How Hedge Fund Insider Access Powers Warren Mosler’s Success
I worked for Warren Mosler’s Hedge Fund / Broker-Dealer for 5 months up until the Lehman Brothers bankruptcy (III and AVM were caught flat-footed by the financial fallout, and laid off about 15% of its workforce). I went back to engineering Supercars; but I benefitted from being an insider in seeing how a Hedge Fund with insider access to the Federal Reserve makes money [takes money]. Hedge Fund insider access grants unfair advantages in financial markets.
Hedge Funds don’t actually make anything; they use trading strategies and illegal access to information in order to make money. Many hedge funds leverage strategies that depend on asymmetric information. Many Hedge Funds (who don’t have insider information) underperform the stock market; but those managing the Hedge Funds still get rich via the “Two and Twenty” compensation scheme. “Two and Twenty” means the managers get 2% of all money under management every year. 2% of Mosler’s $57,000,000,000 Hedge Fund is $1,140,000,000 ($1.14 Billion). This money is taken from the Pension Funds and other investors no matter how well III Capital Management does its job.
The “Twenty” in “Two and Twenty” is 20% of the gain that the money under management makes is taken by the Hedge Fund. This aligns the interests of the investors with the interests of the Hedge Fund. Because III enjoys excellent access to information from the Federal Reserve via PRIVATE MEETINGS between Warren Mosler and the Fed; III earns an immense return every year (averaged over 20% for numerous years up until the Lehman Bankruptcy). These Federal Reserve private meetings create opportunities for profitable trades. The income from the “Twenty” is therefore about $2 Billion per year.
Warren Mosler owns 10% of AVM (Broker Dealer) and III (Hedge Fund); therefore his annual income is over $200 million from this source alone. Warren Mosler investments benefit from years of consistent profits. Mr. Mosler is also a big investor in III, and his nest egg grows at the insider-information-enhanced rate just like other III investors.
ZERO SUM GAME: Every time Warren Mosler (III Capital Management) uses Insider Information to WIN; someone else LOSES. That someone else is Pension Funds and the USA-Taxpayers who suffer higher borrowing costs. Hedge Fund insider access ensures financial dominance over pension funds.
Hedge Funds don’t “make money”. They TAKE MONEY from someone else. Hedge Funds don’t provide clothes, or toasters, or cars, or housing, or anything.
Hedge Fund Insider Access and Its Impact on Society
They only TAKE MONEY FROM SOMEONE ELSE [called a “counterparty”]. If the game were fair, half the time one Hedge Fund would “Win” and half the time the counterparty would “Win.” Therefore the only way one Hedge Fund can CONQUER other Hedge Funds (or Pension Funds or USA-Taxpayers) is via having INFORMATION that their counterparty doesn’t have.
Warren Mosler has spent decades pushing his rebranded Warlord Economics: “Modern Monetary Theory” in order to gain the INSIDER INFORMATION from the decision-makers at nearly all of the Federal Reserve Banks (money printers). Warren Mosler has advised his foundedIII Capital Management during these decades. Prior to the Financial Collapse of 2008, III had a nearly-impossible string of immense annual profits. Ask Mr. Mosler: How did that happen?
Then ask Mr. Mosler: Did the tens of millions of people who can now scarcely afford groceries AGREE TO ENRICH YOU???
Warlord Economics rebranded as “Modern” for the purpose of enriching those in POWER.
Visit ModernMonetaryTheory-Scam.com to learn more.
In Zimbabwe, people starved to death while having Billions of Dollars (Zimbabwe Dollars) in the bank. The evil men in POWER in Zimbabwe wanted luxury goods; so they printed more money and handed it out to their friends, family (and themselves). If you weren’t on the RECEIVING END OF THE PRINTED MONEY….you were at risk of starving to death: and many did. This is “Modern Monetary Theory”, which has been fully embraced by Leftists/Liberal governments around the world. They look to Warren Mosler and say, “This renowned Economist says MMT is great.”
https://www.lowes.co.uk/our-thinking/blog/posts/2019/november/zimbabwes-starving-billionaires/