Peter Wayner says:
I'm perfectly willing to do a "live" demonstration of money laundering using the futures markets. In your last private letter, you suggested that we use real money. I see no reason to do for two reasons:
1) Commission costs and other fees are prohibitive for the small amount of money that I have. Plus, why would I want to spend all that money just to prove a point to you?
Several hours ago I offered in private mail to conduct a bet with you in a jurisdiction that permits such bets -- I suggested that $10,000 might make it worth your while.
2) I see no reason to go out and borrow money for what is essentially an academic exercise. This is a game for the rich. If you've only got to move $10,000 then cash and Fed Ex is fine.
Well, the return on the bet would be quite handsome -- IF YOU ARE RIGHT. (I believe one can make such bets in England -- anyone know for sure?) Given that laundering, say, $50,000 successfully would cost almost nothing other than interest costs IF YOU ARE RIGHT, the return of $10,000 on your interest costs IF YOU ARE RIGHT would be extremely nice -- on the order of thousands of percent. IF YOU ARE RIGHT, of course.
The only problems I can see in doing this well is finding a source of futures prices.
I assure you that will be the least of your problems. You can get prices all day long from most brokers, and if you knew anything at all about the futures market (you must, since you've said so much about it thus far) you'd know that you can set orders with your broker to be triggered off by a particular price being crossed. You needn't watch the market all day long.
Oh, I wanted to point out one other fact about swapping tickets: It's illegal. But it is not clear that it is illegal to just place bets on both sides of the market.
Thats fine, but you can't successfully launder money using your technique so its not suprising that its legal. Perry