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PTVtrader, There is no FTT of the red and brown fractals, just the pink. The reason is that the previous two bars mark the transition of p2 to a p3 within a non-dominant that's inside the dominant brown and red fractals. To count as an FTT on the brown and red fractals the non-dominant should...

Canada and Australia manage to grow due to their large trade surplus. They sell natural resources to the rest of the world and this provides the private sector surplus that's required to sustain economic growth. Just because an economy manages to grow under a government surplus that doesn't...

Modern monetary theory makes some very interesting predictions based on their description of monetary systems. One of those predictions is that government budget deficits are necessary for the functioning of a monetary system. The idea is that governments create currency as they spend and...

The dollar will only lose its status as world reserve currency if the United States starts running large trade surplusses. A trade surplus means that the rest of the world is returning your dollar bills and thus depleting their reserves. I don't see this happen in the next decade. Maybe in the...

Have you ever learned something without making a single mistake?

Outsource, if not in 2 months why then 5 months? Also, is it too hard to transfer the 10k to a broker that gets you a decent data feed and proper software and that allows you to trade US futures? It seems like you've yet to set yourself up with the proper conditions.

600B is the amount of money that they set as a target amount to work with. They're looking to convert 600B of bonds into 600B of T-bills. They're looking to change the term structure of 600B in bank assets. That's it. Now when it comes to default or hyperinflation neither are rational...

Not through QE. I do support "printing" money by the government though. I'm not talking QE, I'm talking budget deficits. The government should aggresively cut income taxes in order to increase the amount of money that's available for spending and debt retirement by families. Contrary to...

Yeah well, it does when the entire financial system is involved.

You're right, sorry. I misread you and thought you were talking about reserve accounts at the Fed. If you as an individual sell $1m in bonds to a bank then what happens is they create a new asset (the bonds) and a new liability (your deposit account) on their balance sheet which does increase M2.

QE is a program that exchanges longer term notes and bonds for 30 day T-bills. It's akin to moving money from your savings account to your checking account. The idea is to provide stability to the banking system by increasing liquidity reserves (30 day t-bills) It does not increase the amount...

Jack, I agree with your analysis of the current depression. As a European I've shifted my assets out of EUR and into USD. The EMU lacks an adequate policy to adress the issues that are brought up by the depression and the policy that is in place works pro-cyclical by enforcing austerity...

Yeah right, so they credit your checking account and debit their own in order to purchase the USTs. No increase has taken place, it's just some bank reserves that have been swapped around. In order to actually increase money supply the amount of debt issued must rise, or the interest rates...

You're wrong. If a bank purchases securitized debt in the open market there's no increase in M2. Likewise, open market operations such as QE1&2 only swap reserve balances. The increase in M2 only arrives if in the aggregate more debt is issued than extinguished.

What the Fed is doing under QE is increasing the monetary base (MB) by increasing bank reserves. From this M2 can be increased by banks if there is sufficient demand in the economy to take on additional liabilities. Increasing M2 is not printing money. Simply put, M2 is what happens when a...

Bernanke didn't lie at all. There's just a lot of misconceptions about the monetary system. One of those misconceptions is that increasing reserves is the same as printing money.

Bernanke is correct and he's not lying. Printing money describes a situation where the government or central bank holds a fixed amount of reserves (ie gold) and the bank note that's printed represents a part of this reserve. Under a fiat system money does not represent a fixed quantity of...

At one point the topic of "smart money" was brought up by Charlie Rose. Little did he know that the smart-dumb money mechanic is playing out at his table. Munk is a net seller of gold. He's a wealthy man that built a business through prospecting and hedging. His wealth doesn't derive from...

BATS Europe does. I thought Turquoise and Chi-X had a maker-taker rebate scheme too but I checked and they charge a %based fee to both sides.

Dark pools are watering holes for traders that have insider knowledge. This is reflected in the high rebates that liquidity providers receive.