The Activity In the Market: Maggots Feeding Off The Corpse Of A Dead System!

July 28, 2009 (LPAC)—What Ben Bernanke didn't tell you is that the "green shoots" of activity in the markets these days is really just the movement of the maggots feeding off the corpse of the dead financial system. As near as we can tell, about half the trading on the stock exchanges these days comes from speculators betting on what the suckers will do, and the other half comes from a small group of insiders looting those speculators. Nothing real going on here, folks, except theft.

Goldman Sachs caused an uproar earlier this month when one of its former programmers was arrested for stealing software, software about which a Federal prosecutor stated: "The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate the markets in unfair ways." Which, naturally, raised the question: Has Goldman Sucks itself been manipulating the market; is that how Goldman made its big profits in the first half?

The issue revolves around what is called high-frequency trading, which is a fancy name for sticking a computer into the flow of orders entering a stock exchange, to spy on who is buying and selling. Big banks use very high-speed computers to peek at these orders before they hit the exchanges and then place their own orders first, effectively front-running the market and locking in small profits on each trade, and huge profits overall. Goldman Sucks, which dominates programmed trading and reportedly has special access due to its role as part of the Plunge Protection Team apparatus, has reportedly made $100 million a day through such trading.

Maybe the prosecutors should turn their attention from the guy who supposedly stole such software, to the guys who are using it every day to steal us blind. Where's the new Ferdinand Pecora?

Meanwhile poor Ben Bernanke is feeling the heat over the Fed's role in leading the world off the cliff, and has embarked on his version of a Greenspan-like "It's Not My Fault" tour. Yesterday, the Fed Chairman appeared at a town hall-style forum in Kansas City, where he expressed his "disgust" at the bailout, but defended it as necessary. Bernanke was especially vexed over a bill before Congress that would allow the Government Accountability Office (GAO) to monitor the Fed's monetary policy activity.

"I don't think the American people want Congress running monetary policy. That's exactly what (the bill) would do," Bernanke fumed.

Gee, Ben, have you ever actually read the Constitution? Especially the part which gives Congress the sole power to run the nation's monetary policy?

What has Bernanke so rattled, and what has turned Goldman Sucks and the other vampires of Wall Street into maggots feeding off the corpse of their former system, is precisely what Lyndon LaRouche identified in July 2007. The global monetary system has died, and can not be revived. Bernanke has thrown trillions of dollars down the rathole, but the system is still dead, and the entire world is on the verge of complete disintegration—not just financially, but economically (there is a difference!), politically, and culturally, with civilization itself falling into chaos.

"I'm not going to be the Federal Reserve Chairman who presided over the second Great Depression!" Bernanke declared in Kansas City.

No, Benny boy, you're going to be the Fed chairman who presided over the death of the nation and the world, unless saner heads prevail, and quickly, to save us from idiots like you.