Arbitrage is the practice of buying something (such as foreign money, gold, etc.) in one place and selling it almost immediately in another place where it is worth more.
Raising the interest rate purposely or manipulatively almost always results in consumers having less money to spend. With less spending, inflation decreases. The base currency, such as the dollar, becomes stronger. U.S. dollar strength tends to have a further adverse effect on inflation as a stronger dollar gives consumers more purchasing power, while making commodities such as gold and oil relatively less expensive. For example, with a strong dollar against other currency fluctuation, it takes less dollars to buy one barrel of oil or one ounce of gold. Thus the price per barrel or per ounce drops.
But if you sell this oil for example some place else in return for foreign currency, you get more of that currency which is weak against the dollar than you would have gotten in the past. But this could be a temporary window, another country may even devalue their currency to make their exports more attractive. However certain products, in this case let us say oil and gold, drop in value even though other products may become more attractive due to devaluation.
But as commodities fall too rapidly, this actually can pull down the markets. You could buy oil or gold for example on the cheap using the dollar. Then sell it right as soon as possible in a scheme where the bottom line is another currency - of which you are getting more of that currency than previously when it had not be devalued.
You then try to create inflation some place else. If interest rates rise in the US for example, currently rates are strongly influenced by FFR rates set by the Federal Reserve (the "Fed"), the dollar becomes stronger, inflation decreases, but in another country which is dropping interest rates they start to increase inflation trends in that country. Those consumers also have more flow of cash or can borrow more, but things start to become "more expensive" to buy since the money is "worth less than before" viz it takes more cash to buy something.
You can now arbitrage the buying of some commodity in the US where it is "cheap", selling it "someplace where it is more expensive" in terms of once it is converted to the other currency due to "inflation"... then wait. As soon as there is even a moderate downturn for example in the dollar and the strengthening of the other currency, you buy something in the US such as having foreigners buy property or simply exchange the money back into dollars but placed in foreign accounts. This can be sped up using computer technology. It is a form of currency manipulation and manipulating variance in inflation on a global scale.
The "oligarchs" amassed fortunes by the simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. The difference between domestic prices for commodities and the prices prevailing on the world market can be exploited.
I am not sure 100% if that is what is happening now, or in the works - but I suspect it. It is not illegal.
It will not bode well for the middle class.
I *think* players in this include the Clinton Kleptocracy. And McConnell. And Paul Ryan. And Jeb Bush.
I might be wrong. Or shortly have an IRS audit. Or arrested.
Raising the interest rate purposely or manipulatively almost always results in consumers having less money to spend. With less spending, inflation decreases. The base currency, such as the dollar, becomes stronger. U.S. dollar strength tends to have a further adverse effect on inflation as a stronger dollar gives consumers more purchasing power, while making commodities such as gold and oil relatively less expensive. For example, with a strong dollar against other currency fluctuation, it takes less dollars to buy one barrel of oil or one ounce of gold. Thus the price per barrel or per ounce drops.
But if you sell this oil for example some place else in return for foreign currency, you get more of that currency which is weak against the dollar than you would have gotten in the past. But this could be a temporary window, another country may even devalue their currency to make their exports more attractive. However certain products, in this case let us say oil and gold, drop in value even though other products may become more attractive due to devaluation.
But as commodities fall too rapidly, this actually can pull down the markets. You could buy oil or gold for example on the cheap using the dollar. Then sell it right as soon as possible in a scheme where the bottom line is another currency - of which you are getting more of that currency than previously when it had not be devalued.
You then try to create inflation some place else. If interest rates rise in the US for example, currently rates are strongly influenced by FFR rates set by the Federal Reserve (the "Fed"), the dollar becomes stronger, inflation decreases, but in another country which is dropping interest rates they start to increase inflation trends in that country. Those consumers also have more flow of cash or can borrow more, but things start to become "more expensive" to buy since the money is "worth less than before" viz it takes more cash to buy something.
You can now arbitrage the buying of some commodity in the US where it is "cheap", selling it "someplace where it is more expensive" in terms of once it is converted to the other currency due to "inflation"... then wait. As soon as there is even a moderate downturn for example in the dollar and the strengthening of the other currency, you buy something in the US such as having foreigners buy property or simply exchange the money back into dollars but placed in foreign accounts. This can be sped up using computer technology. It is a form of currency manipulation and manipulating variance in inflation on a global scale.
The "oligarchs" amassed fortunes by the simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. The difference between domestic prices for commodities and the prices prevailing on the world market can be exploited.
I am not sure 100% if that is what is happening now, or in the works - but I suspect it. It is not illegal.
It will not bode well for the middle class.
I *think* players in this include the Clinton Kleptocracy. And McConnell. And Paul Ryan. And Jeb Bush.
I might be wrong. Or shortly have an IRS audit. Or arrested.
