Bullard of the Fed did some recent "blundering" that I believe was intentional.

First he says one week that interest rates must rise …… starting a panic downward in the DOW of 8 % and then a week later suggests we need more QE and the markets amazingly rebound in about 48 hours. Actually he knows exactly what he is doing and this is intentional.

The “V” that he produced in the Dow is exactly what he desires to produce. If you want to understand their intentions all you need to know about is Behavioral Finance. Lawrence Summers has told us that this is Fed doctrine.

Behavioral Finance practiced by the Fed does not just reward dummies who blindly do what the Fed wants that is supportive of the dollar and punish those who vote against the dollar with gold or other hard assets… it also is used to mold behavior through pattern repetition. For example the recent “V” produced in the stock market has this behavioral effect:

1). They want as much market participation as possible.
2). By engaging the peoples money in stocks they are less likely to look for alternatives like gold or other hard assets. They want you in the paper game.
3). They plant fear seeds by getting a lot of media pundits to say that we are headed for the rocks in the market.
4). When the controlled, computer algo initiated downward 8 % drop occurs, a lot of people who are risk adverse sell their stocks at the bottom or close to the bottom.
5). The stock market rebounds back. This is all done with computers and then made up excuses for the movements in the stocks are leaked into the markets by the owned media to explain what the computers did.
6). The people that sold feel stupid for having their “fear” reflex get the better of them and then buy back into the market at higher prices.
7). Their dumb friends that are impervious or immune to the dangers and mispricing of risk throughout the system did not sell and therefore look smart.
8). Next time the risk adverse will not react to a downward spike and be “smart” like there conditioned friends.
9). Rinse and repeat until you have modified behavior such that the investor will stay put and be complacent no matter what world events transpire.
10). Enough repetition of this behavior modification and even if a nuclear device goes off in a highly populated U.S. city – the average investor will not only not sell their stocks... but also watch the market go up and accept this as a normal reaction.

In summary, the public will trust that the markets always recover and never want sell. Now they have really achieved what they want. The have nullified smart and made dumb look brilliant. So now all they have to deal with is the dumb.

What I am saying is that there is nothing left that is free or up to chance anymore in this market. Unlimited deriviatives rule the day and nothing will happen that is not intentional until of course they lose control. Because the stranglehold is so absolute, we hope that the end game should not be that far off.