RED ALERT: FX Dislocation In Process

The more I look at this the more the USD seems indestructible regardless of the state of home economy. Now that the whole world was brought into recession by the credit crisis central banks bet on the USD to get their economies back on track. IMO it's time to buy $

Latest comment from Karl over at TF

If this gets lit you will see MASSIVE FX moves. It will each back into the Euro and Pound in particular.

Watch them carefully; the destruction there will be immediate, especially in the Euro. That's the flashpoint if Eastern Europe comes apart. You could easily get a 500+ pip move that is very close to vertical.

If that happens, duck and cover; a move like that will set off a cascade and be impossible to control.

I've been watching over the last hour; futures continue to fall currently -104.00 and gold values are increasing.

www.bloomberg.com...

www.taxfreegold.co.uk...

Originally posted by ghaleon12

Originally posted by SpaDe_
If someone sucked all the US dollars out of the market what do you think that would do here? I'll tell you what it would do here. First there would be failed to delivers at banks. Then when people would go to withdraw money from their accounts some banks would either limit the amount of withdraw, or completely refuse any withdraw amount. After this, word will spread, people will panic, and a massive bank run will ensue.

Wrong. The dollars in peoples' banks don't even go on the market. That's like saying if gold goes way up in price, you wouldn't be able to access the gold in your safety deposit box.

I'm only on page 3 or so but this so far is totally not a big deal from the evidence being presented. It reminds me of the threads showing ten 1.5 earthquakes in an area and people are like "ZOMG 10 earthquakes have just hit, this is crazy unusual". A geologist would laugh at them, but who knows, maybe there is something to what's going on but I doubt it.

I believe you might have taken his post a little out of context. At one point we were discussing the effect it would have on the USA and banks if all the purchase was sold at once. It would have a great impact on the econemy here if it did.

There is a possibilty that it could effect the money in peoples bank accounts. Right now i'm more concerned in discovering the totally amount of USD purchase on F tickers tonight and where it stands with ourchase throughout history my self. That is the only way we will really know if this is a none news ordeal.

Does anyone have or know how to get this info.

For the most part people are going of a quote in the ticker forum that over a trillion were pruchased twice. It had no external link it was just a comment by a forum member.

Originally posted by townio
The more I look at this the more the USD seems indestructible regardless of the state of home economy. Now that the whole world was brought into recession by the credit crisis central banks bet on the USD to get their economies back on track. IMO it's time to buy $

It may be time to buy but if anyone does i would alos have my eyes open and be ready to sell really quick.

Asian spot price for gold as of now is only up less than 2$ from New York price on 2/12. I don't see a problem. See for yourself at www.kitco.com...

reply to post by Jim Scott


You're looking at the prices from Friday.
Look further down, you'll find this:

GOLD 02/17/2009 00:28 957.80 958.80

Originally posted by ProfEmeritus
reply to post by Jim Scott

 

You're looking at the prices from Friday.
Look further down, you'll find this:

GOLD 02/17/2009 00:28 957.80 958.80

you beat me to it gave you a star

Furthermore, here is Bloomberg:

GOLD 100 OZ FUTR (USD/t oz.) 959.000 16.800 1.78 23:55

That data is only 30 minutes old.
www.bloomberg.com...

reply to post by lightinthedark33

you beat me to it gave you a star

I starred you also. What the heck. Stars are about as worthless as US FIAT paper.

anyone had any luck finding Vol/ADV stats for the FX, or USD? LOL

I'm still looking... but I don't see it anywhere...

Originally posted by Jim Scott
Asian spot price for gold as of now is only up less than 2$ from New York price on 2/12. I don't see a problem. See for yourself at www.kitco.com...

It says Gold is up by 15 dollars, a move of 1.60%. for a comodity valued at $958 thats a pretty big move.

Originally posted by nj2day
anyone had any luck finding Vol/ADV stats for the FX, or USD? LOL

I'm still looking... but I don't see it anywhere...

yeah dude no luck....i'm starting to think it was a bogus claim not one news site is reporting it. Only thing i can find is the price of gold soaring in EU and Asian.

BBC isn't even reporting it. BBC would have to report something like that because the way the domino's would fall, they would definitly be the next market to get hit. GBP would be dead as of right now. I'm going back to re examine the op's original post real quick.

reply to post by redhatty


Just to let you know.. a bunch of us at www.wiredpirate.com have been following this news for the last week. A conglomerate known as Legatus www.legatus.org... meets every few often and the markets usually have a down turn because of it.. A lot of us believe that these people are the ones that are manipulating this process. Tomorrow.. should be interesting.

All asian markets are in the red with Seoul Composite down 3.8% and Hang Seng down 2.9 leading 'em down.

Originally posted 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]

I like how you say "nice find" and "Star and flag" right before you admit you have no idea what any of this means...just like the rest of us. But doesn't stop you from reacting like a trained seal at the first hint of a mention of something drastic and ominous and apocalyptic.... Nothing against you personally but its stuff like this, posting a very ominous sounding news snippet from an obscure website written by the person who owns the website, I mean come on guys....I'd be willing to bet less than 5 percent of the members of ATS actually know what this even means....and the author of the article makes no attempts to make things clear or understandable for us laypeople.... no he just uses as many sensationalizing and ominous sounding phrases as he can, to make the article sound as scary as possible. AND YOU ALL EAT IT UP LIKE ICE CREAM. come on, if this was such a big deal every other news network would have picked up the story just because they too want to scare us and sell papers and sensationalize as much as possible, and don't want to be outdone by the next network....

in my opinion this is another of those really big bad sounding stories that in the end doesn't really have a leg to stand on and will be forgotten as soon as the next story comes along.....

give it up....

who wants to bet this disappears by 8 am....

Originally posted by redhatty
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

messages.finance.yahoo.com...(A_to_Z)/ETFs_S/threadview?m=tm&bn=45991&tid=107495&mid=107495&tof=5&frt=2

some sources saying Karl is not crediable here

Taipei Times from 21 minutes ago

Trade volume amounted to US$800 million on the Taipei Forex. Including transactions of US$348 million on the smaller Cosmos Foreign Exchange, total turnover reached US$1.148 billion, data from the two foreign exchanges showed.

Thats only 2 exchanges

reply to post by nj2day

No, most of those sites are subscription only, but XE is saying this:

www.xe.com...

Their copyright prevents me from quoting anything from them, but you can go to the site yourself and read what they think is going on.

Originally posted by tjeffersonsghost
No story here folks so go to bed. This is just a well timed bit of market manipulation. This is the BOJ buying a ton of dollars to strengthen it up to help their exporting business which is being killed by the stronger yen. This is clear because
A. Hillary is over there
B. Honda comes out and says if we dont get a stronger USD bye bye Japan economy....

So the BOJ does some major selling of assets and putting them in dollars.....

Yep this seems the most likely scenario.