CEO Mark Fisher of MBF Clearing Corp. says he is in the process of creating an energy ETF (exchange-traded fund), starting with crude oil and expanding throughout the sector. The goal, according to Fisher, is to compete against the United States Oil Fund.
After appearing on The Strategy Session recently, Fisher said in a follow-up interview that the "energy roadmap is already there."
China is amassing dollars, euros and poundsto play a game of "global hot potato," trying to pass the "potato"—worthless paper currencies—to others, in exchange for energy, water and valuable food assets, he said.
Evidence of this transfer abounds, according to Fisher, in China's numerous investments in Canadian energy companies and Nigerian oil reserves, last year's $10 billion loan to Brazilian oil producer Petrobras, and even, on a smaller scale, China Investment Corp.'s announcement of a transparent first-time stake in U.S. Oil Fund.
Overall, China is estimated to have a $2.45 trillion in reserves, the world's largest. SAFE (State Administration of Foreign Exchange), the arm of the central bank that manages China's official currency reserves, recently announced that it has ruled out the "nuclear" option of dumping vast holdings of US Treasury securities.
In 2008, China surpassed Japan as the largest foreign holder of U.S. treasuries. Currently, China holds approx. $900.2 billion in American debt. This number has risen every month since February of this year.
On financial regulation, Fisher thinks consumers will ultimately “bear the costs.” Politicians set the policies and businesses will move off-shore, if need be, to places like Singapore to set up shop.
"It’s that simple," Fisher said, adding, "everyone follows their own vested interests."
Lastly the CEO said, give "American businesses a tax incentive," such as a payroll tax deduction. They will spend what they have right away and that will create more jobs.
“Let businesses invest in businesses,” Fisher concluded.
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Programming note: "The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.