I wrote about the USA as a power house collapsing and China taking over, seems to be coming true, but in a quiet way. A large number of the African nations,especially those in oil are not being pricing in USD anymore, but in the Yuan!
Friday, July 6, 2012
Thursday, July 5, 2012
Explanation of my comments
MY blog comments are read globally and after some comments I need to explain a little more.
In the UK there is a furore regarding interest rate fixing by Barclays and the argument is, that the government says it’s a crime and want someone to be prosecuted for it.
However, for those involved in banking and setting interest rates ( I used to be one of them) , all know, that this is not possible to prosecute for wrong doing and maybe this is just a jerk reaction to all that is going on in the UK at the moment.
So let me explain a little.
Each business day at 11am (UK time) interest rates are set by several banks using the average rate of all banks quoting.
Barclays was proven to email the other banks asking for an agreement on the level of the rates before they were fixed. This is officially set by the British Bankers Association. The name of this is LIBOR (London Interbank Offered Rate). This isn’t set by a law but is self regulated. Differences on this rate is about 0.125% each day up or down and it is used to set rates for various periods of time up to a year. This has an affect on personal loans, mortgages etc to the consumer as well as set the rate for banks lending to each other. In today’s market where a single deal can be STG 3billion this can make a large difference.
The government is now trying to prosecute bankers for changing the rates by collusion, because they call it fraud. However, what I am saying is, that it can’t be fraud and therefore no one will be prosecuted and the whole thing is a waste of time.
The reason I say that this isn’t fraud is because of the following:
1. The LIBOR is run by the British Bankers Association
2. It is concluded and shown on systems like Reuters and Bloomberg
3. It is advertised on the internet
4. The rates are published each day in the financial newspapers
5. It is reported to the Bank of England
6. The Bank of England is answerable to the Treasury and the government
So in light of this how is it fraud?
The inference now is that the treasury at the time run by Labour did in fact have words with the Bank of England to lower rates in this way. Funnily enough all of those mentioned in the Treasury and Bank of England deny this was said. Bob Diamond said the conversatrion wasn't recorded as the call was made to his New York office that didn't have a recording machine on. All very convenient and all of the participants trying to deny the conversation was made with Bob Diamond.
That is why I say it all stinks and is a waste of time. Unless the Bank of England wanted to get rid of Bob Diamond at Barclays who has resigned.
I hope that this clears some matters up for my readers
In the UK there is a furore regarding interest rate fixing by Barclays and the argument is, that the government says it’s a crime and want someone to be prosecuted for it.
However, for those involved in banking and setting interest rates ( I used to be one of them) , all know, that this is not possible to prosecute for wrong doing and maybe this is just a jerk reaction to all that is going on in the UK at the moment.
So let me explain a little.
Each business day at 11am (UK time) interest rates are set by several banks using the average rate of all banks quoting.
Barclays was proven to email the other banks asking for an agreement on the level of the rates before they were fixed. This is officially set by the British Bankers Association. The name of this is LIBOR (London Interbank Offered Rate). This isn’t set by a law but is self regulated. Differences on this rate is about 0.125% each day up or down and it is used to set rates for various periods of time up to a year. This has an affect on personal loans, mortgages etc to the consumer as well as set the rate for banks lending to each other. In today’s market where a single deal can be STG 3billion this can make a large difference.
The government is now trying to prosecute bankers for changing the rates by collusion, because they call it fraud. However, what I am saying is, that it can’t be fraud and therefore no one will be prosecuted and the whole thing is a waste of time.
The reason I say that this isn’t fraud is because of the following:
1. The LIBOR is run by the British Bankers Association
2. It is concluded and shown on systems like Reuters and Bloomberg
3. It is advertised on the internet
4. The rates are published each day in the financial newspapers
5. It is reported to the Bank of England
6. The Bank of England is answerable to the Treasury and the government
So in light of this how is it fraud?
The inference now is that the treasury at the time run by Labour did in fact have words with the Bank of England to lower rates in this way. Funnily enough all of those mentioned in the Treasury and Bank of England deny this was said. Bob Diamond said the conversatrion wasn't recorded as the call was made to his New York office that didn't have a recording machine on. All very convenient and all of the participants trying to deny the conversation was made with Bob Diamond.
That is why I say it all stinks and is a waste of time. Unless the Bank of England wanted to get rid of Bob Diamond at Barclays who has resigned.
I hope that this clears some matters up for my readers
Tuesday, July 3, 2012
The government, Banks, Bank f England and the FSA are all crooks and know perfectly well what is going on! The LIBOR fixings are everyday business day and these are controlled and run by the British bankers association (BBA). These are reported to the Bank of England and the FSA, who in turn report to the Chancellor and his cronies. So everyone knew what was happening! I know because i used to have to help fix the LIBOR in my trading days.
So if a LIBOR rate was higher than the interbank market, they ALL know. What I find incredible is that no one is investigating why banks are charging: 14% loans, 17-30% overdraft rates and that there are companies charging 2700% interest for loans. Why are these not mentioned?
LIBOR fixing is not run by laws so no one can be charged for fraud. Fraud is a means of hiding hidden costs, LIBOR rates are published everyday in the Financial Times and online.
It's all rubbish and no one is accountable
Sunday, June 17, 2012
Egypt is about to shoot itself in the foot
So the Egyptians have a cause to get rid of Mubarak.
They want freedom and most communications have been on Facebook and other social services for their rallies and discussions.
So we now have Mubarak in Jail and there is 2 contenders for the President and leadership role.
1. A guy who is an ex-Mubarak minister
2. An Islamic almost fundamental person who wants to run the country on an Sharia basis.
So the Egyptians have a choice of the following:
1. A guy who has the same values as Mubarak, which is really a dictatorship
2. A guy who wants to make Sharia Law, which already exists in Egypt, but will be much stricter. This means that the openness that they crave, or the more Western values, will be restricted, so actually is the opposite to what they have fought for.
My guess is that as the Egyptians are not the brightest sparks will go for the Islamist and shoot themselves in the foot.
They want freedom and most communications have been on Facebook and other social services for their rallies and discussions.
So we now have Mubarak in Jail and there is 2 contenders for the President and leadership role.
1. A guy who is an ex-Mubarak minister
2. An Islamic almost fundamental person who wants to run the country on an Sharia basis.
So the Egyptians have a choice of the following:
1. A guy who has the same values as Mubarak, which is really a dictatorship
2. A guy who wants to make Sharia Law, which already exists in Egypt, but will be much stricter. This means that the openness that they crave, or the more Western values, will be restricted, so actually is the opposite to what they have fought for.
My guess is that as the Egyptians are not the brightest sparks will go for the Islamist and shoot themselves in the foot.
Tuesday, June 12, 2012
UK PLC is terminally ill
The UK is very sick!
We have one of the lowest performance for pensions in the world.
Quantative Easing has nothing for the ‘man on the street’. It finances the banks at 0.5% while they charge us 8.9-14% for loans, upto 30% for overdrafts and credit cards, ‘Official’ loan sharks like wonga.com are charging between 1600-6500% in interest. Bank profits are going through the roof and they wonder why!
No loans to businesses.
I said weeks ago about 10 years down the road and that figures will prove Abortions going through the roof as people can’t afford a family.
his week’s Sunday Times quoted up to 28% increase in London for Abortions!
Instead of a ‘baby boom’ we have a’ baby collapse’ which means 20 years down the road we won’t have enough workers etc. But that will be ok ‘cos we will have the flood gates open for immigrants. This means that 40 years down the road we won’t have an indigenous UK native anymore.
The government is going to allow Gay marriages which means that Churches won’t be able to decline marrying them. This contradicts the Bible, so marriages will move away from Church.
The government cannot look beyond their noses and see the damage that they are causing to the UK.
However, when you have a Prime Minister who forgets his daughter and leaves her in the Pub, we should expect this.
Where were the minders and hangers on?
The government should be looking at things to make GB great again.
Suggestion: Introduce a flat Tax rate of 25-30% and see how many companies will want to come to the UK, employ people, pay taxes etc! I have been saying this for months now.
We have one of the lowest performance for pensions in the world.
Quantative Easing has nothing for the ‘man on the street’. It finances the banks at 0.5% while they charge us 8.9-14% for loans, upto 30% for overdrafts and credit cards, ‘Official’ loan sharks like wonga.com are charging between 1600-6500% in interest. Bank profits are going through the roof and they wonder why!
No loans to businesses.
I said weeks ago about 10 years down the road and that figures will prove Abortions going through the roof as people can’t afford a family.
his week’s Sunday Times quoted up to 28% increase in London for Abortions!
Instead of a ‘baby boom’ we have a’ baby collapse’ which means 20 years down the road we won’t have enough workers etc. But that will be ok ‘cos we will have the flood gates open for immigrants. This means that 40 years down the road we won’t have an indigenous UK native anymore.
The government is going to allow Gay marriages which means that Churches won’t be able to decline marrying them. This contradicts the Bible, so marriages will move away from Church.
The government cannot look beyond their noses and see the damage that they are causing to the UK.
However, when you have a Prime Minister who forgets his daughter and leaves her in the Pub, we should expect this.
Where were the minders and hangers on?
The government should be looking at things to make GB great again.
Suggestion: Introduce a flat Tax rate of 25-30% and see how many companies will want to come to the UK, employ people, pay taxes etc! I have been saying this for months now.
Thursday, June 7, 2012
Spanish Banks bailout
So we have gone from Euro 40 billion to Euro 100 billion for a Spanish bank bailout.
Don't you believe it for one minute!!
If you talk about Euro 400 billion you are nearer to the truth.
Basically, the bail out fund is insufficient and the ECB will have to issue bonds.
Don't you believe it for one minute!!
If you talk about Euro 400 billion you are nearer to the truth.
Basically, the bail out fund is insufficient and the ECB will have to issue bonds.
Friday, June 1, 2012
UK recovery
I said ages ago that the UK economy will be back again 2013/2014. I still think this is correct.
The USA is now recovering and we will follow about 10 months later.
The USA is now recovering and we will follow about 10 months later.
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