongoing job losses at the “home-lending crisis.”
Big banks took press attacks on the chin, with a bland smile. They absorbed the name-calling in high style, as the federal government handed them trillions of dollars.
This is the game. No-limit holdem, where the banks and the Fed Reserve and the federal government and the mega-corporations are the house casino and decide, at any given moment, how much money they want to invent, show, hide, collect, transfer, and pay out.
Nice work if they can get it, and they can.
That is why governments can’t truthfully assure their citizens a “better job picture” in the future. They can certainly mouth “share and care” sentiments while laughing up their sleeves. They can crow about the rise of a more tolerant progressive culture and correcting past inequalities. But that is just window dressing meant, again, to distract from the ongoing plunder.
The author of three explosive collections, THE MATRIX REVEALED, EXIT FROM THE MATRIX, and POWER OUTSIDE THE MATRIX, Jon was a candidate for a US Congressional seat in the 29th District of California. He maintains a consulting practice for private clients, the purpose of which is the expansion of personal creative power. Nominated for a Pulitzer Prize, he has worked as an investigative reporter for 30 years, writing articles on politics, medicine, and health for CBS Healthwatch, LA Weekly, Spin Magazine, Stern, and other newspapers and magazines in the US and Europe. Jon has delivered lectures and seminars on global politics, health, logic, and creative power to audiences around the world. You can sign up for his free emails at NoMoreFakeNews.com or OutsideTheRealityMachine.