I believe The Choice Act has economic benefits where Dodd Frank has limitations as far as resolution powers, yet regulation matters. I believe banks should follow the law, namely bankruptcy. This said, Dodd Frank did prohibit proprietary trading where big banks have gambled with depositor funds. Dodd Frank also provided a voice for consumers, to stand up against arbitration laws. Deregulation has merits, yet Wells Fargo customers did not boost their earnings from limited regulation. Private equity firms can be inherently opaque, even though they are a source of investment funds, yet over half of the fraud cases prosecuted by the SEC are private equity. Regulation does not need to mean bailouts. Financial stability has been used as an excuse for bailouts, while the financial stability of voters has been witnessed at the ballot box. The big banks receive free money, free of interest, printed from thin air, yet whose labor provided this windfall? Labor should represent earnings, yet the Fed can print counterfeited earnings. The Fed then gives this low interest counterfeited labor to the banks. I find it ironic many of these issues might be solved with the transparency of inherent value. Precious metals take effort to produce and have inherent value, yet as Bernanke states, gold is merely a tradition. Ironic that central banks made tradition a Tier 1 regulatory capital asset with supreme collateral over foreign currencies. I am not sure about the US Dollar.
Here are some questions I have for big banks and central banks if you are given the liberty to inquire:
1. Why did JPM increase their commodity futures positions by $4 trillion in a single reporting cycle (March 2015)?
2. If gold is merely a barbaric relic (note Keynes didn’t call gold itself a “barbaric relic.” He applied that term to the gold standard), or merely a modern day Pet Rock, or merely tradition rather than money (per Ben Bernanke), why did the new Basel III capital rules effective January 1st, 2015, make gold a Tier 1 regulatory capital asset with apparent supreme collateral status above foreign currencies?
3. Why are Pet Rocks co-mingled with the multi-trillion dollar FX futures contracts for the first time in ten years on regulatory reports given the Bank of England maintains a separate reporting category for gold? Meanwhile, is it not discerning that gold has its own line item in England while not in the United States while both the US Regulators and Bank of England are under the same Basel Accord?
4. Based on US regulatory reports, Pet Rocks are now a currency, or at least classified on the same line as foreign exchange transactions. Given need for transparency, why are Pet Rocks considered currency on par with foreign exchange transactions? I.e.RCR (m2b)- of the Call Report. Likewise, why is gold leased out reported on the same line item as gold on hand on Treasury and Fed financials, even if the Fed is merely a custodian? Accountants that classify cash and accounts receivable on the same line item risk being prosecuted, but apparently, carve out rules apply for certain private banks and government?
5. Where in the Fed charter does it say destroying price discovery in the equity markets is a valid process for maintaining financial stability?
6. Why did the Swiss Central Bank buy a $4 million equity stake in Apple in a six month period? Is this the new monetary policy?
7. How can DollarTree and Wal-Mart on Main Street be downgraded while the banking industry has the largest profits on record?
8. Are robo trades with algorithms rational for fair price discovery? If we replace the markets and workforce with robots….who buys the stuff robots make?
9. Why can bullion banks dump large amounts of uncovered shorts in the gold futures market without any concern for position limits? Furthermore, why can bullion banks dump naked shorts when there is no delivery in a cash market? How can price in precious metals continually go down while demand increases building up to the the drop? Excessive demand drives prices to new lows. As one analyst writes, the best times to short gold is during:
· Political crises.
· Economic crises.
· All government data releases.
· Technical breakouts.· 1% rallies.
· Bullish gold news.
· Monetary easing.
· Terrorist events.
· War breaking out.
Why is this so? Are the markets rigged and why?
The Gold Anti-Trust Action Committee, as I, ask the following questions, 10 thru 13:
10. Are Central Banks in the gold and commodity markets surreptitiously or not?
11. If central banks are in the gold and commodity markets surreptitiously, is it just for fun – for example, to see which central bank’s trading desk can make the most money by cheating the most investors — or is it for policy purposes?
12. If central banks are in the gold and commodity markets for policy purposes, are these the traditional purposes of defeating a potentially competitive world reserve currency and concealing inflation, or have these purposes expanded?
13. If central banks, creators of infinite money, are surreptitiously trading a market, how can it be considered a market at all, and how can any country or the world ever enjoy a market economy again?
Our world is changing at unrepresented speed, yet where is the compass that is specified in the US Constitution? Where is inherent value? Bitcoin’s windfall as a competing currency is deemed perfectly legal (and maybe it should be), yet asking central bankers about gold and silver (which takes earned labor to derive), apparently is not?