Explosive Breaking News! Algorithms And Ponzi Schemes

There is no velocity of money with liquidity sucked up in derivatives’ borrowing costs between banks.

What we have here is a financial rotation system (ponzi scheme) involving worldwide securities, commodities and foreign currency markets in which banks use high frequency electronic trading to trade and rig the markets on behalf of each other.

Note: This rotation system is subsidized by central banks aka the privately owned U.S. Federal Reserve and the ECB (European Central Bank) with alleged stimulus.

Bill Gross, founder, managing director and co-CIO of major bond house PIMCO, has made it clear that there has never been any real stimulus by the Fed and that the QE programs are nothing more than an exchange of paper between banks for the purpose of pretending that something that is worth nothing is worth something.

Economics lesson: The central bank are conducting a contractionary fiscal policy that is complete deflationary not inflationary.

Note: After Federal Reserve Chairman Bernard Bernanke ‘bailed out’ JPMorgan and Goldman Sachs reference the credit default swap aka insurance issued on Chinese banks, Bernanke has created the script for banks to become counter parties to each other.

Reference: JPMorgan Chase, German Deutsche Bank, Bank of America, Union Bank of Switzerland and Mellon Bank of New York.

Remember, massive bank asset deleveraging continues with inventories continuing to build and interest rates read to go up on their own.

P.S. At this hour the crooked banks continue to trade amongst themselves using the derivatives as collateral and pre-programmed algorithms (the same algorighms used by the NSA to spy on the American People).

Reference: Worldwide financial settlement.