QE2 risks currency wars and the end of dollar hegemony

http://www.telegraph.co.uk/finance/currency/8103462/QE2-risks-currency-wars-and-the-end-of-dollar-hegemony.html

PUMP: Fed Likely to Announce $500 Billion of Purchases...

'Biggest decision in decades'...

Fed easing may means 20% drop of dollar value...

'The end of dollar hegemony'...

 

http://www.marketoracle.co.uk/Article23855.html

CURRENCY WARS, Debase, Debt Default and Deny!

Fraudclosure: $45 TRILLION DOLLARS nobody knows real owners

Pimco – Run Turkey Run

http://www.pimco.com/Pages/RunTurkeyRun.aspx#

• The Fed's announcement of a renewed commitment to Quantitative Easing has been well telegraphed and the market's reaction is likely to be subdued.
  
• We are in a "liquidity trap," where interest rates or trillions in asset purchases may not stimulate borrowing or lending because consumer demand is just not there.
  
• The Fed's announcement will likely signify the end of a great 30-year bull market in bonds and the necessity for bond managers and, yes, equity managers to adjust to a new environment.
  

NFA calls IKON on failure to maintain MetaTrader

The Complaint alleged that IKON engaged in certain price slippage practices on the MetaTrader platform that were favorable to IKON and caused disadvantageous trading conditions for certain customers. The Complaint also charged that IKON failed to supervise the MetaTrader platform used for their forex business, and failed to supervise the firm's operations.

http://www.nfa.futures.org/news/newsRel.asp?ArticleID=3679

NFA orders $459,000 monetary sanction against New Jersey forex firm Gain Capital Group LLC

October 28, Chicago - National Futures Association (NFA) has ordered Gain Capital Group LLC (Gain), a forex dealer member located in Bedminster, New Jersey, to pay a $459,000 fine as a result of an NFA Complaint issued and a settlement offer submitted by Gain and its chief executive officer, Glenn H. Stevens.

NFA's Business Conduct Committee alleged that Gain engaged in abusive margin, liquidation and price slippage practices that benefited Gain to the detriment of its customers. The Committee also alleged that Gain failed to maintain records for certain unfilled orders, failed to adequately review the activities and promotional material of the firm's unregistered solicitors, and failed to supervise the firm's operations.

In addition to the fine amount, Gain must also provide appropriate refunds to its customers as a result of these detrimental margin, liquidation and asymmetrical slippage practices.

Gain and Stevens neither admitted nor denied the charges. The complete text of the Complaint and Decision are available on NFA's website (www.nfa.futures.org).

NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.

http://www.nfa.futures.org/news/newsRel.asp?ArticleID=3676

Voters can only vote for Harry Reid

http://www.fox5vegas.com/news/25511115/detail.html
LAS VEGAS -- Some voters in Boulder City said they are concerned about fraud at the electronic ballot box.

Voter Joyce Ferrara said when they went to vote for Republican Sharron Angle, her Democratic opponent, Sen. Harry Reid's name was already checked.

Ferrara said she wasn't alone in her voting experience. She said her husband and several others voting at the same time all had the same thing happen.

"Something's not right," Ferrara said. "One person that's a fluke. Two, that's strange. But several within a five minute period of time -- that's wrong."

Germany Accuses US of Indirectly Manipulating Dollar

http://www.cnbc.com/id/39808247
German Economy Minister Rainer Bruederle on Saturday took issue with what he called a U.S. policy of increasing liquidity, saying it indirectly manipulated exchange rates.

Group of 20 vows to avoid currency devaluations

Group of 20 vows to avoid currency devaluations

NFA issues investor alert

http://www.nfa.futures.org/NFA-investor-information/investor-newsletter/index.HTML

NFA issues investor alert regarding new forex rules

On October 18, NFA issued an investor alert outlining the impact of new rules issued by the Commodity Futures Trading Commission on consumers investing in the off-exchange foreign currency (forex) markets. The rules require, with certain exceptions, any firm acting as a counterparty to certain retail forex transactions to register with the CFTC as a Retail Foreign Exchange Dealer (RFED) or Futures Commission Merchant (FCM). In addition, the rules require, with certain exceptions, any individual acting as a forex solicitor, account manager or pool operator to register as Introducing Brokers (IBs), Commodity Trading Advisors (CTAs) or Commodity Pool Operators (CPOs) or as an associated person of one of these entities and become Members of NFA.

"We want to ensure that forex investors know that the entities they have previously been conducting business with are now required to be registered with the CFTC and be NFA Members," said Larry Dyekman, director of Communications and Education at NFA. "Investors can check the registration status of any forex firm through NFA's Background Affiliation Status Information Center, or BASIC, which is available free of charge on ourwebsite."

BASIC contains current and historical registration information concerning all current and former CFTC registrants, including name, business address and registration history. BASIC also provides information concerning disciplinary actions taken by NFA, the CFTC and all U.S. futures exchanges.

"If you are researching a firm, you should also conduct a background check of all the individuals listed as principals of the firm," said Dyekman. "Sometimes the firm will have no disciplinary history, but one or more of the principals may have been disciplined while working at other firms."

Read the full text of the forex investor alert.

 

 

FINRA warns investors about High Yield Investment Programs

The Financial Industry Regulatory Authority (FINRA) recently issued an investor alert warning investors about the risks of high yield investment programs (HYIPs). According to the alert, HYIPs are "unregistered investments created and touted by unlicensed individuals." People touting these products cite high, unsustainable rates of return with little or no risk.

FINRA's alert describes some of the more common practices scammers use to lure unsuspecting investors to invest in HYIPs. The alert also gives practical tips on how to spot HYIP scams and where to turn for help.

Read the full text of the FINRA investor alert about HYIPs.

China continues to block Rare Earth metal sales

China Rare Earth Metals blocked from Japan and other countries

http://en.wikipedia.org/wiki/Rare_earth_element

Gold Record, Dollar slumps

Greenspan: FEAR undermines America's recovery... 
Food Stamp Recipients at Record 41.8 Million Americans...
TIME MAG: Anguish and Anxiety...
Fed Officials Mull Inflation as a Fix...
Dollar slide continues... 

OIL NEAR $85
GOLD NEW RECORD $1366

GLOBAL ECONOMY WEEKAHEAD-Currency war fears tinge IMF meetings

http://uk.finance.yahoo.com/news/global-economy-weekahead-currency-war-fears-tinge-imf-meetings-targetukfocus-0f61d6d7ebc5.html

GLOBAL ECONOMY WEEKAHEAD-Currency war fears tinge IMF meetings

South Carolina first state in US to manage its own pension

http://dealbook.blogs.nytimes.com/2010/09/27/s-carolina-starting-firm-for-its-pension-fund/?src=busln
For decades, public pension funds have bankrolled the private equity industry, investing billions of dollars with large firms like Apollo Global Management and the Blackstone Group.

Now, frustrated by what it sees as expensive fees and a lack of transparency at private equity firms, one state has decided on a do-it-yourself approach, Peter Lattman of The New York Times reports.

South Carolina's pension fund is creating an independent firm to oversee the fund's private equity holdings — doing what it would have paid a private equity firm to do. The effort is similar to the direct investment funds created by two of Canada's biggest pension plans — Ontario Teachers' Pension Plan and the Canada Pension Plan Investment Board — but is believed to the first of its kind in the United States.

"It's high time that state pension funds are able to develop structures that have greater transparency and lower costs," said Robert L. Borden, the chief investment officer of the South Carolina Retirement System Investment Commission, which oversees the management of the state's $25 billion pension fund. Mr. Borden will run the new firm under a plan approved late last week.

Fed prepares to flood economy with Dollars

http://www.cnbc.com/id/39290620
"The committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate," the Fed said in a statement.

Doomsday warnings of US apocalypse gain ground

http://www.breitbart.com/article.php?id=CNG.a64b6fa820c23d9ef2058a22276ce3a1.2c1&show_article=1

Doomsday warnings of US apocalypse gain ground

Economists peddling dire warnings that the world's number one economy is on the brink of collapse, amid high rates of unemployment and a spiraling public deficit, are flourishing here.

The guru of this doomsday line of thinking may be economist Nouriel Roubini,thrust into the forefront after predicting the chaos wrought by the subprime mortgage crisis and the collapse of the housing bubble.

"The US has run out of bullets," Roubini told an economic forum in Italy earlier this month. "Any shock at this point can tip you back into recession."

But other economists, who have so far stayed out of the media limelight, are also proselytizing nightmarish visions of the future.

Boston University professor Laurence Kotlikoff, who warned as far back as the 1980s of the dangers of a public deficit, lent credence to such dark predictions in an International Monetary Fund publication last week.

He unveiled a doomsday scenario -- which many dismiss as pure fantasy -- of an economic clash between superpowers the United States and China, which holds more than 843 billion dollars of US Treasury bonds.

"A minor trade dispute between the United States and China could make some people think that other people are going to sell US treasury bonds," he wrote in the IMF's Finance & Development review.

"That belief, coupled with major concern about inflation, could lead to a sell-off of government bonds that causes the public to withdraw their bank depositsand buy durable goods."

Kotlikoff warned such a move would spark a run on banks and money market funds as well as insurance companies as policy holders cash in their surrender values.

"In a short period of time, the Federal Reserve would have to print trillions of dollars to cover its explicit and implicit guarantees. All that new money could produce strong inflation, perhaps hyperinflation," he said.

"There are other less apocalyptic, perhaps more plausible, but still quite unpleasant, scenarios that could result from multiple equilibria."

According to a poll by the StrategyOne Institute published Friday, some 65 percent of Americans believe there will be a new recession.

And the view that America is on a decline seems rather well ingrained in many people's minds supported by 65 percent of people questioned in a Wall Street Journal/NBC poll published last week.

"It is true: Today's economic problems are structural, not cyclical," argued New York Times editorial writer David Brooks.

He said the United Sates is losing its world dominance much in the same way the British Empire began to crumble more than a century ago.

"We are in the middle of yet another jobless recovery. Wages have been lagging for decades. Our labor market woes are deep and intractable," Brooks said.

Nobel Economics Prize winner Paul Krugman also voiced concern about the fate of the fragile economic recovery if voters return the Republicans to political power.

"It's hard to overstate how destructive the economic ideas offered earlier this week by John Boehner, the House minority leader, would be if put into practice," he wrote in a recent editorial.

"Fewer jobs and bigger deficits -- the perfect combination."

The Wall Street Journal, usually more favorable to Boehner's call for tax cuts,ran a commentary from another Nobel Prize-winning economist -- Vernon Smith-- that failed to provide much comfort for readers.

"This fact needs to be confronted: We are almost surely in for a long slog," Smith wrote.

And it seems such pessimism has even filtered into the IMF, which warned on Friday that high levels of national debt and a still shaky financial sector threaten to derail the global economic recovery.

"The foreclosure backlog in US property markets is large and growing, in part due to the recent expiration of the home buyer's tax credit. When realized, this could further depress real estate prices."

This could lead to "disproportionate losses" for small and medium-sized banks, which could in turn "precipitate a loss of market confidence in the recovery," theIMF warned.