Currency manipulation-fact or fiction?

The foreign exchange market trades over US$3 Trillion daily. Competition is fierce and margins are thin.If money cannot be made from outright spot transactions-something has to give.

Just like LIBOR, PPI, money laundering scandals and other financial concerns, raised over the past few months, currency trading has also followed suit. Statistically this was bound to happen given the size of the foreign currency market and higher banking's bonus culture.

Focusing from one banking business, to the other, will not solve the biggest flaw of financial markets which is financial economics. Financial economics is founded on the principles of neoclassical economics: self interest and profit being the sole motive of enterprise.

Founded on skewed assumptions finance will deliver more scandals. The $700 trillion dollar plus derivatives market is still waiting in the wings to deliver the biggest scandal yet. Scandals like forex trading, PPI and etc are mere warm ups to the real issues the markets are ultimately needing to resolve.