This page has been archived and commenting is disabled.

German Economics Minister Confirms Fed Manipulates The FX Market

Tyler Durden's picture


The German Economics Minister Rainer Bruederle has just confirmed precisely what many have known and said for years, namely that the US Federal Reserve is active in the secondary markets, in this particular case in FX. While not so much of a secret for some of the fringe players such as a the SNB, BOE and BOJ, the Fed has never had a formal statement on currency intervention, as, of course, it would have been seen as a sign of weakness (and allegedly could be considered an unconstitutional activity). And why would anybody dream of manipulating the world's strongest currency. Of course, if Bernanke manipulates currencies, as has now been confirmed, it is more than clear that he directly buys and sells stocks in the secondary market, and/or Treasuries in the primary. We wonder what other juicy disclosure Bernanke's trans-Atlantic CB colleagues will announce once they are cornered about their recent market manipulative conduct.

From Dow Jones:

The U.S. Federal Reserve is also active in currency markets, German Economics Minister Rainer Bruederle said Friday.

His comments come on the heels of remarks made by his Swiss counterpart who said that the Swiss National Bank purchased euros to buttress the single currency.

"It is a regular procedure of central banks," to intervene in currency markets, Bruederle said. "It is not a secret," that central banks have a foreign exchange rate target, he added.

Bruederle said "eruptive" movements have to be avoided. He previously said that China holds 25 percent of its foreign exchange reserves in euros.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 05/28/2010 - 13:27 | 379393 Turd Ferguson
Turd Ferguson's picture

Clearly he misspoke or was taken out of context ;)

What a joke. Like it matters, anyway...

Fri, 05/28/2010 - 13:28 | 379395 SDRII
SDRII's picture

would that be the good minister, the Fed or bernanke? or all of the above

Fri, 05/28/2010 - 14:09 | 379555 WaterWings
WaterWings's picture

Nothing would at first seem to affect private life less than a state control of the dealings in foreign exchange, and most people will regard its introduction with complete indifference.  Yet the experience of most Continental countries has taught thoughtful people to regard this step as the decisive advance on the path to totalitarianism and the suppression of individual liberty.
- Chapter Seven “Economic Control and Totalitarianism”

My Two Cents: This is HUGELY important.  Once the FX controls really kick in you will know deep trouble lies ahead.  I expect this within 1-2 years at the latest.

Looks like time is running short...

Fri, 05/28/2010 - 13:43 | 379442 winks
winks's picture

Can't you change your surname - it turns me off everytime I see it. How about "Turkey Ferguson".

Fri, 05/28/2010 - 13:46 | 379454 Cognitive Dissonance
Cognitive Dissonance's picture

Actually the name's fine. It's the hat that makes me want to vomit. :>)

Fri, 05/28/2010 - 13:48 | 379468 williambanzai7
williambanzai7's picture

I think Turd is meant to mean Third.

Fri, 05/28/2010 - 13:54 | 379497 Jack H Barnes
Jack H Barnes's picture

Na, that hats ok, its that Turd on a Rope tie he is wearing...

Fri, 05/28/2010 - 13:47 | 379466 Problem Is
Problem Is's picture

How about "Log" Ferguson?

In your defense winks... my freind Chuck always says:
"That's about as popular as a turd in the punchbowl..."

Fri, 05/28/2010 - 14:21 | 379580 WaterWings
WaterWings's picture


Fri, 05/28/2010 - 13:54 | 379501 MsCreant
MsCreant's picture

Turd would need special permission from TD and Marla to change. The Turd will always be a Turd. Go ahead winks, try to change yours to, say stinks (blinks, dinks, finks, kinks, etc. your choice). You can't do it the system won't let you.

Fri, 05/28/2010 - 14:08 | 379551 seventree
seventree's picture

Phooey. Now I will never have a cool ZH name.

Fri, 05/28/2010 - 14:09 | 379558 Turd Ferguson
Turd Ferguson's picture

My apologies. I thought it was generally understood that "Turd Ferguson" made his initial appearance on SNL a few years back. See below.

Fri, 05/28/2010 - 14:32 | 379626 MsCreant
MsCreant's picture

No need to apologize to me, at all. All things are possible here on ZH. I have talked to Turds, cats, and other pussies on ZH. I am Alice in Wonderland (as in, I wonder where this economy will land) amidst you all. Talking to a dope smoking caterpillar is nothing compared to talking to a steaming pile of wookie doo.

In all seriousness, this crew is brave, smart, and prescient, everyone readily agrees on that. But this crew is also creative as hell. 

Be all that you can be, Mr. Ferguson. If it inspires you to be a Turd when you are here, I for one welcome it. If we stand a chance of making it, creativity and inspiration, qualities you will only find in those who can think outside the box, are desperately needed. Turds are fertilizer of the richest kind. I salute you, Sir Turd.

Fri, 05/28/2010 - 14:42 | 379659 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

We should have a tea party theme day where we all dress up as Wonderland characters! 

Fri, 05/28/2010 - 16:41 | 379980 MsCreant
MsCreant's picture

Why how excellent Mr. LennonHendrix. Will you vanish, all but your grin?

Fri, 05/28/2010 - 18:11 | 380189 Mr Lennon Hendrix
Mr Lennon Hendrix's picture



           That depends a good deal on the lighting.

Fri, 05/28/2010 - 14:48 | 379679 SilverIsKing
SilverIsKing's picture

Turd Ferguson = Very good alias

Fri, 05/28/2010 - 14:55 | 379697 Clayton Bigsby
Clayton Bigsby's picture

my only question is - can you be polished?

Fri, 05/28/2010 - 15:03 | 379719 Clycntct
Clycntct's picture

+++ That was fun Bert.

Fri, 05/28/2010 - 13:28 | 379397 DaveyJones
DaveyJones's picture

That's one frank furter

Fri, 05/28/2010 - 13:45 | 379447 Cognitive Dissonance
Cognitive Dissonance's picture


Have you been waiting for the correct news story to spring that wiener on us or were you inspired out of the Gulden'

Fri, 05/28/2010 - 13:55 | 379486 DaveyJones
DaveyJones's picture

Actually that's the first time I've sprung my wiener in the appropriate context

Fri, 05/28/2010 - 15:07 | 379729 Cognitive Dissonance
Cognitive Dissonance's picture

Breaking News!

DaveyJones is a flasher, having sprung his wiener on Zero Hedge.

Details at 6.

Fri, 05/28/2010 - 14:36 | 379642 MsCreant
MsCreant's picture

I give this weiner comment a "blue" ribbon.

Now there are a lot of men posting here. No more blue weiner jokes, k?

Fri, 05/28/2010 - 13:52 | 379485 williambanzai7
williambanzai7's picture

Do you mean that's one frank fer Turd.

Fri, 05/28/2010 - 13:29 | 379398 homersimpson
homersimpson's picture

What's next - the Fed confirms Bernanke is balding?

Fri, 05/28/2010 - 13:42 | 379439 Sudden Debt
Sudden Debt's picture

he just has a large forehead. He's all brain!

Fri, 05/28/2010 - 13:45 | 379449 homersimpson
Fri, 05/28/2010 - 13:50 | 379482 Problem Is
Problem Is's picture

A kosher Napoleon...
Little man, big problems...

Fri, 05/28/2010 - 16:56 | 380025 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Big bald head and weasely eyes. Fab combo. All that money and he looks that shitty. He's only 55 for corn sakes! You mean he couldn't afford to get Fabio's scalp transplanted or something? Even Andy Warhol budgeted for wigs.

Fri, 05/28/2010 - 13:29 | 379399 nevadan
nevadan's picture

What a good job of avoiding eruptive movements.

Fri, 05/28/2010 - 13:29 | 379400 doggis
doggis's picture

and so begins the battle for middle - earth (which in this case is the anglo-saxon world of the us and uk against the euroland)....... oh this is gonna get good!

Fri, 05/28/2010 - 13:39 | 379431 mikla
mikla's picture

Let us discuss.  Let us come to understanding.  We do not want to move too quickly.  We must all work for ... stability.

Fri, 05/28/2010 - 13:45 | 379453 WaterWings
WaterWings's picture

Rahm on the left.

Fri, 05/28/2010 - 13:51 | 379484 Problem Is
Problem Is's picture

Alan "Crazy Chester" Greenspan on the right?

Fri, 05/28/2010 - 14:38 | 379649 MsCreant
MsCreant's picture


Fri, 05/28/2010 - 15:00 | 379704 WaterWings
WaterWings's picture

My lord, let us not waste this crisis.

Sat, 05/29/2010 - 00:26 | 380745 Lux Fiat
Lux Fiat's picture

Oh the mentatcity of them all!

Fri, 05/28/2010 - 15:11 | 379741 AccreditedEYE
AccreditedEYE's picture

+1 LOL!!

Fri, 05/28/2010 - 13:30 | 379404 A_MacLaren
A_MacLaren's picture

So this is in addition to the Trashury's Exchange Stabilization Fund?


Fri, 05/28/2010 - 13:32 | 379412 Hansel
Hansel's picture


Fri, 05/28/2010 - 13:55 | 379471 packman
packman's picture

Probably not - seems like the Treasury's fund would have to hit the government's ledgers (e.g. buying $10B worth of Euros would add $10B to the official U.S. debt), whereas a FedRes program could use $$ just created out of thin air.


Edit - that appears to be the case, from looking at Wikipedia:


The Treasury's fund level was $105 Billion as of last October, including (cough cough) $58 Billion in IMF SDR's.


Fri, 05/28/2010 - 14:08 | 379550 Hansel
Hansel's picture

Are you disagreeing with yourself?

Fri, 05/28/2010 - 15:01 | 379716 packman
packman's picture

My wording is odd, but no - I'm saying I was correct, in that the Treasury and the Federal Reserve manipulation are separate programs.

Fri, 05/28/2010 - 16:37 | 379975 Hansel
Hansel's picture

He did not ask if they were the same program, only that both are currently running.

Fri, 05/28/2010 - 13:30 | 379408 ratava
ratava's picture

Eruptive. Yeah steady ticking down is eruptive and 200 pip jumps up are perfectly normal.

Fri, 05/28/2010 - 13:46 | 379455 MsCreant
MsCreant's picture

Just imagine how bad it would be without intervention! [Vapid stare, blinks]

Fri, 05/28/2010 - 16:02 | 379875 SWRichmond
SWRichmond's picture

Imagine how bad it's going to be when the intervention finally fails, and the system is even more out of whack than it would have been otherwise.

Fri, 05/28/2010 - 16:22 | 379931 Hephasteus
Hephasteus's picture

Ya no kidding. This one time I had kidnapped this girl. And she was all violent and scratching me and kicking me. I was like this chic is violent and I kept imagining how much more violent she would have been if I hadn't tied her all up.

These market maker guys they think they can facade things and "restore calm" to the market. But all the do is take the responses to another realm or build such huge opposing forces that it breaks apart anyway.

Fri, 05/28/2010 - 13:31 | 379409 Popo
Popo's picture

When Geithner labeled China a "currency manipulator" there was a diplomatic shitstorm that lasted weeks. Watch this one blow over in about 9 seconds.

Fri, 05/28/2010 - 13:31 | 379411 Bay of Pigs
Bay of Pigs's picture

Other juicy disclosures? How about the Fed's gold swaps Mr. Bruederle?

Fri, 05/28/2010 - 13:36 | 379426 Sudden Debt
Sudden Debt's picture

SSSsstttt! Or the ZH servers go down again.

Fri, 05/28/2010 - 13:33 | 379417 Sudden Debt
Sudden Debt's picture


Fri, 05/28/2010 - 16:22 | 379934 Hephasteus
Hephasteus's picture

They are calling clients trying to get them to take the losing trade side.

Fri, 05/28/2010 - 13:33 | 379418 BernankeFed
BernankeFed's picture

Benny is a price-fixing, anti-capitalist, like other central bankers who have a "plan" for the rest of us.

Fri, 05/28/2010 - 13:34 | 379420 Sudden Debt
Sudden Debt's picture

Time to put on the PPT light on. Tum TiTitum tum tum tum TU TUM TUM TUM!

Fri, 05/28/2010 - 13:35 | 379425 JohnKing
JohnKing's picture

The elite succumb to infighting, ratting each other out.



Fri, 05/28/2010 - 13:47 | 379465 MsCreant
MsCreant's picture

Had to read succumb three times not to read scumbag there. Dyslexic? 

Fri, 05/28/2010 - 14:15 | 379549 DaveyJones
DaveyJones's picture


Fri, 05/28/2010 - 14:13 | 379560 DaveyJones
DaveyJones's picture

All political bums succumb to scum when the powers place them under their thumb

Fri, 05/28/2010 - 14:40 | 379653 MsCreant
MsCreant's picture

Twongue Tister but Twrue.

Fri, 05/28/2010 - 13:50 | 379477 Dr. Richard Head
Dr. Richard Head's picture

This seems to be the case indeed.  Remember, once you fleece all of the ignorati, then only the elite are left with the digital/paper wealth items that were looted.  We may end up witnessing the robbery of the robbers if you will.  Hell even if you won't.

Hopefully sooner, rather than later, we can rebuild on sound money, 100% banking reserve system as our freedom depends on it. 

Fiat Paper Money = Servitude

Sound Full Reserve Banking = Sovereignty

Fri, 05/28/2010 - 16:03 | 379879 SWRichmond
SWRichmond's picture

The elite succumb to infighting, ratting each other out.

Fri, 05/28/2010 - 13:37 | 379427 NERVEAGENTVX

And the MSM is trying to pin china as being currency manipulators? Pot...Kettle... Black?

Fri, 05/28/2010 - 13:42 | 379440 wiskeyrunner
wiskeyrunner's picture

Indeed they do, more so in the SNP Futures. Thats how Goldman always wins. The fed buys with there unlimited capital and Goldman unloads on the Fed. Now every now and then they need to loose as not to draw to much attention. Witness the credit crisis wink wink.

Fri, 05/28/2010 - 13:43 | 379441 MyFriendMises
MyFriendMises's picture

lets re-introduce the Vitters amendment.

Fri, 05/28/2010 - 13:44 | 379444 doomandbloom
doomandbloom's picture

'Ben's da manipulator...twisted manipulator' - Prodigy( remix)

Fri, 05/28/2010 - 13:55 | 379504 John McCloy
John McCloy's picture

'Inhale..inhale...we're all the victims'

Fri, 05/28/2010 - 13:44 | 379445 silvertrain
silvertrain's picture

Does anybody else here think we will get through june without this thing going down?

Fri, 05/28/2010 - 16:13 | 379903 SWRichmond
SWRichmond's picture

We haven't even started the next phase: bank holidays -> IRA and 401(k) seizures ->market closures -> rioting -> shit starts burning -> martial law, THEN printing money like fevered dervishes really begins.  We're still in the hopium "we need another stimulus" phase.  All the CBs will cooperate on at least one more stimulus and coordinated devaluation on a agreed-on basis.  We haven't even seen any "patriotic shared sacrifice" speeches in the U.S. 

Fri, 05/28/2010 - 16:26 | 379945 Hephasteus
Hephasteus's picture

Crash end of june is what I keep seeing. Which puts us to 2nd dip in down of great depression and much bigger unemployment. So same thing that has been going on for the last year and half with about 50 percent more force on both sides.

Every politician and every military person is going to be thinking exactly what they thought during the cuban missile crisis.

We just can't screw this up.

Fri, 05/28/2010 - 13:46 | 379448 Crab Cake
Crab Cake's picture

If all this is coming out before the bell rings, I can't wait for the post bell news cycle....

Top kill made it worse.

20 banks closed.

Germany's leaving the EU.

Korea goes hot.

Katla erupts.

Have a great weekend, and hope you don't remember any of these events come Tuesday because that's the point of us releasing big news on Friday afternoon suckers.

Fri, 05/28/2010 - 13:47 | 379460 WaterWings
WaterWings's picture

It'll be busier than the Olympic closing ceremony.

Fri, 05/28/2010 - 13:50 | 379480 Duesco
Duesco's picture

Saturday headline:

"Icelandic volcano Katla erupts, blowing Germany clear out of the Eurozone and killing everyone on the Korean peninsula"

Fri, 05/28/2010 - 13:45 | 379450 plocequ1
plocequ1's picture

Will this news affect Icelands volcano?

Fri, 05/28/2010 - 14:21 | 379582 Gunther
Gunther's picture

If the Icelandic debt is forgiven, they will turn the vulcanoes off. ;-)

Fri, 05/28/2010 - 13:45 | 379452 truont
truont's picture

The U.S. Federal Reserve is also active in currency markets, German Economics Minister Rainer Bruederle said Friday.

This is what the FX swaps are all about.

Fri, 05/28/2010 - 13:47 | 379464 doomandbloom
doomandbloom's picture

China is in deep trouble it has huge $ holdings, huge euro holdings.....what was china thinking??

Fri, 05/28/2010 - 13:59 | 379514 Crab Cake
Crab Cake's picture

Nothing to see here.

Sick man got owned again, by the same crooked Western bankster mafia; again.

We'll give you these shiny beads (worthless paper), for unfettered access to your slave population.  Xie xie, good deal....

Fri, 05/28/2010 - 13:48 | 379467 wiskeyrunner
wiskeyrunner's picture

Anyone notice how China made there comments on Europe while Geithner was over there. How much you wanna bet Goldman had inside info on the whole thing.

Fri, 05/28/2010 - 13:50 | 379481 John McCloy
Fri, 05/28/2010 - 14:00 | 379523 Crab Cake
Crab Cake's picture

So.... How "represented" do you feel?

Fri, 05/28/2010 - 13:54 | 379490 Brett in Manhattan
Brett in Manhattan's picture

I don't get CNBC. The have Cabrerra-Caruso in a tight top and they keep cutting away to bald guys!

Did they not see their last ratings book? Cramer has the lowest rated show.

Put the effin' camera on her tits and leave it there. Is it so hard?

Fri, 05/28/2010 - 14:32 | 379629 The Rock
The Rock's picture

That's because the producers are like barney frank: bald head lovers.

Fri, 05/28/2010 - 14:43 | 379661 MsCreant
MsCreant's picture

Rock on! Nice one.

Fri, 05/28/2010 - 16:15 | 379908 SWRichmond
SWRichmond's picture

Is it so hard?

I don't know, dude.  How hard is it?

Fri, 05/28/2010 - 13:53 | 379493 williambanzai7
williambanzai7's picture

Yet another one of Bennie's dingle berries out in the open.

Fri, 05/28/2010 - 13:58 | 379512 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Its ok Ben, it's all over now; put the gun down.

Fri, 05/28/2010 - 14:05 | 379540 Crab Cake
Crab Cake's picture

Fuck reason. 

This is command, sniper 1, sniper 2, do you have a shot?  This is sniper 1, over, I've got a clear LOS.  Take the shot sniper 1, repeat, take the shot.


M.I.A. - Paper Planes (All I Wanna Do Is `Bang Bang´And Take Your Money)

Fri, 05/28/2010 - 14:15 | 379567 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Body slumps on the floor; "Command this is recon, target down, copy."  "Recon this is command, is the target dead?  Copy."  "The brains on the wall suggest so, copy."

Beastie Boys - Sure Shot:

Fri, 05/28/2010 - 14:01 | 379527 BlackBeard
BlackBeard's picture

1 oz Canadian Maple Leaf to the first person that takes out Bernanke's kneecaps.

Fri, 05/28/2010 - 14:15 | 379569 JohnG
JohnG's picture


How many for his head on a tungsten platter?

Fri, 05/28/2010 - 19:49 | 380325 Kali
Kali's picture

I'd do either, just for fun.

Fri, 05/28/2010 - 22:47 | 380624 StychoKiller
StychoKiller's picture

I wonder, did you know that we're living in the age of Kali?

What does one do in the age of Kali?  Whatever Kali commands, that's what!

Fri, 05/28/2010 - 22:48 | 380625 StychoKiller
StychoKiller's picture


Fri, 05/28/2010 - 14:10 | 379562 walküre
walküre's picture

1st Merkel's announcements and actions, now 2nd Bruederle.

3rd will be a huge fucking lawsuit by European investors holding US garbage paper.

The system is about to get reset.

Merkel's visit to the Arab nations last week was about Euros and oil.

China is buying Euros as a result.

Reserve currency status for the Euro when nobody expects it. 

Fri, 05/28/2010 - 15:26 | 379779 hound dog vigilante
hound dog vigilante's picture

Hmmmm.  That is a very interesting line of thought...


Europe takes the high road (austerity, real regulation).

PIIGS are demoted to second tier but somehow remain w/in EMU.

Europe's top trading partners (China, Russia, certain Arab interests) grant 'reserve currency' status to Euro.

FX (and geopolitical?) dymanics go bonkers.


Is continental europe really this desperate/hostile?  Being in the US now, I don't have a good feel for the pulse/mood in europe, esp. the continent.  It makes sense, nonetheless. 

My presumption has been that US/anglo banks & european banks (& japanese banks) are basically run by the same interests. If I re-think that presumption, then things are even worse than I presumed (esp. from an american perspective).


Sat, 05/29/2010 - 03:49 | 380864 Wernerempire
Wernerempire's picture

Silly question - isn't this all war with different means. IE, why fire bullets at the upstart Reserve Currency (€), when you can have GS and the Fed take out entire nation state's economies?

Isn't there a concurrence in time to the € becoming included in Crude Oil trading and predatory attacks from Wallstreet on the €?

If so, is the US just stalling the inevitable? Or do you believe that the $ will reign supreme again and we all will live in a Busby Berkley dream?


(Oh, and go easy on me, 'tis my first post, eh? Sorry if that has all been discussed prior)

Fri, 05/28/2010 - 14:24 | 379594 Jesse
Jesse's picture

The U.S. Federal Reserve is also active in currency markets,

I notice this is not in quotes as you have it.

Is this inferred, or an actual quote?

Fri, 05/28/2010 - 14:26 | 379598 A Nanny Moose
A Nanny Moose's picture

Can't they start with the eating-of-their-own already?

Fri, 05/28/2010 - 16:18 | 379920 SWRichmond
SWRichmond's picture

I have a friend who has a small strip of grass in front of his property (commercial) where people constantly bring their dogs to crap.  He has started pouring bacon fat on the dog crap.  The dogs now clean up each other's messes.

Fri, 05/28/2010 - 14:33 | 379632 Quinvarius
Quinvarius's picture

At least he is keeping gold cheap enough to load the boat...for now.

Fri, 05/28/2010 - 15:01 | 379714 B_Movie
B_Movie's picture


another step in turning the Money Corner.

Fri, 05/28/2010 - 15:22 | 379757 Sybil Ludington
Sybil Ludington's picture

Yes of course they do. The central banks, including the Federal Reserve, act to manipulate markets to "manage the economy." Our Federal Reserve is contracting our money supply and banks are now making it very difficult to borrow. That is how depressions are caused. What they claim their role is to avoid is exactly what they do under the euphemism "business cycle." I believe we have no more than 2 years left before we are in a full fledged depression. Now is the time to conserve what wealth you may still have, get and stay liquid and of course, gold and silver are good to hold. George Soros moved out of the equity markets and into gold last year. It is actually getting late.

Fri, 05/28/2010 - 16:08 | 379891 Gimp
Gimp's picture

Wealth equals power.

Power is hard to give-up.

No surpise the Fed's are doing whatever it takes to keep the US in first place among nations. 

Fri, 05/28/2010 - 16:49 | 380001 wgpitts
wgpitts's picture

The corruption and fraud is systemic. Every act of market manipulation by the Fed defrauds the individuals on the other side of the fed thinking they are operating in a Free Market... Expct major foreign players who have lost hundreds of millions or billions because of the Feds fraud to take retribution...

Fri, 05/28/2010 - 20:30 | 380402 MsCreant
MsCreant's picture

We are too doped, distracted, and whipped to take care of it ourselves, it is our only hope.

Fri, 05/28/2010 - 20:23 | 380390 boeing747
boeing747's picture

Today's 3 trillions only equal to 3 billions dollar in 1930's, so we still repeat 1930's resolution and will be in super deflation for a while, unless Ben prints 30 trillions.

Fri, 05/28/2010 - 22:48 | 380623 tony bonn
tony bonn's picture

i would have changed the title of the article to Dog Bites Man

the german economics minister needs to get a new news about being a day late and a dollar short.

Sat, 05/29/2010 - 02:21 | 380819 Grand Supercycle
Grand Supercycle's picture


As mentioned before, I have been detecting EURO buying support for some time.  But the weekly and monthly trends remain very bearish.

Do NOT follow this link or you will be banned from the site!