As the artificial prop from QE runs off and then disappears, I have been looking for cracks to appear among the trillions of dollars of infected Ponzi units and fictitious assets that abound.

In the comments section yesterday, I mentioned that the JNK had been selling off hard. Interestingly, this happened with a 10-minute delay or fuse ahead of the stock market swoon. Are the algos not instantly correlating the two, or do they have the wrong timing sequence? What a marvelous plot it would be to sell the algos a flawed program that has an eight-minute fuse delay so that the true insider criminals can front run them.

The relationship between gold (the anti-Ponzi) and JNK/stocks also acted according to the model that I visualize. I am thinking this model will work better when the manipulative effects of QE are gone, putting in place a less propped market. Nor did it help the Ponzi sector that large amounts of cash were used up to fund the Alibaba scam, and that everybody who bought in the aftermarket is now solidly underwater. So finally yesterday the anti-Ponzi effect kicked in with near perfect correlation.

If you eyeball the first chart, you will see the JNK market veering up and then down like a defibrillator on the Wednesday the 24th. The Fed settled $1.75 billion in Treasury purchases at that point. There is another of $2.25 billion on Tuesday, but going into October these larger operations becomes more infrequent. Lacking this buyer, the JNK will be tossed like yesterday’s newspaper.

With plenty of predictive-programming warnings coming from the elite psychopaths — and even the BIS and G20 “suddenly” turning critical of this fictitious capital, — I see the JNK market support rescues as MIA. History has shown that a fictitious market can unravel fast if extreme interventions are not offered.  As Ponzis fizzle, the key players will be inclined to scramble for unencumbered anti-Ponzi ( i.e gold), PGMs and even silver. For my purposes and for smaller investors, following the high yield market via the JNK symbol will be an important tell going into the October kill zone.