RED ALERT: FX Dislocation In Process

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posted on Feb, 16 2009 @ 09:33 PM
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I think it has more to do with the Japanese economy, and it's disastrous slide.
www.theage.com.au...


Japan plunges into depression * Peter Martin * February 17, 2009 AUSTRALIA'S biggest and most reliable customer, Japan, has plunged into depression, with federal Treasurer Wayne Swan now warning of the worst global downturn "in our lifetimes". - Japan among worst hit - Businesses forecast losses - Australian export fears Japan's economy shrank an annualised 12.7 per cent over the December quarter, its worst result since the 1974 oil shock. Japan is by far Australia's biggest export customer, accounting for one in every five container ships that leave Australia's shores. The new figures put it among the worst-hit casualties of the global crisis. The annualised contraction of 12.7 per cent, or 3.3 per cent in quarterly terms, dwarfs those of the United States and Europe and is much worse than anything that happened to Japan during its so-called "lost decade" of recession in the 1990s. The collapse in growth fits the profile of a depression — a deep recession in which annual GDP falls by 10 per cent or more. Australia's other big customer, China, has had its growth rate almost halved from 13 to 6.8 per cent. "These figures reveal just how serious the global recession is becoming," Mr Swan said. "They follow on the heels of the worst contraction in the euro area since records began in 1980. "The last three months of 2008 are likely to have seen the sharpest synchronised downturn in the global economy in our lifetimes.


They're dumping the yen all over the place now.




posted on Feb, 16 2009 @ 09:34 PM
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Well the funny thing is that no matter how bad the U.S. economy is, many of the world's major economies are in a much worse shape.

There is a very good reason why China keeps buying U.S. debt, they even said they hate the fact that they have to do it.

What is strange is the fact that the U.S. is selling bonds to fund the stimulus, wouldn't that mean that the U.S. dollar should be forced downward?

/scratches head



posted on Feb, 16 2009 @ 09:37 PM
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reply to post by redhatty
 


Futures are down a bit


7850.41 7779.0 -158.00

Cant be good....



posted on Feb, 16 2009 @ 09:38 PM
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reply to post by nj2day
 


Wow. Thanks for that!
Clarity through explanation is a wonderful thing.
Let's hope for the best -
Weird weird times indeed.




posted on Feb, 16 2009 @ 09:38 PM
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reply to post by redhatty
 


Thanks for the Forex link
wish there was a way to overlay the different currencies lol It definitely verifies what Denninger is saying... Thats a pretty big spike within a few hours... but it seems to have leveled off...

FYI the HANG is down about 400 right now and still going...

DJ futures down over 100...

Edit: nevermind on leveling out... Forex is still showing the dollar going up


[edit on 16-2-2009 by nj2day]



posted on Feb, 16 2009 @ 09:40 PM
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Wow I just read this and was about to post this....folks this is BIG none news here. What I mean is this news is huge and its not being reported at all. This indeed is a move in the trillions. Who went down? This indeed is bankruptcy of some entity. Is it a really big bank? This has me quite nervous for I am not totally prepared for a total meltdown as of yet....



posted on Feb, 16 2009 @ 09:40 PM
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While I have a small understanding of what the discussion here is about, I am very naive as to the repercussions...

Do I hit the atm and gas station like now?



posted on Feb, 16 2009 @ 09:40 PM
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reply to post by nj2day
 





Thanks for the Forex link wish there was a way to overlay the different currencies lol It definitely verifies what Denninger is saying..


Here is the bloomberg link with currencies:
www.bloomberg.com...



posted on Feb, 16 2009 @ 09:41 PM
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Aren't Us futures blocked after reaching a certain point?

Isn't it like 200 or 400?

I remember it happening late last year.



posted on Feb, 16 2009 @ 09:41 PM
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Originally posted by TaZCoN
While I have a small understanding of what the discussion here is about, I am very naive as to the repercussions...

Do I hit the atm and gas station like now?


I was wondering the same thing...should I go hit the 24 hour grocery store before others get word? Things seem like they are about to get real ugly..



posted on Feb, 16 2009 @ 09:42 PM
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Originally posted by TaZCoN
While I have a small understanding of what the discussion here is about, I am very naive as to the repercussions...

Do I hit the atm and gas station like now?


I'm not making light of this situation at all, but the thought crossed my mind of getting over to Costco (our big box store) to stock up on more necessities.



posted on Feb, 16 2009 @ 09:42 PM
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reply to post by nj2day
 


Thank you for that insightful explanation.


2nd line.

[edit on 16-2-2009 by Walkswithfish]



posted on Feb, 16 2009 @ 09:42 PM
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reply to post by tjeffersonsghost
 

Part of the problem is T & D:
www.bloomberg.com...

T&D Holdings Inc., Japan’s largest publicly traded life insurer, plunged 9.7 percent, as the U.K.’s Financial Services Authority asked the industry to assess how well they can withstand market shocks. BHP Billiton Ltd., the world’s biggest mining company, fell 0.7 percent in Sydney as copper retreated. Brambles Ltd., the world’s biggest supplier of pallets used to move and store goods, tumbled 9.4 percent after a drop in profit prompted brokerage downgrades. “In the current market climate, there is little incentive for investors to buy stocks,” Mamoru Shimode, a Tokyo-based equity strategist at Deutsche Bank AG, said in an interview with Bloomberg Television. The MSCI Asia Pacific Index declined 0.8 percent to 80.58 as of 10:10 a.m. in Tokyo. Five stocks dropped for every two that advanced. The gauge has lost 10 percent this year, extending 2008’s record 43 percent tumble, as the credit crisis dragged the world’s biggest economies into recession. The Nikkei 225 Stock Average lost 0.8 percent to 7,690.02. Benchmark measures in other Asian markets open for trading also fell. Futures on the U.S. Standard & Poor’s 500 Index fell 1.1 percent. U.S. markets were closed yesterday for Presidents’ Day. T&D slumped 9.7 percent to 2,010 yen, tracking an 11 percent drop by the U.K.’s Legal & General Group Plc, which declined on speculation the 173-year-old British insurer may have to cut its dividend to boost capital reserves.



posted on Feb, 16 2009 @ 09:42 PM
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Originally posted by WatchNLearn
This smells a lot like what the good old Rothschild’s did back in 1815. There spread false rumours about the Battle of Waterloo, and in a nut shell 24 hours latter they financially owned England.

If this is another country say China or Russia buying up the US currency then they could easily own the US in 48 hours. A very scary situation to be sure.



The first thing I thought of was the little Kansas City Shuffle that Mayor RC pulled off.
You hit the nail on the head mi amigo.
The good old okey doke.



posted on Feb, 16 2009 @ 09:44 PM
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Ok...to the people that experienced in stocks.

Is there any reason to be worried about this at all?

It may be a long night.


Edit for horrible grammar...tired sorry.

[edit on 16-2-2009 by David9176]



posted on Feb, 16 2009 @ 09:44 PM
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ooookay. Im not a stock broker, nor am I a scheming banker, but I need to make sense of this.

Forieng currencies= Getting trashed...making our weak dollar, a Strong dollar(for the time being at low costs). Then as the market goes up from everybody buying, thats when they sell? And when they do sell it for a higher price, then that damages our dollar even more forcing us into a depression along with the rest of the world leaving only a handful of people with vast majorities of cash? Am I getting this right? Or am I off my rocker?



posted on Feb, 16 2009 @ 09:44 PM
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Originally posted by TaZCoN
While I have a small understanding of what the discussion here is about, I am very naive as to the repercussions...

Do I hit the atm and gas station like now?


LOL naw, for the average person, even if the DJIA went down to 1000 tomorrow, most people wouldn't feel it for a while...

The stock market crashed in OCT of 1929... the depression didn't start until late 1930 (some say 31 even).



posted on Feb, 16 2009 @ 09:44 PM
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reply to post by nj2day
 


Yeah, but take a look at the Euro

Starting to think this is related to Eastern Europe

Professor, as much as I would like to believe that it was Japan following through on their need to devalue the Yen, there are TOO MANY currency crosses involved tonight for it to just be Japan



posted on Feb, 16 2009 @ 09:45 PM
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Originally posted by tjeffersonsghost
Wow I just read this and was about to post this....folks this is BIG none news here. What I mean is this news is huge and its not being reported at all. This indeed is a move in the trillions. Who went down? This indeed is bankruptcy of some entity. Is it a really big bank? This has me quite nervous for I am not totally prepared for a total meltdown as of yet....


Funny you should say this. I was thinking the same thing today.
Not quite ready for it all to come crashing -
(not that I am certain what ready is REALLY going to mean).



posted on Feb, 16 2009 @ 09:45 PM
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Another quick question...
If we were to end..this currency swap..after the US currency gain, what would happen?





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