Wednesday, November 12, 2014

Federal Reserve

Bankers fined a fraction of what they made on currency manipulation.
"Traders with nicknames like the "Three Musketeers" and the "A-Team" plotted over Internet chat rooms to manipulate currency markets for years, profiting at the expense of clients — and then congratulating themselves for their brilliance — regulators said Wednesday, as they fined five banks $3.4 billion.
Using profanity-laced banter, the traders coordinated their financial positions in the multi-trillion dollar currency market, securing profits for those inside their circles. "YESsssssssssss," one of them wrote in a chat message. "Yeah baby" and "nice work gents....I don my hat," wrote others, according to documents of their exchanges.
Citibank, JPMorgan Chase, Royal Bank of Scotland, HSBC Bank and UBS agreed to settlements totaling almost $3.4 billion with the U.S. Commodity Futures Trading Commission, U.K. Financial Conduct Authority and Swiss Financial Market Supervisory Authority. The British regulator said Barclays remains under investigation."
Yet people still invest with these frauds. I bet nobody goes to jail. I'm not so sure this is a real crime anyway.

Prediction of the consequences of ending QE.
"Peshut shows that the three rounds of QE succeeded  in dramatically increasing the growth rate of the money supply.   TMS stood at about $5.6 trillion at the beginning of the QE1 in November 2008, growing to $10.5 trillion by the end of September of this year.  The average annual increase of TMS was thus over $800 billion during the period of quantitative easing.  The year-over-year growth rate of the money supply reached a high of over 16% during QE1, around 15% during QE2, and leveled off at 8% during the “tapering off” period of QE3."
That's an impressive amount of counterfeit money. I wish some of that had ended up in my pocket.

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