Pre IPO Swap - New York, NY 3/11/2019 (Zero Hedge Exclusive)
The FIX is in. If someone told you they found a way to always win the lottery - probably you'd think they are full of it - but as we explain in Splitting Pennies the world doesn't work as seen on TV.
There is literally a single asset class that it took many years to discover which almost always pays off big - Pre IPO. There is a catch - you have to be accredited. But aside from that there's not too much holding back any accredited investor from doing it.
Is the stock market rigged? Of course it is. In a conversation with a fellow trader earlier, we discussed the risks of opening an account at an offshore brokerage to trade a Forex strategy (because all the brokers in the US suck, all 2 of them). There aren't any serious brokers that will take a US Citizen so the regulators have put US traders in a situation (unless you are an ECP in which case the rules don't apply) that you have to risk losing your funds completely because the anonymous owners just decide so. They are mostly unregulated so there's absolutely no checks and balances. Then the other party on the phone started yelling "Hey I lost money in Refco, Man Financial, PFG, MF Global, FXCM - all 'REGULATED'..
To understand the irony, we must first look at the Fiat system, which is backed by a Federal Reserve which is a 'corporate instrumentality' of the United States (a private corporation). The Russian Government, which is cast as an evil dictatorship, owns the Central Bank of Russia (CBR). Just sayin'
The 'regulators' will crack down on 'fraud' but never question the Fed(s). See this ironic press release from a now proven corrupt government crook lyin James Comey:
NEW YORK, Nov. 19 — Federal authorities announced charges Wednesday against 47 people in a broad crackdown on fraud in the foreign currency exchange market that officials said bilked millions from big-name banks and small investors alike. Most of the bankers, stockbrokers and traders were picked up in raids late Tuesday and early Wednesday in what law-enforcement officials called their most sweeping infiltration ever into the foreign currency markets. The principal charges accused currency traders at some banks of making rigged trades designed to lose money — then taking cash kickbacks from co-conspirators who made money on the deals. An undercover FBI agent discovered 123 rigged trades totaling $650,000 in just a few months, authorities said — but they cautioned similar fraud has likely been carried out for decades in the decentralized, loosely regulated foreign currency market.They said no banks were implicated in the fraud.
The Quantitative Easing program created and executed by the Federal Reserve Bank has created more than $25 Trillion in US Dollars causing hyperinflation, killing the middle class, and making the rich Uber rich (they even have a new term for this in finance Ultra High Net Worth UHNW). The FBI spends millions of dollars chasing a few trades worth $650,000? This is a bright and more clear example leading to the topic of this article - the FIX IS IN. The banks who made billions - were not charged. They continued to make billions in FX, taxing their customers who would rather believe in "Currency Headwinds" is just a market phenomenon which explains the billions in losses on your balance sheet. Actually, half of publicly traded US companies hedge - and half don't:
Some companies know this; in fact - some companies profit greatly from it. But according to insider research from CFO.com, only about half of public companies hedge:
Forty-eight percent of nonfinancial companies listed on U.S. stock exchanges remained exposed to volatility in foreign exchange rates, commodity prices and interest rates in 2012 because they did not hedge them, according to a new study by Chatham Financial.
So here's the thing about the FIX. Markets are rigged. But there's always a catch. There's a way out. If the Elite spread a virus to kill off the population you can bet they will have an antidote. In the case of FX, the markets are rigged but the antidote is hedging. Companies such as Intel, Ford, McDonalds, and many others have successful FX hedging programs that eliminate the risks (including risk of fraud). It's manageable.
So how to get in on the FIX? The stock market is rigged - and they save the best for their own - and that's Pre IPO.
Almost all Pre IPO companies have had astounding returns. Even in the case of Facebook which was an IPO disaster (and a business disaster but that's the topic for another article!) Pre IPO investors made as much as 2500% or more. Investors on the IPO day itself may have even lost money. But even with the IPO disaster, music group U2 made more money on the Facebook IPO than selling music in their entire career:
Bono has written dozens songs during his long and enduring career. But a group he set up several years ago has made more money from an investment in Facebook in 2009, than from all of the music he has written and recorded over the years. Reports said the 55-year-old rock frontman bought a 2.3 per cent share of the social media site for nearly $86m 2009 through Elevation Partners, an investment group he co-founded. Contrary to some reports, the investment has not made him the world’s wealthiest musician; the $1.4bn will be split between the six founding partners of Elevation Partners, which only get 20 per cent of profits.
There you have it. The secret is out. The FIX is in.
It's the only asset class that all billionaires share - the only place where hundreds of billionaires have been created, including but not limited to Elon Musk. Most people don't know that Musk actually bought his way into Tesla.
We've explained in Splitting Pennies how the world is not as it seems and the game is rigged - but we're taking it a step further and providing a solution. Like the FX traders have proved, the markets are rigged by those with the funds and those who control the market. In the case of FX, that would be the Fed, which is controlled and owned by the big banks. In the case of the stock market, it's the big ticket Wall St. firms like JPM and Gold Man's Sacks. As comey says "“There are a lot of sharks in that water,” Comey said. “We in law enforcement suggest careful reflection from the beach before you jump in.” That's right James and you would know.
Pre IPO is like Ennio Morricone - he's the musical wizard behind the curtain of Hollywood that no one ever heard of except 'those in the know.'
So here's the crux. Facebook is a complete fraud. It's a nothing. There is no product. There is no business model. It's vapor on steroids. It's the equivalent of taking air and telling you that if you stand on this property and breathe air it's going to make you live longer. It's a government Psy-Op with a dual purpose; it started as the first type of Surveillance Capitalism and moved towards an active population control tool. But here's the thing - backed by the CIA investors like Bono made a killing. Agree with the Establishment or not, they have a proven method to create wealth which anyone is basically invited to join. Of course, if you make money on Facebook, you'll probably be less critical of it - but that's a subtle hook in Capitalism that few can understand. Bottom line is if you want to make money like buying Bitcoin in 2011 there's only one LEGIT place to do it: Pre IPO Swap.