The trap was borrowed in large banks in New York and London petrodollars 'recycling'. These 'eurodollar' banks provide dollar loans to desperate Third World countries initially on a "floating rates" tied to the London rate of LIBOR. When the LIBOR rate rose during the month by about 300% as a result of the Volcker shock therapy, these debtor countries were unable to continue to pay interest. Urged the IMF and began the greatest Rogue Sabbath in world history, mistakenly called 'The debt crisis of Third World countries'. This crisis is quite predictably provoked a shock policy Volcker.
In 1986, after seven years of relentlessly high interest rates by the Fed under Volcker, filed credulous public as "squeezing inflation out of the economy U.S. ', the internal state of the U.S. economy was terrible. Much of America began to resemble the Third World: the growing slums and double-digit unemployment, rising crime and drug addiction. The Fed report showed that 55% of all American families were net debtors. The annual federal deficit has reached unprecedented up to this level of over $ 250 billion In reality, Volcker, a personal protege of David Rockefeller of the , was sent to Washington for one purpose – to save the dollar from free-fall and collapse that threatened the role of the U.S. dollar as global reserve currency. This role of the dollar as a reserve currency was hidden the key to American financial domination. Once U.S. interest rates skyrocketed, foreign investors have rushed for profit by buying U.S.
Night view Asia / Europe Japan market closed for a holiday The greenback reeling from the uncertainty of the economic rescue operators aware of the uncertainty and not for publications The day’s events All times EASTERN (-4 GMT) 10 : 00am, Bernanke, chairman of the Federal Reserve, will testify 10:00 am USD HPI m / m 10:00 am USD Richmond Manufacturing Index What is expected for Wednesday All times EASTERN (-4 GMT) 10:00 am USD Existing Home Sales 10:00 am, Bernanke continues testifying 10:35 am USD Crude Oil Inventories 2:30 pm, Bernanke is testifying the dollar is tumbling, the Japanese market was closed because of the holiday celebrated. The greenback came under pressure overnight, and operating volumes were low. Significant operators buy dollars against the EUR and GBP, however, both pairs, new records a week in Europe meeting. The maximum record book in the area of 1.8636. The cable found at levels close to the thermal resistance and a reversal can not be excluded. It is noteworthy that the greenback remains under pressure because of the anonymity and possible consequences of bailout being planned in the United States, confidence seems to appear slightly as they provide more detail. The EURO recorded level maximum of 1.4827, before falling in the area of 1.4770 in the New York session, operators were observed roots, although it was expected, following the fluctuation of the last days, which was not observed since 2001, where huge profits were made.
The latter circumstance through evolution led to the development of standard exchange contracts with delivery goods on time and their treatment as independent objects of exchange trade. The main reason and the need for the development of futures trading is that the latter provides the lifting of those restrictions that have trade directly exchange goods. Product itself as a material benefit has restrictions for the development of exchange trade. Get rid of them can be achieved through the organization of trade is not itself a commodity, but only the rights to it, ie, futures contracts. Sale of goods at the exchange gives way to the exchange's turnover of futures contracts, whose connection with the physical market is mostly indirect, since only a few percent of total contract ends a real delivery. Indirect communication is that the owners of the contracts are constantly buying and selling them under the influence of changing market conditions on their commercial or other activities.
Futures trade came in the second half of XIX century. Its origin and development related to the fact that it reduced the risk of adverse price fluctuations in the circulation of capital, reduce size of reserve capital required in the event of adverse market conditions, to accelerate repayment of cash advanced capital, reduce trade credit, reduce distribution costs. Trade in futures exchange compared with the exchange of real goods are distinguished mainly fictitious transactions (only a few percent of transactions completed delivery of the goods, and others – pay the difference in prices); mostly indirect link with physical market through hedging, complete unification of all contracts, except for price and delivery time, anonymity of transactions, since they are not registered between a buyer and seller and between them and Clearing House. Trades on futures exchanges are as a commodity and on the currency, equity indices, interest rates, etc. The volume of transactions on the futures exchange, usually many times larger than the actual trade goods. Essential commodities, transactions with which concluded on futures exchanges, are cereals, oilseeds, oils, petroleum and petroleum products, precious and base metals, cotton, sugar, coffee, cocoa, live cattle..