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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (21514)	7/26/2009 8:06:41 PM
From: RockyBalboa	Respond to of 71409

Sunday-evening; looks as if we have some fast market today. DX took 79, and the european side is poorly trading. This is why I love the asian markets; they take no prisoners. Everything appears pretty clear cut.

To: RockyBalboa who wrote (21514)	7/26/2009 8:18:37 PM
From: RockyBalboa	Read Replies (2) \| Respond to of 71409

This could preceede a drop in Yen-dollar, orchestrated by the Japanese. Normally such a move as we see it right now, is accompanied by a contrasting move in the yen but it is not moving at all, it is actually limping a bit below 95. There are 2 ways to trade that. stay in the dx and short the yen. Buy any other yen cross. Or, if the pressure is in the pound alone, look for a few coins in the EUR/GBP cross (currently 86.5p)

To: RockyBalboa who wrote (21514)	7/27/2009 2:04:22 AM
From: axial	1 Recommendation Respond to of 71409

"What might be interesting for speculators and fast-trading banks is hurting exporters and the real economy." Siphoning off capital from the economic virtuous circle to non-productive speculation has become a widespread phenomenon. Banks have become hedge funds. In the US, they've been doubly enabled by taxpayer money, in addition to deposits. Why invest in companies, when better returns can be made on financial "innovations" which include bets against the companies whose success and and employment are part of a functional economy? Currency speculation is just part of a greater phenomenon - now there's no practical difference between speculators and banks: they're the same thing. In the US, stimulus money is being used to speculate; it's being retained by banks - not loaned, not credit, and certainly, not invested. Whereas in China that same money is being invested in the economy, spurring real construction, jobs, and growth, sufficient to cause Chinese officials to publicly warn about inflation risk. In China, stimulus is real money, performing useful economic function. In the US, stimulus is borrowed money, being diverted from useful economic function. Regulation and legislation have been captured by financial elites. The system is broken and corrupt; any hope of true reform diminishes with each passing day. "Greed is good" will soon reach its logical conclusion. Perhaps only then will reforms be enacted: but by that point, for most it will be too late. Jim

To: RockyBalboa who wrote (21514)	7/27/2009 4:35:03 AM
From: Real Man	Respond to of 71409

The difficulty is that the "printing" variable is nowhere to be found in the derivative models, they just work off the interest rates. I don't think "inflation" is there either, just in the tips. So, here we go. So far derivatives rule these markets, and they are now stronger than ever. So, as the dollar falls, rates will rise and stocks will rally. And vice versa. On the other hand, if rates keep rising sharply, it will lead to a major blow up. Gulp!