INVESTING: How global money fraud by the authorities is helping Bitcoin boom


If you finally want reinforced concrete evidence that speed-of-light trading undertaken by Geek-Quants has rendered the entirety of global stock markets a complete fix for the normal investor, then you could do a lot worse than watch this gripping video about a whistle-blowing quant who has finally revealed the bare-assed sociopathy of mendacious Wall Street mendacity.

The Slog first posted about this three years ago, and before that fingered the dark liquidity pools they use as glorified cess pits.

But until now, the reality that we can’t trust any of bankers central or otherwise seems to have passed the head of the Federal Reserve Bank of New York by. Only last Thursday did he come out and claim that some of America’s largest financial institutions appear to lack respect for the law.

William Dudley, a top US banking regulator whose NYFRB helps oversee Wall Street banks including JPMorgan Chase and Citigroup, made the comment during a speech focused on the problems posed by banks perceived to be “too big to fail,” and possible solutions to correct them.Dudley suggested that regulators may be stymied by “cultural” issues that have negatively affected the nation’s biggest banks. I am shocked – shocked to hear this.

What, we wonder, are chaps as naive as Mr Dudley to do about cetral banks then – do they need regulating too?

Hahahahahaha, sorry – silly question. Just how silly is made obvious by a piece at Spiegel online, which reports that the European Central Bank (ECB) has double standards when it comes to the valuation of government bonds on deposit as collateral for loans. Currently, 116 Italian government bonds without coupon interest rate, known as stripped bonds or “strips”, are valued by the ECB and the Italian national central bank with a grade of “A” – although rating agencies actually do not assign that grade. Or indeed, anything near it: large raters like S & P, Moody’s and Fitch  already quote a “B” status downgrade for the Boot financial system.

By assigning an “A” rating, the ECB is knowingly favouring those banks that submit such papers as collateral when they borrow money from the central bank…..especially Italian financial institutions. Oddly enough, Mario Draghi is neither German nor Greek, but Italian. And he chooses to use a minute shop called DBRS – which is one of the few ratings agencies still rating Italy A – to ‘justify’ his crime.
Except that, um, When Spiegel told DBRS about it, they said “that’s not correct” (aka fraud) because even they don’t gave that rating to strips.
Anyway, your savings income has been raped by Zirp, your bank has fiddled you on Libor, Sovereigns have put pins in your bear-note balloons with QE….and now the euro’s central bank has moved on from defrauding bondholders and stealing from bank customers to fiddling debt investors.
I wonder why anyone is surprised that Bitcoin is growing like topsy, evading as it does this global nest of depraved vipers? If you still are, then read Liam Halligan’s Torygraph column today. I still have that nasty feeling that – like Pirate Radio 50 years ago – the system will be declared a mortal sin before too long, and hugely criminalised. But in the meantime, it may well represent at least the near future.