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

To: Real Man who wrote (34806)	1/30/2011 2:14:56 PM
From: ggersh	Respond to of 71475

Markit being to fragmented would'nt seem to help, unless of course you have access to all fragments. Gotta wonder if machines are now trading against other machines, which would be bad for WS(vbg). Lemmings can't be trading size another bad sign. Maybe ETF's are taking volume away better for manipulation, but more condensed less opportunity across the board. And yes WS and all markets will die if all stays as it is now, another unintended consequence of the Bernank's stupidity! -ng-

To: Real Man who wrote (34806)	1/30/2011 7:03:35 PM
From: benwood	2 Recommendations Respond to of 71475

More and more people are realizing that they'd sleep better, and retain their buying power more assuredly, if they converted their clownbucks to precious metals and stored them... safely. And they'd no longer be one of the lemmings for GS to "blow up" for all they were worth. I too think that there must be legions who want to find a way out of the corrupt system and the mother of all pyramid schemes, the US Treasures which spawn the amazing deflatable dollar.

To: Real Man who wrote (34806)	1/30/2011 7:03:58 PM
From: ggersh	1 Recommendation Read Replies (1) \| Respond to of 71475

WS, hedgie nightmare? zerohedge.com Citi's head of FX, Steven Englander, has some contrarian observations on the fate of the US dollar, which a more nuanced read may even indicate a slightly conspiratorial bent, namely that in order to cut the surging global inflation dead in its tracks (alas, too late for the regimes of Tunisia and Egypt), the dollar will have to surge even more. To wit: "If the world’s inflation problem is primarily derived from rising commodity and food prices, it is very likely that a stronger USD will help mitigate this inflation quickly and efficiently. There is a well established relationship between USD strength and weaker commodity prices." Of course, with the Printing Dutchman at the helm, what hope is there for a sustainable strong USD thesis: "The problem is that there does not appear to be a market driver for USD strength." Yet this could very well be the contrarian trade going forward as the G-20 looks aghast at events in Africa and realizes that the "last case" scenario just seems that much more credible. If this happens and there a concerted effort to reincarnate the dollar, look for the EURUSD to plunge, and all USDXXX pairs to surge in the following days, especially as the carry funding shorts realize that they will once again, just like in late 2008, be the sacrificial lambs at the altar of "Kicking the can down the road one last time"-dom. Quote Englander: "During a similar high commodity price episode in mid-2008, we saw some evidence of high reserves growth, which is unusual when the private sector is buying dollars. Moreover, then as now, market macro investor positions appeared to be long commodities. While it would be unusual for reserve managers to buy USD for inflation stabilization reasons, as a quick solution to a major problem it may be more effective than most." Full must read note from Citi, which may explain why Goldman suddenly high tailed it out of its 1.40 tactical EURUSD target without hitting it and just two days after the revision.

To: Real Man who wrote (34806)	1/31/2011 9:52:53 AM
From: No Mo Mo	3 Recommendations Read Replies (2) \| Respond to of 71475

"So, unless the Fed goes hyper and decides to become perpetual money printing machine, activity on Wall Street is likely to die out in the coming years, along with legit volume of trading. There will be more problems of the same kind, the market running out of lemmings." I think you could be tapping into a possible truth here. The ratio of HFT trades to old-fashioned investor trades has mushroomed. How many retail 'investors' have the courage and skills to brave these manipulated markets? Can't be many. I spent the weekend considering non-Bankster options for diversification out of paper investments. One big problem is portability. I know you understand what it is to emigrate if conditions dictate. Apart from one remaining family member, I'd have little reservation against re-location. A separate problem is what to do with my nest egg if it's here in the US. I can only fill my pockets with so much gold before the 'authorities' stop me and demand their 'share'. I'm only luke warm on buying real estate for rental purposes. If the US gets so uncomfortable that I want to leave, I don't think the value of rental units will be optimized. Perhaps a good idea for a new thread would be investment options outside the influence of Washington DC and Wall Street.