In reference to http://biz.yahoo.com/bw/050906/65371.html?.v=1 - "Frequent intervention, the Sprott report adds also makes it impossible to distinguish between national emergencies and political expediency."

''One also can't help but think that intervention encourages more "irrational exuberance".  Why worry about the height if there's a safety net?''

You make it sound as if arbitrage is the problem with this. It's not. Slavery is the problem with it. The system constitutes a comprehensive and invisible regime of trade barriers. Trade is not free when, at any time, and to suit any purpose, and without any visibility or oversight, insiders can alter prices of goods and services. The profits from these alterations are not returned to the people in the form of government services. They are pocketed by the noble insiders who become only wealthier, compared to their ''underprivileged'' servants, as the scheme progresses. Regular traders remain in economic bondage unless some real citizen - someone who participates in the real free market that goes on behind this scam - ennobles them by filling them in.

To illustrate, let's say that Bill and Ted grow, respectively, apples and oranges. Both compete to sell fruit salad to their neighbours. The salad is twice as expensive as apples or oranges. 

One day Bill says, "Ted, my excellent friend, let us set up a fruit exchange. Let anyone buy our fruit and let's buy from each other at a fair price. Then we can simply add a percentage to price our respective salads. The quality of preparation of the salads will determine what the market will pay each of us."

Ted says, "Bodacious idea Bill my compadre. I'll ask my Dad to set up the fruit exchange board in visicalc on his brand new IBM PC XT. The free market rocks! Wild Stallyns! Roorooroorooroo!"

Ted's Dad, however, has ambitions for his son. He adds an invisible tarriff to the orange price in his visicalc sheet. Ted complains to Bill, "Bill, dude, I don't understand it. The price of my oranges is so high I can't sell 'em to anyone. And you can't afford to buy 'em from me. If it wasn't my own Dad I'd say there's something bogus in the state of Deuschmark."

Bill agrees, "If I can't buy oranges I can't sell fruit salad. I can sell apples but now there's so many I have to lower the price before they spoil. And if I do that, I'm going to have to find extra work to afford guitar picks and strings."

Ted says, "Bill, I have a most inspiring idea. You lower your price and I'll buy up your excess apples. I'm selling a lot more fruit salad now you're spending more time at the water park, Dude."

Bill says, "I still can't afford the guitar picks."

Ted says, "Bill my friend, I will help you out. You man my fruit salad stand and I'll pay you a percentage of the take you can spend on picks. Then I can spend my extra free time practicing guitar so when we get the band together, it'll be just as good as if we both had the same skills!"

Bill says, "Excellent! Roorooorooroorooooo!"

Ted goes on to star in TheMatrix. Whatever happened to Bill?

''Who makes it sound?  Slavery may the a problem, but it's not the only problem. Regardless of who knows about the intervention, the fact that intervention happens still encourages a higher market (Greenspan's "irrational exuberance") because it never crashes.  Those in the know know they have a safety net, those not in the know are just blissfully ignorant and happily enjoying an ever increasing stock prices.''

----

''Alex Winters is probably waiting tables in LA.  That's what happens to you when you're an even worse actor than Keanu Reeves...''

Actually a quick trip to IMDB says he's had some success as a director. And continues pitching his B&T3, which I for one would happily shell out to see. Be excellent to eachother - if that ain't WhatIsCopulism then what is?