EurAnalysis

http://theeconomiccollapseblog.com/a...ederal-reserve

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http://theeconomiccollapseblog.com/w...ve-208x300.jpgWhen someone in the mainstream media goes out on a limb to tell the truth, then the rest of us should go out of our way to applaud that effort. Reporter Ben Swann of Fox 19 in Cincinnati is one of the few local television reporters in the United States that consistently tackles the tough issues. As you can see from his "Reality Check" archives, he regularly does reports on the Federal Reserve, the emerging police state, the loss of our freedoms and liberties, the advance of globalism, the economic collapse, political corruption, etc. etc. That is one reason why his YouTube channel is rapidly approaching a million views. In his most recent Reality Check, Ben Swann asked this question: "Is auditing the Federal Reserve really necessary?" In just four minutes, Swann covered the creation of the Federal Reserve, where money comes from, the 16 trillion dollars in secret loans given out by the Fed during the last financial crisis, and why an audit of the Fed is so important. It really was extraordinary to watch a local mainstream news reporter tell the truth about these things. We could definitely use about 1000 more reporters just like him.

The video of Ben Swann's recent Reality Check is posted below. If you have not seen it yet, it is definitely worth the 4 minutes that it takes to watch it....

What in the world would this country look like if we had hundreds of other real journalists such as Ben Swann that were willing to tackle these kinds of issues head on?

Certainly nobody is perfect, but when a reporter like Swann is willing to go out on a limb and attack the Fed we need to applaud his efforts.

The mainstream media is supposed to hold those in positions of power accountable.

But most in the mainstream media treat the Federal Reserve with kid gloves. It is incredibly rare to hear any real criticism of the Fed by mainstream reporters.

If the mainstream media was actually doing their job, then perhaps we could get some answers to some questions that have gone unanswered for a very long time.

For example, Zero Hedge has published a "smoking gun" that proves that the Federal Reserve was heavily involved in manipulating the price of gold long after the gold standard was abandoned. If you have not read that piece yet, you can find it right here.

I would love to know to what extent this is still going on today, and why nobody ever asks Federal Reserve Chairman Ben Bernanke about this.

Another mystery that I would like to see addressed is the trillions of dollars of "off balance sheet transactions" that are unaccounted for at the Federal Reserve. This was brought up once during a Congressional hearing, but nobody seemed to have any answers. Video from this hearing is posted below....

http://www.actionforex.com/action-in...0120802171310/

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Dollar was given a mild boost after the rather non-evental FOMC statement overnight and is holding on to its gain so far. Retreat of risk appetite ahead of the highly anticipated ECB press conference today also help supports the greenback and sent Asian equity indices broadly lower.

Yen is also mildly softer after IMF's comments. Meanwhile, Aussie is lifted slightly by better than expected trade and retail sales data. But after all, markets are staying in consolidation mode with all eyes on the ECB meeting.

The FOMC meeting was a rather disappointing one as policymakers failed to deliver any new measures to boost the deteriorating economy. While we had anticipated that the Fed would be refrained from announcing QE3 in August, we thought it would at least extend the low rate guidance to 2015. Yet, the Fed decided to leave it unchanged. Policymakers were maintaining easing bias but few changes were found in the languages of the accompanying statement. We expect the Fed was still gauging the impacts of the operation twist which was extended last month. We maintain our view that the QE3 will be announced at the next meeting. More in The Fed Left Policy Setting Unchanged, Kept Interest Rates Low Until Late 2014.

ECB's meeting will be the major focus today. The market has been eagerly awaiting the meeting after President Mario Draghi's comment last week that the central bank would do whatever it can to preserve the euro. This has raised speculations that the ECB would resume bond purchases in the form of SMP. However, there are many hurdles to this move, in particular opposition of the Bundesbank. While the case of ECB purchases of bond has greatly increased due to worsening of situations in Spain and Italy, the timing of the move is an important issue. The ECB obviously prefer to see the Spanish government request support from the EFSF with conditionality in place before the central bank's involvement in bond purchases. However, this may not come earlier than the Thursday. In such case, we expect the ECB would not announce SMP in August, leaving it to September possibly. We also believe the central bank to leave interest rates unchanged this month, after the surprising rate cut in July.

More in ECB to Disappoint in August. BoE is expected to stand pat today and issue a brief statement, and thus, could be a non-event.

IMF chief Lagarde pledged that it "never leaves the negotiation table" with Greece and will stand by the troubled country. She somewhat hailed that the achievements of Greek economy and Greek population as impressive. And she hoped that Greece will "go further and improve the situation" with a better consolidated coalition. Meanwhile, Lagarde also praised Spain's "huge effort" to lower the budget deficit She added that "there are factors at work to improve the Spanish economy but there are also external elements that cloud the horizon of Spain and that is the uncertainty in the euro zone in general."

In separate reports, IMF yen is "moderately overvalued" and urged BoJ to ease policy further to beat deflation. Meanwhile, if also warned that financial system’s massive holdings of government bonds leave it exposed to a spike in yields and is putting risks in the Japanese finance system.

On the data front, Japan monetary Base rose 8.6% yoy in July. Australian retail sales rose more than expected by 1% mom in June. Trade balance recorded a surplus of AUD 9m, defying expectation of AUD -375m deficit. But that's mainly due the -2% decline in imports. Looking ahead, Swiss SVME PMI, UK PMI construction will be released in European session. Challenger job cuts, initial jobless claims and factory orders will be released from US.

CurrencyMan: Are We Ready for BOE at 7:00 AM and ECB at 7:45 AM ?

Watch Market Reaction and watch Price of Gold and USD/JPY to see where the money is going. The Dow Futures are now up 47 and Gold is flat at $1607 US with the USD/JPY stronger at 78.21

The Yield on the 2 Year US Bonds is .24% and the Yield on the 10 Year US Bonds are 1.52% with the spread between the two at 128 Basis Points.

Stay Tuned and do not gamble just plan your trade and the BEST trade is no trade until you know what they will announce.

Good Trading ALL !!!

Governments to Turn to Inflation as Stocks Fail, Pimco Says
By Chris Fournier and Susanne Walker – Jul 31, 2012 5:47 PM GMT-0300
Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said governments may turn to financial repression and various forms of quantitative easing to inflate asset values as equities fail to match historical returns.

The so-called Siegel Constant, which purports to show a long-term history of inflation-adjusted equity real returns of 6.6 percent since 1912, may be a “historical freak” unlikely to be seen again, Gross said in his monthly investment outlook posted on the Newport Beach, California-based company’s website today. Presuming a 2 percent return for bonds and 4 percent nominal returns for stocks, a diversified portfolio produces a nominal return of 3 percent and inflation-adjusted returns near zero, he wrote.

Since private pension funds, government budgets and household savings balances often assume a minimum 7 percent to 8 percent minimum annual appreciation, policy makers emulating historical patterns may be tempted to inflate their way “out of the corner,” even though inflation doesn’t create true wealth and doesn’t fairly distribute pain and benefits across society, Gross wrote.

Equity ’Cult’
“Unfair though it may be, an investor should continue to expect an attempted inflationary solution in all almost all developed economies over the next few years and even decades,” Gross wrote. “The cult of equity may be dying, but the cult of inflation may have only just begun.”
Gross in June kept the proportion of U.S. government and Treasury debt in his $263.4 billion Total Return Fund unchanged at 35 percent of assets, according to a report July 11 on the company’s website. Mortgages were at 52 percent for a second consecutive month. Pimco doesn’t comment directly on monthly changes in its portfolio holdings.
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Daily Forex Brief

ECB: hero or zero?

Thu. 2nd of Aug 2012 @ 07:31 GMT
http://www.fxpro.co.uk/sites/default...rf%2024h_0.png
The ECB promised, now markets expect it to deliver. If it doesn’t, then we can expect yields in Italy and Spain to move higher and the single currency to take a hit. Whether the ECB President, Draghi, intended to create such expectation in the market when he spoke of doing “whatever it takes” last week, the fact remains that markets are, by their very nature, sensitive to... more

CurrencyMan: The Benchmarks Are Set High...

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But simply pledging to re-start the ECB’s bond-buying program won’t be enough. In fact it could easily have the reverse effect as private investors fear that they will be behind the ECB in any future restructuring of debt. The issue is whether Germany is going to budge from its pragmatic stance. For the current ECB president’s part, the upside is that he has at least shown his willingness to get stuck in vs. his predecessor who appeared to stand on the sidelines. In itself, this is promising, given that the ECB remains the only pan-eurozone institution with any real bite and the with ability to offer credible support to financial markets.

Be careful for surprise Chinese CB rate decision to piggyback on BOE release. They have done that 2-3 months in a row.

Good point. However, today market will be focused on the EuroFonz

http://farm9.staticflickr.com/8161/7...753d1a8d8a.jpg

This is What Happens When an HFT Algo Goes Totally Berserk and Serves Knight Capital With the Bill


An under-the-hood assessment of what happened at Knight Capital yesterday was served up over at the zerohedge.com website late last night, with Tyler Durden doing the honours himself. It's very technical, but it would be more than worth your while to run through it. I thank Washington state reader S.A. for sending me this piece just before midnight local time last night...and the link is here.

http://www.urbandictionary.com/defin...rm=shenanigans

No Change

http://finviz.com/forex.ashx

http://finviz.com/fx_image.ashx?rela...94876792367500

Currencyman,

Thanks for the reality check in the pm.


Swissy,
I will pm you back later today when the dust settles.

Thanks to others who wrote nice things, except Doc and his psycho babble bearsh*t ( only cause I only like bulls in USDCAD) JK, Doc!

My frustration is, I post in here so my friends can find flaws in my technical reasoning so that I may become a better trader, it's that simple. So my apologies to all in here for wasting valuable thread space. I will try to contain myself in the future.

PT, Swissy, Sisse, Currencyman, and others I may not be mentioning, keep on rockin' it with the funnymentals!

Now back to the task at hand!


ADD: TOP OF PAGE!

Glad to see you back buddy.

Price breaking below daily pivot. if it's a clear break, we need to clear the 800EMA and then the rising trendline @1.2230 . If we clear that, clear sailing to at least 1.2180 and below.

Welcome back Gofer...

As stated yesterday i am now out of all positions and will not be entering the market till all the dust has settled and market finally chooses a direction to trade in.

Level i will be watching to go short will be 1.2220 and for a sneaky long position as it would be against my sentiment on this pair would be 1.2320

For sure i will not ignite any trade during the news even if these levels are taken out, will prefer to wait at least 20-30 mins afterwards and enter with a Failure swing.

Anyone else have and levels they are waiting to see to enter the market long or short, or even perhaps limit/buy orders?

I have a break of 1.23 on announcement as a trigger target to enter long position. I'm already short and would be covering at that level.

Sick of people trying to tell me how to trade with no rationale behind why they are saying what they are saying. Do I tell you how to trade? Believe me I've been doing this for a while and it works like a charm.

This strategy, IMO, is far superior to being under water 50 pips. Not to mention if you are underwater, you can't enter higher as easily. So if the top was 2550 instead of 2595, I would have caught the move. Since it wasn't, I lose 5 pips (and usually less than 5). So if you were wrong originally, you couldn't add a better short without increasing risk a lot. Unless you wanted to close that underwater short.

Now I'm short from 87 and those small losses do not exceed scalp gains for the day. Trying to catch the big one down.

Edit: Constructive criticism would be appreciated, not a comment that doesn't help me or anyone, and worse, isn't true at all. In fact exactly the opposite. Appreciate it.

Hi R2R.. If you find a post offensive, it's enough to state that you found it offensive. There is no need to be offensive back. If you can't respond calmly, Just place the poster on your iggy list. Works for me

As for criticism of your trading , I have none. I think you're doing fantastically well in your rationale. Keep it up and keep posting your trades.

Hi GF - and yes, it can be somewhat frustrating when you post, expecting some reaction and nothing happens -I know, as my short term posts are often "ignored" ....BUT then every once in awhile you get a post out of the blue asking for further info and it restores your faith in posting......

BTW, did you get those indys etc?.....

Cheers

Islander

Orderboard (updated)

Written by Pete Jackson
August 2, 2012 at 11:25 GMT

EUR/USD: Bids 1.2200/20 (Fibonacci supp around 1.2215 =50% retracement of July 24 low/Jul 27 high), likely sell stops below ahead of further bids 1.2170/80, sell stops through 1.2150. Offers clustered 1.2295/1.2310 and 1.2340/50.

GBP/USD: Bids 1.5520/30 and 1.5500/10. Offers 1.5605/15

EUR/GBP: Bids 0.7860/65 and 0.7840/45, stronger down at 0.7790/00. Offers at 0.7880/90 ahead of tech res 0.7900/05, possible buy stops above

USD/JPY: Large bids 77.90/78.10, sell stops through 77.90 and 77.50. Offers start from 78.50/60 from Japanese exporters and trail up to 79.00, Buy stops mixed in through 78.70, and more up through 79.00.

EUR/JPY: Bids 95.80/90 likely sell stops below ahead of more bids 95.50/60 (real money, Japanese investors), sell stops below and through 95.00. Offers 96.30/40 and 96.55/65 (CTA’s, funds, sovereigns) likely buy stops above ahead of tech res 97.30/35 (Fri highs)

AUD/JPY: Bids 81.90/00, tech supp 81.65/70 (81.65 – 100 day MA) and 81.50/60 sell stops through 81.50, tech support 81.35/40 (81.35- 200 day MA), more sell stops through 81.00. Offers/tech res 82.40/50(strong), and tech res 82.85/90 (82.86 May 3 high)

EUR/CHF: Bids 1.2000/10(SNB), Offers 1.2025/30 buy stops through 1.2035 and through 1.2050

USD/CHF: Bids/tech supp 0.9780/90 and 0.9730/40, offers 0.9825/35 and 0.9860/70

AUD/USD: Bids 1.0450/60 (exporters, ACB’s), some sell stops through 1.0450 and 1.0435 ahead of bids 1.0400/10. Offers at 1.0540/50 (talk of RBA commercial selling interest as well as funds) ahead of 1.0550 barrier option interest.

EUR/AUD: Tech supp 1.1640/50 (1.1640 new all time low). Offers 1.1710/20, Strong res up at 1.1755/65, possible stops through 1.1770

NZD/USD: Offers 0.8125/30 ahead of tech res 0.8155/65. Bids 0.8070/80, some weak sell stops below ahead of tech support 0.8050/55. Sell stops through 0.8050 and 0.8000

USD/CAD: Bids 1.0000/10 ahead of a barrier at parity, likely sell stops just below ahead of tech supp 0.9955/60. Tech res 1.0070/75 and 1.0090/10 (100/200 day MA’s 1.0093/1.0107)

You are on the right track my friend. One minute to go...

I'm responding to your post so you don't feel ignored