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.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Turd Ferguson's picture

Clearly he misspoke or was taken out of context ;)

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

SDRII's picture

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

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...

winks's picture

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

Cognitive Dissonance's picture

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

williambanzai7's picture

I think Turd is meant to mean Third.

Jack H Barnes's picture

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

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..."

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.

seventree's picture

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

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.

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.

Mr Lennon Hendrix's picture

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

MsCreant's picture

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

Mr Lennon Hendrix's picture



           That depends a good deal on the lighting.

SilverIsKing's picture

Turd Ferguson = Very good alias

Clayton Bigsby's picture

my only question is - can you be polished?

DaveyJones's picture

That's one frank furter

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'

DaveyJones's picture

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

Cognitive Dissonance's picture

Breaking News!

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

Details at 6.

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?

williambanzai7's picture

Do you mean that's one frank fer Turd.

homersimpson's picture

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

Sudden Debt's picture

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

Problem Is's picture

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

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.

nevadan's picture

What a good job of avoiding eruptive movements.

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!

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.

A_MacLaren's picture

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


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.


Hansel's picture

Are you disagreeing with yourself?

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.

Hansel's picture

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

ratava's picture

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

MsCreant's picture

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

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.

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.

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.