In the ridiculous charade that passes for the foreign exchange currency markets, the ease upon which a 39% spike in the Swiss Franc to the EU has most financial journalist puzzled. A flagship of establishment journalism like the Washington Post provides a quaint explanation in Why Switzerland’s currency is going historically crazy. The Swiss intend to keep their exchange rate at 1.2 Swiss francs per euro caused unsustainable negative competiveness in Swiss exports to EU customers. How many times have you heard that same old song? Corporatist media consistently spins a yarn that suppressing one’s own currency is good for business.
The SWIFT System is an integral part of a communication process that assists payment and clearing of financial transactions. The Corporate-to-Bank site defines it in the following manner and provides several examples of Payment, Clearing and Settlement Systems.
The alarm warnings are going off in Europe. International markets under pressure, global tensions rising and the financial system stressed to the point of breaking. Europe is ready for a relapse. It may be a very cold winter without Russian gas. Yet the technocrats in Brussels just go on their merry way in dictating the future to the vastly different societies and economies that make up the EU block. The Guardian expands this theme in the article, The eurozone crisis – history is repeating itself … again.
The global economy has just hit the wall. Do not underestimate the significance of the Asian downturn. Japan saw a dramatic rebirth after WWII and China was transformed into an industrial powerhouse from the “Free Trade” debacle. Now that the Central Bankers of the world are turning to Japan and China to keep the financial bubble from blowing, the focus pivots to the East. Pushing on a string is no easy task. Nervously, all eyes have to wonder if more debt will prevent the expected crash.
One sage of economics is mostly ignored because he dares to reject the Keynesian economics doctrine that is so essential to maintain the debt slavery milieu. The last hundred years fostered the dominion of the banksters. The economic future is bleak for humanity as long as the fraudulent monetary system of fiat money is allowed to continue. But before this conclusion can become a commonly accepted cultural axiom, the historic context needs to be understood by present generations.
Those fall season concerns in market volatility are once again upon us. After so many years of a zero interest rate environment, nervous tension is breaking out. Review the record. For a comparison of International Stock Indexes, Market Data Center statistics from the WSJ is useful. Now evaluate Doug Ramsey’s, chief investment officer at the Leuthold Group, argument in Comparing Valuations: U.S. vs. International Stocks.
Seldom does the enormous bond market turn on the fate of a single trader. Well, the news that Bill Gross was leaving Pimco under suspicious circumstances did not go unnoticed. The WSJ writes:
Proponents of big government, from both the left and right, share one important trait; namely, both spend their waking hours dreaming up new schemes to tax wealth. Only a blind, deaf and dumb observer of economic imbalance would deny that the massive accumulation of worldly assets into the hands of the smallest number of robber barons in all of history is at the core of most social unrest and global instability. However, adopting a Marxist outlook on the evils of the bourgeoisie simply confuses the nature of the financial magnates, while blaming the hard pressed merchant class for conducting beneficial business. Creation of tangible wealth is the greatest achievement in the uplifting and improvement of the human condition, when that stream of riches flows between and among entrepreneurs and business proprietors.
As the yearly end of summer doldrums engulf the Hamptons, the uber-wealthy position themselves for a rocky coming storm when the robust fall trading season begins. Some of the most memorable major equity collapses happen during this time of year. Logic, fundamentals and sound business analysis has very little to do in forecasting when the actual plug will be pulled on the rocket ride in stocks. In a rigid game, the house always knows when and at what time the fleecing of the mark happens. Such timing projections do not apply to the decline in the purchasing power of the dollar. More appropriately, Federal Reserve Notes are only compulsory money because of the legal tender laws. Yet, financial instruments are gauged in terms of their worth by the dollar redemption value they produce.
The belief that calling for and instituting sanctions against Russia is a sound policy, illustrates the economic disconnect of the Obama administration. With the fervor for starting a new cold war, the propaganda machine is working overtime to paint a picture that ignores real economic synergism. Note the conflicting reports regarding the EU. Nine EU countries ready to block economic sanctions against Russia, quotes a diplomatic source to ITAR-TASS:
Financial instruments are inventions of gnomes from investment houses and exchanges. There is nothing intrinsic about profitability or guarantee that over time such transactions will be rewarding. Much like the games played at a casino, the baccarat banks that run the betting sport and wheel of fortune, are running the odds in their favor. If only the payoff was similar to the gambling den probability, the consistency of indulgence might be worth the risk. However, the systemic incentivisations within the markets themselves are designed to reflect little of economic proportion to actual trading results. Just look how the financial firms compensate their traders to substantiate that the underlying security of the “so called” investment, which bears little resemblance to quoted pricing.
A quaint comparison of what money can buy in today’s market has Bill Gates being able to afford every home in Boston. His $76.6 billion reported by the Washington Post or the $78.4 billion by Forbes seems a pittance when put up against John D. Rockefeller’s peak wealth of $318.3 billion (based on 2007 US dollar). According to your resident commissars over at MSNBC, “The median net worth of American households hasn’t changed much over the past decades, it’s about $20,000.” So if Gates decided to purchase all the Beantown houses, whom would he pay for the bricks and mortar? Certainly, most Americans may think of “their home is their castle”, but few actually own a debt free deed to their grand estate. No wonder the banks and financial institutions, are so fond of placing liens on real property.