Even after all the pranks, dirty tricks, and other illegal actions Democrats have pulled in the past year; even after their Russia Hoax was proven to be a complete Hoax - there still are people in this country who support Democrats. Some of us wonder why? They wonder why we 'hate' them so much. We don't hate. It's much deeper than that. There are lots of Democrats (and of course Republicans too) which are just downright evil. As we explain in Splitting Pennies - the world is not as it seems.
Around the time of 2005 - 2009 the Forex business in the US was doing well. Although it was 'unregulated' many of us chose to register with NFA without requirements. In any event, our firm was managing tens of millions at various brokers and doing quite well (meaning the results). The credit crisis was actually good for our strategies as the volatility created opportunities. Also we usually raise new client capital whenever the stock markets do poorly, as Forex managed accounts is an alternative.
Fast forward to Obama and 2 "Democrats" Chris Dodd and Barney Frank who created the most ridiculous legislation ever created the Dodd-Frank Consumer Protection Act. For note, it was signed into law in 2010.
Wasendorf attempted to commit suicide before his arrest and wrote in a confession letter that he had been "using a scheme of false bank statements to embezzle millions of dollars from customer accounts over a period of about 20 years." Congressional hearings questioned why the CFTC had not caught the embezzlement earlier and "the agency’s failure to adequately oversee the National Futures Association, the self-regulatory organization directly responsible for overseeing Peregrine." The firm had been moved by Wasendorf from Chicago in 2009 to a new 18 million dollar building in Cedar Falls, Iowa.
In August 2012, Wasendorf was indicted on "31 counts of lying to regulators.... [He] ... could face up to 155 years in prison and a $7.8 million fine. [He] allegedly stole as much as $215 million from customers over a 20-year period." He pleaded guilty to all charges, and in January 2013 federal judge Linda Reade sentenced him to 50 years of prison.
Just a side note about the firm. They were so fussy about compliance, they would provide their own ddoc templates and website disclaimers IBs and CTAs needed to use in their materials which were 'much stronger, more rigid than the loosey goosey NFA boilerplate' - and people like the good Dr. Nolan Schiff would lecture potential partners on how PFG won't just accept any firm, because their compliance is so strict. Russ sat on NFA's compliance committee just like Madoff was on some NASDAQ oversight committee. So here's the point: Dodd-Frank DIDN'T PROTECT ANY CONSUMERS.
What it did do, it shut down the budding Forex industry in USA, banking on Americans own lack of knowledge of foreign exchange as displayed proudly in this well circulated viral video:
Yes it's true America has some of the world's smartest people but they are an anomaly the masses of America are the dumbest in the world, and this is no more true than about their financial knowledge. They think FX is something for movies.
Dodd Frank shut down Forex in the following ways. It implemented rules such as: 1) No Hedging (you cannot buy and sell the same currency pair) 2) Lower Leverage (Currencies don't really move that much so less leverage means less profit). 3) FIFO (This is an algo-killer - if you have to decide to exit trades in the exact order that you entered, it's like the government telling you when to buy and sell. What if your 'first trade' is losing -10,000 and your 2nd trade is winning 1,000 and you want to lock in the 1,000 profit, you have to -10,000 to gain 1,000? 4) No MAM/PAMM - No block accounts for Forex like there are for Futures & Stocks. No more money managers for fx. 5) Raised net cap on FCMs / FDMs and the new RFED - that means bye bye choices and hello Oligopoly. Now you have 2 choices which both suck. Coke vs. Pepsi, Gain vs. Oanda. Both are loaded with sugar and guaranteed to cause diabetes.
What's the catch? NONE OF THESE RULES APPLY IF YOU HAVE 10 MILLION OR MORE, KNOWN AS ECP (ELIGIBLE CONTRACT PARTICIPANT)
So Dodd Frank made it impossible for the little guy to make money, in fact FIFO makes it nearly guaranteed you will lose if you trade Forex. To put the icing on the cake, CIA and friends threatened foreign jurisdictions which have normal rules, not to accept US Citizens, so they don't. So a US Citizen is just screwed.
This allowed for the largest and most elaborate market manipulation scheme ever. The ECPs, mainly - the Big Banks - now had complete control over the market as they were the only ones who could reasonably play in this big boys game. So what did they do, invest in R&D? No, they formed a cartel, abused their clients, made billions - got caught - paid fines - and CONTINUE THE SAME PRACTICE:
The forex scandal (also known as the forex probe) is a financial scandal that involves the revelation, and subsequent investigation, that banks colluded for at least a decade to manipulate exchange rates for their own financial gain. Market regulators in Asia, Switzerland, the United Kingdom, and the United States began to investigate the $4.7 trillion-a-day foreign exchange market (forex) after Bloomberg News reported in June 2013 that currency dealers said they had been front-running client orders and rigging the foreign exchange benchmark WM/Reuters rates by colluding with counterparts and pushing through trades before and during the 60-second windows when the benchmark rates are set. The behavior occurred daily in the spot foreign-exchange market and went on for at least a decade according to currency traders.
At the center of the investigation are the transcripts of electronic chatrooms in which senior currency traders discussed with their competitors at other banks the types and volume of the trades they planned to place. The electronic chatrooms had names such as "The Cartel", "The Bandits’ Club", "One Team, One Dream" and "The Mafia". The discussions in the chatrooms were interspersed with jokes about manipulating the forex market and repeated references to alcohol, drugs, and women. Regulators are particularly focusing in on one small exclusive chatroom which was variously called The Cartel or The Mafia. The chatroom was used by some of the most influential traders in London and membership in the chatroom was highly sought after. Among The Cartel's members were Richard Usher, a former Royal Bank of Scotland (RBS) senior trader who went to JPMorgan as head of spot foreign exchange trading in 2010, Rohan Ramchandani, Citigroup’s head of European spot trading, Matt Gardiner, who joined Standard Chartered after working at UBS and Barclays, and Chris Ashton, head of voice spot trading at Barclays. Two of these senior traders, Richard Usher and Rohan Ramchandani, are members of the 13-member Bank of England Joint Standing Committee's chief dealers group.
At least 15 banks including Barclays, HSBC, and Goldman Sachs disclosed investigations by regulators. Barclays, Citigroup, and JPMorgan Chase all suspended or placed on leave senior currency traders. Deutsche Bank, continental Europe’s largest lender, was also cooperating with requests for information from regulators. Barclays, Citigroup, Deutsche Bank, HSBC, JPMorgan Chase, Lloyds, RBS, Standard Chartered, UBS and the Bank of England as of June 2014 had suspended, placed on leave, or fired some 40 forex employees. Citigroup had also fired its head of European spot foreign exchange trading, Rohan Ramchandani. Reuters reported hundreds of traders around the world could be implicated in the scandal.
Banks make billions and have no law or compliance that can stop them. That's not a big revelation. But what the Democrats did here is very offensive. They legislated criminality. They paved the golden road for the banks to do this, and closed the market for any small participant to get in on the action. Whether greasy Barney was in on the action or not or if these 2 guys are just that dumb it doesn't matter the end result was that a few banks made billions of dollars and the US to this day has no Forex market to speak of. Open a bank account in any country other than USA and the first question is "What currency do you want it to be in?"
Go into a Wells Fargo branch now test this theory, tell them you want to send 10,000 USD to your friend in Australia. They will only quote you one side of the market. Their policy prevents them to display the bid/ask spread because it would be obvious for anyone with a 90+ IQ to see the bid/ask spread can be 15%! Then they have the balls to tell you if you send more than $5,000 they will waive the $35 wire fee! On a 10,000 transaction they are making $700 from the spread (they are capturing only half of it, the other half they will get when you send it back.)
Dodd-Frank did absolutely nothing to protect consumers. What it did do, it allowed a massive criminal fraud to be perpetrated in plain sight by the big banks; thanks to their big lobbying efforts. I complained to a personal friend about this issue someone who was in the FBI and had a long track record working for major corporations in C-Level positions, his response was "Get rich, buy a politician."
To see how this system perpetrated by the Democrats works in a more simple plain example read this book carefully: Clinton Cash: The Untold Story of How and Why Foreign Governments and Businesses Helped Make Bill and Hillary Rich
The author is unbelievably objective to the point that it seems that the Clintons paid him to write the book as it seems like a whitewash of something far more sinister. He defends them by saying things like "What went on behind closed doors, we'll never know" but the facts remain very dark. Through the Clinton Foundation Indian political contributors allowed the US Nuclear policy to lighten on India regarding the development of so called 'dirty nukes' and other things that are forbidden by all other Nuclear powers.
The Uranium One Scandal is even more disturbing, as the Clintons are using their power to basically sell US strategic assets to the highest bidder, in this case - Russian Government:
Frank Giustra donates $31.3 million to the Clinton Foundation, to be followed in 2007 with a pledge of at least $100 million. These amounts constituted the bulk of the $145 million in supposed “bribes” paid to the Clinton Foundation.
On April 20, 2007 Uranium One acquired UrAsia Energy, a Canadian firm with headquarters in Vancouver, from Frank Giustra, who then resigned from the UrAsia Energy Board of Directors. Having severed ties with UrAsia Energy and Uranium One in 2007, Giustra had no evident beneficial interest in the firm's subsequent sale to Rosatom in 2010. UrAsia has interests in rich uranium operations in Kazakhstan, and UrAsia Energy's acquisition of its Kazakhstan uranium interests from Kazatomprom followed a trip to Almaty in 2005 by Giustra and former U.S. President Bill Clinton where they met with Nursultan Nazarbayev, the leader of Kazakhstan. Giustra denies reporting by The New York Times that he and Clinton traveled together to Almaty. Substantial contributions to the Clinton Foundation by Giustra followed, with Clinton, Giustra, and Mexican telecommunications billionaire Carlos Slim in 2007 establishing the Clinton Foundation's Clinton Giustra Sustainable Growth Initiative to combat poverty in the developing world. In addition to his initial pledge of $100 million, Giustra pledged to contribute half of his future earnings from mining to the initiative. There is no indication that Giustra was contemplating any transaction with Russian interests at the time he began donating to the Clinton Foundation in 2005; rather, he sold UrAsia Energy to Uranium One, a Canadian company, in 2007. That sale was completed two months before he made his pledges to the Clinton Foundation.
Since uranium is considered a strategic asset with national security implications and Uranium One owned uranium mining operations in the United States, the acquisition of Uranium One by Rosatom was reviewed by the Committee on Foreign Investment in the United States (CFIUS), a committee of nine government cabinet departments and agencies including the United States Department of State, which was then headed by Hillary Clinton. Clinton herself did not sit on CFIUS, but rather the State Department was represented by Jose Fernandez, the Assistant Secretary of State for Economic, Energy and Business Affairs, who stated that Clinton was not involved in the Uranium One matter. Although CFIUS members can object to such a foreign transaction, none did, and no member can veto a decision; veto power rests solely with the president. CFIUS unanimously approved the Uranium One sale. The Utah Division of Radiation Control and Canada’s foreign investment review agency also approved the transaction.
What's amazing isn't that Democrats took this as a template to create a false narrative on their political enemy President Trump - what's amazing is they are guilty of the exact crime they are accusing Russia of! Selling state assets for personal gain while you are in office is called 'corruption.'
All this was going on when Hillary Clinton had Top Secret clearance and was an acting member of the intelligence apparatus (what we call the KGB actually FSB). We are accusing Putin of being an apparatchik when Clinton is exactly that!