Is forex market controlled by someone? - page 25
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True, but that how they have always made their money. It's just that in recent years lots more money and traders have entered the market and they use more aggressive methods to hit their target.
Banks, by definition (and law), own your money from the moment you deposit it on your account in the bank. Here is one interesting article about it : Think Your Money is Safe? Think Again: The Confiscation Scheme Planned for US and UK Depositors | Alternet
Nothing wrong with it. Banks don't need "dead" weight, they are accepting your money to invest and make a profit. You shalln't to be concerned how they are going to do that and the way they dispose your money - make loans or invest in trading.
Then a question : when central bank finds itself "on a wrong side" of a trade, what will they do? Print some more money and invest it in the same stock and that way artificially cause value illusion? As they are doing all these years (QE) with "bailing out" banks that should have disappeared long time ago due to their inability to do their jobs as they should?
Not that simple ... banks (regular banks) are having wast amounts of money that they never earned, never got from customers, but were simply given from a printing machine. That is, if an individual does that, a criminal act
This will answer you what it really is.
Foreign exchange market - Wikipedia, the free encyclopedia
Since the issue is can central banks do that, the answer should be this : Central bank - Wikipedia, the free encyclopedia
UK watchdog says banks struggling to stamp out alleged FX market collusion
Banks are "struggling" to stamp out alleged collusion in the foreign exchange market, the chairman of Britain's Financial Conduct Authority (FCA) watchdog told a parliamentary committee on Tuesday.
The FCA and U.S. regulators are investigating allegations that dealers at major banks colluded and manipulated key reference rates in the $5.3 trillion a day foreign currency market, the world's biggest and least regulated.
"I think all the banks are really struggling as to how they stamp out that alleged activity," Wheatley said. "I know all of them are deeply embarrassed by what's happened and want to see that change. I know that they have put in place remedial action."
At the centre of the investigation is activity around the 4 p.m. currency fix in London, a 60-second window where key exchange rates are set. These prices are used as reference rates for trillions of dollars of investments and trades globally.
"It's very unfortunate that we've had what appears to be abuse in a number of sectors in the market follow on from the Libor fines," Wheatley said, referring to the scandal over rigging interest rates such as the London interbank rate - also the basis for a huge number of deals globally.
source
Every day, a currency "fix" known as the WMR/Reuters fix, is agreed, based on the price that currency trades at over a 60 second period. At the center of the probe seems to be traders eager to make a quick profit by buying up currencies just before they knew clients were going to buy large amounts of the same currency at the daily "fix". This way the traders could sell on at a profit when the price rose at the "fix."
Some also appear to have passed on information to traders at other companies about big upcoming trades. All of this could have artificially raised the value of one currency against another.
Forex manipulation: How it worked
i control it with black magic
(only kidding)
but how many more times...
the Rothschild controlled banks control Forex
(their Banks you can see, and also their banks you can't see)
they just trade between each other, all the rest is a smoke screen
Why The Rigging Of The Gold Market Matters
In a radio interview recently* I was asked a question to which I could not easily give a satisfactory reply: if the gold market is rigged, why does it matter?
I have no problem delivering a comprehensive answer based on a sound aprioristic analysis of how rigging markets distorts the basis of economic calculation and why a properly functioning gold market is central to all other financial prices. The difficulty is in answering the question in terms the listeners understand, bearing in mind I was told to assume they have very little comprehension of finance or economics.
I did not as they say, want to go there. But it behoves those of us who argue the economics of sound money to try to make the answer as intelligible as possible without sounding like a committed capitalist and a conspiracy theorist to boot, so here goes.
Manipulating the price of gold ultimately destabilises the financial system because it is the highest form of money. This is why nearly all central banks retain a holding. The fact we don’t use it as money in our daily business does not invalidate its status. Rather, gold is subject to Gresham’s Law, which famously states bad money drives out the good. We would rather pay for things in government-issue paper currency and hang on to gold for a rainy day.
As money, it is on the other side of all asset prices. In other words stocks, bonds and property prices can be expected to rise measured in gold when the gold price falls and vice-versa. This relationship is often muddled by other factors, the most obvious one being changing levels of confidence in paper currencies against which gold is normally priced. However, with bond yields today at record lows and equities at record highs this relationship is apparent today.
Another way to describe this relationship is in terms of risk. Banks which dominate asset markets become complacent about risk because they are greedy for profit. This leads to banks competing with one another until they end up ignoring risk entirely. It happened very obviously with the American banking crisis six years ago until house prices suddenly collapsed, threatening to take the whole financial system down. In common with all financial bubbles everyone ignored risk. History provides many other examples.
Therefore, gold is unlike other assets because a rising gold price reflects an increasing perception of general financial risk, ensuring downward pressure on other financial asset prices. So while the big banks are making easy money ignoring risks in equity and bond markets, they will not want their party spoiled by warning signs from a rising gold price.
This is a long way from proof that the gold market is manipulated. But the big banks, and we must include central banks which are obviously keen to maintain financial confidence, have the motive and the means. And if they have these they can be expected to take the opportunity.
So why does it matter if the gold price is rigged? A freely-determined gold price is central to ensuring that reality and not financial bubbles guides us in our financial and economic activities. Suppressing the gold price is rather like turning off a fire alarm because you can’t stand the noise.
source
How Banks Continue FX Rigging Right Under The SEC's Noses
The good news is that the rigging of the FX markets - now conspiracy fact, not conspiracy theory - has, according to Bloomberg, forced the world’s biggest banks to overhaul how they trade currencies to regain the trust of customers and preempt regulators’ efforts to force changes on an industry tarnished by allegations of manipulation with the "modernization of processes that probably should have been brought in 15 or 20 years ago." However, the FX market is far from 'clean' as Bloomberg notes, while banks can limit access to details about client orders on their computer systems, they can’t keep employees from talking to one another. Some traders also are still communicating with clients and counterparts at other firms via Snapchat, circumventing their company’s controls right under the nose of the SEC. As one trader commented, "these [reform] changes look like fig leaves."
As Bloomberg reports, positive changes are happening (on the surface)...
But, beneath the surface, nothing changes...
Not everyone is buying the changes...
* * *
The rigging continues...
Man who ate napkins to conceal insider trading pleads guilty
A Brooklyn, New York mortgage broker, who would scribble secret stock tips on napkins and pass them to an accomplice in Grand Central station before eating them, pleaded guilty to insider trading on Friday, federal prosecutors said.
Frank Tamayo, 41, was the middleman in what prosecutors called a three-man scheme that generated $5.6 million in illegal profits over five years, based on tips about a dozen transactions being negotiated by a prestigious New York law firm.
Tamayo, who had been cooperating with authorities, pleaded guilty to securities fraud, tender offer fraud, and conspiracy charges in the federal court in Trenton, New Jersey, according to U.S. Attorney Paul Fishman in New Jersey.
The defendant also agreed to forfeit more than $1 million, the contents of two brokerage accounts, and a 2008 Audi Q7. He faces up to 20 years in prison on the fraud counts.
Matthew Beck, a lawyer for Tamayo, did not immediately respond to a request for comment. The U.S. Securities and Exchange Commission filed related civil charges.
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