posted on Feb, 16 2009 @ 09:01 PM
reply to post by cosmiccat
This should go well for U.S. markets... in the short term...
He's pretty much stating that some major money just entered the FX... They are buying up U.S. dollars, which devalues other currencies against the
dollar... which in essence, means anyone who fled the USD as their primary currency, is seeing their stock values go down... Thus, they are forced to
sell... hence "forced Liquidation'.
The stocks will slide a little bit as the liquidation happens. its almost an engineered market slide.
We'll know more when we find out the motive of the market manipulation. I would imagine the powers who bought up the USD to raise the value, will
soon liquidate their USD holdings, buying up the cheaper, devalued currencies... thus making the dollar plummet, and the currency they would have just
purchased, more valuable.
There's also the possibility they are doing this to devalue the stocks in other currencies... at this point, they'd sell the USD off, and buy up the
cheaper stocks as well...
the sheer money it would take to do this is HUGE... I would be inclined to either think this has been spurred off by a foreign government...
Not many people in the world have trillions of dollars to play with in this manner... so finding the source shouldn't be overly difficult... it'll
just take time.