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Two dissertations on the Money market

Money market, Dr. rer. oec. Otto Simon Schreiber

Following hereinafter is the outline of a letter, sent by Dr. rer. oec. Otto Simon Schreiber to the legal counsel of a prospective client.

 

During his life Dr. Schreiber, a German national, was an internationally renowned CPA. In Germany Dr. Schreiber was nicknamed as "Schreiber, der Abschreiber", meaning in English, Schreiber, the depreciation specialist. Dr. Schreiber conceived endless depreciation models during his professional life. All of these depreciation models were conceived and very beneficial to High Net Worth Individuals (HNWI's). Dr. Schreiber had a swift and smooth approach to these individuals, as they were all in upper taxation brackets. Dr. Schreiber, as a CPA, differed significantly from other CPA's, auditors, tax advisers etc. He got most of his depreciation models approved and permitted by the German federal taxation administration. So he practised them in real life. Dr. Schreiber had vast experience and know-how and financed among many others i.e. any type of real estate developments, coast to coast oil drilling campaigns in the USA, a space flight centre in former Congo under President Mobutu Sese Seko. The operating company of the space flight centre was OTRAG (Orbital Transport and Rocket AG). Reference to OTRAG is made among others i.e. in Wikipedia and German news magazine "Der Spiegel". Dr. Schreiber assisted OTRAG by bringing forth the financial means for this whole business. Dr. Schreiber led a consortium, set in place, administered and audited by himself, of some 600 investors and brought in excess of two hundred million DeutschMark into this venture. Due to mounting political pressure, especially from the Soviet Union, but also out of fear of competition, especially from France, President Mobutu was forced to withdraw the operating license and shut down all activities and flight operations from OTRAG. Another business Dr. O. Schreiber arranged the finances for was a German Charter Airline "Atlantis" (Fluggesellschaft) under the juridical Person "Luftverkehrsunternehmen Atlantis AG". Hereto reference is made e.g. in Wikipedia and also in the German news magazine "Der Spiegel". Dr. O. Schreiber

 

After his retirement Dr. Schreiber continued as an economic adviser and tax consultant to many companies, as well as the HEIDERSCHEID VERWALTUNG AG. In the subject letter, whereof the content is shown hereinafter following, Dr. Schreiber made best efforts to explain in brief the money market. And, in addition thereto, a possible investment in one of these best investment deals through the services of the HEIDERSCHEID VERWALTUNG AG:

(translation of a letter from Dr. O. Schreiber to legal counsels of prospective clients) 

 

 

 

Dear ...........................;

 

I take pleasure in referring to you as follows. For HNWI's (High Net Worth Individuals) and wealthy prospective individuals there is the opportunity to participate in a best investment in the Inter-Bank Money Market Trading. The money market is strictly among banks, big Banks and respective central banks. Other participants therein are a few bulge-bracket investment banks. Then some selected big parent holding companies and also financial subsidiaries of large industrial corporations (i.e. GE Capital, GM Financial, Siemens etc.). In addition thereto a few very wealthy individuals. In such, all these participants together give the money market it's criteria of highest securityHighest security, highest liquidity, best Return on Investment and fast availability of funds. This may be done by desirous investors upon request to the HEIDERSCHEID VERWALTUNG AG. About the economical background thereof, kindly note as follows:

 

- Until the end of World War II all capital investments as well as payment transactions in-between and among the miscellaneous currency regions were done through the capital market.

- The values of the different currencies in circulation were backed by reserves in Gold, held on deposit in vaults by the individual Central Banks.

- In the course of the War the reserves in Gold were either consumed for armament, due to destruction restored from one country to another country or consumed for debt payments. To rebuilt the miscellaneous destroyed economies, the world’s leading economists recognised, that a new world monetary system was needed in which the individual regional currencies would no more be backed by the individual reserves in Gold.

- From 1st to 22nd July 1944 44 nations assisted the Assembly of Bretton Woods, New Hampshire, USA, and agreed on a newly ordered International Monetary System (formation of the International Monetary Fund (IMF) and the World Bank (IBRD)).

- At the set-off the new International Monetary System worked on the grounds of fixed currency exchange rates in relationship to the US-Dollar, that was backed by Gold. Currencies were freely convertible with a maximum spread of 1% to the Lead Currency.

- The international monetary system was based on the Bretton Woods Agreement until the Nixon Shock in 1971.

- Key elements of the Bretton Woods Agreement were given-up with the increasing weakness of the US-Dollar as the Lead Currency and the revocation of the US’s readiness to convert the US-Dollar on demand into Gold.

- Therewith floating currency exchange rates came into existence (e.g. the Euro-Dollar).

- In order to exist and develop, floating currency exchange rates needed a market and the “money market” was inaugurated.

- In the Money Market money is a merchandise.

- Bank instruments, derivatives etc. were created to have valuable and legal elements in order for a fungible or interchangeable merchandise.

- Dealing or trading in the money market takes place among banks and big investment banks (bulge bracket), and ONLY among banks, and ONLY big banks with lots of cash. There fore the market is also referred to as the “Inter-Bank Money Market”.

- Non-banks or non-bulge bracket investment banks are not allowed as participants. This is a secluded and exclusive market.

- Or, maybe yes – an indirect or niche participation, as with the formation of money as a merchandise (bank instruments, bank obligations, derivatives) an equal amount of money (fresh or liquid money, non-loan-backed funds, credits etc.) must be deposited for the term of the bank instrument or derivative.

The technique is exercised practise under the supervision of the US’s Federal Reserve System and other institutions.

- The money market trader seeks “fresh money” for the bank issuing the bank instrument or derivative to finance the deposit, backing the instrument.

- For this participation in “financing the deposit”, the money market trader offers part of the profits, made by trading the bank instrument or derivative.

- The important or key element for the “fresh money depositor” (investor) is, that his funds are on deposit with the bank, doing and overseeing the (Inter-Bank Money Market)-dealing or trading.

The editor made big efforts in cutting a long story short.

Studying monetary issues on universities takes-up several semesters. Furthermore, there exists a broad range of literature on the “money market”. The majority of the bank managers and bank employees has no contact with nor knowledge of the money market trading.

 

With best regards,

Yours truly,

 

Dr. Otto Schreiber

Interbank transactions

The interbank transactions describe the interbank trade and therewith the worldwide trade of banks (credit institutions) among themselves. All this takes place in the money market. In the interbank transactions moneys, securities, currencies, foreign currencies, precious metals and or derivatives are traded and exchanged in kind or by book or account entry via a clearing/settlement bank or house. 

Money market, Esquire S.M., Attorney-at-Law, from Munich, Germany

  File record as to the knowledge

 

of Esquire S.M., Attorney-at-Law, from Munich, Germany, 

 

of the Money Market

 

 

 

From September 2003 till February 2004 a law assessor worked, as legal counsel, for the HEIDERSCHEID VERWALTUNG AG.

 

In co-operation with Esquire S.M., Attorney-at-Law, from Munich, the two of them drafted a first business model for my afore-named corporation. On this internet presence the business model is described here.

 

Many years before Esquire S.M. drafted the business model for my corporation, he became aware of the money market. On behalf of a client of his, he ran a thorough investigation to find a, presumably, bank-internal trade, generating high profits continuously. He questioned the world about it. As a matter of last resort he also inquired with two of his fellow-students from his law studies years earlier. Both were managing directors. The one of a German Private Bank and the other of the German subsidiary of a leading US-Investment Bank. First, both of them evaded to answer to his inquiry. But, as Esquire S.M. did not give-in, both, independently and without knowledge of each other, confirmed. Well, yes, there is a market, the money market and therein various bank paper, precious metal etc. is traded among banks only. And the money market is exclusively among banks, big banks only, central banks, a few big investment banks, a handful of parent or holding companies of large industrial corporations and a few big players. Thus it's called the inter-bank money market. In big banks, there are, if many, half a dozen people, inclusively the traders, who are aware of what's at stake. No particulars about money market deals are disclosed, neither internally in the banks and for sure not to the public. The traders talk and deal with counterparts at other big banks only. Mostly these guys know each other in person. Herein 1.5 to several percentage points are made over night. And this currently on three digit amounts in millions. Trades are made from tuesday to thursday inclusive. Only when somebody has contact to one of these traders, a participation in best investment is feasible for success. But such contact and the "insider-knowledge" about the deals and trading in this secluded or isolated market is as rare as finding a needle in a heap of hay.

 

 

 

Munich, October 2003