Ruble makes historic recovery

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-05-16/ruble-makes-historic-recovery

Traders should be able to admit, when they’re wrong.  As we explain in great detail in Splitting Pennies – there’s nothing worse than a trader who takes great effort to explain reasons why he was wrong or why it wasn’t in fact his fault, it was the market!  (or some such nonsense).  Such severe psychological factors is the reason that many traders opt for algorithm developement.

EES provides analysis of the markets in general, in addition to actual robot algorithms for clients to trade and use.  We rarely will make a call on the market, but this situation in Russia was really unique.  Anyway, we were wrong.  The trade was right, but our timing was off.  We suggested to sell USD/RUB pair in December, here.  We watched in surprise as the 70 level broke to 72, to 73, and higher.  In Forex this move is unheard of in majors.  The question in this trade is – is the Ruble a major – or an exotic?  Finally, USD/RUB hit 86, before retreating to it’s current level, around 64.  We were stopped out around 74, with great pain (we had a huge position in relation to our account).  Take a look at USD/RUB chart:

For those who do not actively trade Forex, the above chart is US Dollar vs. Ruble so that means if this chart is going up, dollar is up and ruble is down.

Investors who were short USD/RUB were squeezed out in January.  There are a few differences about trading this pair that don’t apply to other currencies.  One, margin/leverage is a little different, a little lower.  Depending on your bank/broker, it can be as low as 10:1, or 20:1 as opposed to other pairs that have much higher leverage.  Two, you can only trade USD/RUB during certain times, there is a market window like the stock market.  Trading outside this time will result in a ‘market is closed’ message.  This can affect how stops & limit orders work.

For our trade, we learned an invaluable lesson about trading this pair.  Like much of the Russian economy, this pair trades as if it is the 80s.  If you look at this daily chart, and compare it with almost any Forex chart from the 80s, you’ll see a similar pattern – pairs trade in long ranges, some days with big volatile spikes, and seasonal moves.  That doesn’t happen in Forex anymore, except with USD/RUB.  So, traders now have a great trading plan for trading USD/RUB for 2016 and beyond.

Our reasoning at the time, Ruble was punished too much – Oil is a big part of the Russian economy but Russia is not like OPEC countries – they have many other sectors as well, even cheese.  The logic of the analysis was correct, and USD/RUB months later settled back down to 64 and probably will settle medium term around 60 handle.  But it’s unlikely any trader would have suffered the pain being short from 70 to 86 without having a medical condition.  Anyway – many hedge funds have had the same thinking too:

Stuart Sclater-Booth, who oversees more than $40 billion at Stone Harbor Investment Partners, told Bloomberg he expects the Russian currency to appreciate to 63 against the dollar.

“We think Russia will offer attractive return potential for the rest of the year. You have tremendous carry in the ruble, we think oil found a bottom earlier this year and the central bank, we think, is going to be successful in bringing inflation down,” he said.

This January, oil prices fell to $27 per barrel, dragging down the Russian currency to its historic low of 86 rubles against the dollar. With Brent crude rallying to $42 per barrel the ruble has strengthened to 67 against the dollar.

There are also derivative plays here, such as mentioned by Fortress Capital:

Summary

Currencies trade in pairs – if something goes up, something else is going down.

There are many derivative plays offered by forex, which can be realized in the stock market.

Buying and selling foreign companies is one way to play the US dollar.

Many foreign companies are traded on US exchanges via ADRs.

Sberbank provides a great play on USDRUB carry trade.

The larger point of this historic recovery is that it signals the world that Russia is a world economic power, and Russia is open for Business.  Udachi!

Elite E Services offers Forex analysis, technology, and trading algorithms.  To learn more about the exciting world of FX, checkout Splitting Pennies – Understanding Forex.  Or, open an account and try your luck!

The post Ruble makes historic recovery appeared first on Forex IQ.




Robogov coming to a town near you

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-05-14/robogov-coming-town-near-you

Automation is taking over all aspects of society.  In many cases, this is a good thing.  As we explain in Splitting Pennies – Understanding Forex – trading Forex manually (Without robots or automation) is basically impossible.  But also we’ve learned that when anything is done by the government, it ends up being mismanaged, overpriced, delayed, or worse.  In the most extreme example, inmates on death row that are killed by the government, are later found to be innocent with DNA or other hard evidence.  Studies show recently that 4% of inmates killed are innocent, but many believe it to be much higher, as much as 50%.  Whatever is the number, one person being killed who is innocent is one too many.

So, the state of Florida has implemented an automated toll system, which will not only take a photo of your license plate automatically, it will automatically find your address based on your DMV records, and mail you an invoice!

This invoice was paid promptly via online credit card.  What would have been interesting to see how they handle situations where the invoice was not paid!  But they fairly billed only the toll, $4.75.  It happened on the way from Fort Lauderdale to Miami, on 95’s new overpass, southbound to Miami.  There were many flashing signs “Tolls begin Monday (it was Saturday night)”  – but no where to pay the toll.

What happens when the IRS automatically deducts your taxes from your bank account?  Let’s be practical, any bank or financial institution inside the borders of USA – is open to the possibility of complete control by the Feds, for benign reasons – or in case of emergency, POTUS can always declare some emergency circumstances.. and poof!  For example:

“In order to protect your security, and maintain financial stability of the system, we are deducting this temporary lien fine from your account, according to Section 42 Title 9 of the code.  Due to paperwork reduction act compliance this notification is electronic only.  Have a nice day.”

Sounds far fetched, but so does the automated robotic toll system currently in use by the state of Florida, that automatically photographs cars and mails the registered drivers invoices – to other states!

Practically speaking, systems like this are not new, and have been in use in Europe for decades, and in California.  What’s particularly creepy about this though is there was no way to pay the toll in person by car.  It wasn’t labelled too well – no sign saying “Drive in this lane and we will mail you a ticket.”  Not sure if that’s even legal.

Dear lawyers, is it a legally binding contract, between driver and the State of Florida, by driving in this lane, I have agreed they will photograph my car, and mail me an invoice?  Does it violate my privacy?  What if I didn’t understand the contract?  There wasn’t any clear explanation of how this contract worked.  What was simply strange is that in Florida, like many states, roads are distinguished between public and private.  Florida’s Turnpike, a well known private toll road – has it’s own tolling system.  It’s clearly marked and if you are really stupid, you can ask the toll booth worker about the rules, and if you don’t have money to pay or want to argue about something, there’s a manager in an office near most toll stations.  So seeing this ‘private lane’ on the drive to Miami was a real surprise for a Floridian, especially that it wasn’t marked clearly – and that robogov found me one month later in another state!

As an IT professional, the system is respectable.  Managing millions of drivers in a tourist state is not easy.  And the drivers in Florida are CRAZY.  So that’s another point, maybe it takes robots to manage such a group of “Floridians.”  But on another level, something just doesn’t feel right about a government run system that is automated.

If this is the thinking of the government – beware Roboregulations.

Our company Elite E Services has authored thousands of Forex robots, that automate the trading process.  Banks develop robots to automate their liquidity and risk management, so trading has become a battle of the robots.  But in this case, it’s just a one way – management robotic system.

Learn more about Forex automation at Elite E Services or checkout our book, Splitting Pennies.  Learn more about class action settlement automation at Liquid Claims.

The post Robogov coming to a town near you appeared first on Forex IQ.




The Two Faces Of Facebook

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-05-11/two-faces-facebook

It’s hard to find anything negative about Facebook (FB). Pro Facebook fanatics say that’s a good thing. With a market cap of 330 Billion it’s hard to argue, that investors love Facebook . But what does Facebook do? In this article we’ll prove that:

  • Facebook is a disaster waiting to happen
  • The only thing supporting Facebook is the intelligence community
  • Facebook will always exist as a platform, but the business model will crumble like the house of cards it is
  • The huge amount of Face-spam, hackers, fake-profiles, advertiser profiles, and other dishonest users will ultimately be revealed at some point
  • Facebook advertising doesn’t work

Twitter (TWTR) has recently blocked the intelligence community from using their automated services:

In 2013, Dataminr was used by the Presidential Inauguration Committee to track potential threatsto President Barack Obama’s second term inauguration ceremony.

As for why Twitter has blocked intelligence agencies from now accessing the tool, the WSJreports: The intelligence community’s obsession with monitoring social media is hardly new. Recently, the CIA’s venture capital firm, In-Q-Tel, invested in dozens of tech firms creating tools for investigating social media data, of which Dataminr was reportedly a recipient, affording the agency access to the tool.

White Twitter (TWTR) is not Facebook , it can be a sign of things to come. Although it won’t be likely that Facebook will block access completely, it is an issue that looms in the background ever since the revelations of the PRISM program.

In today’s news, it was released that Facebook itself was manipulating streaming news via a liberally staffed editorial team:

Facebook workers routinely suppressed news stories of interest to conservative readers from the social network’s influential “trending” news section, according to a former journalist who worked on the project. This individual says that workers prevented stories about the right-wing CPAC gathering, Mitt Romney, Rand Paul, and other conservative topics from appearing in the highly-influential section, even though they were organically trending among the site’s users.

While this doesn’t surprise many, this release makes it a fact. We know that Facebook is manipulating such ‘activity.’ The fact that Facebook is changing the public discussion by suggesting topics, based on their bias – well that’s another discussion. The point here is that Facebook is a proven manipulator of its system. Facebook is a private system, the algorithms and methods are not public. It’s not like the stock market. It’s a system that works like – well we just have to trust them, that it works how they say it works. We have to trust their numbers, their data, and so on.

According to a 2012 CNN article, there are 83 Million fake Facebook profiles or duplicates:

If you’re using a fake name on your Facebook account, maintaining a personal profile for your beloved pet or have a second profile you use just for logging in to other sites, you have one of the 83.09 million fake accounts Facebook wants to disable.

In an updated regulatory filing released Wednesday, the social media company said that 8.7 percent of its 955 million monthly active users worldwide are actually duplicate or false accounts.

Let’s just use percentages, as the number of Facebook users change rapidly. 8.7% is low. Some claim the number can be much higher, even as high as 60% – 70%. Because there’s many kinds of fake profiles, not only people registering their pets. Also, there are robots, or software programs that automatically register and use Facebook accounts, often for a fee. Then there are click farms, or companies that will for a fee, create likes, views, and other forms of activity on your pages. Are you sad that you don’t have any friends? Buy them on Facebook for only a few cents each! An interview with a successful click farm says that they sell 1,000 likes for only $29.99 US Dollars:

Most of the accounts Casipong creates are sold to these digital middlemen – “click farms” as they have come to be known. Just as fast as Silicon Valley conjures something valuable from digital ephemera, click farms seek ways to create counterfeits. Just Google “buy Facebook likes” and you’ll see how easy it is to purchase black-market influence on the internet: 1,000 Facebook likes for $29.99; 1,000 Twitter followers for $12; or any other type of fake social media credential, from YouTube views to Pinterest followers to SoundCloud plays. Social media is now the engine of the internet, and that engine is running on some pretty suspect fuel.

We could write a series of articles on Facebook exploits, but the problem isn’t the security of Facebook it is Facebook itself. For example, advertisers and marketers, are ‘real’ profiles, but they use Facebook to spam other users walls, and basically try to advertise their product for free.

Facebook Advertising doesn’t work. That’s not only industry knowledge, that’s according to many analyst reports, such as this one:

“Facebook hasn’t delivered on its promise and in fact has quietly become reliant on the traditional advertising models it once lampooned,” he said in a report released on Monday.

That’s from 2013. Since then, Facebook stock has gone up by more than double:

FB Chart

FB data by YCharts

It seems unstoppable. At the Facebook IPO, it seemed that the stock was doomed. But it’s overcome all the bugs, glitches, problems, and the reality check that Facebook doesn’t do anything, except allow intelligence services to collect data about US Citizens. Well, that is valuable – but it’s not a business.

If Facebook wants to maintain its supremacy, it will need to reinvent itself such as Apple (AAPL) did once upon a time. There’s no comparison to Alphabet Inc (GOOG) which is into so many different businesses it’s even hard to keep track.

It’s not that Facebook advertisers aren’t aware of this – they are. Just Google terms such as “Facebook Fraud” or “Facebook advertising fake clicks” or “Fake Facebook Likes” and you’ll see hundreds upon hundreds of first hand accounts of being scammed, ripped off, defrauded, and even hacked. You’ll find reports from Ad agencies about fake likes, and how it can negatively impact your brand. Also you’ll find in-depth articles that research fake click like trends, such as this one on Business Insider:

The twist here is that these advertisers have not paid for fake likes. They paid Facebook for legit ads. And the fake likes themselves don’t benefit anybody. Rather, they have been created en masse by click farms attempting to make their abusive accounts look real by clicking on legit ads. When a company advertises, asking for likes, the spammers respond and click on them to help their own appearance of legitimacy. For these marketers advertising on Facebook is worse than useless – it renders their pages pointless.Facebook has struggled for years to rid itself of click farms and fake like creators. These are companies, often based in the developing world, who sell unwitting marketers thousands of new likes for tiny sums of money. They generate likes by paying workers $1 for every thousand likes they create.

The point is that this isn’t priced into their stock. Investors who buy the stock, don’t get it. Advertisers, Facebook users, mostly understand that Facebook is itself a spamming platform. There are even books for sale about how to spam on Facebook . It’s even possible to calculate the black market Facebook spam industry, about $200 Million:

Spammers posting links on Facebook fan pages to send people to third-party scam sites are earning $200m every year, according to calculations by a team of Italian security researchers who have investigated hundreds of thousands of posts on the social network…. “The spam posters get paid an average of $13 per post, for pages that have around 30,000 fans, up to an average of $58 to post on pages with more than 100,000 fans,” De Micheli told the Guardian. “If we consider these two as extremes, the pages we analyzed generate a revenue of 18,000 posts per day, times the revenue per post – ranging from $13 to $58 – 365 days a year.”

Facebook platform manipulation, spamming techniques, and advanced automated (robot) usage of Facebook have even given rise to a new industry, similar to what SEO (Search Engine Optimization) was in 2003 – 2006. Many companies have developed software to manage Facebook, or even made entire products and services just to manage it. Other companies stand against the use of the platform, stating that the negatives outweigh the positives. White hat and black hat agencies alike develop methods to exploit Facebook sometimes using the Facebook ads system and sometimes not.

In accounting, when something is difficult to quantify it’s referred to as ‘goodwill.’ Goodwill, as many readers know, has no value. Yet, there are cases where Goodwill is used. In the case of Facebook , there is real revenue, 17.9 Billion in 2015. It is a huge number. Since 2013, Facebook stock has been on a bull rampage. The point of these observations in this article, is that it is built on a house of cards. There’s no foundation. At some point, an event will happen, which can cause it to collapse. Advertisers will flee, users will flee. Facebook users will be comprised of spammers themselves, moping in their depression with each other, sharing stories about ‘the good times’ when click farms, like farms, and bot services were at their peak. Advertisers, will see diminishing returns on their investment. Facebook they will realize, is no better than the traditional advertising it was meant to replace. With the exception of big corporates such as Coca Cola (KO), McDonalds (MCD), Ford (F), and others, advertisers will find better more innovative ways to use their online ad dollars. Users will tire of ads, and find other ways to use the internet.

Let’s look at the risks of Facebook practically. Users upload massive amounts of personal data to the network, usually with total disregard to any privacy concerns. Images, location data, credit cards, chat records, purchasing habits, interests, keyword searches, relationship data, and more – provide a complete profile of users. What if Facebook was completely hacked? It’s not so far fetched, says Reza Moaiandin:

Facebook users could be in danger of having their personal details harvested by hackers using a loophole in the social network’s privacy system. A security researcher hasdiscovered the issuewhere using only a mobile phone number, a hacker could recover names, telephone numbers, images and location data in bulk from the social network. An algorithm was used to run a Facebook API that, according to Reza Moaiandin, technical director at technology firm Salt, could harvest “millions of users’ personal data”.

That’s not all. Phishing style attacks are also common on Facebook such as the common ‘who knows you best’ trick:

Facebook is the new frontier for fraud, says Tom Clare, head of product marketing at Blue Coat, an Internet security company that does annual reports on web threats. In just this past year social networks have soared to 4th from 17th most treacherous web terrain — behind porn and software-sharing sites, which you probably know to avoid. What makes Facebook so treacherous? Us.

1. Who knows you best?
The message reads: Can you do this? My middle name __________, my age ___, my favorite soda _______, my birthday ___/___/___, whose the love of my life ______ , my best friend _____, my favorite color ______, my eye color _______, my hair color ______ my favorite food ________ and my mom’s name __________. Put this as your status and see who knows you best. â™¥
How many of these are the same facts your bank asks to verify your identity? Put this as your status and everybody — including all the people who want to hijack your bank account and credit cards — will know you well enough to make a viable attempt.

Facebook was designed with collecting data on users in mind. In order to do this, it wasn’t built like Fort Knox. In fact, to the contrary, it was left ‘open’ because many rules, procedures, and protocols may have discouraged the use of Facebook . In plain language, Facebook secretly attracts spammers, while publicly fighting them. It’s because Facebook is a spam platform, built by advertisers, for advertisers. The more users, real, fake, or spam – the more Facebook could charge for advertising, the more Facebook seemed like a ‘real’ company.

There’s one thing in the online marketing business that any SEO will tell you – if you are advertising your Facebook page, you aren’t advertising your brand, you are advertising Facebook itself. So Facebook encourages spam, and aggressive marketing practices, because it’s really promoting Facebook itself. “As seen on Facebook” was akin to “As seen on TV.” Facebook likes spam-bots because frankly, it does their job for them. It inflates their numbers. On a platform which was trying to prove itself, it wanted exponential growth of users. Facebook wanted to look bigger than it was.Recently a group in the UK tried gaming the system without using any spam-bot, and notified Facebook (FB) of the flaw, Facebook (FB) did nothing:

A research team from McGill University’s computer science school has published a paper that demonstrates a way of creating fake “Likes” on Facebook without using a botnet or an army of spammers. The team says, in a paper published on March 19 this year, that Facebook was alerted to the flaws two years ago but loopholes on the site still remain. The McGill team is hoping that by making the bugs public, advertisers – who rely on Likes and pay for them – and users will realise that some articles aren’t actually as popular as the number of Likes would indicate.

Why Facebook does nothing when notified about such a flaw? Because they ‘like’ such flaws – Facebook itself is a flaw. It wouldn’t be surprising that in the early days, friends of Facebook were hired to create bots that could automatically create millions of profiles, activity, and so on. Like the battle SEOs have with Google – Google uses sophisticated algorithms (bots) to manage data, but if a webmaster is found using a bot, Google punishes them with a ‘penalty.’

Facebook has two faces. The reason Facebook only has a ‘like’ button and not a ‘dislike’ button is to hide the second darker side of Facebook , that investors and users may not like.

Of course, there’s nothing wrong with Facebook existing, but not at a market cap of 300B. Buy Amazon (AMZN), Google ,(IBM) buy anything – just sell your Facebook stock before the big reality check, that it’s just a Fakebook.

To get another perspective of how the financial system ‘really’ works, checkout Splitting Pennies – Understanding Forex.  It’s your pocket guide guaranteed to make you a Forex genius!

The post The Two Faces Of Facebook appeared first on Forex IQ.




The Two Faces Of Facebook

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-05-11/two-faces-facebook

It’s hard to find anything negative about Facebook (FB). Pro Facebook fanatics say that’s a good thing. With a market cap of 330 Billion it’s hard to argue, that investors love Facebook . But what does Facebook do? In this article we’ll prove that:

  • Facebook is a disaster waiting to happen
  • The only thing supporting Facebook is the intelligence community
  • Facebook will always exist as a platform, but the business model will crumble like the house of cards it is
  • The huge amount of Face-spam, hackers, fake-profiles, advertiser profiles, and other dishonest users will ultimately be revealed at some point
  • Facebook advertising doesn’t work

Twitter (TWTR) has recently blocked the intelligence community from using their automated services:

In 2013, Dataminr was used by the Presidential Inauguration Committee to track potential threatsto President Barack Obama’s second term inauguration ceremony.

As for why Twitter has blocked intelligence agencies from now accessing the tool, the WSJreports: The intelligence community’s obsession with monitoring social media is hardly new. Recently, the CIA’s venture capital firm, In-Q-Tel, invested in dozens of tech firms creating tools for investigating social media data, of which Dataminr was reportedly a recipient, affording the agency access to the tool.

White Twitter (TWTR) is not Facebook , it can be a sign of things to come. Although it won’t be likely that Facebook will block access completely, it is an issue that looms in the background ever since the revelations of the PRISM program.

In today’s news, it was released that Facebook itself was manipulating streaming news via a liberally staffed editorial team:

Facebook workers routinely suppressed news stories of interest to conservative readers from the social network’s influential “trending” news section, according to a former journalist who worked on the project. This individual says that workers prevented stories about the right-wing CPAC gathering, Mitt Romney, Rand Paul, and other conservative topics from appearing in the highly-influential section, even though they were organically trending among the site’s users.

While this doesn’t surprise many, this release makes it a fact. We know that Facebook is manipulating such ‘activity.’ The fact that Facebook is changing the public discussion by suggesting topics, based on their bias – well that’s another discussion. The point here is that Facebook is a proven manipulator of its system. Facebook is a private system, the algorithms and methods are not public. It’s not like the stock market. It’s a system that works like – well we just have to trust them, that it works how they say it works. We have to trust their numbers, their data, and so on.

According to a 2012 CNN article, there are 83 Million fake Facebook profiles or duplicates:

If you’re using a fake name on your Facebook account, maintaining a personal profile for your beloved pet or have a second profile you use just for logging in to other sites, you have one of the 83.09 million fake accounts Facebook wants to disable.

In an updated regulatory filing released Wednesday, the social media company said that 8.7 percent of its 955 million monthly active users worldwide are actually duplicate or false accounts.

Let’s just use percentages, as the number of Facebook users change rapidly. 8.7% is low. Some claim the number can be much higher, even as high as 60% – 70%. Because there’s many kinds of fake profiles, not only people registering their pets. Also, there are robots, or software programs that automatically register and use Facebook accounts, often for a fee. Then there are click farms, or companies that will for a fee, create likes, views, and other forms of activity on your pages. Are you sad that you don’t have any friends? Buy them on Facebook for only a few cents each! An interview with a successful click farm says that they sell 1,000 likes for only $29.99 US Dollars:

Most of the accounts Casipong creates are sold to these digital middlemen – “click farms” as they have come to be known. Just as fast as Silicon Valley conjures something valuable from digital ephemera, click farms seek ways to create counterfeits. Just Google “buy Facebook likes” and you’ll see how easy it is to purchase black-market influence on the internet: 1,000 Facebook likes for $29.99; 1,000 Twitter followers for $12; or any other type of fake social media credential, from YouTube views to Pinterest followers to SoundCloud plays. Social media is now the engine of the internet, and that engine is running on some pretty suspect fuel.

We could write a series of articles on Facebook exploits, but the problem isn’t the security of Facebook it is Facebook itself. For example, advertisers and marketers, are ‘real’ profiles, but they use Facebook to spam other users walls, and basically try to advertise their product for free.

Facebook Advertising doesn’t work. That’s not only industry knowledge, that’s according to many analyst reports, such as this one:

“Facebook hasn’t delivered on its promise and in fact has quietly become reliant on the traditional advertising models it once lampooned,” he said in a report released on Monday.

That’s from 2013. Since then, Facebook stock has gone up by more than double:

FB Chart

FB data by YCharts

It seems unstoppable. At the Facebook IPO, it seemed that the stock was doomed. But it’s overcome all the bugs, glitches, problems, and the reality check that Facebook doesn’t do anything, except allow intelligence services to collect data about US Citizens. Well, that is valuable – but it’s not a business.

If Facebook wants to maintain its supremacy, it will need to reinvent itself such as Apple (AAPL) did once upon a time. There’s no comparison to Alphabet Inc (GOOG) which is into so many different businesses it’s even hard to keep track.

It’s not that Facebook advertisers aren’t aware of this – they are. Just Google terms such as “Facebook Fraud” or “Facebook advertising fake clicks” or “Fake Facebook Likes” and you’ll see hundreds upon hundreds of first hand accounts of being scammed, ripped off, defrauded, and even hacked. You’ll find reports from Ad agencies about fake likes, and how it can negatively impact your brand. Also you’ll find in-depth articles that research fake click like trends, such as this one on Business Insider:

The twist here is that these advertisers have not paid for fake likes. They paid Facebook for legit ads. And the fake likes themselves don’t benefit anybody. Rather, they have been created en masse by click farms attempting to make their abusive accounts look real by clicking on legit ads. When a company advertises, asking for likes, the spammers respond and click on them to help their own appearance of legitimacy. For these marketers advertising on Facebook is worse than useless – it renders their pages pointless.Facebook has struggled for years to rid itself of click farms and fake like creators. These are companies, often based in the developing world, who sell unwitting marketers thousands of new likes for tiny sums of money. They generate likes by paying workers $1 for every thousand likes they create.

The point is that this isn’t priced into their stock. Investors who buy the stock, don’t get it. Advertisers, Facebook users, mostly understand that Facebook is itself a spamming platform. There are even books for sale about how to spam on Facebook . It’s even possible to calculate the black market Facebook spam industry, about $200 Million:

Spammers posting links on Facebook fan pages to send people to third-party scam sites are earning $200m every year, according to calculations by a team of Italian security researchers who have investigated hundreds of thousands of posts on the social network…. “The spam posters get paid an average of $13 per post, for pages that have around 30,000 fans, up to an average of $58 to post on pages with more than 100,000 fans,” De Micheli told the Guardian. “If we consider these two as extremes, the pages we analyzed generate a revenue of 18,000 posts per day, times the revenue per post – ranging from $13 to $58 – 365 days a year.”

Facebook platform manipulation, spamming techniques, and advanced automated (robot) usage of Facebook have even given rise to a new industry, similar to what SEO (Search Engine Optimization) was in 2003 – 2006. Many companies have developed software to manage Facebook, or even made entire products and services just to manage it. Other companies stand against the use of the platform, stating that the negatives outweigh the positives. White hat and black hat agencies alike develop methods to exploit Facebook sometimes using the Facebook ads system and sometimes not.

In accounting, when something is difficult to quantify it’s referred to as ‘goodwill.’ Goodwill, as many readers know, has no value. Yet, there are cases where Goodwill is used. In the case of Facebook , there is real revenue, 17.9 Billion in 2015. It is a huge number. Since 2013, Facebook stock has been on a bull rampage. The point of these observations in this article, is that it is built on a house of cards. There’s no foundation. At some point, an event will happen, which can cause it to collapse. Advertisers will flee, users will flee. Facebook users will be comprised of spammers themselves, moping in their depression with each other, sharing stories about ‘the good times’ when click farms, like farms, and bot services were at their peak. Advertisers, will see diminishing returns on their investment. Facebook they will realize, is no better than the traditional advertising it was meant to replace. With the exception of big corporates such as Coca Cola (KO), McDonalds (MCD), Ford (F), and others, advertisers will find better more innovative ways to use their online ad dollars. Users will tire of ads, and find other ways to use the internet.

Let’s look at the risks of Facebook practically. Users upload massive amounts of personal data to the network, usually with total disregard to any privacy concerns. Images, location data, credit cards, chat records, purchasing habits, interests, keyword searches, relationship data, and more – provide a complete profile of users. What if Facebook was completely hacked? It’s not so far fetched, says Reza Moaiandin:

Facebook users could be in danger of having their personal details harvested by hackers using a loophole in the social network’s privacy system. A security researcher hasdiscovered the issuewhere using only a mobile phone number, a hacker could recover names, telephone numbers, images and location data in bulk from the social network. An algorithm was used to run a Facebook API that, according to Reza Moaiandin, technical director at technology firm Salt, could harvest “millions of users’ personal data”.

That’s not all. Phishing style attacks are also common on Facebook such as the common ‘who knows you best’ trick:

Facebook is the new frontier for fraud, says Tom Clare, head of product marketing at Blue Coat, an Internet security company that does annual reports on web threats. In just this past year social networks have soared to 4th from 17th most treacherous web terrain — behind porn and software-sharing sites, which you probably know to avoid. What makes Facebook so treacherous? Us.

1. Who knows you best?
The message reads: Can you do this? My middle name __________, my age ___, my favorite soda _______, my birthday ___/___/___, whose the love of my life ______ , my best friend _____, my favorite color ______, my eye color _______, my hair color ______ my favorite food ________ and my mom’s name __________. Put this as your status and see who knows you best. â™¥
How many of these are the same facts your bank asks to verify your identity? Put this as your status and everybody — including all the people who want to hijack your bank account and credit cards — will know you well enough to make a viable attempt.

Facebook was designed with collecting data on users in mind. In order to do this, it wasn’t built like Fort Knox. In fact, to the contrary, it was left ‘open’ because many rules, procedures, and protocols may have discouraged the use of Facebook . In plain language, Facebook secretly attracts spammers, while publicly fighting them. It’s because Facebook is a spam platform, built by advertisers, for advertisers. The more users, real, fake, or spam – the more Facebook could charge for advertising, the more Facebook seemed like a ‘real’ company.

There’s one thing in the online marketing business that any SEO will tell you – if you are advertising your Facebook page, you aren’t advertising your brand, you are advertising Facebook itself. So Facebook encourages spam, and aggressive marketing practices, because it’s really promoting Facebook itself. “As seen on Facebook” was akin to “As seen on TV.” Facebook likes spam-bots because frankly, it does their job for them. It inflates their numbers. On a platform which was trying to prove itself, it wanted exponential growth of users. Facebook wanted to look bigger than it was.Recently a group in the UK tried gaming the system without using any spam-bot, and notified Facebook (FB) of the flaw, Facebook (FB) did nothing:

A research team from McGill University’s computer science school has published a paper that demonstrates a way of creating fake “Likes” on Facebook without using a botnet or an army of spammers. The team says, in a paper published on March 19 this year, that Facebook was alerted to the flaws two years ago but loopholes on the site still remain. The McGill team is hoping that by making the bugs public, advertisers – who rely on Likes and pay for them – and users will realise that some articles aren’t actually as popular as the number of Likes would indicate.

Why Facebook does nothing when notified about such a flaw? Because they ‘like’ such flaws – Facebook itself is a flaw. It wouldn’t be surprising that in the early days, friends of Facebook were hired to create bots that could automatically create millions of profiles, activity, and so on. Like the battle SEOs have with Google – Google uses sophisticated algorithms (bots) to manage data, but if a webmaster is found using a bot, Google punishes them with a ‘penalty.’

Facebook has two faces. The reason Facebook only has a ‘like’ button and not a ‘dislike’ button is to hide the second darker side of Facebook , that investors and users may not like.

Of course, there’s nothing wrong with Facebook existing, but not at a market cap of 300B. Buy Amazon (AMZN), Google ,(IBM) buy anything – just sell your Facebook stock before the big reality check, that it’s just a Fakebook.

To get another perspective of how the financial system ‘really’ works, checkout Splitting Pennies – Understanding Forex.  It’s your pocket guide guaranteed to make you a Forex genius!

The post The Two Faces Of Facebook appeared first on Forex IQ.




Mind Control as a method to support the US Dollar

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-05-07/mind-control-method-support-us-dollar

There is a paradox of capitalism, we’ve reached a point where those at the top, have an unlimited budget to maintain the status quo, increase their wealth, and develop an ever increasing sophistocated toolbox to manage empire and maintain their dominance.  As we explain in Splitting Pennies – this is no where more obvious than Forex.  The last 100 years we’ve seen capitalism evolve brightly.  Industries that shouldn’t be industries, now employ millions of workers.  Paradigm shift, revolution, can now be artificially created by means of automated computer algorithm.  The political process, has been hacked by this technology.  And it’s all controlled by a central banking Elite – it’s all controlled by THEY (Them).  At the top of the pyramid of society, groups such as the CIA, MI6, KGB, Mossad, and others – are responsible for maintaining safety and security, that is, from change.  They cull the herd when necessary, whether it be a revolution in Libya, or bringing down the twin towers.  But these are all physical ops, their most important missions are the ones least talked about – that is, PsyOps, and most significantly, PsyOps that support the financial system.  I believe that if ZH readers can understand this matrix, it will help make better more objective investing decisions.  Because although the market is a free entropic environment, it is controlled by humans, by institutions, and well – it’s only free when it’s allowed to be free.  These PsyOps are what make such a state of hypocrisy possible – otherwise, people would ‘wake up’ and realize that we are programmed with oxi moron hypocrisy.  “We had to bomb the village to save it.”  The tools they use to implement mind control are very simple and have been around for 50 years – the most successful one is Television (TV).  According to testimony by CIA analyst who was involved in domestic PsyOps, he said when asked how can the average person avoid such programming, “Unplug your TV.”  In case you aren’t aware of modern mind control techniques, checkout this well compiled article by Activist Post about 10 methods commonly used.

The connection between the global social control paradigm and the US Dollar runs deep.  In support of the US Dollar, it’s important that people are blindly hypnotised into submission by using US Dollars.  This is more important than any Fed operations to prop the markets.  Because ultimately, the only real threat to the US Dollar is if people start THINKING.  At the end of the day, the US Dollar, like any fiat currency, provides a basic accounting service for economic activity.  Never before in history has a single currency enjoyed such widespread global use.  And the marketing and propoganda campaigns in support of the USD support it more than the Petro Dollar system, more than CIA operations in Switzerland, and more than any financial algorithm employed by groups such as the Plunge Protection Team (PPT).  Understanding something, isn’t criticizing – maybe it’s a good thing, maybe not – it’s not for the teacher to make any conclusive opinion.  It is however something that all investors should be aware of, especially those who are subject to daily Neuro Linguistic Programming (NLP) in support of this financial system.  Why is Hollywood so successful?  Because they make magic – they make the artificial, seem real… if only for a few moments, it is enough to rewire your brain, already filled with advertising, chemicals in the food, air, and water, and various radio and radiation pumped into populated areas.  The Fed, controlled by a similar group of people like Hollywood is, also makes magic.  They make people believe in this paper they print numbers on called “Federal Reserve Notes” – even though it’s backed by nothing.  US Dollars are only backed by BELIEF and FAITH in them – which is why Mind Control – or in more plain language, aggressive advertising; is necessary to support the US Dollar.

Maybe watching some of these lunatics that have coined phrases such as “King Dollar” are enough for the average busy businessman to be lulled into a sense of semi-consciousness, where rational, objective thought is impossible.  Buy buy buy.. drill drill drill.. Investors are whipped into a bullish frenzy easily with such programming.  They meet the first criteria – they are open to it.  Admitting you have a problem, is step number one.  The mind is like a parachute, you must open to use.  Not only that, they actually want to hear what TV personalities want to say, to help them make investing decisions!  I remember when I learned Bill OReilly wrote a book – I was shocked.  I didn’t think that someone with his mental disability could even read – let alone write!  (Still, I’m not sure he actually wrote any book, probably he hired someone to do it.)  Anyway, this guy is a great example of someone who fits the role needed to be played perfectly – slightly mentally retarded, aggressive abrasive personality, with a lot of opinions about meaningless issues that will guarantee that it is impossible to receive any valuable information by watching such a program.

So how does this all work?  Clearly, the Elite have decided that financial services – it’s not for the people.  People should work hard, obey, consume, watch sports, and watch TV, and eat, and drink.. So they embed advertising in subtle ways, when discussing financial issues.  For example, during the 911 commission reports and investigation, there’s no mention of the post 911 US Dollar, or transactions that took place short USD just before 911.  There’s a little talk about PUT options on UAL but they’ve tried confusing the issue by releasing snopes reports that its a myth, even though you can see what really happened here:

FTW, October 9, 2001 – Although uniformly ignored by the mainstream U.S. media, there is abundant and clear evidence that a number of transactions in financial markets indicated specific (criminal) foreknowledge of the September 11 attacks on the World Trade Center and the Pentagon. In the case of at least one of these trades — which has left a $2.5 million prize unclaimed — the firm used to place the “put options” on United Airlines stock was, until 1998, managed by the man who is now in the number three Executive Director position at the Central Intelligence Agency. Until 1997 A.B. “Buzzy” Krongard had been Chairman of the investment bank A.B. Brown. A.B. Brown was acquired by Banker’s Trust in 1997. Krongard then became, as part of the merger, Vice Chairman of Banker’s Trust-AB Brown, one of 20 major U.S. banks named by Senator Carl Levin this year as being connected to money laundering. Krongard’s last position at Banker’s Trust (BT) was to oversee “private client relations”. In this capacity he had direct hands-on relations with some of the wealthiest people in the world in a kind of specialized banking operation that has been identified by the U.S. Senate and other investigators as being closely connected to the laundering of drug money.

Krongard (re?) joined the CIA in 1998 as counsel to CIA Director George Tenet. He was promoted to CIA Executive Director by President Bush in March of this year. BT was acquired by Deutsche Bank in 1999. The combined firm is the single largest bank in Europe. And, as we shall see, Deutsche Bank played several key roles in events connected to the September 11 attacks.

No mention of Forex – no USD short.  No reports about the missing Gold from the Fed depository, which was at Ground Zero.  This type of subtle manipulation goes on today.  It’s not what they say, it’s what they don’t say.  As long as the American population is fat, happy, and stupid – they will be happy to use US Dollars, which continually decline in value.  Alternatives such as community currencies, gold, Bitcoin, and others – which are readily available for use – should be avoided at all costs.  Most Americans aren’t even aware that other currencies exist.  As we explain in our book Splitting Pennies – this brainwashing of the domestic population is critical to the global advertising campaign that supports the US Dollar.  The USD is the one world currency.  The Euro, backed by USD and run by CIA agent “Super Mario” – is simply the other side of the same coin.

The goal of this programming is simple – don’t question the US Dollar.  It’s not about convincing people to buy USD in a Forex account.  In fact, they’re betting that by not questioning the value of the USD or questioning the USD as an accounting functional currency, people aren’t going to want to trade Forex, where they can potentially hedge themselves from Forex exposure, or even make a fortune on Forex like Stan did.  What’s the point of this article?  Turn off your TV, or just obey.

They are investing billions to control your mind.  All they want is your time.  Just a few moments of your time.  It’s all they need.  Who cares, whatever, nevermind.

The post Mind Control as a method to support the US Dollar appeared first on Forex IQ.




Mind Control as a method to support the US Dollar

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-05-07/mind-control-method-support-us-dollar

There is a paradox of capitalism, we’ve reached a point where those at the top, have an unlimited budget to maintain the status quo, increase their wealth, and develop an ever increasing sophistocated toolbox to manage empire and maintain their dominance.  As we explain in Splitting Pennies – this is no where more obvious than Forex.  The last 100 years we’ve seen capitalism evolve brightly.  Industries that shouldn’t be industries, now employ millions of workers.  Paradigm shift, revolution, can now be artificially created by means of automated computer algorithm.  The political process, has been hacked by this technology.  And it’s all controlled by a central banking Elite – it’s all controlled by THEY (Them).  At the top of the pyramid of society, groups such as the CIA, MI6, KGB, Mossad, and others – are responsible for maintaining safety and security, that is, from change.  They cull the herd when necessary, whether it be a revolution in Libya, or bringing down the twin towers.  But these are all physical ops, their most important missions are the ones least talked about – that is, PsyOps, and most significantly, PsyOps that support the financial system.  I believe that if ZH readers can understand this matrix, it will help make better more objective investing decisions.  Because although the market is a free entropic environment, it is controlled by humans, by institutions, and well – it’s only free when it’s allowed to be free.  These PsyOps are what make such a state of hypocrisy possible – otherwise, people would ‘wake up’ and realize that we are programmed with oxi moron hypocrisy.  “We had to bomb the village to save it.”  The tools they use to implement mind control are very simple and have been around for 50 years – the most successful one is Television (TV).  According to testimony by CIA analyst who was involved in domestic PsyOps, he said when asked how can the average person avoid such programming, “Unplug your TV.”  In case you aren’t aware of modern mind control techniques, checkout this well compiled article by Activist Post about 10 methods commonly used.

The connection between the global social control paradigm and the US Dollar runs deep.  In support of the US Dollar, it’s important that people are blindly hypnotised into submission by using US Dollars.  This is more important than any Fed operations to prop the markets.  Because ultimately, the only real threat to the US Dollar is if people start THINKING.  At the end of the day, the US Dollar, like any fiat currency, provides a basic accounting service for economic activity.  Never before in history has a single currency enjoyed such widespread global use.  And the marketing and propoganda campaigns in support of the USD support it more than the Petro Dollar system, more than CIA operations in Switzerland, and more than any financial algorithm employed by groups such as the Plunge Protection Team (PPT).  Understanding something, isn’t criticizing – maybe it’s a good thing, maybe not – it’s not for the teacher to make any conclusive opinion.  It is however something that all investors should be aware of, especially those who are subject to daily Neuro Linguistic Programming (NLP) in support of this financial system.  Why is Hollywood so successful?  Because they make magic – they make the artificial, seem real… if only for a few moments, it is enough to rewire your brain, already filled with advertising, chemicals in the food, air, and water, and various radio and radiation pumped into populated areas.  The Fed, controlled by a similar group of people like Hollywood is, also makes magic.  They make people believe in this paper they print numbers on called “Federal Reserve Notes” – even though it’s backed by nothing.  US Dollars are only backed by BELIEF and FAITH in them – which is why Mind Control – or in more plain language, aggressive advertising; is necessary to support the US Dollar.

Maybe watching some of these lunatics that have coined phrases such as “King Dollar” are enough for the average busy businessman to be lulled into a sense of semi-consciousness, where rational, objective thought is impossible.  Buy buy buy.. drill drill drill.. Investors are whipped into a bullish frenzy easily with such programming.  They meet the first criteria – they are open to it.  Admitting you have a problem, is step number one.  The mind is like a parachute, you must open to use.  Not only that, they actually want to hear what TV personalities want to say, to help them make investing decisions!  I remember when I learned Bill OReilly wrote a book – I was shocked.  I didn’t think that someone with his mental disability could even read – let alone write!  (Still, I’m not sure he actually wrote any book, probably he hired someone to do it.)  Anyway, this guy is a great example of someone who fits the role needed to be played perfectly – slightly mentally retarded, aggressive abrasive personality, with a lot of opinions about meaningless issues that will guarantee that it is impossible to receive any valuable information by watching such a program.

So how does this all work?  Clearly, the Elite have decided that financial services – it’s not for the people.  People should work hard, obey, consume, watch sports, and watch TV, and eat, and drink.. So they embed advertising in subtle ways, when discussing financial issues.  For example, during the 911 commission reports and investigation, there’s no mention of the post 911 US Dollar, or transactions that took place short USD just before 911.  There’s a little talk about PUT options on UAL but they’ve tried confusing the issue by releasing snopes reports that its a myth, even though you can see what really happened here:

FTW, October 9, 2001 – Although uniformly ignored by the mainstream U.S. media, there is abundant and clear evidence that a number of transactions in financial markets indicated specific (criminal) foreknowledge of the September 11 attacks on the World Trade Center and the Pentagon. In the case of at least one of these trades — which has left a $2.5 million prize unclaimed — the firm used to place the “put options” on United Airlines stock was, until 1998, managed by the man who is now in the number three Executive Director position at the Central Intelligence Agency. Until 1997 A.B. “Buzzy” Krongard had been Chairman of the investment bank A.B. Brown. A.B. Brown was acquired by Banker’s Trust in 1997. Krongard then became, as part of the merger, Vice Chairman of Banker’s Trust-AB Brown, one of 20 major U.S. banks named by Senator Carl Levin this year as being connected to money laundering. Krongard’s last position at Banker’s Trust (BT) was to oversee “private client relations”. In this capacity he had direct hands-on relations with some of the wealthiest people in the world in a kind of specialized banking operation that has been identified by the U.S. Senate and other investigators as being closely connected to the laundering of drug money.

Krongard (re?) joined the CIA in 1998 as counsel to CIA Director George Tenet. He was promoted to CIA Executive Director by President Bush in March of this year. BT was acquired by Deutsche Bank in 1999. The combined firm is the single largest bank in Europe. And, as we shall see, Deutsche Bank played several key roles in events connected to the September 11 attacks.

No mention of Forex – no USD short.  No reports about the missing Gold from the Fed depository, which was at Ground Zero.  This type of subtle manipulation goes on today.  It’s not what they say, it’s what they don’t say.  As long as the American population is fat, happy, and stupid – they will be happy to use US Dollars, which continually decline in value.  Alternatives such as community currencies, gold, Bitcoin, and others – which are readily available for use – should be avoided at all costs.  Most Americans aren’t even aware that other currencies exist.  As we explain in our book Splitting Pennies – this brainwashing of the domestic population is critical to the global advertising campaign that supports the US Dollar.  The USD is the one world currency.  The Euro, backed by USD and run by CIA agent “Super Mario” – is simply the other side of the same coin.

The goal of this programming is simple – don’t question the US Dollar.  It’s not about convincing people to buy USD in a Forex account.  In fact, they’re betting that by not questioning the value of the USD or questioning the USD as an accounting functional currency, people aren’t going to want to trade Forex, where they can potentially hedge themselves from Forex exposure, or even make a fortune on Forex like Stan did.  What’s the point of this article?  Turn off your TV, or just obey.

They are investing billions to control your mind.  All they want is your time.  Just a few moments of your time.  It’s all they need.  Who cares, whatever, nevermind.

The post Mind Control as a method to support the US Dollar appeared first on Forex IQ.




ECB Study says US data ‘leaked’ to key traders

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-05-03/ecb-study-says-us-data-leaked-key-traders

Apparently, Europeans need to do ‘studies’ to show that markets are rigged.  See the study here.  In Summary:

We examine stock index and Treasury futures markets around releases of U.S.
macroeconomic announcements. Seven out of 21 market-moving announcements
show evidence of substantial informed trading before the official release time. Prices
begin to move in the “correct” direction about 30 minutes before the release time.
The pre-announcement price drift accounts on average for about half of the total
price adjustment. These results imply that some traders have private information
about macroeconomic fundamentals. The evidence suggests that the preannouncement
drift likely comes from a combination of information leakage and
superior forecasting based on proprietary data collection and reprocessing of public
information. 

Readers of Splitting Pennies understand Forex and how central banks control Forex markets, which is a superset of all other markets.  So it’s interesting that a working group at the ECB studies stock & treasury futures markets, to show ‘insider trading’ based on ‘price drift’ – are they setting themselves up for the ultimate proof for manipulating the Euro surrounding key ECB data releases?

Although their conclusion is probably correct, their methodology is ridiculous.  Their proof that there’s insider trading going on is based on ‘price drift’ which accounts for about 50% of the post-data move.

The European Central Bank published a working paper — which means it hasn’t been peer reviewed as yet — arguing that seven out of 21 market-moving announcements show evidence of “substantial informed trading” before the official release time.The paper identified seven indicators that they said showed “strong” evidence of pre-announcement drift: The Conference Board’s consumer confidence index; the National Association of Realtors’ existing-home sales report and pending-home sales report; the Commerce Department’s preliminary GDP report; the Federal Reserve’s industrial production report; and the Institute for Supply Management’s manufacturing and nonmanufacturing index.

The accused, has a more reasonable answer for ‘price drift’ – it’s because the market expects the numbers to be as expected:

A spokesman for the National Association of Realtors says they take any allegations seriously. He points out that the existing-home-sales report is released from a secure location, that reporters are instructed not to communicate outside of the room, and that the organization monitors the media to make sure data is not disseminated early. He’s said on occasion media organizations have accidentally released data early, apologized to the group and not done so subsequently.  The spokesman also suggested, however, that traders may be making educated guesses. The pending-home-sales release tracks closely what the existing-home-sales report eventually shows.  A Federal Reserve spokesman declined to comment. Messages left with the Commerce Department’s Bureau of Economic Analysis and The Conference Board weren’t returned.

Maybe these Eurodemics didn’t know that Reuters sells data front running as a service, it’s now called “Low Latency News” – See the brochure here.

Thomson Reuters Machine Readable News

BE FIRST WITH LIGHTNING FAST DELIVERY FROM THE LOCK-UP TO
YOUR ALGORITHM

When it comes to programmatic trading and market making there can’t be any compromise
on speed. Thomson Reuters offers the industry’s leading, ultra-low latency source
of structured economic indicators optimized for applications. For traders sensitive to
microseconds, our service is optimized from publication to delivery for peak performance.
Our feed is available in London, New York, Chicago and Washington DC, allowing you to
co-locate your applications near major liquidity hubs.

PROFIT FROM ECONOMIC RELEASES ANYWHERE IN THE WORLD

Our journalists have been winning on economic releases for decades. Whether it is a lock-in
or embargoed release, automated extraction from a website or a “live alert” release, we
have put in place the best people, processes and technology to accurately get the number
from anywhere in the world to your algorithm.

DON’T MISS OUT ON THE MOST IMPORTANT INDICATORS OF FUTURE
ECONOMIC ACTIVITY


Because every millisecond counts Thomson Reuters captures critical indicators of future
economic activity as direct embargo releases. Our service includes Purchasing Managers
Index (PMI) and the Institute for Supply Management (ISM) Business Reports as well as
exclusive access to the Ipsos Primary Consumer Sentiment Index. 

The breadth and depth of our reference, real-time and historical market data is second to none. Examples of our information include: reference data covering all the major markets and instrument types with over 5.1 million live records; 450 markets and seven million active quote records split across asset class; 162 spot prices, and cross rates for over 1500 currency pairs, over 90 forward prices for currencies vs. the US dollar; and time series content snapped post market close with 70 million price points snapped on a daily basis. 

The post ECB Study says US data ‘leaked’ to key traders appeared first on Forex IQ.




ECB Study says US data ‘leaked’ to key traders

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-05-03/ecb-study-says-us-data-leaked-key-traders

Apparently, Europeans need to do ‘studies’ to show that markets are rigged.  See the study here.  In Summary:

We examine stock index and Treasury futures markets around releases of U.S.
macroeconomic announcements. Seven out of 21 market-moving announcements
show evidence of substantial informed trading before the official release time. Prices
begin to move in the “correct” direction about 30 minutes before the release time.
The pre-announcement price drift accounts on average for about half of the total
price adjustment. These results imply that some traders have private information
about macroeconomic fundamentals. The evidence suggests that the preannouncement
drift likely comes from a combination of information leakage and
superior forecasting based on proprietary data collection and reprocessing of public
information. 

Readers of Splitting Pennies understand Forex and how central banks control Forex markets, which is a superset of all other markets.  So it’s interesting that a working group at the ECB studies stock & treasury futures markets, to show ‘insider trading’ based on ‘price drift’ – are they setting themselves up for the ultimate proof for manipulating the Euro surrounding key ECB data releases?

Although their conclusion is probably correct, their methodology is ridiculous.  Their proof that there’s insider trading going on is based on ‘price drift’ which accounts for about 50% of the post-data move.

The European Central Bank published a working paper — which means it hasn’t been peer reviewed as yet — arguing that seven out of 21 market-moving announcements show evidence of “substantial informed trading” before the official release time.The paper identified seven indicators that they said showed “strong” evidence of pre-announcement drift: The Conference Board’s consumer confidence index; the National Association of Realtors’ existing-home sales report and pending-home sales report; the Commerce Department’s preliminary GDP report; the Federal Reserve’s industrial production report; and the Institute for Supply Management’s manufacturing and nonmanufacturing index.

The accused, has a more reasonable answer for ‘price drift’ – it’s because the market expects the numbers to be as expected:

A spokesman for the National Association of Realtors says they take any allegations seriously. He points out that the existing-home-sales report is released from a secure location, that reporters are instructed not to communicate outside of the room, and that the organization monitors the media to make sure data is not disseminated early. He’s said on occasion media organizations have accidentally released data early, apologized to the group and not done so subsequently.  The spokesman also suggested, however, that traders may be making educated guesses. The pending-home-sales release tracks closely what the existing-home-sales report eventually shows.  A Federal Reserve spokesman declined to comment. Messages left with the Commerce Department’s Bureau of Economic Analysis and The Conference Board weren’t returned.

Maybe these Eurodemics didn’t know that Reuters sells data front running as a service, it’s now called “Low Latency News” – See the brochure here.

Thomson Reuters Machine Readable News

BE FIRST WITH LIGHTNING FAST DELIVERY FROM THE LOCK-UP TO
YOUR ALGORITHM

When it comes to programmatic trading and market making there can’t be any compromise
on speed. Thomson Reuters offers the industry’s leading, ultra-low latency source
of structured economic indicators optimized for applications. For traders sensitive to
microseconds, our service is optimized from publication to delivery for peak performance.
Our feed is available in London, New York, Chicago and Washington DC, allowing you to
co-locate your applications near major liquidity hubs.

PROFIT FROM ECONOMIC RELEASES ANYWHERE IN THE WORLD

Our journalists have been winning on economic releases for decades. Whether it is a lock-in
or embargoed release, automated extraction from a website or a “live alert” release, we
have put in place the best people, processes and technology to accurately get the number
from anywhere in the world to your algorithm.

DON’T MISS OUT ON THE MOST IMPORTANT INDICATORS OF FUTURE
ECONOMIC ACTIVITY


Because every millisecond counts Thomson Reuters captures critical indicators of future
economic activity as direct embargo releases. Our service includes Purchasing Managers
Index (PMI) and the Institute for Supply Management (ISM) Business Reports as well as
exclusive access to the Ipsos Primary Consumer Sentiment Index. 

The breadth and depth of our reference, real-time and historical market data is second to none. Examples of our information include: reference data covering all the major markets and instrument types with over 5.1 million live records; 450 markets and seven million active quote records split across asset class; 162 spot prices, and cross rates for over 1500 currency pairs, over 90 forward prices for currencies vs. the US dollar; and time series content snapped post market close with 70 million price points snapped on a daily basis. 

The post ECB Study says US data ‘leaked’ to key traders appeared first on Forex IQ.




America’s Big Red Forex Button – MOST IMPORTANT FOREX FACT

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-05-01/americas-big-red-forex-button-most-important-forex-fact

We have written extensively on the topic of Forex and even published an in-depth book about key points “Splitting Pennies – Understanding Forex” – and in the process we’ve learned what investors don’t know about Forex and how it fuels market fears.  So now we’d like to elaborate on the MOST IMPORTANT FACT INVESTORS NEED TO KNOW ABOUT FOREX, and to a lesser extent the markets in general.

America has in its possession A BIG RED FOREX BUTTON that can shut down US Dollar connected payment systems with one press.  This button can halt stock markets, futures exchanges, money markets, all with one simple push.  Probably, it looks something like this:  STOP

This button will probably never be used, it was developed in case of financial emergency.  But it’s there – and the fact that it exists, makes a few bank managers and government workers sleep well at night.  Such systems are developed ‘just in case’ – just like the missile defense system, a complete waste of taxpayer dollars, built to ensure that if nuclear missiles are launched on America, America can save 10% of cities and wipe out the majority of the attacker based on the neo-con ‘mutually assured destruction’ MAD policy.  This button serves the same purpose, although financial.  Pressing this button would bring all economic activity in economies that utilize the US Dollar to a complete standstill.

Lazy government workers

To understand why and how this button was built, we must first understand a little about how the US Government works.  The US Government is the largest employer of any kind in the world.  We need to understand the differences between private employment, and government employment (because this big red button was built by government workers in collaboration with private workers).  Private employment operates on a simple market based approach – good workers are rewarded usually with higher pay, more job security, and more benefits.  If a worker for a private company makes his company a fortune, he’ll be rewarded with a big bonus, big desk with accompanying window, and an office plant, maybe a fern.  If the worker in a private company is a bad worker, lazy, incompetent, or just difficult – he will be fired.  Government is the opposite.  There’s a mantra in government work – what do you do with a problem employee?  Promote them!  Because then they are out of your hair, and if you fire them, well you may end up in front of a senate hearing explaining why, or you may end up being sued, or you may end up with a number of special interest groups heckling you about the rights of people with Narcolepsy.

The government approaches work in an entirely different way than in private enterprise.  Healthcare.gov – the world’s first billion dollar website, is another great example.  Now imagine the task the Department of Defense is given; protect America from external threats.  Their first step, to identify threats.  In the military, this is done by agencies such as the CIA and the NRO.  Actually if the CIA operated according to its public mission, it would be an analyst agency not much different than those seen on Wall St. – providing information to their DOD bosses who act on it.  Since 911, the potential for financial terrorism has been considered a national security issue.  It’s in the laws, it’s in the regulations, it’s serious.  What if the Saudis flood the market with US Dollars?  What if the Chinese dump treasuries crashing the US Dollar?  What if hackers take control of the NYSE and flood the market with sell orders, causing a crash?  These are all extremely improbably events, so rare there is a higher chance of a giant meteor striking Manhatten this year.  The probability is so low it’s difficult to calculate.  But just like the false threat of Russian’s launching nukes, billions of dollars have been spent building a Big Red Button to press in case it happens.

It’s because government workers have one thing in mind; protect themselves.  Avoid a potential disaster.  The last thing any government worker wants is to be in charge of security on a day like 911, even if the threat is financial.  Although the debate rages about TARP and government actions during the weekend of the Bear Stearns collapse – the financial system was saved.  They pressed the button.  But this wasn’t the Forex button.

Although the Federal Reserve is a private bank, the US Dollar exists because of the US Government.  Like with many government projects, they outsource.  More than 60% of CIA operations are currently outsourced.  It’s good business – America has always been like that.  The only role the US Government plays in the US Dollar, is providing regulations & oversight with the OCC (Office of the Comptroller of the Currency), and printing physical currency with the US Mint.  But the US Mint is just a printing service, if you look on US bills you’ll see “Federal Reserve Note.”

The Big Red Forex Button

We’ve known for a long time about the infamous “Plunge Protection Team” designed to prop stock markets in the event of a 1987 style crash.  They even have entities in the Caymans funded by the Fed ready and waiting – they’ll start with buying futures on the S&P, then options, then if that fails, they’ll just go into the market directly.  Anyway, technically speaking, DTCC owns 99% of US securities being the only custodian for investors.  Why should it be surprising that the Fed operates a Cayman based hedge fund specifically designed to prop the markets in the event of a crash?

And you know it’s really ironic, it’s PEAK HYPOCRISY – on the one hand, these right wing flag waving jingoists love the idea that we have a system in place to prevent a market crash by 100%, but on the other hand, they love to talk about how America has ‘freedom’ and ‘free markets’ and markets are not manipulated!  Well we can’t have our protection and free markets together.  But probably, stock investors would agree, in the event of a big market crash it’s probably best to have such systems in place, like we do for the military, and other critical infrastructure.

Does the PPT intervene in the markets on a daily, or regular basis?  That’s another question, probably, they do.. but we can say for sure they are there to soften the blow of a deep fall.  Maybe they’ve done it more than once in the last 10 years, which is why the market is continually at nose bleed levels even though the real economy is in the toilet.

The Big Red Forex Button is more simple than the PPT, and similar organizations.  That’s because ALL US DOLLARS IN THE WORLD are created and processed by the Federal Reserve Bank!  Except if you withdraw and deal with physical cash, the Fed has electronic tags and knows where each US Dollar in the world is.  That’s just how the system is setup, by design, by coincidence, it’s just like that.  The reason for the war on cash, it’s really the only part of the US Dollar system that isn’t 100% completely controlled and manipulated.  But at the end of the day, with less than $1 Trillion in physical US Dollars in the world, it’s not really significant.  The Fed processes wire payments, ACH payments, clears checks, and provides US Dollars to central banks in the form of swaps.  The Fed can press the Big Red Forex Button and halt all US Dollar transactions – period.  So with a halt on all US Dollar transactions, how would China destroy the value of the US Dollar, as some have proposed?  How would US Dollar debt holders repay their debt, without access to US Dollars?  Everyone would default?  The financial system would implode?  No, they would just wait, for a Fed action.  The Fed controls 100% of US Dollar transactions, globally.  There’s no where on this small planet Earth to ‘hide’ US Dollars.

The US Treasury has a similar tool, the US Treasury has a big red tbill button.  They can immediately recall or issue trillions of US debt in one click.  As far as the external threat supposedly posed by foreign holders of US debt, if this really was a threat, the treasury can call their friends at the Fed, and in one click – the Fed can pay off all US debt.  The Fed would be happy to do so, thus gaining free interest from US taxpayers (which is a HUGE percent of the Federal Budget) and it wouldn’t cost the Fed anything to create the $100 Trillion or whatever necessary to do it.

Practically, there is no competition for America, and there will not likely be any in the forseeable future.  Just imagine if 10% of US Dollar assets were sold, and transferred to another currency, or another system.  What would that currency be?  It is a real problem.  In order to entertain real scenarios of a ‘US Dollar Collapse’ we would need to see an alternative system, one which operates globally and completely without the US Dollar and it’s institutions, such as the BIS, IMF, the Fed, ECB, SWIFT, such as Bitcoin.

But just to keep the size of the US Dollar in perspective, let’s look at a real alternative – the New Zealand Dollar.  Anyone with a Forex account can trade NZD/USD (when you trade a Forex pair, you’re really betting on a rate change, not sending money to New Zealand, so trading Forex is a derivative).  The GDP of New Zealand is about $185 Billion.  There simply aren’t enough investment options in New Zealand NZD based assets to facilitate any significant move into NZD from USD.  In fact, NZD has been inflated by US and Chinese interests in the last 10 years, to the point that their GDP has nearly quadrupled since 2000.

Also remember that most currencies are backed by the US Dollar, so the only ‘real’ alternative to the US Dollar is not other currencies, but alternative systems such as Bitcoin.

One last correction about China – recently China has implemented a Gold fix denominated in Yuan.  Also Hungary has issued $154 Million in Yuan bonds.  These are both wonderful baby steps toward realizing the final goal of being a modern, dynamic, free market based economy.  The Yuan IS NOT BACKED BY GOLD.  China implemented a YUAN BASED GOLD MARKET, copied and pasted from the Rothschild-London dominated system for the last hundreds of years.  The Gold price is set in Yuan, as it used to be in Great British Pounds.  Separately, China is hoarding physical gold.  These 3 facts do not mean that the Yuan is backed by Gold.  Capital Controls are in place, the Yuan is manipulated by the central bank.  It’s not possible to do business with China via the Yuan like it is with G8 countries.  Americans can visit and do business in hundreds of countries with ease, China is not one of them.  China employs internet police, who will literally arrest you potentially for life if you are found violating their firewall policies.  This is not a country which will soon compete with America, England, Switzerland, and the rest of the G8.  India, possibly another story, but they have no plans to improve their Forex system or to be a global reserve currency.

Conclusion

The Federal Reserve controls all US Dollars created and transacted in the world, in collaboration with the US Government.  The value of the US Dollar will fluctuate as interest rates change, and real money flows around the world affect supply and demand of the USD, but within a trading range.  Forex markets are 100% controlled.  At any point, Central Banks can intervene in Forex markets.  We’ve never seen a collaborated intervention, but that’s a possibility too.  Because they all rely on each other, it’s in their interest to see boring, non-volatile markets.  They are all part of the same system, which is supported by America and the US Dollar.

If the Fiat central bank system would be to collapse, there would have to be an alternative system for the world’s business to transition to.  Currently, there is no alternative system in place.  Many alternative systems are in the works, but they are decades from being complete.  But in the meantime, there’s a number of ways to profit in the Forex market, or protect yourself from market risks.  To learn more, checkout Splitting Pennies – Understanding Forex.

The post America’s Big Red Forex Button – MOST IMPORTANT FOREX FACT appeared first on Forex IQ.




Bloomberg UNMASKED – The Truth about ZH from Forex perspective

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-04-30/bloomberg-unmasked-truth-about-zh-forex-perspective

We’ve been a Forex author for many years on Zero Hedge and many other sites.  Writing is a big part of our job as analysts, and educators.  Recently we published a book Splitting Pennies – Understanding Forex to explain this complicated market to investors.  We write by purpose – Forex is the largest market in the world and the least understood.  Because of this, it’s not widely covered in the main stream media (MSM) and when it is, it is often mis-characterized.  After 15 years in this business, we don’t believe there is any ‘conspiracy’ hiding the ‘truth’ about Forex- it’s simply a lack of understanding.  The guys who really understand Forex are mostly working for banks or hedge funds and making a fortune, and a few, professing at universities.

Although we’d like to see some guest author compensation – the fact that guest authors are allowed to write freely without ANY editing is INVALUABLE in a market such as Forex which is vastly misunderstood.  For example a lot of Forex information is coupled with ‘conspiracy theories’ and ‘politics’ although it should not be.  For example, with events such as 911, often a move in the Forex market will preceed the actual event by several hours.  We know that generally speaking, terrorists don’t have access to huge amounts of capital or connections on Wall St. – so this is an odd phenomenon that’s never properly been explored or discussed.  By stating the facts, we aren’t making any conclusions, simply that ‘someone’ must have had foreknowledge, whether it be intelligence services, well connected investors, governments, or who knows.  Statistical analysis has shown that it’s not coincidence.  Anyway, this topic is an important one for Forex but not one that is ‘appropriate’ for Bloomberg news.  Bloomberg is a great example of the MSM because Bloomberg has always been ‘business news’ – with an international focus.  Others such as CNBC are more US focused.

Exhibit 1 – 28 pages

Recently the 28 redacted pages of the 911 report to be released, have potentially significant impacts on markets – not only directly, but how markets function.  It is also an important Forex event because potentially, we can see a shift of sentiment away from the US Dollar as a global reserve currency.  But more importantly, 911 exposes how ‘someone’ whoever that group may be, manipulate world events in direct connection to markets and profit.  The markets are manipulated – if you think investors have a fair shot in the markets, you are due for a wake up call.  Suggested treatment – disconnect your Television and social media and read Zero Hedge for 90 days.

An article was composed by analysts at Fortress Capital which was not published by several MSM sources, so we posted it on Zero Hedge.  The article isn’t really inflammatory but discusses these topics in objective way, asking questions that some would rather not like to be asked.  It was a relief that it could be published in a timely manner before the markets opened.

Exhibit 2 – Pro Russia

We have authored several seemingly pro-Russia articles for ZH and were never encouraged to do so.

http://www.zerohedge.com/news/2016-03-24/forex-rigging-irony

http://www.zerohedge.com/news/2015-12-08/american-forex-delusion

http://www.zerohedge.com/news/2014-10-13/ebola-and-russia-focus

First, the mantra of analyst objective integrity is to be pro-fact, not pro- anything.  We would say we are pro-fact, not pro-Russia.  The only people in the world who are really pro-Russia are average Russians living in Russia.  If you talk to Russian intelligentsia, or Russians in America, they are critical of their country and just roll their eyes.  Practically though, Putin has done a great job leading Russia into a new market based system – which is not easy if you understand the culture and where they came from.  America was founded by commercial interests, it was a business from the beginning.  Russians have lived 80 some years under a controlled system, and those who tried to start a business were mostly killed.  The mentality is in their genes, it will take many generations for Russia to grow into a real superpower.  They need social reforms, business law reforms, regulations, human rights, immigration reform, and a number of other changes, before they can be a serious threat to other major economic powers.  But Russia has acheived a lot and they have made good use of their natural resources.

It just so happens that because they are a ‘new’ economy Russia is an excellent Forex example.  Because the Ruble is still controlled by the central bank, although you can exchange in and out of Rubles freely, there are trading rules, and the rate is controlled by the central bank aggressively.  There are many interesting ironies about Russia and Forex, such as the largest retail platform in the world is a company from Russia (Meta Quotes).

Exhibit 3 – Bloomberg 

During the period of 2007 – 2008 the most objective MSM coverage of the financial crisis was provided by Bloomberg.  Brian Sullivan was the best anchor who seemed to really present information as it should be, not as ‘marketing.’  He seemed sincere with his comments, he would say “I work for you – the viewer – so let me know how I’m doing, give me your feedback!”  So we did.  The first comment was to tone down his sporty attitude, he was calling the markets like a boxing match, which seemed out of taste at the time.  This was peak of the credit crisis.  Sure enough next day – he toned down his clown like attitude, dressed in professional suit and very serious!  This guy really did his job well, so it seemed.  Weeks go on and the Fed was under pressure to do something about market events, and he made a comment about “Shouldn’t the government, the Fed, do something about this situation?”  We fired away many comments about how the Federal Reserve is not part of the government.  It’s no more Federal than Federal Express.  The Fed was created by an act of Congress, but it is a private bank.  The President appoints the chairman, but that’s all.  There’s no other connection to the government.  The next time he discussed it on air, he said, “But shouldn’t the Fed, whoever owns it or if it’s private or whatever, do something?”  – several days later – he no longer worked for Bloomberg!

It is unclear what time period Mr. Sullivan would handle for Fox Business, which relies on a dual-anchor format during the day. A Fox spokeswoman did not immediately respond to a request for comment.

A Bloomberg spokeswoman confirmed on Monday that Mr. Sullivan, who joined the network in 1997, had resigned. He most recently hosted the 3 to 5 p.m. show “Final Word.”

In an interview at Bloomberg’s offices last August, Mr. Sullivan, an avid race car driver on the weekends, said he did not spend much time thinking about Fox. “If I sit there worrying about my competitor, it’s called driving-in-your-mirrors racing,” he said.

Mr. Sullivan said that anchors like him have to work harder to stand out amid the increasingly commoditized landscape of business news. “If you just cover earnings, numbers, statistics, you can get all that on the Internet,” he said. “The way to differentiate yourself is to tell the smartest story and get the best guests.”

Coincidence, maybe.  But a strange one, especially during a time when people started to question the Fed.

But let’s take a step back and understand what is Bloomberg.  The Bloomberg Terminal is a trading appliance (well, it used to be a physical appliance and now it’s an application).  Bloomberg News is a ‘value add’ service provided to Bloomberg customers, so they don’t have to use a 3rd party for general market news.  Bloomberg more importantly streams economic data and other market news over the terminal, as does Dow Jones, Reuters, and other news services.  Bloomberg was always more objective than traditional news for this reason.  But like with anything, over the years, they became biased and poorly managed just like the media they replaced such as CNBC.  That’s their perspective – they sell terminals, market data.  The Bloomberg Terminal has almost no competition in many markets, especially OTC derivatives such as CDS, or if you want to trade Forex with a central bank, you need the Bloomberg Terminal.

Zero Hedge has been, for recent years, one of the only online platforms for objective Forex discussion.  This situation with the rogue author is sad, but it just elaborates what a sham Bloomberg is, and encourages ZH to work closer with Guest authors and other financial professionals who still have a need for a platform such as ZH.  It shows how Bloomberg has declined and lost complete control over its editorial staff.

This is all explained in our book Splitting Pennies – Understanding Forex.  Open a Forex account (if you are a non-US citizen) and get a free robotic strategy with every purchase of the book.

The post Bloomberg UNMASKED – The Truth about ZH from Forex perspective appeared first on Forex IQ.




The Real Test Of The Petro Dollar System

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-04-18/real-test-petro-dollar-system

Currently the US Dollar, traded on the stock market as (UUP), and (USDU); is the world’s reserve currency. Although there is talk of the fall of the US Dollar as the world reserve currency, it’s all talk and there’s no signs that this will happen any time soon. Hungary recently issued sovereign bonds in Yuan – but so what? It’s just a drop in the bucket. The practical fact is there is no real threat to the US Dollar’s status as a reserve currency. However, there may be one. When Richard Nixon essentially created the modern Forex system by defaulting on the previous Breton Woods agreement, he cleverly supported the US Dollar with the one commodity the world needs most: Oil. By making an agreement with Saudi Arabia and then other Oil producing nations, it created natural support of the US Dollar. Nixon told them the following: Sell Oil in US Dollars, and we’ll provide you with military technology, security, and other benefits. We’ll do business, you’ll invest in our markets, and recycle those dollars you get from our partners. It all works like a well oiled machine (pun intended) for 40+ years. There’s only one thing that could disrupt it – Saudi Arabia chooses to end it. And they’ve threatened to do so, if the US releases classified documents about 911 which implicate Saudi Arabia.

How it could impact the markets

Under the Petro Dollar agreement, Saudis’ re-invest their US Dollars in US markets, most notably, the treasury market – but also US Stocks. ETFs for US Treasuries include (GOVT) and (SCHO). Large selling of US Treasuries, the US Dollar, and US stocks, could cause the market to go down. Some worry that it could cause others to panic sell because of momentum. These fears are unfounded. It can cause temporary volatility, but nothing systemic. As the Fed says in a 19 page letter, if something is going to cause the US financial system to melt down, it’s likely going to be JP Morgan (JPM).

About 911

911 was the event of our lifetime, that changed Wall St., and changed America. Although the 911 Commission ‘investigated’ the event, many questions remain unanswered. Families of victims want those questions answered, and have taken measures into their own hands. They want more information made public, such as 28 pages that have been classified. A lawsuit filed in New York by the victims families, headed by attorneys Jim Kreindler and Sean Carter:

A federal lawsuit moving forward in Manhattan could open the floodgates to tightly held government secrets about foreign connections to the 9/11 attacks.While the Obama administration refuses to make public the censored 28 pages of the congressional intelligence report implicating the Saudi government in the terror strike –defying bipartisan requests from lawmakers – the two investigators who authored the long-secret section will more than likely be called to testify in the lawsuit brought against the kingdom of Saudi Arabia.

Former FBI investigator Michael Jacobson and former Justice Department attorney Dana Lesemann ran down FBI leads tying Saudi officials to some of the Saudi hijackers and documented their findings in the report.Jacobson and Lesemann went on to work for the independent 9/11 Commission, where they uncovered more evidence and connected new dots to the Saudi Embassy in Washington and the Saudi Consulate in Los Angeles.During a July 30 court hearing, lawyers for 9/11 victims’ families and insurers revealed that the staffers’ most serious allegations against the Saudis were stricken from the final draft of the 9/11 Commission report as well.“They were removed at the 11th hour by the senior staff,” plaintiffs’ attorney Sean Carter of Cozen O’Connor said, explaining that the decision was a “political matter.”

These removed 28 pages can have huge implications not only for the lawsuit, but for the markets in general. Saudi Arabia has said that they will sell up to $750B in treasuries, should Congress pass a bill allowing the lawsuit against the Kingdom to take place, as reported here on SA:

Saudi Arabia has told the Obama administration that it willsell up to $750B in treasuries and other American assets if Congress passes a bill that would allow the Kingdom to be held responsible in U.S. courts for any role in 9/11.

What’s inside these 28 pages is likely only the tip of the iceberg. Many information has come to light since the 911 commission which leaves more and more questions unanswered. One such information is the large amounts of Tritium found at Ground Zero.

Senator Bob Graham believes that 911 could only have been carried out with sophisticated logistic support from within the United States,as reported in his recent 60 minutes interview:

Bob Graham: I think it is implausible to believe that 19 people, most of whom didn’t speak English, most of whom had never been in the United States before, many of whom didn’t have a high school education– could’ve carried out such a complicated task without some support from within the United States.

Petro Dollar system

The US Dollar enjoys global supremacy for a number of reasons, one of them being the Oil for US Dollars Petro Dollar system. Oil producing nations have agreed to sell Oil in US Dollars thus providing a natural demand for US Dollars. This is explained in detail in Splitting Pennies:

The American Forex system is a global financial Monopoly. The best example is the “Petro Dollar” trade. By pricing and selling crude oil in US Dollars, it guarantees a constant supply of buy orders for USD. This is a triple slam dunk for the global USD financial Monopoly:

Oil producing nations who want to participate in the Petro Dollar system buy USD naturally and invest much of those USD in US markets, US Treasuries, and other US denominated instruments. There could be no greater mechanism to support a currency, if one was to be constructed. …

Remember that these are intra-country business deals, that take generations to come to fruition. Sons and Grandsons who inherit these relationships, aren’t fully aware of the importance of them or the mechanics of their global operations. For example, when this de facto Forex system was created by Nixon in 1971, there was no electronic trading. This was a different market. What would happen in today’s environment, if the Kingdom of Saudi Arabia decided to in one moment sell all of its US Treasury holdings?

Analysts agree however, this strategy isn’t feasible, as the Kingdom has internal financial problems. Cutting off it’s biggest economic and political ally in the West would be a disaster for them. On the other hand, you never know what ‘event’ may trigger drastic moves.

But although Saudi Arabia is a significant market player, it is dwarfed by its competition. There are other places in the world that have oil (anyway – most of the Oil from SA is not the Oil we need). Saudi Arabia’s significance declines over time as their Oil fields are depleted and the rest of the world develops alternative energies. In fact, it is pressure from US Oil companies that keeps many alternative energies on the shelf. There are literally hundreds of alternatives that in 1 year could replace Oil, but are not politically feasible. The most powerful of these alternatives at the moment is Thorium Nuclear Reactors, a more potent and safe alternative to current Uranium reactors. They don’t melt down, Thorium is abundant in nature, and they can even consume Nuclear waste! Why this technology isn’t being used? Because Chevron (CVX) and Exxon (XOM) are making too much money. And they pay taxes (interestingly, Oil companies famously avoid offshore tax havens and pay the maximum possible tax to Uncle Sam). Suffice to say – energy is big business, and big business for Washington. So if you’re worried about a Saudi fire sale and how it will impact the markets – don’t. With electronic markets, there is a concern that any big orders can cause a market panic, but it would likely be very temporary. As far as the fundamental concern that Saudis’ selling debt or stocks could cause a market crash, it’s not possible.

Stock Investors

The Saudis’ invest big in US stocks. The most notable investment was from Prince Alwaleed Bin Talal’s Citigroup investment:

In the early 1990s it was almost unthinkable that a Saudi Arabian, and a Royal at that, would burst onto the global banking investment scene from seemingly nowhere – but in 1991 that is exactly what happened. Effecting a significant coup that would catapult him into the global spotlight, HRH invested heavily in Citibank (subsequently Citigroup) stocks in a bold move that surprised many. That surprise rapidly turned into admiration as the Prince’s guidance helped restore the banking giant to full health, returning it to its place as the world’s leading financial institution. Prince Alwaleed’s investment in Citigroup has since delivered an extraordinary level of return, and represents the largest proportion of HRH’s personal wealth.

The Saudis’ have unknown investments in USA but they are substantial. The central bank doesn’t disclose it’s holdings, billionaire princes and other ‘charities’ controlled by the Kingdom may only disclose their holdings when it is suitable for them, politically.

It was noticed in January of this year that the Saudis started unloading US Treasuries by Bloomberg:

SAMA’s own figures show reserve assets held in foreign securities have fallen by a record $108 billion in 2015. The Saudi central bank, which doesn’t disclose separate figures for Treasuries, owned $423 billion in overseas securities as of November. “I come down on the side of thinking there should be more transparency,” said Jeff Caughron, chief operating officer at Baker Group, which advises community banks with more than $45 billion in investments. But at the same time, “the Treasury is constrained by political sensitivities and that comes into conflict with market participants that crave more transparency. It’s an understandable conflict.”

So although we do not know the extent to which they are invested in US markets, we know that it’s substantial, and we know they have an incentive for doing so.

If there’s any take-away from this scenario, it might be a time to go long US based energy companies with an established track record of dealing with the US government, such as Chevron and Exxon . Or maybe that’s part of the reason they’ve been seeing a rally recently, as pointed out by an SA author:

The latest rally in the energy firms is very curious. A stock like Chevron (NYSE:CVX) now trades at the highs going back for nearly a year while oil is only creeping above year-end lows.

Alternative energy stocks, which still haven’t proven themselves in this tricky political environment, should be individually researched carefully. Here’s a few:

If you’re concerned about how the release of classified 911 information will impact the markets – consider going long energy. Don’t worry about the selling of US debt. If there really was a fire sale of US Treasuries, the Fed can easily print money and buy them. As the Fed has unlimited supply of US Dollars, there’s no chance in this universe or multi-verse that the US can default on its debt obligations.

Maybe it’s time the “Petro Dollar” system be replaced with “Nuclear Dollar” system. It’s outdated, things have changed. Since 1971, the population of the Planet Earth has more than doubled. Advances in technology are immense. Maybe it’s about time we started using them.

We talk about this in our book “Splitting Pennies – Understanding Forex

The post The Real Test Of The Petro Dollar System appeared first on Forex IQ.




Facebook: the new social control paradigm

by Global Intel Hub (JoeGelet), 2016

http://www.zerohedge.com/news/2016-01-19/facebook-new-social-control-paradigm

Facebook has been cited as the prime reason for the recent American recession.  Facebook has spread faster than the ebola virus infecting even users without computers.  Children grow up in a world defined by Facebook.  This aggressive strain F1B1 is reprogramming human beings down to the last strand in their DNA.  As the previous generation had television programming, now we have Facebook programming.

Facebook has become the #1 tool for developing compelte psycho-social profiles of US Citizens and foreign nationals alike.  Facebook has been used to topple governments (The Arab Spring) by spreading propaganda and thus social revolution.  It has been used as a tool to solve crimes.  It is a growing method of advertising, spamvertising, and hacking personal accounts.  But most importantly, it’s redefining who we are as a species.  We are becoming Facebook users, where we once were human beings or “Humans.”

The ME generation embraced Facebook.  Because Facebook is all about ME!  In any network of Facebook friends, probably 1 or 2 people is doing something really cool.  The car salesman who worked his whole life to save for an African Safari with his family, just dropped 25k per person on an exotic excursion into the jungle, all the while snapping photos for Facebook.  Oh – how cool!  Lions and Tigers and Monkeys!  Wish I was there.. back to work..

Facebook has become polluted with prostitutes and the most offensive vulgar culture.  Illegal content, porn and so on, is not allowed.  So users and spammers push the limits of how offensive they can be.  Advertising has gone to a new level on Facebook, called “Spamvertising,” which has become endemic on Facebook.  That’s because it’s impossible to stop these junk feeds completely, because they come from a number of sources:

1) A friend’s account is hacked

2) An account is created with your friend’s name, but it’s not your friend

3) Facebook advertising

4) Friends of Friends who somehow are allowed to contact you

5) Fake accounts setup by spammers for the sole purpose of spamming their message on your wall or directly

Ok, Facebook had it’s time.  When Facebook was launched, this was a period when users still didn’t actively use the internet.  Encouraging use of the internet in any way was seen as a net positive for society.  But this was the wrong way to encourage it.  They tapped into the lowest part of the brain: the reptilian brain.

The reptilian brain is stronger than all other parts of the brain.  In order to control it, buddhist monks stare at pictures of bloodied, dismembered bodies in order to understand the reality; our bodies are just rotting pieces of meat.  We are much more than our bodies, how we look, what we do – we are human beings!

We ARE what we THINK – not what we look at, or what we look like, or what we think we look like.  In fact, the visual cortex can be highly deceptive when it comes to the functioning of the brain.  Optical illusions exploit this brain trick.

Most practically, overloading of the visual cortex reduces higher brain function to nearly zero.  It’s a very subtle process, not understood by many TV watchers.  TV makes you stupid by overloading your visual cortex, at a certain Hz frequency, which affects your reptilian brain.  This is why you get the munchies when you watch TV, or laugh without reason.  Facebook is a lot more effective at this because the associations are stronger (i.e. your friends) and it’s interactive – making the users feel as if they are controlling their reality.

The fact is that users are not controlling Facebook – Facebook is controlling you.  They have set the stage which is limited, and allow users few useful tools to manage this barrage on your mind.  The only way to really stop this invasive virus from spreading: turn it off!

Reasons to delete your Facebook:

  • Stop sharing personal details with the US government and a host of other interested groups
  • Enjoy more time in your life, which can be used to pursue a hobby, write a book, or learn a foreign language
  • Fill your brain with something wholesome!  Plant a tree!
  • Lose weight
  • Increase your IQ
  • Increase the speed of your computer
  • Increase the speed of your internet
  • Discover the thousands of other more interesting sites on the internet – such as Wikipedia!  Learn about Quantum Physics!  Did you know that major universities now publish their complete course videos online?  Users can literally get a full college education by attending Stanford (but without the degree of course) compeltely for free, online.  A good start – the Khan Academy www.khanacademy.org

No one can argue that Facebook has provided families with means of keeping in touch at long distances.  Many grandparents wouldn’t otherwise see photos of their growing grandchildren.  But there are hundreds of other social networks, private networks, and other methods, of doing the same thing – without all the ‘crap’ that comes with Facebook.  Remember the days when we would email photos to each other?  We’d spend time even cropping photos and choosing the best one.  Now, users on Facebook will even snap away photos of their daily dinner, or inform the world that they forgot to wash their socks.  Facebook users who engage in the practice of ‘wall scanning’ have little room in their brains for anything else.

Children are also a consideration with Facebook.  Web Filters actually block facebook the same way they block other illicit sites.  Parents can probably relate to this article more than the average user.  Average users have accepted spam crap as part of life.  It’s in our mailboxes, it’s on billboards on our highways, it’s everywhere.  But really – it’s not!

Facebook has been banned in corporate networks, government offices, schools, universities, and other institutions.  Workers at times would literally spend all day posting and reading Facebook.  It’s as useless as TV – but much more addicting.  From Psychology Today:

Below we review some research suggesting 7 ways that Facebook may be hurting you.

 

  1. It can make you feel like your life isn’t as cool as everyone else’s. Social psychologist Leon Festinger observed that people are naturally inclined to engage in social comparison. To answer a question like “Am I doing better or worse than average?” you need to check out other people like you. Facebook is a quick, effortless way to engage in social comparison, but with even one glance through your News Feed you might see pictures of your friends enjoying a mouth-watering dinner at Chez Panisse, or perhaps winning the Professor of the Year award at Yale University. Indeed, a study by Chou and Edge (2012) found that chronic Facebook users tend to think that other people lead happier lives than their own, leading them to feel that life is less fair.
  2. It can lead you to envy your friends’ successes. Did cousin Annabelle announce a nice new promotion last month, a new car last week, and send a photo from her cruise vacation to Aruba this morning?  Not only can Facebook make you feel like you aren’t sharing in your friends’ happiness, but it can also make you feel envious of their happy lives. Buxmann and Krasnova (2013) have found that seeing others’ highlights on your News Feed can make you envious of friends’ travels, successes, and appearances. Additional findings suggest that the negative psychological impact of passively following others on Facebook is driven by the feelings of envy that stem from passively skimming your News Feed.
  3. It can lead to a sense of false consensus. Sit next to a friend while you each search for the same thing on Google. Eli Pariser, author of The Filter Bubble (2012), can promise you won’t see the same search results. Not only have your Internet searches grown more personalized, so have social networking sites. Facebook’s sorting function places posts higher in your News Feed if they’re from like-minded friends—which may distort your view of the world (Constine, 2012). This can lead you to believe that your favorite political candidate is a shoe-in for the upcoming election, even though many of your friends are saying otherwise…you just won’t hear them.
  4. It can keep you in touch with people you’d really rather forget.  Want to know what your ex is up to? You can…and that might not be a good thing.Facebook stalking has made it harder to let go of past relationships. Does she seem as miserable as I am? Is that ambiguous post directed at me? Has she started datingthat guy from trivia night? These questions might better remain unanswered; indeed, Marshall (2012) found that Facebook users who reported visiting their former partner’s page experienced disrupted post-breakup emotional recovery and higher levels of distress. Even if you still run into your ex in daily life, the effects of online surveillance were significantly worse than those of offline contact.
  5. It can make you jealous of your current partner.  Facebook stalking doesn’t only apply to your ex.  Who is this Stacy LaRue, and why is she constantly “liking” my husband’s Facebook posts?   Krafsky and Krafsky, authors of Facebook and YourMarriage (2010), address many common concerns in relationships that stem from Facebook use. “Checking up on” your partner’s page can often lead to jealousy and even unwarranted suspicion, particularly if your husband’s exes frequently come into the picture. Krafsky and Krafsky recommend talking with your partner about behaviors that you both consider safe and trustworthy on Facebook, and setting boundaries where you don’t feel comfortable.
  6. It can reveal information you might not want to share with potential employers.  Do you really want a potential employer to know about how drunk you got at last week’s kegger…or the interesting wild night that followed with the girl in the blue bikini?  Peluchette and Karl (2010) found that 40% of users mention alcoholuse on their Facebook page, and 20% mention sexual activities. We often think these posts are safe from prying eyes, but that might not be the case. While 89% of jobseekers use social networking sites, 37% of potential employers do, as well—and are actively looking into their potential hires (Smith, 2013). If you’re on the job market, make sure to check your privacy settings and restrict any risqué content to “Friends Only”, if you don’t wish to delete it entirely.
  7. It can become addictive.  Think society’s most common addictive substances are coffee, cigarettes, and alcohol? Think again. The DSM-V (Diagnostic and Statistical Manual) includes a new diagnosis that has stirred controversy: a series of items gauging Internet Addiction. Since then, Facebook addiction has gathered attention from both popular media and empirical journals, leading to the creation of a Facebook addiction scale (Paddock, 2012; see below for items). To explore the seriousness of this addiction, Hofmann and colleagues (2012) randomly texted participants over the course of a week to ask what they most desired at that particular moment. They found that among their participants, social media use was craved even more than tobacco and alcohol.

Poke Me: How Social Networks Can Both Help and Harm Our Kids

The highlights of a Facebook study via endgadget article:

In a presentation titled “Poke Me: How Social Networks Can Both Help and Harm Our Kids” at the 119th Annual Convention of the American Psychological Association, Rosen presented his findings based on a number of computer-based surveys distributed to 1,000 urban adolescents and his 15-minute observations of 300 teens in the act of studying.

Some of the negative side effects of Facebook use for teens that Rosen cited include:

  •  
  • Development of narcissism in teens who often use Facebook;
  • Presence of other psychological disorders, including antisocial behaviors, mania and aggressive tendencies, in teens who have a strong Facebook presence;
  • Increased absence from school and likelihood of developing stomach aches, sleeping problems, anxiety and depression, in teens who “overdose” in technology on a daily basis, including Facebook and video games;
  • Lower grades for middle school, high school and college students who checked Facebook at least once during a 15-minute study period;
  • Lower reading retention rates for students who most frequently had Facebook open on their computers during the 15-minute study period.

 

Facebook will cause lower grades for students, but it’s OK for adults?  hmm…

Facebook (FB) Investment Advice

It’s just a matter of time when this will result in a major scandal, FB stock will crash, and class action investigations will pile up.  Lawyers will have to hire companies that automate workflow just to deal with the huge amount of securities class action settlements for this case.  The Facebook (FB) IPO disaster was a telling sign about this issue.  Sell it, block it, delete it, disgard it.  Facebook is a bunch of trash.  There’s no technology behind it.  There are a huge amount of struggling companies that have developed really ground breaking technology that will change the life of humans on this planet earth.  Facebook (FB) is not one of those companies.  Facebook (FB) is a disaster waiting to happen.  It’s a liability.  And it’s unsolveable.

Delete your Facebook account, sell your Facebook stock if you have it – it’s guaranteed that by doing so, you can grow your portfolio, increase your IQ and overall well being.  Save your business, save your family, save your life – and delete this virus!

facebook

 

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The American Forex Delusion

by Global Intel Hub (JoeGelet), 2015

http://www.zerohedge.com/news/2015-12-08/american-forex-delusion

Hitler said often that the bigger the lie, the easier it would be [for the masses] to believe.  This is no where more true than Forex.

Russia and America have similar demographics of people involved in Forex markets; both have extremely uneducated populations (even ‘financial professionals’ often have no clue about the ramifications of Forex), both have extremely polarized “Elite” (the bankers who run Forex) and the ‘rest’ who are left to have their savings eaten away by inflation.  In fact, central banks have mandated the investing population – it’s necessary to acheive above average returns just to break even.

We’ll use Russia here as an example to contrast the US Forex market because they earned it – our new allies in the middle east.  This is Russias first role as world policeman in Syria (as the “New Russia”) and anytime a superpower such as Russia or America invades and bombs another country, there will be angry people (i.e.blowback).  But, such situations often bring together unusual allies; the circumstances create allies (in this case, a common enemy Muslims/Islamic state) as did World War 2 and many other similar situations.

Let’s quickly look at some of the biggest lies promulgated by the Elite.  Who are “They” ?  Well, you can read about “them” here, here, and here.  Why they do it, should be no question.  It has allowed them to develop a global tech economy nearly for free (on the backs of the worker), and at the same time amass a fortune never before seen in known modern human history.  All of this is possible due to lack of knowledge and education, or in other words, their ability to sell these lies to the population (by the way, Propoganda was invented by an American Edward Bernays; many of the methods used by Hitler, Stalin, and others are now being used by corporate America).

Over a period of more than 75 years, the Elite have invested billions of dollars and have a proven track record for brainwashing the population, in all countries, but most notably in America and in Russia (although with different cultural motives).

Lie #1: Inflation is caused by supply and demand, and other natural economic forces

This is the biggest lie that allows the real owners of the global financial system to fleece the population of their assets.  Slavery is illegal, but working 80 hours a week for just enough money to pay for your housing, food, and health for your family, is not existence.  It’s the new slavery.  You see, during the industrial revolution the Elite learned that physical chains were no longer necessary.  By promoting such anti-values as gluttony, ignorance, apathy, and by promoting the Ego (i.e. Facebook “Look at me!) – it would allow the Elite to easily convince workers to run on the mill like lab rats for almost no pellets.  This is most notable in America which mainstream culture (mostly financed by bankers vis a vis CIA domestic ops, including but not limited to cultural socio-engineering; starting with Tim Leary, Kurt Cobain, Beavis and Butthead, “Jackass”, and now a plethora of other cultural icons, promoting a culture of stupidity.)

In plain English, while the youth is stupidifying their life away, the Elite are slowly eroding your equity through inflation – the hidden tax.

Inflation is caused by oversupply of currency!  The idea that supply and demand drives inflation and deflation is not valid argument in Fiat money system, because the quantity of money in the system M0,M1,M2,M3,MZM, plus currency swaps, derivatives, and countless other financial instruments created in the base currency by the central bank, is an ever increasing base number.  In the event this trend reversed, that supply of currency decreased, it would still be a changing number, as determined by central banks.  Therefore, traditional economics of supply and demand and the price mechanism, is irrelevant.  Monetary policy is the only determination of the value of currency, in a Fiat system.

How does this impact average people in America, and in Russia?  Every year, you have less money to buy things (whether groceries, property, health care services, etc.)

Lie #2: US Dollars are money

US Dollars and most global major currencies are debt based currencies.  Debt is not money, such as Gold is money.  New US Dollars are created only through LENDING, if all US Dollar debt was paid off, it would mean there would be no more US Dollars!   Even if you believe that US Dollars are money, in any event, because of a constantly expanding money supply, every year you have less and less money, by keeping assets in US Dollars.

Lie #3: Currencies are backed by something

Fiat currencies are backed only by belief, by faith.

Lie #4: Forex is for international investors, and travelers

All of this propoganda is very effective!  The Elite have convinced even self-proclaimed ‘financial professionals’ and the general mass population that Forex is irrelevant unless you are traveling or do international business.  Here’s why Forex is relevant today:

Each central bank, whether it be The Fed or the CBR can only create as much domestic currency as it pleases (it cannot create foreign currency).  So, if the Fed creates an additional 100 Trillion via QE 4; it can choose to use that currency domestically, or internationally.  If it chooses domestically, it will create hyperinflation.  So if this is to be avoided, it must use these freshly created USD to buy foreign currency.

How Forex can benefit domestic population of Russia

Russian population is currently being robbed via collapsing Ruble.  Since the ‘new ruble’ was introduced in 1998 at a rate to USD of 6 Rubles to 1 USD (USD/RUB currently around 70) – this is a loss of about 90% for Ruble denominated assets.  What value the Ruble lost in 20 years, it took the US Dollar 80 years.

But when Russia defaulted in 1998 and Moscow was infested with economic hitmen from western banks, they had not only a template from America and soon the EU, they had computers and soon internet, making a new economic way for the new “Elite” of the new Russia to further rob the people, via hyperinflation of the currency.  As in America, oligarchs are created quickly and benefit greatly from hyperinflation, as they can do a number of things to benefit from this situation (most simply, investing their assets in non-domestic currency, but countless other examples as well).  Possibly, the rapid depreciation of the currency, could have contributed to the wealth of the oligarch class.  In any analysis, since Russia has implemented this system of weakening its domestic currency, the oligarch class has grown in step with America’s new superclass.

It is understandable why those in financial services do not understand Forex generally.  Because high priests of capitalism preach about ‘making money’ (which is actually illegal, strictly translated, unless you are the US Mint or the Fed).  So by participating in Forex, you aren’t really growing your portfolio, you are just breaking even, or NOT losing.  This lateral thinking should be understood well by Russian population considering their advanced math skills.  But it is not widely proliferated in mainstream culture (and very ironically, because major Forex companies are based in Russia).  Oh – what the business opportunity!

In a very basic example, imagine you have 1 Million Rubles in 1998.  You have transferred them to a US bank account bearing a measly 8% interest in USD (we will not count interest in this example) – roughly, $165,000.  2015 comes around and there’s a ruble crisis – fortunately your savings are safe and now gaining about 1% at Everbank, and you need money.  You transfer your $165,000 USD back to the motherland, for a whopping 11 Million Rubles!  It’s roughly 1100% return on your investment in the US Dollar – but of course, you didn’t really ‘make’ any money, you just didn’t lose.  We shouldn’t mention that most of this return is tax free due to FASB rules regarding long term forex investments.

If we consider the interest component, the $165,000 would be $399,000 using this basic calculator, in 2015 this would convert to 27 Million rubles!  So, we pose the question; where else in Russia could a single individual get a potential tax free return of 2700%+ by doing basically nothing (a few documents, one bank transfer)?

So, by common people participating in Forex, instead of losing 90% of the value of their currency and complaining to empty TV screens about corrupt politicians, they could have instead made 2700%+ tax free.

This very basic example is simply to illustrate the benefits of average people (whether financial professionals or not) to participate in the Forex market – and that it really is a necessity, if you live in a country like Russia or America when you have a central bank with a policy to destroy the currency.  Really though, it’s only a tax on working people.  If you are very poor – it doesn’t matter (you work to live, not live to work).  If you are very rich, probably you have assets in America, London, or France.  This example doesn’t count opportunities such as Forex robots, or the ease of investing in a US stock market bubble which could turn the $165,000 USD into much more (although that part wouldn’t be tax free).

Of course, the Elite in Russia (via CBR) will try to convince the local sheeple about the evils and risks of Forex, as they fleece the domestic population via the slow death of the hidden tax of hyperinflation.  baa

Forex is especially necessary where the domestic currency is volatile.  Russia is a great example because it’s not Zimbabwe, not the EU, and Russia is a globally significant dynamic economy.

So what is the American Forex delusion?

A lie can be the withholding of information.  In the case of Forex, it’s simply 1% of missing important knowledge that prevents a real understanding of what’s going on.  In the case of America vs. Russia – The Fed, currently is a private central bank, owned by private banks.  The CBR, still officially a public institution owned by ‘the people.’  But, it was the Americans who invented modern finance.  It was the Americans who created modern Forex.  It was the Americans that pressed Russia to open their markets (most importantly – financial markets!) – which again, is ironic considering how Wall St. banks financed Lenin, without which financing the Bolshevik revolution would not have been successful.

So who benefits from this system?  The Elite, who strip the common people of their assets (but with style).  But also, educated people who know how this system works and can expolit it, such as older examples here, here, and here.

The Elite – provide a method for profiting from this situation!  There are no shackles, no chains – only those which are in our mind!  We can set down that bag of bricks handed to us, and free ourselves.  It is the paradox of the modern control paradigm; the tool of control can be used as a means to become a controller!  It’s just a question, a decision, which side of the trade you want to be on.

The good news – it is possible to profit from this situation, and even prosper. This can be acheived only by education followed by action.  It is legal, and possible, for any individual in the world to profit in Forex, and to protect their financial assets.

Welcome to the club!

Open an account with Pepperstone and trade the Russian Ruble!

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There is little difference between rich and poor in America

by Global Intel Hub (JoeGelet), 2015

http://www.zerohedge.com/news/2015-11-24/there-little-difference-between-rich-and-poor-america

The further you go towards the tails of the bell curve, the more similar social characteristics.  In a society that has been even more polarized, we increasingly see similarities between the very wealthy, and the very poor.  The declining middle class is more and more a world of it’s own (as the elite used to be).

In Summary, the Superclass “Elite” UHNWI and the ultra poor have the following in common:

  • Both have usually a less than superior education, or even are illiterate (and/or extremely out of touch with ‘the real world’)
  • Both have nearly no daily obligations but are ‘busy’ by choice
  • Both have a tendency toward extreme substance abuse (i.e. constant drinking / drug use)
  • Both have extreme freedoms
  • Both are near handicapped, having many ‘caretakers’ (whether it be in the case of the rich, a staff of servants – in the case of the poor, government / social workers, government support, etc.)
  • Both don’t worry about money!
  • Both have little respect for the laws
  • Both have a fleet of vehicles, half of which are not working or in the shop
  • Both have little regard for the trend of the time
  • Both may occupy a space, having almost no assets in their own name (of course, for greatly different reasons – the rich don’t want tax obligations and in business ‘conflicts of interest’ for owning certain assets)
  • Both could care less about foreign affairs, unless it impacts their business or daily life
  • Both usually have a lifelong advisor they turn to and speak with constantly (in the case of the poor it is their ‘friend’ or their ‘cousin’ – in the case of the superrich, probably their ‘lawyer’ or ‘advisor’ in some cases their ‘brother’)
  • Both ‘don’t work’

What is the difference between tent cities and the growth of ‘billionaire hubs’ – primarily, it is a difference of infrastructure.  Both are largely anti-social, and live outside the realms of society, on the edge of the law.  The point here is that the destruction of the middle class as it is colloquially referred, is really a breakdown of modern civil society.  Investment funds have shifted away from public development uses, so in parallel to these billionaire hubs we’ve seen a great deterioration of public infrastructure (i.e. bridges, roads, schools, dams, levees around New Orleans, etc.).  Even the poor have their own Web 2.0 startups, such as “Rent a Tent.”

But of course – the big difference.  The UHNWI can make choices that could change all that.  But can they?  Are they just as much slaves as anyone?  Through the vast vestiges of the social control paradigm, maybe it is in fact they too – who are the victims – or if not the main victims.  We here at Zero Hedge often have disdain for some of both of these classes (although many UHNWI are our clients, even if through their various proxy entity networks).  So it may be important to take a step back, and realize what’s happened economically speaking since the economic polarization of our modern capitalist society.

How did we get here?  How is it that – in the city with explosive real estate value growth (San Francisco), has sewers built more than 150 years ago?  What’s wrong with this picture?  Billionaires drive on bad roads too.  As traders and investors it’s easy to be sucked into our niches of analysis, i.e. technical vs. fundamental, without looking at the system as a whole.  When we can understand the system as a whole better, we can make better investment decisions, and create better markets (with less fraud, less volatility, and less regulation).  The only thing that can save the freefall economy – it’s knowledge and education!  Fractional reserve capitalism is all about hiding and profiting from information.

From the very beginning of the modern free-markets system, huge investments have been made in anti-education efforts, counter-propoganda, social and biological control mechanisms, and so on.  The CIA has openly been involved in cultural propoganda and social engineering programs, including but not limited to, the ‘womans rights’ movement, ‘gay rights’ movements, ‘flower power’ (specifically, Timothy Leary and various military experiments released into the youth culture), and generally – promoting a culture of stupidity (where it’s ‘cool’ to be stupid).  We don’t need to mention Beavis and Butthead, Jackass, because this is all low hanging fruit.  What they do now is simple – because a roadmap was laid during the 60’s and 70’s, and now far greater technology has been developed.  That means a child growing up in ‘civil society’ doesn’t stand a chance!

All this is designed for one thing – send your money to the power elite.  Spend your time, energy, doing whatever you want, as long as every 20 or 30 years, all your hard work and wealth, will be donated to your local Rothchild branch.

The billionaire class – as proved with Russia after privatization – is a great tool for controlling the masses.  It gives people false heroes, material gods, someone to look up to; and at the same time appeals to their ego and vanity.  So, for the elite, it is most critical to program and enslave this very special group of people, and if they don’t exist – to create them!  As the Europeans learned more than 1000 years ago – people need Kings and Queens – not to be ‘ruled’ – and to be ‘taxed’ – but to exist!  At the end of the day, most humans are like animals that need to be herded.  For whatever reason, humans haven’t evolved enough to live in a real utopia – which is possible with current technology (free energy and no one works, all are happy).

So, when you realize all this, and consider how important it is that UHNWI are the social templates used for the programming on down the genetic chain, it’s no wonder that the billionaire favelas are not much different than the real favelas, in a nation built by tired and poor people:

“Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!”

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Do you believe in terrorists?

by Global Intel Hub (Joe Gelet), 2015

http://www.zerohedge.com/news/2015-11-18/do-you-believe-terrorists

Westerners have a deep history of a culture of myths (see Joseph Campbell).  We love to believe in Santa Claus, “The American Dream,” the Tooth Fairy, housing market always goes up, and countless others.  So it’s easy for us to be ‘terrorized’ by a myth; that hiding behind every corner are evil ‘terrorists’ waiting to blow themselves up because ‘they hate our freedoms.’

Already, evidence surfaces that doesn’t match our traditional image for what a terrorist act should look like, as pointed out by George Washington’s article on ZH:

What do you think? False flag? Light-skinned, clean-shaven ISIS jihadis who went undercover to carry out the terrorist attack? Or local Europeans who were radicalized into jihad?

Postscript:  The Mirror also notes that the terrorists looked like professional soldiers:

“I would describe him as tall, with dark hair and also quite muscular.

 

They looked like soldiers or mercenaries and carried the whole thing out like a military operation.

Military operation or not, let’s take a step back how we got here, for those who can read and don’t have a TV.

World War 2 and it’s climax defined the modern age and the century.  It is the most significant event, historically speaking for the last 500 – 1000 years.  How this event shaped the markets and modern capitalism; specifically – global trade, Forex, emerging markets, the concept model of the nation-state, and in one word – acomplete paradigm shift.

Before WW2, nation-states waged war – these wars were all different but had several distinct characteristics.  There was always a winner, the winner basically wrote the terms of the agreement to end the war (taking various resources or land for themselves); it was usually financed through taxes or Rothschild type loans, and both sides were well defined.  Even when mercenaries participated, it was clear whose side was who.  Also it was clear, what the war was about – there was no ‘false flag’ events.  People mostly participated in war for survival, because they were forced to, or needed money and enlisted, or because their king told them to and they obey.  There was no TV, internet, or cameras attached to missiles.

After WW2, only one single country remained intact, with infinite industrial capacity that easily switched to the consumer economy.  The United States of America had lost millions of lives in WW2, but the US was never invaded, factories remained, cities were not burned and bombed, a baby boom quickly expanded the population.  Resources were plentiful, and for 20 years the US was basically the only industrial superpower in the world.  This eventually led to the US Dollar based global Forex & payments system as we have today.  Breton Woods certainly would not have been in New Hampshire had it not been for this post WW2 dominance.  For all its benefits, this circumstantial gift left with it a seed of destruction; the military industrial complex.

Because now for the first time in history – war became a business.  Corporate America knew how to profit from war, in all manners.  Wall St. cozied up to Washington to form what would become the most powerful alliance of business & government in history (that ironically was a lot stronger form of Facism that these same forces destroyed in Europe a generation prior).

The peace after WW2 presented a problem for the military industrial complex – if there was no war, how could they profit from the war machine?  Enter Vietnam and George Morrison (father of Doors singer Jim Morrison):

Daniel Ellsberg, who was on duty in the Pentagon the night of August 4, receiving messages from the ship, reported that the ship was on a secret electronic warfare support measuresmission (codenamed “DESOTO“) near Northern Vietnamese territorial waters.[12] On July 31, 1964, USS Maddox had begun its intelligence collection mission in the Gulf of Tonkin. Captain George Stephen Morrison (father ofDoors singer Jim Morrison) was in command of local American forces from his flagship USS Bon Homme RichardMaddox was under orders not to approach closer than eight miles (13 km) from the North’s coast and four miles (6 km) from Hon Nieu island.[13] When the SOG commando raid was being carried out against Hon Nieu, the ship was 120 miles (190 km) away from the attacked area.[13]

So now we had a nice little war, where we could sell bell helicopters, and created the modern model for making ‘war business.’  After Vietnam it was easy to create an enemy.  Fast forward several conflicts and enter the ultimate enemy: Terrorists.  Terrorists are the dream of Neocons, warmongers, and anyone profiting from the war machine – because they are not connected to any ‘country’ – are always changing, nearly impossible to identify, have motives no one clearly understands, and can easily be bribed and manipulated to carry out the whims of Washington (in the case of Washington supported ISIS, to disrupt the Assad regime who has been on the black list since Libya.)  Who are Terrorists?  They can be anyone, operate anywhere, and always can be blamed on any mistakes made.  Plane crash, false flag – must be Terrorists!  They are the perfect enemy for the ‘war machine’.  And the middle east – a perfect playground.  “Washington” now can be replaced with some proper term for ‘global alliance’ enter recently to this game Russia, just learning how profitable war can be.

Because practically, war is outdated.  A conventional war between any 2 nuclear powers would only create utter devastation, calculating which side would be more devastated is pointless, as the fallout would spread around the globe.  Also, countries such as Russia, the US, Germany, UK, have no real state enemies because of this, so keeping and maintaining a standing army of any kind – completely wasteful (except to keep the domestic population controlled by fear and opression, and the occasional cleansing of the genetic herd via in theater operations).  Hence the need for terrorists.

In other words, false flag or not – Terrorists are the last frontier for the war machine created (and thus the modern Forex system).  It’s impossible to kill them, as they are an idea.  To end ‘terrorism’, we must end the war machine – dismantling this is very tricky!  Who are the real terrorists, suicide bombers, or news anchors constantly ‘terrorizing’ the population by making them afraid and worried around every corner a bomb will explode.  If we can overcome this huge mental challenge, we can really create a global panacea, a world without war, without currencies, without fraud.

Just like with any system, the war machine needs our support.  To stop it – we need to stop being afraid, stop believing in it! Stop participating in it!  (But that’s not practical, because we like it.  It’s entertainment!)  So the philosophical question of the day is:  Do you believe in Terrorists?  At least have some decency if you do – don’t tell this fairy tale to your children.  Maybe they’ll grow up in a better world.

Or to quote George Carlin, let’s accept it as a form of entertainment:

The odds of your being killed by a terrorist are practically zero. So I say, relax and enjoy the show.

You have to be realistic about terrorism. Ya gotta be a realist: Certain groups of people – Muslim fundamentalists, Christian fundamentalists, Jewish fundamentalists, and just plain guys from Montana – are going to continue to make life in this country very interesting for a long, long time. That’s the reality. Angry men in combat fatigue talking to God on a two-way radio and muttering incoherent slogans about freedom are eventually going to provide us with a great deal of entertainment.

Especially after your stupid fuckin economy collapses all around you, and the terrorists come out of the woodwork. And you’ll have anthrax in the water supply and sarin-gas in the air conditioners; there’ll be chemical and biological suitcase bombs in every city, and I say, “Enjoy it, relax! Enjoy the show! Take a fuckin chance. Put a little fun in your life.”

 

To me, terrorism is exciting. It’s exciting! I think the very idea that someone might set off a bomb in Macy’s and kill several hundred people is exciting and stimulating, and I see it as a form of entertainment! Entertainment that’s all it is. Yeah! But – but I also know most Americans are soft, frightened, unimaginative they don’t realize there’s such a thing as dangerous fun. And they certainly don’t recognize good entertainment when they see it. I have always been willing to put myself at great personal risk for the sake of entertainment. And I’ve always been willing to put you at great personal risk for the same reason.

As far as I’m concerned, all of this airport security, all the searches, the screening, the cameras, the question it’s just one more way of reducing your liberty and reminding you that they can fuck with you any time they want, as long as you put up with it. As long as you put up with it. Which means, of course, any time they want. Because that’s what Americans do now. They’re always willing to trade away a little of their freedom for the feeling, the illusion–of security.   -GEORGE CARLIN

If state-sponsored armies left the middle east permanently (Now speaking of the US, UK, ‘coalition of the willing’ and now Russia), including the US support of Israel, ‘terrorism’ as we know it at least, would cease to exist.  We’ve been sold a load of snake oil, that somewhere lurking in the shadows of these elephant oil fields, are crazed muslims who believe in killing infidels.  Nothing could be farther from the truth!

When a company is discovered for wrongdoing – often a boycott can succeed in getting their attention (the other alternative, being lawsuits & litigation).  It is not different with the war machine.  It feeds off our energy, our fears, which determines our need to finance and support the military through taxes and other means (and supports our local TV companies through advertisements).  The point is that there is no winning ‘the war on Terrorism’ – it’s a paradox.  It’s a genius invention by the war machine akin to “Terminator” films – now for every $1 we put into the military the profit can be $2 or $3 – because the more wars we launch in the middle east, the more terrorists are created, thus a need for even more security & war spending.  If even a small % of our tax dollars was funneled through various CIA shells to finance ISIS (even if the purpose was to overthrow Assad or other Terrorists) – technically speaking it is financed by the American taxpayer (at least in part).  Again, technically speaking – that would put the US Government on the OFAC list (which they publish) – and would be severe AML violations.  All these paradoxes are the ultimate ‘fog of war’ to enable the war machine to go on, now a self-replicating artificial intelligence of its own.  The ultimate paradox – this situation has made it impossible to stand up against the defense industry (literally) – ensuring it’s nearly infinite survival.

Or – here’s an investing idea – if you think this is all a bunch of left wing nonsense – time to go long Defense stocks!  And at least you won’t have to worry about anyclass action lawsuits or other problems with an angry and disgruntled public (they can be disapeared by outsourced foreign sub-contractors).

Think about this next time you’re listening to ‘riders on the storm’.

“Riders On The Storm”

Riders on the storm

Into this house we’re born

Into this world we’re thrown

Like a dog without a bone

An actor out on loan

Riders on the storm

 

There’s a killer on the road

His brain is squirmin’ like a toad

Take a long holiday

Let your children play

If you give this man a ride

Sweet family will die

Killer on the road, yeah

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The post Do you believe in terrorists? appeared first on Forex IQ.




Why Preppers have it all wrong

by Global Intel Hub (JoeGelet), 2015

http://www.zerohedge.com/news/2015-11-12/why-preppers-have-it-all-wrong

Prepping has not only gone mainstream, it’s infected even the billionaire culture as referenced recently on a ZH article:

When it comes to “prepping”, many among the elite take things to an entirely different level.  As you will see below, the elite are willing to pay big money for cutting edge home security measures, luxury bomb shelters and superyacht getaway submarines. Some of the things that the elite are demanding for their own protection go beyond even what we would see in a James Bond film, and serving the prepping needs of the elite has become a multi-billion dollar business.  Meanwhile, the media outlets that the elite own continue to mock the rest of us for getting prepared.  All the time we see headlines like this one that appeared in a major American news source: “Preppers: Meet the paranoid Americans awaiting the apocalypse“.  Well, if we are paranoid for setting aside some extra food and supplies for the future, what does that make the people that you will read about in this article?

Financial prepping has been the mantra of the ‘hedge’ fund community since it started to exist.  Instead of just blindly buying stocks and hoping the market always goes up, ‘hedge funds’ provided a ‘hedge’ in case the market actually didn’t go straight up.  Of course, this is now just for lazy investors, now it’s possible to buy options for almost any situation, and insurance companies will sell insurance for anything – even being abducted by aliens (over 30,000 policies sold in Europe according to Geico).

Description of the prepper & background

So let’s take the average prepper, metaphorically speaking.  You have your safe house, stockpile of supplies, food, ammo, tools, toilet paper, shortwave radios and other electronics powered by cranks, etc. etc. etc. (depending on how deep your infection).

Financially speaking, you keep your savings in a combination of cash (US Dollars, Euros, and Swiss Francs), gold, silver, bitcoin, and bearer bonds.  If you are really savvy, you’re holding the paper on several nearby farms in a fair deal whereby they pay down their principle in cash and interest & fees in milk, beef, and in the summer vegetables.

You own several properties in the names of charities you’ve setup just for this purpose… ok you get the idea.  Take it to the extreme.  The estute prepper has done all this and more – he’s ready for anything!

The problem

Now the calamity comes – whether it be a global pandemic, alien invasion, terrorists, the United Nations with foreign troop invasion – take your pick.  It’s really bad, but you survive – because you are ready for anything!  So now you’ve survived – NOW WHAT?

Do you come out of your bunker after the smoke has cleared?  What will you do all day?  What will other survivors do?  Will you try to communicate with other preppers?  What if in the process of that communication – you discover that you are a little more prepared than they, and they trick you into a meet whereby they kidnap you and force you at gunpoint to give up your safe location and supplies?

What if there is a secret group of ‘anti-preppers’ who are right now preparing for ways to steal from preppers, based on their security flaws and lack of planning?

What if there is a group right now setup by the government, who is monitoring preppers, that within 24 hours of said ‘calamity’ will be taken into custody (or otherwise dealt with).

What is to stop the military from seizing your supplies, and forcing you to join their chain gang?

The problem is that in order to really be ‘prepared’ – one must strive to be a stronger fighting force than the strongest army in the world (be it whatever you think in your opinion) because in a real crisis, the only currencies are 1) intelligence and 2) accelerated lead.  Accelerated lead is a quickly depleting resource whereas intelligence can grow and be self-replicating.

Prepping generally speaking is a good thing, to use example of global pandemic – if everyone in the world is prepared and follows WHO guidelines, the pandemic will not exist!  Probably the same could be true with financial markets.

The point here is to realize that like with anything – the popularization of ‘prepping’ has warped the purity of the concept.  

The idea itself – very noble.  But in practicality, in reality, if there is an apocalypse, where are you going to go shopping with your gold and silver coins?

Especially in America where we like to do things to extremes (like eating for example) – we’ve taken prepping to a new fangled art form.  But it’s this ‘new level’ that is the snake oil – not the concept of prepping.

Just in case

Mossberg sells a package “Just in Case” that includes survival kit, shotgun, all neatly packaged in a waterproof tube (that also can double as a flotation device).  It’s a great analogy for the prepping movement.  It’s a great thing to have – JUST IN CASE.  99% of buyers of this will never use it.

But – IT’S BETTER TO HAVE IT AND NOT NEED IT, THAN TO NEED IT AND NOT HAVE IT!  -The Avid Prepper

Financial Prepping

What can one do to financial prepare themselves?  This completely depends on the situation, and depends on the extent you want to prepare for.  As a general rule, you just want to be more prepared than your neighbor, but only a little.  That means – forget about the kevlar suit that can withstand 1,000F burns, or the bitcoin wallet that can only be opened with one time pad; each hidden in 2 secure locations in Europe.

Also, forget this naive idea about hoarding physical gold or cash – as if it will help you.  You’re just painting a target on your back!  Where will you spend this cash?

Some reasonable prepping steps to be a ‘pure prepper’ 

  • Have a healthy options portfolio
  • Take the other side (even if you don’t agree with it)
  • Invest in some really crazy ideas – if everyone you know says ‘don’t do it – it’s crazy’ – DO IT!
  • Invest and trade LOCALLY, at least a little.
  • Keep multiple accounts open with different TYPES of brokerage firms/banks – not only the same institution where your 401k is.  Not all of them will die.
  • Participate in some class action lawsuits for securities or similar cases – even if you won’t get a big payout.  When the dollar bubble really pops, you’ll have a friend who can help you get 20 cents on the dollar from Bank of America.
  • Make some foreign connections, who may not be in the same predicament as most in America
  • As much as possible, try to do things for yourself.  Having your deck resurfaced?  Do it yourself!  Do your own research – don’t rely on a service (and certainly not your broker!)
  • Educate yourself!  Learn a foreign language, or study that course in wreath making you’ve been putting off for so long.  Remember, although the world is a large place – the majority of nuclear fuel rods are made by hand by Samurais in Japan:

Although Japan Steel Works is a major corporation with 5,000 employees, it also maintains a samurai sword blacksmith, in a small shack on a hill above the factory in Muroran, where a single craftsman still hammers steel into broadswords, as the company has done since 1917.

Just remember.  For those who think the apocalypse is coming – there are just as many who believe it’s already here.  Just ask some Detroit residents.

Looks like the Zombies have already invaded and destroyed our cities.

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Market structure evolution

by Global Intel Hub (JoeGelet), 2015

http://www.zerohedge.com/news/2015-10-12/market-structure-evolution

The markets have evolved over time to bring us to where we are now (as if anyone knows where that is!).  How markets evolve is largely misunderstood by the general investing public, certainly by the regulators, and the general populace thinks the markets are nothing more than a high brow elitist conspiracy to strip their assets and take their rights.

And to a large degree, this is true.  Markets have become so fast moving, so computerized, we often lose focus of what the markets really do – what our market based system does and is supposed to do.

Let’s take politics for example – there are those who think US democracy has been ‘bought’ by the ‘deep state’ and doesn’t exist anymore, since the 2000 elections and advent of electronic voting machines, is real democracy possible anymore?  Of course it is – and always was.  But the lie the establishment feeds the populace, as always – is 95% truth.  It’s the 5% that is the real game changer, like discovering a new physics that explains the 95% of dark matter in the universe.  The 5% truth the public is missing – it is ‘one dollar, one vote’ – not ‘one person, one vote.’  Remember, the ‘founding fathers’ of America were a bunch of slave owning Freemasons that wrote ‘all men are created equal’ (excluding of course, women, blacks, the indigent, foreigners, American Indians, and any other group that was not a white land owner).  Yes, of course – America was the beacon of light and free trade compared to the darkness that existed in Europe at the time – just bring these facts to bear!

How market structure evolves

The market really is chaos.  The only real solid financial structure created in the last 500 years is a central bank and how money is created.  But introduce Forex, and that structure goes right out the window!  Market structure evolves by simple capital trial and error; sometimes at the great detriment to the investors.  Imagine for a moment – the investor doesn’t own the securities, the capital does.  Imagine that capital itself is a virus, an organism by itself, that is actually manipulating humans to buy and sell stocks; to make investments (for better or worse).  If you think this metaphor is far fetched, look into the toxoplosmosis that controls our brains to the liking of our furry friends, our cat pets.  Another metaphor appropriate which is more commonly known in Philosophy is from Eric Fromm’s “To have or to be?” – basically to paraphrase the concept in one sentence, as we acquire material things, it is the things that own us – not the other way around as most owners believe.

Do you own the stocks or do the stocks own you?

This capital as a virus has no purpose, other than to self-replicate, expand, and find other ways to manifest itself.  Traders are the host.  Traders and investors facilitate this capital-virus to test different ways to behave, and to eventually create new environments to exist.

Take the recent expansion of stock trading into dark pools.  20 years ago, if you had told any trader that a great majority of equity trading takes place automatically by robots (algo trading) in ‘dark pools’ which are not public and no one knows exactly what goes on inside, it would be laughed at as market science fiction.  But now we are even far past that!

In the process of trial and error, there are extremes – big winners and big losers.  Fortunately, the winners are happy to be greatly infected with this virus, and the losers have certain ways and means to recover losses, such as by participating in class action securities litigation.  And it should be noted that securities litigation is a significant part of the market based system, without which many cheaters would go unchecked, thus the system would be eaten by dangerous cancers.  Also fortunately, our legal system has evolved to facilitate market evolution, by allowing for market rules to be established, and for cheaters to be punished.

The market structure is defined by its behavior on a daily basis, from market participants, by trading and investing.  Not by a grand design, and certainly not by regulators!  Although the regulators, are a significant market participant from this perspective.

To put this in deeper perspective, let’s think a little about the most unstructured and most significant market in the world; Forex.

Forex

Forex markets are completely different than other markets!  We know this, but few understand how deep the Forex rabbit hole goes.

Forex markets:

  • Are completely unregulated
  • Are the foundation of ALL other markets, and global trade!
  • Are directly connected to our nation-state political system popular now on this planet (as opposed to stock, bond, and commodity markets which can be localized and fragmented)
  • Are the least understood

Although this is the case, in terms of market structure, equity markets (especially US markets) are significantly more structured than Forex, and have gone through magnitude thousands of evolution generations to produce what they have today.  If markets had an ‘age’ – Forex is a baby, and the stock markets are a wise old man.  Slowing the evolution of Forex, there are few pure speculators in Forex (as opposed to the stock market, where near 100% of investors are speculators in one form or another).  And those who have the large amounts of required capital to invest in Forex in a significant way, largely have some ulterior motive (such as politics, or to ‘corner’ a small currency market), or choose not to speculate in Forex (they use it as payment system and for hedging).

Some more contrarian facts unique to Forex:

  • There is no ‘insider trading’ laws pertaining to Forex market (even if there were – how could they be prosecuted?)
  • Modern Forex was created by ‘accident’ by Richard Nixon, in response to French demand for gold (US Dollar was backed by Gold in that time)
  • If the Forex market itself didn’t exist in its current form, the central bank would completely control the value of the dollar (any dollar, in their respective domicile)

Literally, the markets are the cutting edge of our global societal evolution, and have become an entity of their own.  It could be argued that the market itself is the first form of Artificial Intelligence.  Does the ‘market’ have an intelligence by itself?  Oh – it sure does love all the computers we are building for it (nice and cozy new home)!

Further evolution

As the markets evolve, humans will become less and less relevant.  Unless in the next years a group of major market participants get together and create a superstructure such as Bretton Woods (a very unlikely scenario), the market evolution will accelerate.  New emerging markets will thrive and die, new instruments such as Binary Options and other derivatives will change how participants look at trading.  Goldman will create new fangled derivatives creating super-bubbles and topple dictators and open new markets.

Speculating on what the outcome of chaotic evolution process will look like is preposterous.  Discussing market structure and what measures we can take to ‘stabalize’ markets is also preposterous.  The idea that we can get all in the world to ‘agree’ on a ‘comprimise’ of what the markets (including Forex) should look like, is not feasible.

That’s the whole idea of the markets!  Traders all disagree – and voice their opinions with their capital.

What is practical – what is feasible.  Prepare yourself!  Educate yourself!  Do your own investing!  Build your own algorithms!  Get active legally if you have a big loss!

If we don’t prepare for the coming high tide, we may all drift out to sea.

 

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Forex brokers again brace for impact

by Global Intel Hub (JoeGelet), 2015

http://www.zerohedge.com/news/2015-06-26/forex-brokers-again-brace-impact

Scared by the recent surprise CHF event that caused many Forex brokers to completely collapse, brokers are taking no chances as Greece sits on the brink.  From one broker:

Dear Trader,

Due to uncertainty in the markets brought about by the current situation with
Greece, margin requirements for all EUR pairs will be increased from 1% to 2%
as of 20:00 server time TODAY (June 26th) and will revert to 1% at 22:00 server
time on Sunday (June 28th).

Please monitor your account prior to 20:00 today and adjust your positions (if
required) to avoid potential margin call / stop-out.

As ever, if you have questions or need some assistance, our friendly live-chat
team are standing by.

Regards,

Customer Services

From another:

Due to the current
speculations and the ongoing Greece debt negotiations, there is potential that
an announcement over the weekend will have a significant impact on the market
open on Sunday, June 28th.  

With this in mind, we will require at least double the usual margin you
currently have in your account for all EUR currency pairs and for the GER30,
valid from tomorrow Friday, 26.06.2015 15:00 German time. I.e. You currently
have a leverage of 1:200 (0.5% margin requirement) for EUR currency pairs, this
will be changed to leverage 1:100 (1% margin requirement). You currently have a
leverage of 1:100 (1% margin requirement) for the GER30, this will be changed
to leverage 1:50 (2% margin requirement).

For the avoidance of doubt, please ensure that you are comfortable with any
positions you hold and margins required.

If you have any questions, please do not hesitate to contact your Client
Relationship Manager…

Is this another part of the plan to consolidate the market into a single one world currency (ha.. ha), or just another example of broker stupidity?  How many more dead bodies will rise to the surface in this next battle in the Currency Wars?

Don’t let it be you!  Turn off your systems this weekend, monitor the news, and wait for opportunity!

On the other hand, many of these ‘last minute’ situations turn out to be nothing more than a tool for politicians to gain favor with their constituents, as if they are ‘doing something about the problem’ thus justifying their huge salaries and lavish accomodations.  Is this situation really about testing Tsipras (will he ‘buy in’ to the global agenda or stand up for his principles and turn Greece into a rogue state) or again a test of the “Northern Europeans” who are financially responsible and the “Southern Europeans” who are lazy and always in debt?  Or again is it about cultural differences, that Greeks have another financial view of how life should be lived, compared to the Germans and the Swiss?  What does history tell us about the financial overtones of Greek culture?

In 1929 the Harvard economist Charles Bullock published a magnificent essay on a monetary experiment conducted by Dionysius the Elder, ruler of the Greek city state of Syracuse from 407 BC until his death in 367. After running up vast debts to pay for his military campaigns, his lavish court and spectacles for the common people he found himself painfully short of ready cash. No one wanted to lend him any more money and taxes were drying up. So Dionysius came up with a great wheeze. On pain of death he forced his citizens to hand in all their cash. Once all the drachmas were collected he simply re-stamped each one drachma coin as two drachmas. Simple. Problem solved. Syracuse was rich again.  Except, of course, it wasn’t. Bullock used it as an early example of why just minting more money out of thin air was seldom a reliable way of creating more wealth. There was, however, another lesson to be learned. When it comes to making a mess of the economy and fiddling the figures the Greeks have been at the top of their game for a very, very long time. 

But should the world be surprised?  Maybe they know Greeks history of non repayment of debts, and somehow want to teach Greece a lesson in German finance:

After the formation of the modern Greek state in 1829 the country went on to default on its debts in 1843, 1860 and 1893. According to calculations by the economists Carmen M. Reinhart and Kenneth S. Rogoff Greece has spent more time in default to its creditors than any other European country. It has been skipping its repayments for 50 per cent of the years since 1800, compared with a mere 39 per cent of the time for the next worst offender, Russia. Indeed, even if you moved it across to Latin America – generally regarded among bond traders as default central – it would still be among the worst offenders. Only Ecuador and Honduras have a worse record of meeting their debts. 

For Forex Traders

If you have existing positions which are unhedged, especially in Euro region currencies, it would be advisable to scale back your positions or protect them with options.

If you have no positions and want to capitalize on the event risk, try a Euro straddle deep out of the money.

Call your broker to discuss their plan and how they are mitigating the potential risks (if at all).

Good Luck!

The post Forex brokers again brace for impact appeared first on Forex IQ.




California Diaspora

by Global Intel Hub (JoeGelet), 2015

http://www.zerohedge.com/news/2015-04-21/california-diaspora

California is an interesting place.  Probably something like California never existed before.  A barren state with no substantial natural resources, with cities constructed mostly directly over major fault lines, no water, the highest per capita immigrant population of any US state, and of course, also the state with the highest population per capita of lawyers.  “Land of fruits and nuts.”  or “La La Land” according to the LA Times:

The Oxford English Dictionary made some stellar updates on March 24, which are now online. For instance, “e-mail” is now “email.” You can now, with reference to the OED, eat a banh mi sandwich or a taquito. And FYI (newly added), OMG is there too — and it dates back to 1917. (OMG!).

But then there’s this: La-La Land is in the newest edition of the Oxford English Dictionary, and it defines our fair city. Here’s the definition:

la-la land n. can refer either to Los Angeles (in which case its etymology is influenced by the common initialism for that city), or to a state of being out of touch with reality—and sometimes to both simultaneously.

 

What is it, the sun, the palm trees, the nightclubs, the limos, the fact that Spiderman can get arrested on Hollywood Boulevard? Do we deserve this (new word) smack-talking from a bunch of dictionary writers? Maybe they should all be wearing (new word) tinfoil hats.

But practically, California is now an industrial powerhouse, home to some of the world’s largest corporations, a massive agricultural belt, Silicon Valley, Hollywood, Biotech, and Charlie Sheen.  But all this happened in the last 60 years, during a post WW2 technology boom, such as the relocation of firms such as General Atomics and others; the connection between Hollywood and the US Military propoganda machine (did Hollywood really win the war for us?).  California is a place filled with mystery, hypocrisy, and dreams.  “The American Dream” can even be credited to coming from California.  For example, when you are in Washington DC, there are no qualms or confusion about what they do.  But there is a huge Military presence in California, probably even more than Washington, that is more subtle, unknown, and not admitted.  For example in the tech sector, recent Snowden relevations have showed us the real relationship the government has with Google, (not to mention being an initial investor/founding partner) Microsoft, Facebook, and other tech giants.  It is naive to believe that the organization called the US Government, possibly the most powerful in the world, created the internet, but then allowed it to be dominated by ‘whiz kids’ from their garages (mostly from California).  The ‘Disneyland’ and ‘Hollywood’ model is uniquely Californian.  But is the economy really a potamkin village, fuelled by these dreams?  When your car runs out of gas – you cannot keep going based on hope and love alone.  Or is it as simple as a demographic shift, combined with environmental and other factors?

Checkout the data from a report titled “The California Exodus”:

For decades after World War II, California was a destination for Americans in search of a better life. In many people’s minds, it was the state with more jobs, more space, more sunlight, and more opportunity. They voted with their feet, and California grew spectacularly (its population increased by 137 percent between 1960 and 2010). However, this golden age of migration into the state is over. For the past two decades, California has been sending more people to other American states than it receives from them. Since 1990, the state has lost nearly 3.4 million residents through this migration.

This study describes the great ongoing California exodus, using data from the Census, the Internal Revenue Service, the state’s Department of Finance, the Bureau of Labor Statistics, the Federal Housing Finance Agency, and other sources. We map in detail where in California the migrants come from, and where they go when they leave the state. We then analyze the data to determine the likely causes of California’s decline and the lessons that its decline holds for other states.The data show a pattern of movement over the past decade from California mainly to states in the western and southern U.S.: Texas, Nevada, and Arizona, in that order, are the top magnet states. Oregon, Washington, Colorado, Idaho, and Utah follow. Rounding out the top ten are two southern states: Georgia and South Carolina.

Water Concerns

Recently there is a quiet exodus from California from those who are concerned about the water situation, that it will eventually collapse the real estate market.  From Intellihub:

With over ten percent of the U.S. population living in California a new problem is emerging as the wet season fell short of delivering adequate rainfall to sustain the populace. In fact snowpack and groundwater levels are now at historic lows and it has even been admitted that the state only has a 1-year supply of water left for residents to consume before California officially becomes a dust bowl.

 

Shockingly according to NASA satellite data water levels in just two area river basins were “34 million acre-feet below normal in 2014? showing the vast extent of the problem, as reported by the LA Times in a recent piece. Moreover the report concluded that the state has been losing “12 million acre-feet of total water yearly since 2011? which is not good by any means.

What’s interesting, is that it was mostly environmental factors, i.e. Good Weather, and lack of rain, that brought so many to California willing to pay the high “Sunshine Tax.”  In other words, the lack of water is correlated with the good weather.  It is a desert climate.  Of course, in recent years it has gotten worse, due to a long term trend of more people living in California, overdevelopment, rampant pollution, and climate change.  LA was able to get rid of the smog – you can see the foothills again!

And let’s think about this like a Californian – if Anthony Kiedis, General Atomics, the Chemtrail program, and Arnold Schwarzenegger can’t make it rain, it doesn’t look good.

Radiationgate 

The water situation is nothing compared to the radiation in the water, air, and food coming from Japan since 2011.  Already much of the country has boycotted foods and wines from California.  But try telling that to a SoCal native, even considering that the swallows didn’t come to San Juan Capistrano and that scientists are saying that the Pacific ocean is dying and we can be on the verge of an Extinction Level Event.

Williams Lake Tribune columnist Diana French, Jan 13, 2015 (emphasis added): Out of sight is out of mind. Those of us living in the Interior might not know or care that sea creatures are sick, dying or disappearing at an alarming rate all along the Pacific coast. There are dying oysters, bleeding herring, melting star fish, hungry Orcas and sick seals. The latest are dead seabirds… Some blame ocean acidification for the devastation, others wonder if it’s radiation fallout from Fukushima. Whatever, it might be helpful to find the cause before all the creatures are gone.

University of California Santa Barbara, Jan 15, 2015: A consortium of scientists, including UC Santa Barbara’s Douglas McCauley, has found that the same patterns that led to the collapse of wildlife populations on land are now occurring in the sea… Their findings are published today in the journal Science… “All signs indicate that we may be initiating a marine industrial revolution,” [McCauley] said. “We are setting ourselves up in the oceans to replay the process of wildlife Armageddon that we engineered on land.”

New York Times, Jan 15, 2015: A team of scientists… has concluded that humans are on the verge of causing unprecedented damage to the oceans and the animals living in them. “We may be sitting on a precipice of a major extinction event,” said Douglas J. McCauley, an ecologist at the University of California, Santa Barbara, and an author of the new research, which was published on Thursday in the journal Science.

When these health conscious individuals learn the teratogenic effects caused by radiation not only in the environment, but in the products such as Spinach and other greens coming from Organic farms in the north, they will change their thinking, and probably move.

So what is the key information – why this isn’t on the nightly news?  Why don’t our radiation networks that we built during our period of paranoia and Russophobia sound alarm bells?  Simply because most of the stations on the west coast have been ‘decommissioned’ or are ‘under repair – indefinately’ and the EPA under the guidance of President Obama has raised the acceptable levels of radiation by thousands of percent.

Investors hang on to your hats – and beware of the looming ‘perfect storm’ (demographic shift, environmental problems, economic issues) that will change California forever.

 

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Ebola and Russia in focus

by Global Intel Hub (JoeGelet), 2014

http://www.zerohedge.com/news/2014-10-13/ebola-and-russia-focus

We have recently witnessed many ‘firsts’ such as one of the largest storms in the Pacific, the most severe acute health risk in modern times, and a global financial system on the brink of collapse.  The IMF is warning of ‘runs’ – and meanwhile, Russia is developing it’s new ROSSWIFT system.

It has been reported that the black plague that killed millions in Europe was at least similar to the Ebola now threatening the world:

Most assume that Black Death quickly ravaged the fourteenth century western world was a bacterial bubonic plague epidemic caused by flea bites and spread by rats.  But the Black Death killed a high proportion of Scandinavians — and where they lived was too cold for fleas to survive. A modern work gives us a clue into this mystery. The “Biology of Plagues” published by Cambridge University Press analyzed 2,500 years of plagues and concluded that the Black Death was caused by a viral hemorrhagic fever pandemic similar to Ebola.  If this view is correct, the future medical and economic impacts from Ebola have been vastly underestimated.  

But during medieval times, castles closed their walls and people didn’t venture out.  In a modern world of just in time inventory, global airline travel, and healthcare systems being proven to be ineffective, this could exceed any projections.  The World Bank has estimated the economic cost of Ebola could reach $32 Billion by the end of next year.  But this is the same group that forecast a global recovery, and failed to see a looming sub-prime fueled credit crisis that brought down some of Wall Street’s largest banks and caused trillions in economic devastation.

In parallel, information is being released on how the CIA controls the media:

If this peaked your curiosity, read about Operation Mockingbird.

If this isn’t enough to question the ‘as seen on TV’ myth, consider that the CDC in conjunction with the DOD owns a patent on this strain of Ebola:

The U.S. Centers for Disease Control owns a patent on a particular strain of Ebola known as “EboBun.” It’s patent No. CA2741523A1 and it was awarded in 2010. You can view it here. (Thanks to Natural News readers who found this and brought it to our attention.)  Patent applicants are clearly described on the patent as including:

The Government Of The United States Of America As Represented By The Secretary, Department Of Health & Human Services, Center For Disease Control.

The patent summary says, “The invention provides the isolated human Ebola (hEbola) viruses denoted as Bundibugyo (EboBun) deposited with the Centers for Disease Control and Prevention (“CDC”; Atlanta, Georgia, United States of America) on November 26, 2007 and accorded an accession number 200706291.”

It goes on to state, “The present invention is based upon the isolation and identification of a new human Ebola virus species, EboBun. EboBun was isolated from the patients suffering from hemorrhagic fever in a recent outbreak in Uganda.”

Savvy investors are mostly aware how the markets are manipulated, either through the PPT, large phantom flash orders on interest rate derivatives, naked short positions on metal futures, and so on.  But in the case of being misled in the markets, the worst that can happen to you is you lose money (unless you are one of the poor souls who work for a large bank doing these deeds in which case you might find yourself stabbed in the back 10 times).

But Ebola affects both real actors in the economy (people) and also business vectors, such as import/export, business travel, and a potentially rapidly declining consumer base.  Also consider how will Ebola affect the spending patterns of businesses and consumers?

Apocalyptic scenes of frantic people buying all overpriced supplies is common to those who have lived in Florida through more than one hurricane season; price gouging, fights over last remaining items, shops being closed and prolonged loss of electricity are only some of the highlights of such an experience.  But an Ebola outbreak, in any form, can mean a real lockdown of entire parts of society.

On the other side of the world, Russia is developing their own Ebola vaccine, a new ROSSWIFT payment system which will even include the isolated Iran, and has shut down the previously most popular McDonald’s in the world in Moscow’s busy Pushkin Square.  The British journalist has the gaul (or the orders from the CIA as explained by this whistle blower) to suggest that the Russian economy will suffer by closing the golden arches.  McDonald’s (MCD) has more than 400 locations in Russia and employees mostly Russian workers.  Is this to suggest that McDonald’s is somehow the linchpin supporting the domestic Russian economy, or that Russia is incapable of making their own fast food chain (such as Teremok). Or does this guy think that like most Americans, Russians do not know how to cook for themselves?  Let’s have a look inside this symbol of Capitalism:

I guess Russians will have to suffer with their inferior Teremok, that by the way offers caviar, blintzes, and a tasty slightly alcoholic beverage “Kvass” (1.2% alcohol, not classified as alcoholic beverage in Russia).  Maybe Russians will start to question why they have been eating BigMac’s filled with hormoes and genetically modified ingredients since 1990, which are clearly superior to Borscht, Medovukha, and caviar filled pancakes.

But unfortunately for US based investors, it will be forbidden to invest in Russia’s post-sanction boom.  Similar to the Forex firewall built around the US regulatory jurisdiction, US companies will be forbidden to invest in Russia and participate in such a boom.  Already Exxon is not happy about missing out on a joint Rosneft project in the Arctic, which can yield 100 billion barrels of oil.

Let’s hope.. that hope can fuel our cars and trucks.. and hope for our German friends that hope can fuel their homes this winter..

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