Sunday, June 26, 2011

Eurocrats one step closer to Tobin Tax The tax would levy a 0.05 per cent fee on the total value of “every type of financial transaction” that goes through any institution in Europe, pushing up the cost of economic activity at a time when the region is struggling to stage a convincing recovery.

It would hit the foreign exchange markets particularly hard

Kitco offices raided - 175 tax agents issue warrants, seize documents

Quebec tax authorities raided the offices of one of Canada's largest gold trading and research firms, Kitco Metals Inc., probing whether the company and several others may have illegally avoided paying more than C$150 million (US$154 million) in Quebec sales taxes.

Revenu Quebec hasn't pressed any charges. But in a statement, it said it had reason to believe that Kitco, a privately owned precious-metals trader and research firm based in Montreal, worked with several entities and individuals in a scheme involving gold-bullion and gold-scrap transactions that allowed them to inappropriately collect provincial tax credits.

The agency also said it had reason to believe another privately owned Montreal gold wholesaler, Carmen International Inc., was involved in a similar scheme, as well as 124 other scrap-gold and precious-metals companies that served as intermediaries, or were complicit in the alleged fraud.
The total value of the alleged illegal transactions amounted to a total of C$1.8 billion and allegedly defrauded the government of more than C$150 million in taxes, the agency said.
Kitco said in a statement that Revenu Quebec's claims are unfounded and that it intends to contest the allegations. Joseph Chesir, one of the founders of Carmen International, declined to comment when reached over the phone Friday.
Revenu Quebec said 175 tax agents issued warrants and seized documents at 70 businesses starting on Tuesday. A Revenu Quebec spokeswoman said the agency is reviewing the documents before deciding whether to press formal charges.

Thursday, June 23, 2011

NFA uncovers D2W fraud

Scientists find city life more stressful than rural life

Scientists have confirmed what every urbanite has long suspected – life in the city is more stressful.
Researchers have shown that the parts of the brain dealing with stress and emotion are affected by living among the crowds.

The findings help shed light on why those who are born and raised in urban areas are more likely to suffer from anxiety, depression and schizophrenia than those brought up in the countryside.

Read more:

Greek budget concerns, oil drops, US Jobs data weak

Tuesday, June 21, 2011

Nebraska Nuclear Plant Level 4: Catastrophic situation says report from Russia

A shocking report prepared by Russia’s Federal Atomic Energy Agency (FAAE) on information provided to them by the International Atomic Energy Agency (IAEA) states that the Obama regime has ordered a “total and complete” news blackout relating to any information regarding the near catastrophic meltdown of the Fort Calhoun Nuclear Power Plant located in Nebraska.
According to this report, the Fort Calhoun Nuclear Plant suffered a “catastrophic loss of cooling” to one of its idle spent fuel rod pools on 7 June after this plant was deluged with water caused by the historic flooding of the Missouri River which resulted in a fire causing the Federal Aviation Agency (FAA) to issue a “no-fly ban” over the area.

Here's an interesting report from Pakistan's daily newspaper The Nation.
It cites a Russian regulatory agency as saying that the US is currently having a major nuclear emergency at the flooded plant in Nebraska and that the Obama Administration is trying to cover it up.
The Russian report describes the Nebraska situation as one of the worst nuclear accidents in the history of the United States.
Bear in mind that this report comes from Russia and Pakistan--two countries that aren't particularly happy with Obama right now.
But the FAA has enacted a no-fly zone over the Fort Calhoun nuke plant, which was damaged by a fire and flooding from the Missouri river.

Read more:

Monday, June 20, 2011

Greece close to meltdown: Revolution, Power Outages, Chaos For more than three weeks protesters have occupied the square opposite the Greek parliament. They have pitched their blue and grey tents and hung their slogans from the orange trees.
"We got the solution. Revolution," declares one poster. "Rise up people of the world," urges another.
Inspired by the Arab uprisings, they have dug in to oppose further spending cuts in exchange for a second bail-out by the EU and IMF.
The encampment, however, hardly crackles with revolutionary fervour. It has the feel of an anti-globalisation village, nestled in amongst Africans selling handbag copies and bright-rimmed sunglasses.
The Greek Prime Minister George Papandreou is depicted as riding the CIA/IMF plane. He is portrayed as a capitalist stooge.

Start Quote

The mood is tinder dry. A city at a tipping point”
The activists bicker amongst themselves about real democracy.
"We have no leaders here," said one proudly. They go into contortions about interviews in case by speaking out it is judged as assuming a leadership role.

Sunday, June 19, 2011

CIA fears military coup in Greece

CIA fears a coup in Athens

This could be another Lehman moment

The difference in opinions over the Greek debt crisis between Angela Merkel and Nicolas Sarkozy may well be explained by the fact the French banking system is at more immediate risk from any meltdown than its German counterpart.
France is the most exposed of any developed country to Greece reneging on its huge debts.
The French are sitting on a £35billion exposure compared with £21billion for Germany, according to the Bank for International Settlements.

Read more:

Gold & Silver trading bans for US residents begin July 15th

Elimination of OTC Forex
Effective 90 days from its inception, the Dodd-Frank Act bans most retail OTC forex transactions. Section 742(c) of the Act states as follows:
…A person [which includes companies] shall not offer to, or enter into with, a person that is not an eligible contract participant, any agreement, contract, or transaction in foreign currency except pursuant to a rule or regulation of a Federal regulatory agency allowing the agreement, contract, or transaction under such terms and conditions as the Federal regulatory agency shall prescribe…
This provision will not come into effect, however, if the CFTC or another eligible federal body issues guidelines relating to the regulation of foreign currency within 90 days of its enactment. Registrants and the public are currently being encouraged by the CFTC to provide insight into how the Act should be enforced. See CFTC Rulemakings regarding OTC Derivatives located at the following website address, under Section XX – Foreign Currency (Retail Off Exchange). It is essential that OTC forex participants seek professional help to discuss possible operational and regulatory contingency plans.
Elimination of OTC Metals
As for OTC precious metals such as gold or silver, Section 742(a) of the Act prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis. This provision intends to expand the narrow so called “Zelener fix” in the Farm Bill previously ratified by congress in 2008. The Farm Bill empowered the CFTC to pursue anti-fraud actions involving rolling spot transactions and/or other leveraged forex transactions without the need to prove that they are futures contracts. The Dodd-Frank Act now expands this authority to include virtually all retail cash commodity market products that involve leverage or margin – in other words OTC precious metals.
The prohibition of Section 742(a) does not apply, however, if such a transaction results in actual delivery within 28 days, or creates an enforceable obligation to deliver between a seller and a buyer that have the ability to deliver, and accept delivery of, the commodity in connection with their lines of business. This may be problematic as in most spot metals trading virtually all contracts fail to meet these requirements. As a result, although the courts’ interpretation of Section 742(a) is unknown, Section 742(a) is likely to have a significantly negative impact on the OTC cash precious metals industry. Here too, it is essential that those who offer to be a counterparty to OTC metals transactions seek professional help to discuss possible operational and regulatory contingency plans.
Small Pool Exemption Eliminated
Pursuant to Section 403 of Act, the “privateadviser” exemption, namelySection 203(b)(3) of the Investment Advisers Act of 1940 (“Advisers Act”), will be eliminated within one year of the Act’s effective date (July 21, 2011). Historically, many unregistered U.S. fund managers had relied on this exemption to avoid registration where they:
(1) had fewer than 15 clients in the past 12 months;
(2) do not hold themselves out generally to the public as investment advisers; and
(3) do not act as investment advisers to a registered investment company or business development company.
At present, advisers can treat the unregistered funds that they advise, rather than the investors in those funds, as their clients for purposesof this exemption. A common practice has thus evolved whereby certain advisers manage up to 14 unregistered funds without having to register under the Advisers Act. Accordingly, the removal of this exemption represents a significant shift in the regulatory landscape, as this practice will no longer be allowable in approximately one year.
Also an important consideration, the Dodd-Frank Act mandates new federal registration and regulation thresholds based on the amount of assets a manager has under management ("AUM"). Although not yet underway, it is possible that various states may enact legislation designed to create a similar registration framework for managers whose AUM fall beneath the new federal levels.
Accredited Investor Qualifications
Section 413(a) of the Act alters the financial qualifications of who can be considered an accredited investor, and thus a qualified as eligible participant (“QEP”). Specifically, the revised accredited investor standard includes only the following types of individuals:
1) A natural person whose individual net worth, or joint net worth with spouse, is at least $1,000,000, excluding the value of such investor's primary residence;
2) A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year; or
3) A director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.
Based on this language, it is important to note that the revised accredited investor standard only applies to new investors and does not cover existing investors. However, additional subscriptions from existing investors are generally treated as requiring confirmation of continuing investor eligibility.
On July 27th, 2010, the SEC provided additional clarity regarding the valuation of an individual’s primary residence when calculating net worth. In particular, the SEC has interpreted this provision as follows:
Section 413(a) of the Dodd-Frank Act does not define the term “value,” nor does it address the treatment of mortgage and other indebtedness secured by the residence for purposes of the net worth calculation…Pending implementation of the changes to the Commission’s rules required by the Act, the related amount of indebtedness secured by the primary residence up to its fair market value may also be excluded. Indebtedness secured by the residence in excess of the value of the home should be considered a liability and deducted from the investor’s net worth.
h/t Ryan


Germans rethink bailout, UK banks abandon Eurozone

Friday, June 17, 2011

15 Million Lots available in MT4

EES FX ECN now offering 15 Million Lots in MT4

MT4 normally restricts demo and live accounts to 1,000 lots.  Of course, with 50:1 leverage, in order to trade 15 Million Lots, which is 1.5 Trillion, would require a deposit of 30 Billion.

1,000 Lots is 100 Million, so with a deposit of 10 Million, the 1,000 lot limit would be restrictive.  15 Million is a high enough limit that it is for most accounts high enough where only leverage limitations would be implemented.

Sunday, June 12, 2011

EES Releases Velocity Indicator on MQL4

Velocity = High-Low / Time. Time is changeable to minutes, hours, or days. Seconds is the default. In physics, Velocity = distance / time.
Velocity can be a good indication of price action divided by time, differing from indicators such as ATR and Volatility indicators that do not include time.

Wednesday, June 8, 2011

Department of Education sends SWAT team to collect student loan

STOCKTON, CA - Kenneth Wright does not have a criminal record and he had no reason to believe a S.W.A.T team would be breaking down his door at 6 a.m. on Tuesday.
"I look out of my window and I see 15 police officers," Wright said.
Wright came downstairs in his boxer shorts as a S.W.A.T team barged through his front door. Wright said an officer grabbed him by the neck and led him outside on his front lawn.
"He had his knee on my back and I had no idea why they were there," Wright said.
According to Wright, officers also woke his three young children ages 3, 7, and 11 and put them in a Stockton police patrol car with him. Officers then searched his house.
As it turned out, the person law enforcement was looking for was not there - Wright's estranged wife.
"They put me in handcuffs in that hot patrol car for six hours, traumatizing my kids," Wright said.

Tuesday, June 7, 2011

IMF Says Loan Program to Portugal Entails ‘Important Risks’

The International Monetary Fund’s 26 billion-euro ($38.1 billion) loan to Portugal “entails important risks,” the agency’s staff said in a report prepared to assess the country’s request for assistance.
The measures attached to the loan “may fail to alleviate sovereign debt concerns, with an adverse impact on government financing prospects,” IMF staff wrote in a May 17 report that was posted on the fund’s website today. “In particular, refinancing risks from the closure or contraction of the Treasury bills market represent a near-term refinancing risk for the government.”  

Monday, June 6, 2011

EES FX adds 2 new indicators

For EES FX Subscribers, 2 new indicators are added.  To get your indicators, sync your Elite Meta Sync software via FTP.  Indicators are:

  • EES Velocity (High-Low/Time)
  • Tick Chart in MT4
To get these indicators, visit 

EES announces Trader Incubator program

The EES FX Incubator is designed for traders who want to trade in an ECN environment for the specific purpose of developing their track records for capital allocation, either by EES or our partners.

Sunday, June 5, 2011

EU Preparing new aid package for Greece

European Union officials will focus on preparing a new aid package forGreece that includes a “voluntary” role for investors after the EU and the International Monetary Fund approved the fifth installment of Greece’s 110 billion-euro ($161 billion) bailout.
“I expect the euro group to agree to additional financing to be provided to Greece under strict conditionality,” Luxembourg Prime Minister Jean-Claude Juncker said after meeting with Greek Prime Minister George Papandreou in Luxembourg on June 3. “This conditionality will include private-sector involvement on a voluntary basis.”
Papandreou agreed to 78 billion euros in additional austerity measures and asset sales through 2015 to secure the 12 billion-euro bailout payment and meet conditions for receiving an additional rescue package. He agreed to make “significant” cuts in public-sector employment and establish an agency to manage accelerated asset sales, according to a statement released in Athens on June 3. The plan is fueling popular opposition and protests across Greece.
Greek bonds gained on the prospect of a new aid plan, with the yield on the country’s two-year notes falling 172 basis points yesterday to 22.8 percent, the lowest since April 20. The agreements came at the end of a week when Greece’s fiscal crisis worsened enough for Moody’s Investors Service to raise the probability of a default to 50 percent.

Friday, June 3, 2011

Get your Free Email Digital Signature from EES

NFP: Payrolls expanded by 54,000 last month

The dollar extended its decline against the yen after a report showed U.S. employers in May added the fewest number of workers in eight months and unemployment unexpectedly rose to 9.1 percent, increasing concern the U.S. economic recovery is slowing.
Payrolls expanded by 54,000 last month, after a revised 232,000 increase in April, the Labor Department said today in Washington. The jobless rate rose to 9.1 percent. Employment was forecast to grow by 165,000 last month, according to the median estimate of economists surveyed by Bloomberg News.

Thursday, June 2, 2011

US Rating could be placed under review: Moody's

DEBT FEARS: US Rating Could Be Placed Under Review, warns MOODY'S...

Gives lawmakers until mid-July to show progress in talks...

Finally, a logical warning on US credit.
Moody's is out with a comment saying that if there's no imminent progress on the debt ceiling fight, the US credit rating will be cut.
This makes total sense, and we applaud Moody's for doing their job: Identifying an imminent (real) issue, and sensibly advising (ahead of time) about what could be a threat to US debt holders.
This should help put an end to this idea that a technical default would be just fine, and that somehow all this brinksmanship would be good for US credit somehow.
Back in January, we called on Moody's to do exactly this: Threaten a ratings cut as a way of warning about the harmful effects of this fight.
They've done exactly that.

Read more:

Wednesday, June 1, 2011

Sweeteners for Greek Debt Extension

European officials preparing Greece’s second bailout in two years may offer bondholders incentives to roll over maturing debt without triggering a credit-rating downgrade that would roil Europe’s banking system, two people with knowledge of the talks said.
Investors may be given preferred status, higher coupon payments or collateral as inducements to buy bonds replacing Greek debt maturing between 2012 and 2014, said the people, who declined to be identified because the talks are in progress.
European leaders are trying to prevent the euro area’s first sovereign default. Last year’s 110 billion-euro ($159 billion) rescue failed to prevent an investor exodus from Greece, saddled with Europe’s highest debt load amid a three- year economic slump. The upgraded package would share costs with investors while skirting a technical default, the people said.

Oil up, jobs down

Bond markets betting on QE3

Investors should prepare themselves for a third round of quantitative easing, Simon Maughn, co-head of European equities at MF Global, told CNBC Wednesday.
“The bond market is going in one direction which is up-falling yields which is telling you quite clearly the direction of economic travel is downwards. Downgrades. QE3 (a third round of quantitative easing) is coming,” said Maughn. “The bond markets are all smarter than us, and that’s exactly what the bond markets are telling me.”