Comment Text:
i0-001
COMMENT
CL-04603
From:
Sent:
To:
Subject:
Josh Taylor
Saturday, January 30, 2010 4:45 PM
secretary
Give it up!
Dear Secretary,
Please give up trying to "fix" the foreign exchange markets. They operate just fine. We have been told
over and over again by "officials" in the gov't and the Fed that the market moves of minor players like
me as they act within the FOREX market on a daily basis have no real effect of the actual position of the
dollar at any one point in time because the market is vast. The fact that you are pursuing the current
strategy to eliminate minor players from the market by making margins unachievable
on standard monetary contracts flies in opposition to the above story. This is the only reason I can think
of for such aggressive moves against individuals taking risks. You certainly aren't protecting brokerages
and that's the only other reasonable option. Minor market players like myself do nothing to upset the Fed
in their daily efforts to stabilize the dollar around the world for international trade.
I believe that the current efforts you are undertaking have unveiled something rather devious. There is
an awareness but some who pay close attention to the markets that the very recent, excessive run-up in
the U.S. national debt has shown a "delayed" effect on the dollar world-wide. In other words, it hasn't
been felt yet. This can only be answered by one condition; collaboration between the Fed and Foreign
central banks to maintain the dollar at an expected level for a short period of time so that countries
friendly to the U.S. owning U.S. debt can cover or sell the majority of their positions without taking it
"in the shorts." there is a VERY strong political reason for doing so in that we maintain high levels of
"good faith" with those with whom we are friendly as the dollar is finally allowed to slide. Once the
slide is over and the Fed confirms to the foreign entities that the new levels can be maintained, purchase
of US debt "in good faith" can resume. Meanwhile, US citizens take it horribly "in the shorts."
One thing remains true no matter what the politics, when gross negligence in the management of any
economy (micro or macro) takes place, somebody has to take it in the shorts. It won't be our Foreign
friends. Their wallets are too big and too dependable. Mine, a U.S. citizen, isn't worth considering.
After all this, I see one thing coming to fruition. Your organization will take a position to raise the
margins significantly and keep small players out for a while. After all, the fact that you are pursuing this
position signals that we DO IN FACT have an effect of the largest market in the world. Once the slide
begins, we can't have all the little people adding to the momentum now can we? recovering from an
excessive fall is expensive for the Fed, and the gov't but not "the people" in general who would enjoy for
a time an extremely appetizing market for generating jobs and business because the dollar would be so
incredibly cheap that our products would be irresistable. The draw-back to doing this all the time is that
we loose the "good faith" we have established with our foreign friends and loose investment in-flows
from outside the US, so it's not even a good counter-argument. If your organization does not take this
position, then I now know what's coming for the dollar, and it's coming very soon. If your organization
DOES take this position, you hold it for short time just until the Fed and foreign central banks adjust the
dollar on the slide and then, Wow! what do you know? now that the market has taken a slide we were all
anticipating and the Fed signals quietly that it's over, we can change the leverage back because of the
"danger" it has done to the industry, which we could NEVER have been foreseen ("say it isn't so! ").
Please don't make the margins unattainable. The market, it's investors, brokers, and the economies they
reflect are in no danger from margins being at current levels. You aren't helping or protecting investorsi0-001
COMMENT
CL-04603
by doing this. Only the Fed.
respectfully,
Josh Taylor
