Forex markets that are manipulated by governments, with the best of intentions of course, historically serve to create the very thing they are trying to fight, Volatility.

Forex markets have seen huge increases in volatility over recent years. Princess Leia in Star Wars said it best when she said to Darth Vader: “ the more you tighten your grip the more the rebellion will slip through your fingers.” The same could be said to our governments around the world today. They are desperately trying every trick in the book and has any of it gotten Forex market volatility to calm down? Not at all, in fact market volatility is still trending higher. So while they may have the best of intentions, a quick look at history will show that it is government interventions that cause things to get worse and only after the people are fed up will we see the changes that are so desperately needed.

I would just like to call attention to this fact now so that a few years from now I can come back and reference this. As in time, it will become obvious that no one can spend money they do not have.

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This entry was posted on Wednesday, July 22nd, 2009 at 7:24 am and is filed under FX Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.