Not so long ago, Ron Paul, a US Congressman, questioned initiated an audit of the gold storage of the New York Federal Reserve to find out whether the FRS is actually sitting on 7K tons of gold bullions. That was breaking news.
Is the US Dollar at least partially backed by gold or is it another bubble? What impact may the audit have on financial markets? Let’s try to find the answers together…
Ron Paul Questions FRS’s Gold Reserves
Ron Paul doubts that the Federal Reserve’s storage actually has that much gold. He says the FRS makes money out of thin air and create soap bubbles. We cannot their words for it. An audit is needed to find out the truth. And he is assumes that what they will find out may shock the world.
US Federal Reserve – Financial Paradox
According to Eugene Olkhovsky, Masterforex-V Academy’s leading expert in financial markets, says that the Federal Reserve headed by Ben Bernanke is the biggest paradox of the global financial system. This is the central bank of the USA. Yet… it is a group of private banks that got the right to print dollars in 1913. The right will lose its effect 2013.
It is still unclear who really owns the FRS. Unofficially, according to J. W. McCallister, 80% of the Federal Reserve is owned by 8 richest families in the world, only 4 of them are Americans: Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs (New York); Rothschilds (Paris and London); Warburgs (Hamburg); Lazards (Paris) and Israel Moses Seifs (Rome).
According to Thomas D. Schauf, the FRS (12 banks) is owned by 10 banks:
- JP Morgan Chase Bank in New York
- NM Rothschild in London
- Warburg Bank in Hamburg and Amsterdam
- Kuhn Loeb Bank in New York (owners of American Express)
- Goldman Sachs in New York
- Lehman Brothers in New York
- Rothschild Bank In Berlin
- Israel Moses Seif Bank in Italy
- Lazard Brothers in Paris
In 1913 the US Congress established three key objectives for the FRS’s monetary policy in the Federal Reserve Act. These are maximum employment, stable prices, and moderate long-term interest rates.
The FRS consists of 12 regional banks, which represent 12 US regions.
Expert Opinion: Will US Dollar Respond To Audit?
According to Masterforex-V Academy, last week the USD Dollar index stayed within the 84.25-82.23 price range. In order to resume the downtrend, the price will have to break and consolidate below the defensive MF pivot located at 82,34. The closest major level of resistance is located at 83,61.
According to ForexTrend, the US Dollar is unlikely to respond to this audit initiated by Ron Paul because:
·In 1971, the so-called Jamaican currency system was introduced to the Forex market.
·The Gold Standard was canceled (the US Dollar is not pegged to gold any more).
·The US Dollar is not the only reserve currency used by central banks around the globe.
·The US Dollar is subject to floating exchange rate.
It is strange that Ron Paul has just discovered for himself some new things about the Federal Reserve what most Forex and gold traders have known for decades.
These days, anyone can make money trading Forex and other financial markets. The opportunities are almost endless. Still most traders still lose in the long run. While some lack experience and skills, others fall prey to emotions or fail to stick to sound money management. There are many reasons for losses. Few people actually make money in the long run because they treat trading seriously like a full-time job and work hard to achieve their goals. They use technical and fundamental analyses and strictly observe money management rules. They use various tricks and techniques to put the odds in their favor.
Apparently, beginners have difficulty trading financial markets without knowledge, skills and experience. Becoming a professional trader requires diligence, patience and time.
However, today’s Forex industry offers riskless moneymaking opportunities, which require no trading skills. You can make money without trading Forex. One of such opportunities is offered by FBS, a major Forex broker. The broker claims to offer “The most profitable and efficient IB Program on Forex”…
Yesterday, on May 21st, was a notable day for the eurozone. The Euro Parliament approved the Euro Group’s idea to use major deposits over €100 000 in emergency situations to save a risky bank. Deposits under €100 000 are ensured by the compensation scheme.
Most beginning traders are sure that it is possible to trade Forex profitably and easily. They usually assume that perfunctory knowledge is enough to make money in financial markets in general and Forex in particular. Alas, they are wrong. Obviously, it is possible to trade Forex profitable. However, it cannot be done without specific knowledge, skills and experience.
This delusion is the main reason why they lose in the long run. As a result, most of those losing beginners get disappointed at Forex and abandon the idea of becoming a winning trader forever. Some of them even start call it a scam or fraud. Some of them put the blame on brokers while others refer to bad luck.
Essentially, Forex has nothing to do with scams. Apparently, you may come across some dirty broking companies but that has nothing to do with Forex itself. Besides, such scammers can easily be avoided by following a few simple rules. However, this is another story (Masterforex-V Academy told us many times how to choose a reliable broker).
Today, on May 20th, Forex started a new trading week. There have been no radical changes in the market of EURUSD so far. The previous bearish move was elongated by some 200 points. The price keeps developing the ABC pattern of wave level Daily. The move hasn’t reached any of the given targets so far.
It seems like more and more experts feel bearish on the near-term prospects of the common European currency. Some of them say that EURUSD may even drop down to 1,15 in late 2013. If this is the case, this will be the lowest level in 10 years.
Yesterday, on May 15th 2013, Eurostat published a eurozone GDP report, which reflects the economic dynamics in al the 17 countries. The figures turned out to be much worse than expected. In Q1 2013, the aggregate GDP dropped by 0,2% as compared to the previous quarter. At the same time, tere was a 1% decline year-over-year.