Is there a possibility of the currencies being rigged?
Are the relative values of the currecies a true reflection of their relative worth at all times?
Even a small distortion in data or inaccuracy in the statistics or for that matter cartels may be affecting the real values in the short term and create profits for the interested parties and bythe time correction takes place it will create another opportunity for profit booking!
Please comment.
Answer:
Often governments will play the currency markets to keep thier own currency valued within a certain range, or even to artificially inflate those of exporting countries.
Yes, in theory, but extremly difficult and extremly risky. Would it be possible to manipulate the world salt market? Again, you could in theory, but it probably wouldn't be worth what you would stand to make. As you buy up currency, others are selling at a higher price and taking their profits. As you try to sell at a higher rate, you drive the price down because of your volume. Stocks and commodities would be much easier to manipulate than currencies.
Certainly.
Consult George Soros a John Kenneth Galbraith.
Basicaly since the elimination of the Gold (or any other) Standard, currencies have become what they truly are - imaginary vectors of resource movements.
you can "move" a currency, but it is hard.
Given volume of trade and number of participants, you need either a ton of cash, like George Soros who's blamed for couple currency collapses in 1997-98. Or you need to convince many market players that currency will move certain way; kinda like "indepent" analysts for Goldman Sachs who actually pushed stocks that benefited the bank.
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Even a small distortion in data or inaccuracy in the statistics or for that matter cartels may be affecting the real values in the short term and create profits for the interested parties and bythe time correction takes place it will create another opportunity for profit booking!
Please comment.
Answer:
Often governments will play the currency markets to keep thier own currency valued within a certain range, or even to artificially inflate those of exporting countries.
Yes, in theory, but extremly difficult and extremly risky. Would it be possible to manipulate the world salt market? Again, you could in theory, but it probably wouldn't be worth what you would stand to make. As you buy up currency, others are selling at a higher price and taking their profits. As you try to sell at a higher rate, you drive the price down because of your volume. Stocks and commodities would be much easier to manipulate than currencies.
Certainly.
Consult George Soros a John Kenneth Galbraith.
Basicaly since the elimination of the Gold (or any other) Standard, currencies have become what they truly are - imaginary vectors of resource movements.
you can "move" a currency, but it is hard.
Given volume of trade and number of participants, you need either a ton of cash, like George Soros who's blamed for couple currency collapses in 1997-98. Or you need to convince many market players that currency will move certain way; kinda like "indepent" analysts for Goldman Sachs who actually pushed stocks that benefited the bank.
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