Monday, 22 December 2014


The Global Monetary Reset is under way, but people have not noticed it yet. The key is the move to Zero interest rates.

Government debt almost everywhere is too high to ever pay off, let alone pay a traditional rate of interest on.  As debts come due, including as bond issues mature, the only option governments have is to roll over the debt and accumulated interest, and the only way they can afford to do that is if money printing is a continued practice and interest rates are at or near zero.  QE is the latest name for money-printing, inflating the amount of currency available.  Logically, QE dilutes the value of a currency by inflating the number of currency units in circulation, and, theoretically, should lead to price inflation.  However, if all nations engage in monetary expansion, the effects of money printing on exchange rates may be effectively concealed by a balance of expansion.  Or, as in the case of the US dollar, a currency with the status of world reserve currency may be expanded with relative impunity by the nation creating that currency, effectively exporting its inflation to the rest of the world that continues to sell to that nation, or trades in a monetary system based on that currency. Injections of QE into an economy with weak fundamentals is likely to result in speculative bubbles as QE funds show up in investors' hands and not in the hands of general consumers.

Inflation has become a necessary element of economic life according to the mainstream meme of economists.  Inflation is a key strategy in coping with immense and increasing debts.  Debt so large that it cannot be paid must be inflated away or governments must default.  Deflation makes current debt increasingly difficult to pay or service out of deflating GDP and tax revenue. "  Continues


"The Chancellor George Osborne today (22 December 2014) confirmed that the government will extend the legislation originally put in place to regulate LIBOR to cover seven further financial benchmarks, including the main foreign exchange benchmark, with those found guilty of manipulating these benchmarks facing up to seven years in prison.

Confirmation of this action, which comes in response to an early recommendation from the ‘Fair and Effective Markets Review’ which was established by the Chancellor in June this year, reinforces the government’s determination to ensure confidence in the fairness and effectiveness of UK wholesale financial market activity.

The government will extend the legislation covering LIBOR to the following seven major benchmarks:

WM/Reuters 4pm London Fix, which is the dominant global foreign exchange benchmark;
Sterling Overnight Index Average (SONIA) and the Repurchase Overnight Index Average (RONIA), which both serve as reference rates for overnight index swaps;
ISDAFix, which is the principal global benchmark for swap rates and spreads for interest rate swap transactions;
London Gold Fixing and the LMBA Silver Price, which determine the price of gold and silver in the London market; and
ICE Brent index, which acts as the crude oil market’s principal financial benchmark.
The Chancellor George Osborne said:

The integrity of the City matters to the economy of Britain. Ensuring that the key rates that underpin financial markets here and around the world are robust, and that anyone who seeks to manipulate them is subject to the full force of the law, is an important part of our long term economic plan.

That’s why the government is determined to deal with abuses, tackle the unacceptable behaviour of the few and ensure that markets are fair for the many who depend on them.

The changes announced today will extend the criminal offence of manipulating a ‘relevant benchmark’ originally introduced for LIBOR to any person manipulating these seven benchmarks. They will also subject administrators of, and submitters to, these benchmarks to a number of specific rules, and authorised firms will face a range of sanctions if they breach any of the Financial Conduct Authority’s (FCA) rules and principles – including financial penalties, suspensions and censures.

The FCA and Prudential Regulation Authority (PRA) have already taken tough action to protect customers, markets and financial stability from misconduct in the foreign exchange, fixed income and commodity markets, including fining five banks a total of more than £1 billion following attempts to manipulate FOREX markets, with individuals facing criminal investigation by the Serious Fraud Office.

In June this year, the government announced the establishment of the Fair and Effective Markets Review, which is a joint review by the Treasury, the Bank of England, and the Financial Conduct Authority (FCA) into the way wholesale financial markets operate. Forward-looking in nature, this Review reflects the government’s long term economic plan to ensure Britain remains a world leader in financial services, with successful institutions operating to the highest standards.

Ahead of the legislation announced today coming into force, the FCA will consult on their draft rules, and then publish final rules. The government intends for the legislation to commence on 1 April 2015."

The White Rabbit! aka Freeman Money ... ;~)
Op. #OTB Has Started 99% HEROES WANTED! :-)

Latest Top Stories -->> 

No comments :

Post a comment

Only members (obviously) can comment; no moderation; direct to page.

Note: only a member of this blog may post a comment.