reviresco wrote:"A shocking crime was committed on the unscrupulous initiative of few individuals, with the blessing of more, and amid the passive acquiescence of all." Tacitus
With our stock, bond and other financial markets in the throes of algorithmic trading in pools both “dark” and clear, and behemoth positions are front run and exited in nanoseconds, we now learn that traders seek to apply these same strategies and mathematical engines to the commodities markets.
Would you agree that society has been injured by the trading programs affecting the extra market pricing of monetary instruments? What further harm may be expected as these same techniques are used to interfere in the pricing of food, fuel, and other basic goods? A world of plenty, priced injuriously via light speed manipulations? Manipulations, I might add, that have nothing to do with the efficiency of the targeted commodity market, and that will be carried out by entities that have
no legitimate function whatsoever in the supply chain of the commodities whose values they will influence.
My worry is that “passive acquiescence” will ultimately yield when the basics of life are targeted for profiteering, lest private and public sector leaders “work out a mechanism to stabilize agricultural commodities prices” and the prices of other common necessary goods.
US Futures Markets:
In the Crosshairs of the Algorithmic Revolution
Executive Summary
The futures markets have a target on their backs, and a host of newer market stakeholders are taking aim. Beyond the demands of traditional futures players, electronic market makers, hedge funds, and long-only asset managers have been and will continue to forge strategies with futures woven into their core. Brokers, vendors and exchanges are meeting these accelerated demands with a spectrum of new solutions. While the outlook for overall futures volumes remains murky in the near term, the importance – and ultimately the volume – of futures trading among these non-traditional customer segments is set to grow over the longer term….
As adoption of automated futures trading increases, overall global volumes in these markets will increase as well. This growth will come in four distinct forms: expansion of strategies, user base, and products, as well as greater focus on risk management....
How quickly and to what extent this growth will occur remains to be seen, particularly in the aftermath of historic market dislocations. However, since trade automation is fast becoming a competitive necessity for all players and achieving consistent risk-adjusted returns remains a perpetual challenge, the inclusion of futures as a broader mainstream asset class is inevitable, and the use of algorithmic methods to navigate these markets is required....
http://www.tabbgroup.com/PublicationDet ... tionID=530
Source: Reuters
13/11/2009
Nov 13 - Volatility in food and agricultural commodities prices has become a permanent feature of global markets due to speculative trading, the chairman of the world's biggest food group, Nestle, said.
Food prices spiked in 2008 due to a rally in agricultural commodities, triggering riots in poor countries and panic buying in rich nations. Prices have fallen back since than but have remained volatile and are hovering well above 2006 levels. A long-term balance between supply and demand on grain markets, which had kept prices relatively stable over the past few decades, has been broken by increased consumer demand, especially in Asia, and by growing bioenergy demand, Nestle's Peter Brabeck-Letmathe said on Friday. Then speculative traders piled in and fuelled volatility, Brabeck told reporters at a private sector conference on food security ahead of a food summit in Rome next week.
"The market has become much more volatile, because you have so much speculation in it ... I think this has become a permanent shift," Brabeck said. He said it was up to politicians to work out a mechanism to stabilize agricultural commodities prices. "It would be very difficult to find a stabilizing system that can counterweigh this enormous amount of money that is coming into the market," he said referring to speculative flows.
A final draft declaration, expected to be signed at the summit next week and seen by Reuters, says world leaders will "consider non market-distorting international measures to mitigate the impact of food market volatility on the poor." It did not elaborate. The draft says the leaders will ask international organizations to examine "whether a system of stockholding can be effective" in dealing with price volatility and humanitarian emergencies -- an idea touted by G8 agriculture ministers earlier this year. French Farm Minister Bruno Le Maire said on Thursday the draft declaration was insufficient and that Paris wanted firmer proposals on regulating global agricultural markets. He cited development of future markets for those commodities that do not already have one, as well as the creation of regional grain stocks, as possible measures.
They gunned the stocks up - castrated the shorts, blow out stops, and then back to business as usual. A maximal harvest, perfectly timed, and no one in the CNBC matrix seem to notice.
Waiting since the lines are drawn.
http://www.zerohedge.com/article/grayso ... ist-voters
http://generationaldynamics.com/forum/v ... 2150#p4376
I think we already know who is acountable and now the taxpayer has no excuse other than stupidity.
Let us accustom ourselves, then, to avoid judging of things by what is seen only, but to judge of them by that which is not seen.
http://mises.org/articles.aspx?AuthorId=123
"The war which we must make against socialism must be one which is compatible with the law, honor, and justice."
Dumb money list is compiled, screwing their own constituents who will, in the end, pay the biggest price for the FED's destruction of the dollar as top to bottum blood pools clot from avarice- priceless libtards.
U.S. international portfolio investments increased from 2 percent to 29 percent of U.S. capital stock from 1974 to 2007. Stock up and plan for Stagflation. In the last few quarters as recorded we have lost roughly 2 points Global on GDP recorded in forums on PMI. Yea all the math does not add up IMO but we already know that anyway as compared to what? Things are moving slow but it is happening. Welcome to the 70's
Prices are reflecting harvesting issues not bureacratic ice picks interfering "more overhead" with prices which always ends bad we have seen.
On his trip to England in 1979, Deng Xiaoping learned why free economies were outperforming Russia and China, and he returned to launch the Sino-Capitalist Revolution which keeps astonishing the world even as faith in capitalism fades across much of the OECD. He had learned why Hong Kong, Taiwan and South Korea could keep creating jobs and wealth by rejecting socialism—whether on the Maoist, Bolshevik, or Indian models.
http://mises.org/Community/blogs/dp/arc ... indow.aspx
They see only what is immediately visible to the eye.
Politics in America is what it is as the world moves on. The democrats and republicans ignore reality.
Ignore facts long enough you can run for office and destroy the middle class.
Stock up and plan for Stagflation. They have as Washington does what? piss and moan about what? Wake up people...
I must admit they need to clean up water and air as ours need to spend per capita only and not kick the can on budgetary
acountability. Looking for a pivit point is apathy to change direction since we know how this going to end to date.
Anom:
Old man Bush got talked into a yacht tax by liberals . Hey , who cares if we screw the rich ..... Rich stopped all purchases of yachts in USA and some 50 boat companies ( mostly in Florida ) went under or relocated abroad . tens of thousands of jobs went POOF ..... it was so bad they rescinded the tax .
Guess what happened? Not a single company that relocated abroad ever came back I remember this effect since my best friend lost his work...
Dubai supposedly has a replica of our markets ready to switch on if demand was there ...... let US high freq traders either go under or move and guess what happens ?
Do any of you have any sense of history ?
This transaction tax is nothing but Intentional Wealth Destruction of the middle class and poor. The cost of Wall Street's own transactions will increase the cost for them of doing business. The cost of all those transactions will be passed onto us in addition to our own transactions, so we pay twice. Stocks are practically the only way we can increase our wealth. As a result of liquidity drying up, experts say the spread that we pay for stocks will increase to $0.53 per share. That is a 2% loss upfront on a $25 dollar stock. The loss in compounding is tremendous. Expect to lose one half of your retirement because of cost side effects of the transaction tax.
by Flyingtrader on Thu, 11/19/2009 - 15:02
1 contract of January soybeans = 5000 bu
Current price of January soybeans = $10.34
Notional value of 1 contract of SF =$51,700
1/4 cent profit on 1 contract = $12.50
FTT on my 1 contract trade @ .02% = $10.34
Of course, I'll end up paying this tax on losers as well.
Bye bye liquidity...
AGI tax is bad enough since tax is theft of future consumer demand. Local bond issues fund issuance. If all politics are local see what happens when Global parasites adhere, MORE WILL STARVE. Capital is scarce and the keynesians are always happy to manage your crisis. Like we said thieves and liars pool like blood so a jury can sort it out over time. Malinvestment has consequences. Ideological conditioning is lethal to many facets like your money confiscated from inflationary rhetoric on how they "care for you"
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Yet this Draconian taxation has not brought revenues to keep pace with ever more reckless government spending and schemes for redistributing wealth. The result has been to bring chronic and growing government budget deficits, and therefore chronic and mounting inflation, in nearly every country in the world.
但是，严苛的税赋并没有带来足够的财政收入，去满足重分配型政府诸多开支、以及诸多计划中的开支。结果是世界各国的政府都陷入长期的预算赤字和通货膨胀，并越陷越深。