Financial System "Control": Using our powers for good, not evil.

Darth Vader : I've been waiting for you, Obi-Wan. We meet again, at last. The circle is now complete. When I left you, I was but the learner; now *I* am the master. 
Obi-Wan KenobiOnly a master of evil, Darth. 
[lightsabers clash


The battle between good and evil rages on.

I'd love to list the evil plaguing the world this week, but then I'd get all kinds of hate-mail telling me this is supposed to be an investment newsletter and not a political opinion column.

Well, it is whatever we at Black Swan Capital want it to be, but for the sake of time I'll try to stick to the investment world.

And superheroes.

Because superheroes and their stories epitomize good vs. evil. There are superheroes who seek to protect the world from evils; there are superheroes who claim they can rid the world of evil; and then there are supervillains who are just plain evil.

Avoid each of the latter two at all costs.

But if you can only steer clear of only one, avoid the superhero who claims the ability to rid the world of evil; for that superhero is the most dangerous of all. (At least you know what you're getting with a supervillain, right?)

Now ... I'm thinking of one of those rid-the-world-of-evil types and I want you to guess who. But since there are quite a few of those types, remember that I'm trying to stay in the universe of investment/finance/markets/economics.

Yep, I know -- too easy. Everyone loves to pick on Ben B. 

And as you probably know, we're no exception. He deserves a good ribbing every few hours, even though there are plenty of others helping him pull the strings.

As for his latest do-gooder exercise, we recieved a peice of research yesterday to suggest Ben and Co. are still working hard to engineer an evil-free financial system.

Good luck. Because as long as the financial system is still driven by human nature (i.e. real people acting on flawed assumptions), the feat is impossible.

But what if Ben can somehow mitigate the market proces, human nature? He could thereby eradicate a large degree of risk from the financial system, assuming of course there is an entitity that can assume (or already has) a supervisory role and intervene in the liquidity-creation process should the system somehow, in some highly unlikely scenario in some unimaginable galaxy far, far away, begin to short circuit?

But what entity has the capacity to assume detailed monitoring of a very complex financial system?

Why the Federal Reserve, of course.

Which is why Ben Bernanke, for all intents and purposes, has put such a proposal on the table. He did so in a speech a few days ago: Monitoring the Financial System, at the Chicago Fed’s Annual Conference on Bank Structure and Competition.

Let's let Leto Market Insight take a whack at it now:

Bernanke’s approach ... would render the market’s price discovery function, its ability to price risk, irrelevant and obsolete and would alter the nature of central banking in one key respect: from guardians against liquidity risk, central banks would become permanent enablers of moral hazard risk and also guardians of the resulting systemic insolvency.

Raise your hand if to you it seems the financial-system engineering of central banks resembles a cat chasing its tail around a ticking time bomb.

Yeah -- my hand is up too.

Lucky for us there are superheroes who we can hope will protect us from this evil.

Lucky for you, we are superheroes!

And though we most likely fall into the Underdog category, we can still help protect you from the evils of do-gooders around the globe just like any good speedo-clad superhero can.


Well, we can help you make money, of course. Remember: that's why you're reading -- this is an investment publication!

In the last few weeks I've taken some time to explain to you how Jack is making lots of money this year for his Black Swan Forex subscribers.

And if you missed it yesterday, I showed how Jack's performance is absolutely beating the pants off of currency funds. Forget the pathetic performance of the funds, Jack is nearing the 60% ROI mark on all closed trades this year. 

That's hugely impressive.

And it's not some fluke, either.

The breakdown of Jack's trading tells the story -- he's consistently winning and doing so in a fashion that tightly manages risk and has nearly eliminated significant drawdown periods.

Have a look at those trading statistics that have returned nearly 60% year-to-date.

And then decide if you've got the backing to keep you prosperous when the policies of central banks render so many others insolvent.

Thanks for reading.

-JR Crooks

P.S. Use any of the links below to join Black Swan Forex.

P.P.S. If you're worried that forex trading is not right for you, stay tuned until tomorrow. That's when will be offering a primer on how to get started trading in the forex market. It's quite simple to establish an account and learn the basics. It's a lot harder to make money. But that's what we're here to help you do!