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RED ALERT: FX Dislocation In Process


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Topic started on 16-2-2009 @ 08:32 PM by redhatty
+54 more 

Market Ticker - Source



8:17 CT

I do not know what is going on here, and I don't think I want to.

Someone, apparently someone in Asia, wants dollars. A LOT of dollars. There is a forced-liquidation event underway that is massive, it is against all asset classes and it is spreading.

It originated at approximately 7:15 CT this evening and originated out of Asia somewhere. All of the primary currency crosses got hit at once - Euro, Pound, Yen - all weakened dramatically against the dollar and it is still going on. The Asian stock markets got walloped at the same time in coordinated waves of forced selling.

At the same time the US futures markets got nailed as well, down some six handles on the /ES in a near-vertical drop. While this sounds "not that big" to move these markets in a coordinated fashion like this is a trillion-dollar enterprise - this is not some small company that went bankrupt, or even a large company.

There is no news coverage at the present time identifying the source of this but it is not small and contrary to some reports it is not "automatic selling"; this is forced liquidation.

Folks, if this translates into Eastern Europe where there are severe instabilities already brewing literally everything in the financial world could come apart "all at once."

The worse news is that if this happens Bernanke will have killed us (in the US) by extending those swap lines all over the planet during the last six months. These will become utterly uncollectable and they are massive, in the many hundreds of billions of dollars.

To those who are reading this, I hope if you're in the markets you are prepared for extreme levels of violence. You must expect that the authorities will try to arrest the destruction if they are able, but you must also be prepared for the possibility that we have reached a "critical mass" point beyond which "duck and cover" is the only winning strategy.

Unfortunately.


That comes from Karl Denninger.

Will this reverse before our markets open in the morning, or are we going to see something really ugly??

I don't know, only time will tell



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reply posted on 16-2-2009 @ 08:36 PM by David9176


Nice find OP.

S & F

What exactly does this mean?

I'm not a genius when it comes to the stock market by any means.

Whatever it is, it doesn't look good.

Is this possibly similar to what happened on Sept. 11 of last year?
www.abovetopsecret.com...'[edit on 16-2-2009 by David9176]

[edit on 16-2-2009 by David9176]



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reply posted on 16-2-2009 @ 08:43 PM by Walkswithfish


A major entity or corporation going down?

How credible is this news?

Any other sources?

I read it twice, and it seems cryptic, can anyone translate?

It does not look good whatever it actually means. The author makes it sound pretty bad.



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reply posted on 16-2-2009 @ 08:44 PM by dingleberry77


Sorry, excuse the financial brainless. What does that mean in laymans terms?

I kind of get it, but don't understand the full context. Are you saying that the dollar will crash?



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reply posted on 16-2-2009 @ 08:50 PM by mommy4life


I am not sure I understand this exactly but have given you a star and flag.
Hopefully someone will come along and be able to explain it in laymans terms for me.



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reply posted on 16-2-2009 @ 08:54 PM by cosmiccat


reply to post by redhatty



excuse my total ignorance on how the markets work but isn't hilary in asia right now?if usa mkts collapsed then marshal law etc??? hope not but a thought?



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reply posted on 16-2-2009 @ 08:56 PM by redhatty


A simple table of currencies - time noted on the chart

Someone (big someone) somewhere - best guess is Asia is dumping pretty much all the asian currencies and buying US Dollars (in the currency exchange)

Last November Ben Bernanke opened swap lines all over the world, they are STILL open. These swap lines are basically foreign debt that cannot be paid, but still allow other countries to get US Dollars.

75% of the world exchange of goods is done in US Dollars

If Asia or Europe go boom on any significant scale , so do we. Literally immediately.

Right now, European and Asian currencies are going down - FAST

SERIOUS potential for BIG BOOM



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reply posted on 16-2-2009 @ 08:59 PM by tiso_us


Originally posted by cosmiccat
reply to post by redhatty



excuse my total ignorance on how the markets work but isn't hilary in asia right now?if usa mkts collapsed then marshal law etc??? hope not but a thought?


What!!! Hillery in Asia now....Well that explains it, I would not be surprised she had something to do with the forced liquidation we had back in Oct. 2008.



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reply posted on 16-2-2009 @ 08:59 PM by David9176


reply to post by redhatty



Damnit man you know I'm not going to be able to get to sleep now!

If this is true..holy crap.



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reply posted on 16-2-2009 @ 09:01 PM by nj2day


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.



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reply posted on 16-2-2009 @ 09:01 PM by Walkswithfish


reply to post by redhatty



I was reading through the ticker forum and their posts are looking a lot like ATS doom and gloom posts...

I hope they are wrong and this isn't the BIG ONE!



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reply posted on 16-2-2009 @ 09:02 PM by dingleberry77


reply to post by redhatty



Sorry, still don't get it.

Why would someone want to dump Asian and by US, considering the US is in the toilet?



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reply posted on 16-2-2009 @ 09:04 PM by redhatty


The MOST FRUSTRATING part is that we are getting absolutely NO NEWS about why this is happening.

If an Asian Central Bank just went down, we don't have any news, so we can only guess.

Eastern Europe is also on very shaky ground and this may be part of the early effect of their financial collapse.

Problem is NO ONE KNOWS - ANYTHING - just what the charts are showing



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reply posted on 16-2-2009 @ 09:04 PM by nj2day


Originally posted by dingleberry77
reply to post by redhatty



Sorry, still don't get it.

Why would someone want to dump Asian and by US, considering the US is in the toilet?


because that makes US assets cheap as hell... and easier to buy vast quantities at a time...

this isn't a speculative move on someone's part... this is sheer market manipulation... it will be good for the U.S. in the short term... until they decide to cash out... then we will plummet faster than you could ever imagine...

Its all about manipulation at this point...



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reply posted on 16-2-2009 @ 09:04 PM by TaZCoN


I have no idea what they are saying...but the guys on Karl Denningers forum
are seriously freaking out.

Talking as if global financial meltdown is indeed in progress.

Sorry if this is against the rules but here is the link

What the **** is going on with Currencies?!



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reply posted on 16-2-2009 @ 09:06 PM by dingleberry77


reply to post by nj2day



Cool, thank you. The penny has dropped (excuse the pun)

See, not a one line post.



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reply posted on 16-2-2009 @ 09:08 PM by antmax21


Any other sources on this?........I don't like the sounds of it. If they want more of our dollars...and there is plenty in circulation (actually as you said 80%) ..? I'm confused on that part..?



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reply posted on 16-2-2009 @ 09:09 PM by redhatty


reply to post by nj2day



Well said, the only problem is our markets aren't open.

Worst case scenario, it is a calculated move to do exactly what you said, increase the dollar temporarily then reverse the move and tank the dollar.

That would set off a bond market dislocation - just another form of disaster for the US.

I've NEVER seen Karl get worked up like this, and I openly admit that he knows WAY more than I do about FX



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reply posted on 16-2-2009 @ 09:11 PM by whiteraven


So is this the test that Biden and Colin spoke about?


Whatever it is I feel something is cooking.....as I guess everyone is. I will keep my ear to the ground.


do-`da-ga-g`hv-i



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reply posted on 16-2-2009 @ 09:12 PM by redhatty


reply to post by antmax21



Do a google for FOREX charts (free ones lol) they are the source

Sorry I don't have a link to one handy



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