RED ALERT: FX Dislocation In Process

Originally posted by AceOfAces
So...Does this mean inflation?

Economics isn't my best subject but this doesn't sound good at all...for anyone.

What does this mean for the U.S.?

A strong dollar makes commodities more expensive, which makes the products made from those commodities more expensive, so from that relationship, there is the potential for price increases in many of the things that we NEED, like FOOD

That is a supply line issue, not an "inflationary" issue due to the amount of USD in the system.

There is a difference

Originally posted by AceOfAces
So...Does this mean inflation?

Economics isn't my best subject but this doesn't sound good at all...for anyone.

What does this mean for the U.S.?

From what i'm gathering it means something really really bad happened in Europe or Asia. Someone has purchased a sh$% ton of USD. What will happen here is 1 of 2 things either the markets open tomorrow and people panic and we take a slight dive or nothing happens, it's a normally day but when whoever bought all the USD decides to cash in we are f'd. Am i correct here or completly wrong?

Originally posted by redhatty
reply to post by Power_Semi

 

Took gold a little while then it started to go up too.

Be careful trading on that though, because when folks implode, the sell off their gold stores and the price drops hard

I second that! lol Gold is too high right now... The time for buying gold was before it went over 800/oz...

I just don't see gold being all that reliable for gains the next few months...

IMHO, if you were going to invest... wait until the market bottoms out completely...

then pick up major stocks for pennies... and wait for them to return to true-value...

I'd avoid metals... everyone who's been worried lately has already fled there, and the bottom could drop out at a moments notice..

reply to post by lightinthedark33


One other scenario, you know that run on the money markets that happened last year - almost caused the global implosion?

It could happen again

Originally posted by lightinthedark33

Originally posted by AceOfAces
So...Does this mean inflation?

Economics isn't my best subject but this doesn't sound good at all...for anyone.

What does this mean for the U.S.?

From what i'm gathering it means something really really bad happened in Europe or Asia. Someone has purchased a sh$% ton of USD. What will happen here is 1 of 2 things either the markets open tomorrow and people panic and we take a slight dive or nothing happens, it's a normally day but when whoever bought all the USD decides to cash in we are f'd. Am i correct here or completly wrong?

100% correct lol

The strong dollar might even artificially inflate our market if the people who bought them decide to hang on for a bit...

but the day they decide to sell, we're hosed.

reply to post by Power_Semi

Look at Gold:

A 13 point jump is not at all unusual, given the volatility in all of the markets the last 3-4 months. It could just as easily go down 20 points in the next day or so. I wouldn't panic over that right now. None of the big players are looking at long term buys or sells, they're just playing the waves day to day, hour to hour, minute to minute. Until a real picture emerges, the small investor should just sit by. Otherwise, you'll get swamped by the wakes of the big ships.

Originally posted by TaZCoN

Originally posted by David9176
reply to post by tjeffersonsghost

 

WHY did I have to click on this thread...why damnit?

My eyes look like this right now.

Because you, like probably most of us here...

Selected the Red pill.

Peace Be With Us All... red pill or not.

Enjoy

Originally posted by Mercenary2007
I don't know exactly whats going on BUT IT IS NOT GOOD!!!!!

Looks like someone BIG in Asia just imploded and sparked one hell of a fire sale

I'm thinking this entity is Japan in general.

reply to post by nj2day


metals are a good investment for TEOTWAWKI, but only if you can physically hold it, ya know?

Trading gold on paper is a little too ballsy a game for me. My stones aint that big if ya know what I mean.

But I have gold eagles and krugerrands, silver eagles too

reply to post by nj2day


Here is the thing though... the only way to rectify the disparity between our (the US) collective debt and our GDP is hyper-inflation.... so Gold HAS to go high to reflect the inflation.

Originally posted by nj2day

Originally posted by lightinthedark33

Originally posted by AceOfAces
So...Does this mean inflation?

Economics isn't my best subject but this doesn't sound good at all...for anyone.

What does this mean for the U.S.?

From what i'm gathering it means something really really bad happened in Europe or Asia. Someone has purchased a sh$% ton of USD. What will happen here is 1 of 2 things either the markets open tomorrow and people panic and we take a slight dive or nothing happens, it's a normally day but when whoever bought all the USD decides to cash in we are f'd. Am i correct here or completly wrong?

100% correct lol

The strong dollar might even artificially inflate our market if the people who bought them decide to hang on for a bit...

but the day they decide to sell, we're hosed.

So for them to purchase that much USD they had to know something was about to really go down on the foreign markets. When they pulled all their $ from where it was at, it started a chain reaction and panic.

Something tells me we are going to have some more countries pissed at us in the a.m. . This seems more liek a calculated move and not just a country or nation making a large purchase. Perhaps this was even a attack of economic terrorism. That would hit us the hardest right now.

Or perhaps our goverment some how had a hand in this that would really tick everyone else off.

Either way if that buyer sells we are screwed.

edited to add on to post

[edit on 16-2-2009 by lightinthedark33]

Here's a link to Futures - finance.yahoo.com

Mini Dow Jones Indus. 7,679.00 11:15pm ET Down 100.00 (1.29%)

Originally posted by nj2day

Originally posted by redhatty
reply to post by Power_Semi

 

Took gold a little while then it started to go up too.

Be careful trading on that though, because when folks implode, the sell off their gold stores and the price drops hard

I second that! lol Gold is too high right now... The time for buying gold was before it went over 800/oz...

I just don't see gold being all that reliable for gains the next few months...

IMHO, if you were going to invest... wait until the market bottoms out completely...

then pick up major stocks for pennies... and wait for them to return to true-value...

I'd avoid metals... everyone who's been worried lately has already fled there, and the bottom could drop out at a moments notice..

I don't think it's quite that simple. If you think fiat is dead then gold or silver is a good bet. I have seen the value of my gold increase in GBP by around 40% even though it's dollar value is around the same price now as when I bought it.

The problem is that major countries are effectively bankrupt & as such the currency is set for a major kicking.

I'm prepared to bet that gold is going to go significantly higher than it is now, whether you value it in Dollars, GBP, or anything else.

Picking up stocks for pennies sounds good in principle, but the economy is so out of whack that a good number of companies are going to fail, and if we get the inflation thats likely from rampant printing then you'll be needing more than pennies to buy anything.

It is a Weak Dollar not a Strong Dollar that makes commodities and manufactured goods more expensive. The weaker the currency the more of them it takes to equate a previous parity level. For example, if it used to cost $100 for a ton of scrap steel and the dollar fell by 20% then it would now cost (ceteris paribus) $120 per ton.

Originally posted by lightinthedark33

So for them to purchase that much USD they had to know something was about to really go down on the foreign markets. When they pulled all their $ from where it was at, it started a chain reaction and panic.

It could also have been done with the intent of driving down other currencies... We won't know for a while most likely... Depends on the motive behind the move...

Something tells me we are going to have some more countries pissed at us in the a.m. . This seems more liek a calculated move and not just a country or nation making a large purchase. Perhaps this was even a attack of economic terrorism. That would hit us the hardest right now.

Yah, but there can't be a huge amount of people who could afford to pour that much money into the USD... we're talking TRILLIONS here... its a LOT of money...

Its really impeccable timing though... Most governments abandoned the USD as a reserve currency late last year...




[edit on 16-2-2009 by nj2day]

Part of last year's financial debacle was a defacto run on money market accounts (incl CP). They were temporarily covered and bank deposit insurance was raised by the FDIC from 100K to 250K but unless extended that expires at the end of 2009.

again please excuse my ignorance of such matters but is it possable this could have something to do with this ?www.reuters.com...

Wow ticker forum now locked due to so much traffic in the WTF is happening thread. People on the net are definitly aware something bad has happened.

Last post in the forum said Japan crashes vrs USD.

Hey guys, I've been sitting and thinking about why USD is going up and Gold is going up.. The simplest explanation is often the right explanation. Someone is buying gold. In order to buy gold in world market you have to first buy USD because Gold on world markets is sold in USD. That's the relationship between Gold and USD.

Also, it's probably a government that was holding other currencies, they are dumping most of their reserves to hoard lots of gold. Maybe they know something we don't.

Ok I've read 5 pages of this on here so far (which is rare) but my question is...Can the US be pulling the strings and wanting other countries to fail worst then us so that the dark ops groups (or whatever you call them) can create a New World Order?