Posts filed under “Currency”

Currency Markets Are Rigged

U.S. Justice Department Opens Criminal Probe Into Currency Market Manipulation

Currency markets are massively rigged.

Bloomberg reports today:

The U.S. Justice Department has opened a criminal investigation of possible manipulation of the $5.3 trillion-a-day foreign exchange market, a person familiar with the matter said.

The Federal Bureau of Investigation, which is also looking into alleged rigging of interest rates associated with the London interbank offered rate, or Libor, is in the early stages of its currency market probe, said the person, who asked not to be identified because the inquiry is confidential.

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Swiss regulators last week said they were “coordinating closely with authorities in other countries as multiple banks around the world are potentially implicated.”

The U.S. investigation comes as the U.K. Financial Conduct Authority said in June it was reviewing potential manipulation of exchange rates.

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Earlier this week, European Union antitrust regulators said they were examining the possible manipulation of currency rates by the financial industry, while Switzerland’s Financial Market Supervisory Authority, or Finma, and the nation’s competition commission said they were probing similar potential wrongdoing.

The U.S. Commodity Futures Trading Commission has also been reviewing possible currency market rigging, said a separate person with knowledge of the matter.

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RBS, Deutsche Bank and Citigroup are among firms reviewing e-mails, instant messages and phone records of their foreign-exchange employees for evidence of potential manipulation, according to three people with knowledge of those probes.

(Don’t get too excited.  The Justice Department has announced it will go easy on big banks, and always settles prosecutions for pennies on the dollar … a form of stealth bailout.  It is also arguably one of the main causes of the double dip in housing.  Indeed, the government doesn’t even force the banks to admit any guilt as part of their settlements.)

It’s not just currency markets. As shown below, big banks have manipulated virtually every market – both in the financial sector and the real economy – and broken virtually every law on the books.

Interest Rates Are Manipulated

Interest rates are rigged:

Derivatives Are Manipulated

The big banks have long manipulated derivatives … a $1,200 Trillion Dollar market.

Indeed, many trillions of dollars of derivatives are being manipulated in the exact same same way that interest rates are fixed: through gamed self-reporting.

Oil Prices Are Manipulated

Oil prices are manipulated as well.

Gold and Silver Are Manipulated

The Guardian and Telegraph report that gold and silver prices are “fixed” in the same way as interest rates and derivatives – in daily conference calls by the powers-that-be.

Energy Markets Are Manipulated

The Federal Energy Regulatory Commission says that JP Morgan has massively manipulated energy markets in California and the Midwest, obtaining tens of millions of dollars in overpayments from grid operators between September 2010 and June 2011.

Commodities Are Manipulated

The big banks and government agencies have been conspiring to manipulate commodities prices for decades.

The big banks are taking over important aspects of the physical economy, including uranium mining, petroleum products, aluminum, ownership and operation of airports, toll roads, ports, and electricity.

And they are using these physical assets to massively manipulate commodities prices … scalping consumers of many billions of dollars each year.

Everything Can Be Manipulated through High-Frequency Trading

Traders with high-tech computers can manipulate stocks, bonds, options, currencies and commodities. And see this.

Manipulating Numerous Markets In Myriad Ways

The big banks and other giants manipulate numerous markets in myriad ways, for example:

  • Engaging in mafia-style big-rigging fraud against local governments. See this, this and this
  • Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details here, here, here, here, here, here, here, here, here, here, here and here
  • Pledging the same mortgage multiple times to different buyers. See this, this, this, this and this. This would be like selling your car, and collecting money from 10 different buyers for the same car
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this, this, this, this and this
  • Engaging in unlawful “Wash Trades” to manipulate asset prices. See this, this and this
  • Participating in various Ponzi schemes. See this, this and this
  • Bribing and bullying ratings agencies to inflate ratings on their risky investments

The Big Picture

The big picture is simple:

  • The big banks manipulate every market they touch
  • The government has given the banks huge subsidies … which they are using for speculation and other things which don’t help the economy. In other words, propping up the big banks by throwing money at them doesn’t help the economy
  • The big banks own the D.C. politicians … so Congress and the White House won’t do anything unless the people force change

Category: Currency, Legal, Think Tank

Crisis Chronicles: The “Not So Great” Re-Coinage of 1696

Crisis Chronicles: The “Not So Great” Re-Coinage of 1696 James Narron and David Skeie September 30, 2013       In the late 1600s, England operated a bi-metallic monetary system of high-value gold coins and lower-value silver coins. In the early 1690s, however, the market price of silver began to rise at a time when…Read More

Category: Currency, Think Tank

How to Bypass the Debt Limit

click for video
Bypass the Debt Limit
Source: Yahoo Finance

Category: Currency, Politics, Video

Capital Flight inside the Euro Area: Cooling Off a Fire Sale

Capital Flight inside the Euro Area: Cooling Off a Fire Sale Matthew Higgins and Thomas Klitgaard Liberty Street Economics, October 02, 2013     Countries in the euro area periphery such as Greece, Italy, Portugal, and Spain saw large-scale capital flight in 2011 and the first half of 2012. While events unfolded much like a…Read More

Category: Currency, Federal Reserve, Think Tank

Category: Currency, Think Tank

Is Gold Overdue for a Bounce?

Back in my days as a trader, I would peruse the lists of 52 week lows looking for reversal candidates. The key was finding an intelligent entry that had a very tight stop, so it presented a good risk reward. I am happy to risk one dollar to make three. Slowly build the position over…Read More

Category: Currency, Gold & Precious Metals, Technical Analysis, Trading

Yuan: Redback Rising

The Chinese yuan has gone from being controversially weak to uncomfortably strong:

Read More

Category: Currency, Video

Currency Markets Are Rigged

EVERY Market Is Rigged Bloomberg reports today: Traders at some of the world’s biggest banks manipulated benchmark foreign-exchange rates used to set the value of trillions of dollars of investments, according to five dealers with knowledge of the practice. Employees have been front-running client orders and rigging WM/Reuters rates by pushing through trades before and…Read More

Category: Currency, Think Tank

Category: Currency, Federal Reserve, Think Tank

Art Cashin: End of Austerity?

CNBC’s Bob Pisani and Art Cashin, of UBS, discuss Europe and why the markets there are up. “Hope springs eternal,” he says.

90 Seconds with Art Cashin: End of Austerity?

Wed 24 Apr 13 | 11:40 AM ET

Category: Bailouts, Currency, Video