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

To: Secret_Agent_Man who wrote (22873)	9/23/2009 7:17:03 AM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 71456

The Fed can't repeat its sterilized intervention? After all, this, not Lehman, caused the mega-melt in 2008 (IMHO). They are trying Summers thing with IMF gold selling, but the dollar is way too high given the size of QE. BIS derivatives numbers for June are going to be out soon, hopefully later this month. They will provide a bit of insight. I am hoping to see glass half full, a decline of notionals, for the benefit of the globe, but afraid we'll see the usual ramp of notional, decline of real value. The latter would mean further derivatives mega-bubble expansion. If they don't reign it in, we'll be facing a systemic meltdown again some time down the road, and it will be much closer in time. Perhaps, no longer than a couple of years, since the Ponzi scheme already proved unsustainable. Unfortunately, a complete meltdown was avoided last year only because the Fed and the government assumed the role of failed counterparties and became a large player in the shadow banking system. They are trying to make derivatives clear through a clearing house starting October and December. So, I am very careful again - large government actions on mega - bubbles tend to produce swans of some sort.