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Dollar testing highs against the Canadian Dollar as Canada struggles with identity crisis

Is Canada a ‘real’ country? What is a ‘real’ country anyway? Is a ‘country’ defined by ethnic lines, borders, corporations, or what the United Nations says? Is Kosovo a country? Some say yes, some do not agree: Kosovo, self-declared independent country in the Balkans region of Europe.

forex

USA places last in Forex market

Going back to the ‘USA is Exceptional’ meme- yes this is true! But it’s not necessarily a good thing (just like, being positive isn’t always good, for example it’s not good to be HIV positive). USA has the highest per capita prison population – and is exceptional in a number of areas. USA is number one in terms of real GDP, and last in many other terms. One thing that the USA is last in – FX.

The valuation of financial knowledge

How valuable is software that makes money? Obviously, it’s priceless. How do we value the biggest opaque commodity – knowledge?  How does one value financial knowledge? Finance as both a topic and industry has been holding huge secrets guarded by the most rich and powerful in the world for hundreds of generations. Why don’t they […]

Is Trump the largest FX Trader in the world?

(GLOBALINTELHUB) –Trump met with Shinzo Abe friday, the famous inflationist Prime Minister of Japan.  The issue in question is if Trump will label Japan a ‘currency manipulator’ – whatever that means.  It seems to be the equivalent of ‘Currency Headwinds’ in publicly traded companies.  Because, every currency is manipulated!  The only currency in use today […]

Fed Study: Fake News drives Fake Markets

Thanks Bloomberg, for another useless piece of regurgitated info we’ve known for years; fake news drives the fake markets which are artificially inflated.  Actually thanks to the Fed for doing the academic research on this topic to confirm what we’ve known for years – the markets are rigged and one way they are manipulated is […]

Trade is FX. Protecting USD status as the worlds reserve

(GLOBALINTELHUB.COM) 2/10/2017 — One of the most important points in the new “Trump System” of doing business, is that of the US Dollar, which currently is used by world’s central banks as their reserve.  Also, it’s used by peasants in many parts of the world including Russia – as an alternative to their domestic currency. […]

Playing The Trump Effect On FX Markets

Trump will soon assume his elected office, and potentially change FX markets forever. Well, it’s already happened. But what we’ve seen happen now, has been mostly ‘talk’ – whereas in 4 days, it will be ‘reality.’ First let’s look at the best example in FX of the Trump Effect, USD/JPY traded as (FXY), Guggenheim CurrencyShares […]

Let’s bring capital back to USA, too

It’s laudable that Trump wants to bring factories back to USA.  But how about virtual, monetary factories?  Moving financial institutions such as banks, insurers, brokerage houses, exchanges, and other institutions brings the most bang for the buck when it comes to revitalizing America’s economy. As we explain in Splitting Pennies, even though money doesn’t exist, […]

Truth in Numbers- Bad math as a propaganda and sales tool

It’s no surprise that the largest employer of mathematicians in the United States is the National Security Agency.  These jobs are not all ‘codebreakers’ – why does the NSA employ so many mathematicians, second only to Wall St.? The biggest secret propaganda and sales tool used by experts in the modern world is the deliberate […]

How Trump can make billions for America Inc. with no risk, and support the US Dollar

A simple plan to boost the American financial markets and bring back unknown billions in US Dollars, and to solidify the US Dollar as the only World Reserve Currency  Several simple steps to make money for America Inc. and create an environment for growth at the same time Trump’s transition team announced the repealing of […]

Another Conspiracy Theory Becomes Fact: The Fed’s “Stealth Bailout” Of Foreign Banks Goes Mainstream

Back in June 2011, Zero Hedge first posted: “Exclusive: The Fed’s $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went“ which we followed up on various occasions, most notably with “How The Fed’s Latest QE Is Just Another European Bailout” and […]

GIH: Walcome, Unicorn to Forex

An interesting week for the evolution of Forex! Coming just after leading US based intellectuals calling for the dethroning of “King Dollar” in an NY Times op-ed, we are moments away from a vote that could cause a major shakeup of the Eurozone, potential crash of the GBP, and creation of a new Scottish currency […]

The Origins and Implications of the Scottish Referendum

The idea of Scottish independence has moved from the implausible to the very possible. Whether or not it actually happens, the idea that the union of England and Scotland, which has existed for more than 300 years, could be dissolved has enormous implications in its own right, and significant implications for Europe and even for […]

4 C’s That Could Change The Financial World As We Know It, Again

Those 4 C’s are: Confirmation, Crisis, Contagion, Catastrophe.
What type of confirmation could send the financial markets into such turmoil it could rock the very bastions of finance as we now know it?
First: Scotland votes yes to leave the U.K. If this turns out to be so, it could send shock-waves throughout the markets that run the world. i.e., Forex or World currencies.
No one with any financial acumen can look seriously at the markets as they stand at the time of this writing, and seriously argue the markets are prepared for such a resolution happening this Thursday.
If Scotland truly does vote Yes and confirms independence from the U.K. the initial shock-waves in my opinion that will hit the markets will be akin to the video we’ve all seen 1000 times when a nuclear device is unleashed with a house being obliterated. Or, the one where trees are bent over near flat to then reverse back the same.
In my humble opinion this could be a metaphor of what could take place. The reason is simple: By proof of the markets as they stand today, it is proof prima facie that everyone (especially so-called “smart crowd”) thinks it won’t happen. And the odds via polling alone show it to be the equivalent of a coin toss!
If this happens it will also confirm something just as real, and quite possibly far more instructive: With both a Federal Reserve meeting being held just days prior to such an event, the language out of this meeting could not be more important.
If it’s some revised boilerplate “till conditions improve, extended period, blah, blah, blah” based press release and conference, it will again confirm what many believed from the start, The Fed is both deaf, blind, and ill prepared to handle what might be an event such as this. An event that has the potential to make the crisis of 2008 the equivalent of a firecracker as opposed to what might be unleashed if Scotland does indeed secede.
The ramifications are truly unknown, unquantifiable, and what might be worse – unmanageable.
Then we move to crisis.
Just how does the Federal Reserve handle such a dilemma of this scale? I use the word “scale” for good reason. As many may know the Forex markets dwarf what the lovingly referred to as “mom and pop investor” believe it to be.
The saving of the “stock market” (aka the Equity Markets) in 2008 vs a Forex market crisis is the equivalent of bailing out a local bingo hall as compared to dealing with such a crisis on the scale of Las Vegas casino.
If the Forex market suddenly gets rocked with a clear fundamental breakdown and breakup of everything now known as the E.U. Along with all the tentacle entangled carry trades? Crisis might be an understatement.
Contagion across the Forex exchanges will not only wreak havoc from within it will also spread directly to the Bond markets. (which many don’t realize is also considerably larger themselves than the equity markets)
Such sweeping turmoil will most assuredly plunge the equity markets themselves into complete and utter chaos as money managers, market makers, margin executives and more decree: “Sell Everything, Close Everything, Now!”
What chaos might also be unleashed as the High Frequency Trading (HFT) algos are set loose selling anything and everything into a market where it’s suddenly revealed via news reading computers that the jig is up?
Or, what no one (and I mean no one!) thought possible till this week. What if this was the week HFT decides to not skirt the laws, but to now – obey them?! i.e., CME Rule 575 as explained by ZeroHedge: These Kinds Of Market-Rigging “Practices” Will No Longer Be Allowed On The CME
This could make the current Ebola crisis and concerns about the speed and severity of contagion look like the sniffles in a kindergarten class.
The panic, fear, mistrust, alienation, ___________(fill in the blank) that holders of what once believed were liquid assets on their books will find out rather quickly nothing runs quicker down the drain than paper gains and wealth.
If all this plays out, what will follow will be a blow to the IPO market and all it has morphed into these last few years with “free money.” So much so that one will think they actually saw Thor’s Hammer. Alibaba™ stands to be “the” poster child for top ticking headlines like never before.
Friday their stock hits the market in what has been touted as one of the most sought after and highly demanded offerings. So much so that they were able to wrap their road show early.
All this in an era of low if not non-existent GDP figures of recent memory. Along with real unemployment, and other metrics screaming recession, however these are adjusted, tweaked or adulterated so much so – it would make a vocal harmonizer jealous.
If Alibaba finds itself trying to release an IPO in this potential melee it will have ramification not only for its own offering, but for every single current high flyer in the markets from now until who knows when. The issue is not just if this happens, but what happens for everything else -if?
A catastrophe is quite possibly in the making. But it is still all in the hands of nothing more than the odds in a flip of a coin. We’ll know more Thursday when Scotland votes. Until then what we truly know is less about what if, and more about – if not.
However we do know a couple of things today that we didn’t know just 5 years ago.
First is, we understand the markets are not what people think they are. Second, the Fed is not as omnipotent as most believe. Third, 70% to 80% of what the “mom and pop” 401K holders think are trades in the markets, is an illusion. Fourth: Everyone, including many of the very professionals that work and breathe Wall Street have learned absolutely nothing since the Lehman crisis.
And what’s maybe more important than all of those combined?
They believe the chances of it repeating are not only nil, they’re betting it wont. Besides they still believe: “The Fed’s got their back!”
Problem is – will the Fed be able to save its own rear end if it does happen? Let alone theirs.
We’ll know soon enough.

GIH: US or Non-US

The most commonly used introduction in any Forex business for the past 3 years: “US or Non-US” As much of the world moves to a non-USD Forex system, it is becoming ever more difficult for US citizens to trade Forex.  Since the dud-fag regulations that have protected the US consumer from opening accounts offering 400:1 […]

Interbank FX transfers MT4 accounts to FXCM

Dear valued client,

As you may already have heard, TradeStation has announced an agreement between its IBFX, Inc. and IBFX Australia Pty Ltd subsidiaries, and a subsidiary of FXCM Inc., in which all retail accounts in the “MetaTrader/MT4” division of both IBFX forex subsidiaries will be transferred to FXCM.

Having supported two forex business lines – MT4 and TradeStation – for some time, we have now decided to focus solely on our TradeStation Forex platform offering.

TradeStation’s success over the past 15 years is due in large part to the unique, differentiating features and functions offered by the TradeStation platform, and this move will enable us to focus our resources on continuing that success.

This change will not affect your TradeStation Forex account(s). Should you have any questions, please contact us.

Sincerely yours,

Gary Weiss,
President of IBFX, Inc.



The $3 Trillion Hole – Why EM Matters To European Banks

How many times in the last few days have we been told that Turkey – or Ukraine or Venezuela or Argentina – are too small to matter? How many comparisons of Emerging Market GDP to world GDP to instill confidence that a little crisis there can’t possible mean problems here. Putting aside this entirely disingenuous […]

Latin American Currencies Plunge To 2003 Lows, Argentine BONARs Shrink

GIH: Latin America should not be disregarded, it was an Asian crisis in 1998 that shook worldwide markets.  Brazil is a growing player in the global economy, and the Venezuelan stock market has been on a bull run.  What happens in Latin America deeply affects the world.  Take a look at these disturbing Forex charts: […]

World Bank Ex-Chief Economist Calls For End To Dollar As Reserve Currency

In the past we have discussed at length the inevitable demise of the USD as the world’s reserve currency noting that nothing lasts forever. [10] However, when former World Bank chief economist Justin Yifu Lin warns that “the dominance of the greenback is the root cause of global financial and economic crises,” we suspect the world will begin […]

FOMC Ignores EM Crisis, Tapers Another $10 Billion – December Statement Redline

GIH: $10 Billion in more taper from the Fed, indicates further tapering.  A bold move against the backdrop of the crisis in emerging market currencies, which caused a stock market sell off and EM Currency sell off.  Unlike many market analysts, The Fed “Sees Growth”: WASHINGTON — The Federal Reserve announced Wednesday another $10 billion […]