Posts tagged news
Gold, Einstein And The Great Fed Robbery
One of Einstein’s great contributions to mankind was the theory of relativity, which is based on the fact that there is a real limit on the speed of light. Information doesn’t travel instantly, it is limited by the speed of light, which in a perfect setting is 186 miles (300km) per millisecond. This has been proven in countless scientific experiments over nearly a century of time. Light, or anything else, has never been found to go faster than 186 miles per millisecond. It is simply impossible to transmit information faster.
Too bad that the bad guys on Wall Street who pulled off The Great Fed Robbery didn’t pay attention in science class. Because hard evidence, along with the speed of light, proves that someone got the Fed announcement news before everyone else. There is simply no way for Wall Street to squirm its way out of this one.
Before 2pm, the Fed news was given to a group of reporters under embargo – which means in a secured lock-up room. This is done so reporters have time to write their stories and publish when the Fed releases its statement at 2pm. The lock-up room is in Washington DC. Stocks are traded in New York (New Jersey really), and many financial futures are traded in Chicago. The distances between these 3 cities and the speed of light is key to proving the theft of public information (early, tradeable access to Fed news).
We’ve learned that the speed of light (information), takes 1 millisecond to travel 186 miles (300km). Therefore, the amount of time it takes to transmit information between two points is limited by distance and how fast computers can encode and decode the information on both sides. Our experience analyzing the impact of hundreds of news events at the millisecond level tells us that it takes at least 5 milliseconds for information to travel between Chicago and New York. Even though Chicago is closer to Washington DC than New York, the path between the two cities is not straight or optimized: so it takes information a bit longer, about 7 milliseconds, to travel between Chicago and Washington. It takes little under 2 milliseconds between Washington and New York.
Therefore, when the information was officially released in Washington, New York should see it 2 milliseconds later, and Chicago should see it 7 milliseconds later. Which means we should see a reaction in stocks (which trade in New York) about 5 milliseconds before a reaction in financial futures (which trade in Chicago). And this is in fact what we normally see when news is released from Washington.
However, upon close analysis of millisecond time-stamps of trades in stocks and futures (and options, and futures options, and anything else publicly traded), we find that activity in stocks and futures exploded in the same millisecond. This is a physical impossibility. Also, the reaction was within 1 millisecond, meaning it couldn’t have reached Chicago (or New York): another physical possibility. Then there is the case that the information on the Fed Website was not readily understandable for a machine – less than a thousandth of a second is not enough time for someone to commit well over a billion dollars that effectively bought all stocks, futures and options.
Minutes before the Fed announcement at 14:00 on September 18, 2013, there was significant activity in Comex Gold Futures (traded in Chicago) and the ETF symbol GLD (traded in New Jersey). This gives us an opportunity to measure closely, the exact (to the millisecond) amount of time between trading between these two instruments. The first two charts show about 3.5 minutes of time around the Fed Announcement release, giving us an overview. The stack of charts that follow allow you to easily compare between GLD (New York) and GC Futures (Chicago) for 6 different active periods. You will see that in the first 5 pairs – before the announcement, activity first shows up in GC Futures, followed by activity in GLD between 5 and 7 milliseconds later. In the last pair, which compares activity at exactly 14:00:00.000, you will see both GC futures and GLD react exactly at the same time.
See also: More Charts of Evidence.
1. Animation of December 2013 Gold (GC) Futures followed by GLD stock on September 18, 2013 from 13:57 to 14:00:30.
2. Zooming in 150 milliseconds of time for the high activity periods minutes before and during the annoucement.
The chart shows first, Gold Futures (GC – traded in Chicago) followed by GLD (traded in New York)and clearly show events minutes before the news release: you can clearly see that Gold Futures (GC) trades before GLD. The chart shows the event at 14:00:00, where Gold Futures trades at the exact same time as GLD stock. This is physically impossible unless information was already present in Chicago and New York. It’s easiest if you compare the bottom panels of each chart which shows trading volume for each millisecond.
There are 2 possibilities, and both aren’t good news for Wall Street.
1. Released by a News Organization
The Fed news was condensed by a news service into a simple “No Tapering” message that was placed on news servers co-located next to trading machines in both New York and Chicago at some time before 2pm. The news machines are programmed to release the information at precisely 2pm, allowing the algos to react immediately at both locations. This is how some news services release privately compiled statistics like the Consumer Confidence or Chicago PMI.
In those cases, we see the exact behavior as in the last 2 charts above – an immediate reaction in New York and Chicgo. But the Fed news was released from a lock-up room which prevents transmission of any information to the outside world. Given that several large news organizations were recently caught doing this we think it’s less likely they would do something so bold, so soon. That leaves us with possibility number 2.
2. Leaked to Wall Street
The Fed news was leaked to, or known by, a large Wall Street Firm who made the decision to pre-program their trading machines in both New York and Chicago and wait until precisely 2pm when they would buy everything available. It is somewhat fascinating that they tried to be “honest” by waiting until 2pm, but not a thousandth of a second longer. What makes this a more likely explanation is this: we’ve found that news organizations providing timed release services aren’t so good about synchronizing their master clock – and often release plus or minus 15 milliseconds from actual time. Their news machines in New York and Chicago still release the data at the exact same millisecond, but with the same drift in time as the master clock. That is, we’ll see an immediate market reaction at say, 15 milliseconds before the official scheduled time, but in the same millisecond of time in both New York and Chicago. Historically, these news services have shown a time drift of about 30 milliseconds (+/- 15ms), which places the odds that this event was from a timed news service at about 10%.
What also makes this the more likely conclusion is this: we know the Bureau of Labor Statistics has recently hardened access to their lock-up room, weeding out all but respected news organizations. So imagine a reporter for one of these news organizations who is tasked with distilling the Fed news into a simple message that machines could read in less than a millisecond and interpret to mean, “buy all the things now”.; It’s unlikely that Wall Street would place so much responsibility on one news reporter. It is also unlikely that respected news organizations would tolerate this behavior.
We think it was leaked. The evidence is overwhelming.
Submitted by Tyler Durden
What Do You Know About The News? Take The Quiz
The Pew Research Center has released a comprehensive 13 question quiz which does a surprisingly good, and broad, job of testing readers’ knowledge about “prominent people and major events in the news“, and comparing the results to a sample of 1052 people. See how well you fare in comparison to everyone else on topics that are considered mainstream.
* * *
Once done with the quiz, take a look at the answer set: without doubt the most surprising finding is not that Americans continue to be large misinformed about relatively important developments (and would be even more misinformed if there were more questions on monetary or fiscal policy, the petrodollar, the DM-EM “axis-allies” split as shown most recently by the G-20 showed, USD reserve status and all those other things that actually matter), but that the one question answered wrong by most has to do with the performance of the Dow Jones:
It is stunning that only 18% of quiz-taking females and 24% of males, and only 32% of those with a college/grad+ education, can identify what the stock market has done in the past 5 years.
If anything this is the prima facie evidence why QE has failed: for a program whose primary purpose was to restore confidence in the economy through a rising stock market, even if manipulated through and through, the reason why there has been no confidence restored is because about 80% of the population neither knows nor cares that the DJIA is now just a fraction off its all time highs. And without the “confidence” boost arising from that particular “monetary transmission channel”, which is the only real weapon left in the Fed’s arsenal, there is little hope of boosting confidence in the economy through other more conventional means. Which is precisely what we said would happen in March 2009 when this deplorable monetary experiment was launched.
CIM Week In Review ~ Week Ending 8/31/2013
CIM Week In Review ~ Week Ending 8/17/2013
Let me add a quick note of explanation before proceeding with the week in review from this past week. Inactivity would have to be the descriptive word for this past week, which was due to undergoing surgery early Wednesday morning. This new week maybe still somewhat slower than normal but it is my hope to be back up to speed in the near future. Thank you to those sending encouraging wishes
Please checkout the new ChrisInMaryville Facebook page and give it a like! Thank you.
CIM Week In Review ~ Week Ending 8/10/2013
Hope you checkout the new ChrisInMaryville Facebook page and give it a like! Thanks.
CIM Week In Review ~ Week Ending 8/3/2013
Hope you checkout the new ChrisInMaryville Facebook page and give it a like! Thanks.
After a busy day of research, exploration, dealing with a horridly slow hosting company, reviewing options and accomplishing basically squat I have called in the entire office staff to work around the clock for the remainder of the weekend in hopes of making up for the down time. More important information you need to have access to, while the mainstream media continues to fail in their duties, will be forthcoming as the staff rolls in, from journalism assignments based in back alleys, under the couch, investigating the food bowl and points unknown, and gets set up to bring you the latest.
A sneak peek …
Wishing all a happy Caturday!
Defense Dept. Demolishes Huge, Unused Facility in Afghanistan
Published by NextNewsNetwork
HELMAND PROVINCE, Afghanistan — As the U.S. military presence in Afghanistan is drawn down, the Pentagon is preparing to demolish a huge operations center that was built for the Marines.
The facility, which is located in the country’s Helmand Province, cost at least $34 million to construct. Sprawling across the bleak and dusty landscape of southwestern Afghanistan, the base is the size of a football field.
This report also includes…
NEW YORK CITY — Despite receiving widespread praise for her emphasis on good nutrition, First Lady Michelle Obama has seen several schools rebel against her school lunch standards.
CAIRO — The Obama administration, which refuses to call the recent removal of the elected Egyptian president a coup, has announced that it will not cut off foreign aid to Cairo. Several media outlets, including Al-Jazeera, have reported that the State Department funded opposition figures and non-governmental organizations that called for the military to remove now-deposed president Mohamed Morsi.
SALT LAKE CITY — For the past 15 years, Xmission, Utah’s first independent internet service provider, has refused demands from local, state, and federal law enforcement officials that they provide warrantless access to customer data.
Texas Teen Faces 8 Years in Jail for an Insensitive Joke on Facebook
A very disturbing pattern is becoming evident all across the nation. For a country that has 5% of the world’s population yet 25% of the entire planet’s prisoners, we sure do seem to eager to bump that figure up even higher. My guess is the trend has a lot to do with the private prison system in the country, which means higher levels of incarceration equals higher profits. I think it also has to do with a troubling move toward criminalizing speech and an attack on the First Amendment generally. This particular case occurred in Austin, Texas and nineteen year old Justin Carter now faces eight years in jail for an insensitive joke on Facebook. Thanks to the site Texas Prison Bid’ness, we can gain some perspective on the private prison industry in the Lone Star State:
Now, here’s the story from KHOU in Houston:
Justin Carter was 18 back in February when an online video game “League of Legends” took an ugly turn on Facebook.
Jack Carter says his son Justin and a friend got into an argument with someone on Facebook about the game and the teenager wrote a comment he now regrets.
“Someone had said something to the effect of ‘Oh you’re insane, you’re crazy, you’re messed up in the head,’ to which he replied ‘Oh yeah, I’m real messed up in the head, I’m going to go shoot up a school full of kids and eat their still, beating hearts,’ and the next two lines were lol and jk.,” said Carter.
“LOL” stands for “laughing out loud,” and “jk” means “just kidding,” but police didn’t think it was funny. Neither did a woman from Canada who saw the posting.
Justin’s dad says the woman did a Google search and found his son’s old address was near an elementary school and she called police.
Justin Carter was arrested the next month and has been jailed since March 27. He’s charged with making a terroristic threat and is facing eight years in prison, according to his dad.
Friends and family have started an online petition they’re hoping will garnish more attention for Justin’s plight. You can find it by clicking here.
This is almost incomprehensible. Were his comments insensitive and disturbing? Sure. Would a call from the police to his parents to discuss the matter have been warranted? Maybe. That said, I cannot think of a single reason why this kid would ever spend more than a night in jail for simply doing what many immature kids do every minute of every day. Expect many more cases such as these, as the U.S. fully transitions into a police state economy.
Full article here.
Follow me on Twitter!
Posted by Judy Morris
Majority of Americans Don’t Trust Newspapers and Television News
Continuing a decades-long downward trend, fewer than one-fourth of Americans have confidence in newspapers, according to a recent Gallup poll.
The percentage of Americans saying they have “a great deal” or “quite a lot” of confidence in newspapers dropped to 23 percent this year from 25 percent last year, according to a report on the poll, which was released Monday.
American confidence in newspapers reached its peak at 51 percent in 1979, and a low of 22 percent in 2008.
But newspapers don’t stand alone. Confidence in television news has also been slipping — it’s tied with newspapers this year at 23 percent, which is slightly up from last year’s all-time low of 21 percent. Newspapers and television news rank near the bottom of a list of 16 “societal institutions,” according to the report. The only institutions television news and newspapers beat out this year are big business, organized labor, health maintenance organizations and Congress. Americans expressed the most confidence in the military, at 76 percent, and small businesses, at 65 percent.
Gallup attributed the drop in confidence to a number of factors, including a growth in social networking websites and an online audience that left news outlets struggling to find their place.
Read the rest at US News & World Report, here.