31c, page-8

Propunter,this little exert from Max Keiser will help explain what's happening here (not restricted just to MEO)yes he's a gold bull, but he's right on the money about "market trading". "They" can easily identify human traders, and hunt them down, like they've done with me in dozens of stocks the past couple of years.

Understand Price Discovery, or lack of it.

Price Discovery -- the result of buyers and sellers simultaneously transacting in the market with the result being Adam Smith's 'Invisible Hand' -- means goods and services move around in the economy at mutually advantageous prices for all. It also means that everyone holding similar items have a benchmark or 'price signal' that tells them what these items are worth.

It is my thesis that the inflation, deflation debate is flawed because we no longer have reliable price signals. The overwhelming domination of program trading on various exchanges has fundamentally changed the way prices are created and represented in the economy. All 'efficient market' theories are dead.

In place of reliable price signals (based on the supply and demand of buying and selling) we have price signals that are generated by computer algorithms; i.e., computers executing program trading, high frequency trading and algorithmic trading -- that account for up to 70% of the trading activity on the NYSE (or 100%, if you consider any shares traded -- not involved in program trading -- can't buck the pricing monopoly of the computers).

Program traders have a virtually infinite line of credit, pay virtually zero commissions, and are backed by banks on Wall St. with strong political connections who are ready to bail out any losing bets these computers make.

Plus, the computers are able to do something normal buyers and sellers can't do. They can pick a price they want a security to trade at and then fill in all the necessary trading volume needed to get the price of the security to that point. In other words, you can program computers to rig markets.

In this new rigged market capitalist model, the corrupt bank picks the price it wants a security to trade at and the computers buy and sell with each other until that price is reached; thus providing an audit trail of trades that looks on the surface like actual price discovery.

And each price manufactured by computers generates a reaction price in every other security and commodity as the rigged market price signal ripples throughout the interconnected securities market around the world.

What's being masked is that the actual supply of money in the system is falling.

The major measures of money supply have all turned down. Credit has evaporated. The velocity of the multiplier effect of fractional reserve lending has disappeared. The volume of fake trades is inflating while the actual supply of money and credit is deflating.

In place of an exchange where buyers and sellers transact with each other to their mutual advantage, we now have 'Simflation,' a hologram of fake price signals masking the worst deflationary depression since the 1930's.

The only market that inches higher in real terms at the moment -- as the financial hologram and the U.S. dollar -- the fundamental economic particle of this economic hologram disintegrates -- is gold.

This explains the seeming paradox of gold rising during real deflation.

Fake price signals and rigged market capitalism have set the dials of economic monitoring into a Bermuda Triangle of confusion and loss.

Only gold points the way out of this mess.