Posted on 10/14/2010 7:50:01 AM PDT by FromLori
I'm sure there are people cheering the ~0.4% move in the futures right now - higher.
Don't.
It's not good news. It's very bad news.
That's another 0.75% decline in the value of the dollar in the last couple of hours, and is very disorderly.
It's matched by this:
That's the Yen.
On a longer timeframe this is what the Yen looks like .vs. the Dollar since 2007:
That's massive. It's also basically at historical lows and support.
So much for "intervention" eh?
There's nothing good here either:
The dollar looks to be headed to 72, historical lows.
Bernanke is clearly intending exactly that sort of thing, in an orderly format. What's going on this evening is anything but orderly.
If this keeps up by the time Bernanke gets to his meeting the dollar will be lucky if it's not in the 60s, below all historical support levels. Somewhere in here it will come under severe speculative attack.
Bernanke thinks he can control this if it happens. He's wrong.
I wrote about this in 2007 and said that if it happened - the last time we were down there - it would be a catastrophe. Such an event would cause commodities to shoot the moon on a literal basis and result in massive capital flight of foreign funds out of the United States.
This is exactly the sort of trap that can lead a central banker to make the critical mistake of trying to "ease" even more - that is, print his way out. If he makes that error the currency is destroyed and when it implodes the government will go with it, as every citizen's liquid net worth will be rendered value-less overnight, exactly as occurred in Weimar.
From that outcome will come the sort of change nobody with any hint of sanity wants.
His only other option is to massively withdraw liquidity to support the dollar. That collapses every large bank - overnight.
If you think this sort of thing is "under control" you need to take a look in the mirror because you are suffering from severe recto-cranial inversion, and if you don't pull your head out soon you're going wake up with a boot on your neck.
Get your arms around this America:
Bernanke does not have the situation under control, and control is rapidly being taken over by international speculators who have more money than he does and both can and will force the issue.
Remember George Soros and the Bank of England.
We're in serious trouble; this sort of instability breeds crashes, and not just in stock markets either.
Ps: As I post this in the Yen it's still going..... at some point we'll get intervention - but will it matter? Who knows.... what I do know is that this is definitely not "orderly" by anyone's definition.
the only good news is this will flush out the dims.
The dollar index has that head and shoulders formation for 2010. A usually bearish sign.
Actually, this is the sort of change that Obama would welcome - the rebirth of America from the ashes; think Cambodia as a model.
So?
I mean, it’s horrifying, but it’s like being tied to train tracks and a train is coming, and nothing can be done.
Why force us to read this crap and make the sounds of the oncoming train even louder?
October surprise!
No matter how HORRIFYINGLY PAINFULLY TRAGICALLY AWFUL it really is, it is a MILLION times worse. Then things get *really* tough. After that, HORRIBLE things happen, and then we REALLY get screwed. Immediately following that, the BOTTOM drops out and we are all DEAD, and THEN things get HARD! Once that happens, it signifies the TOTAL collapse of EVERYTHING, and that’s when the CATASTROPHE starts! It’s the sign of the end of EVERYTHING, but after that, comes the TRAGEDY. Then times get DIFFICULT, and things get WORSE, until it’s EXCRUCIATING, but that’s just the beginning, because after that it’s all PAIN.
>>...and nothing can be done.<<
Actually, something CAN be done by each person. Different people can do different things. Some can finally take that important FIRST step and welcome Jesus into their lives as their savior. Others can invest differently, according to their means.
I bought a small farm in central Kentucky back in October of 2008. I STILL live in Seattle, but hope to be out within the next couple of months. The farm will be a lot safer (and cheaper) than urban areas.
Then there is silver. I’ve never been into precious metals, but I started buying junk silver last year. You can buy it in amounts as small as $3 (I bought a bunch of 90% silver quarters from an antique store for $3 each. That’s in the neighborhood of $18 an oz.
And start a SERIOUS garden, save until it HURTS, etc.
Yawn...
“Why force us to read this crap and make the sounds of the oncoming train even louder?”
If you don’t mind me trying to address the question - as a respected investment house put it:
Forewarned is forearmed.
Guess Bernanke is going to loose control of the fight to keep inflation under control, with our need to buy commodities with dollars and the dollar sinking, there goes the ball game.
You didn't REALLY say this.
Did you?
I smell a panic.
I’m getting desperate phone calls about folks who want trucks to haul bulk ag commodities.
Baby needs a new pair of shoes!
Sourced from 2009 article. Two Steps Forward and Three Steps Backward
The inevitable financial collapse and deep recession need to occur on Obama’s watch so the blame can be properly placed by the voters.
Just as the dims took advantage so the “crisis would not go to waste”, the Republicans, heavily influenced by the Tea Party, can use the collapse to REVERSE all of the dims plans.
Specifically, we can fix a lot by declaring national bankruptcy.
DECLARE NATIONAL CHAPTER 13 BANKRUPTCY AND APPOINT AN ALL-POWERFUL JUDGE TO DISCHARGE IT!
1. Pass a law (simple majority in Congress) to declare national bankruptcy.
2. The Bankruptcy Judge and his Trustees make all the decisions and kill all the sacred cows. Small Biz Administration, farm price supports, County Agents, Dept. of Education, National Public Radio, National Endowment for the Arts, unneeded military bases, numerous commissions, subsidies, grants, etc. would come under the knife or be eliminated. A million leftist GS14s would have to go flip burgers for a living using their liberal arts degrees.
3. Cut entitlements. Advance the age for collecting Social Security and Medicare. Re-examine every person on SSI Disability and make them prove they are disabled. De-fund Obamacare. Make it a priority to send sick illegal aliens back to their country of origin for medical care (off Medicaid). Cut Congressional pensions to ZERO since they got us into this mess. Cut Presidential pensions to zero. Cut civil service pensions to what the lowest GS4 gets.
4. Eliminate contracts. No government unions will be recognized.
5. Lay off 80-90% of all federal workers. Contract out every function that can be privatized.
6. Sell assets. GM/Chrysler stock, mortgages held by Fannie & Freddie, BLM land, some national forests, federal buildiings, mineral rights including offshore. All proceeds must be used to PAY DOWN THE NATIONAL DEBT.
7. Audit all of the Porkulus money for fraud, waste, and abuse. Hell, audit everyone who got federal contracts. Audit political “non-profits”/foundations and revoke their status if they violated their charters. Then use RICO to seize their assets and liquidate to pay down our national debt. Prosecute any who have violated the law, e.g., defrauded the government on contracts. Make fines large enough to eliminate their estates and send them to jail.
In short, use the crisis to regain power and then drive a stake through the heart of the Left. The Left has made the federal government into a vast candy store of cushy jobs, union contracts, and sweetheart contracts. We need to dig out the roots so it won’t grow back.
How’s that for a start?
LOL!
I’m in the presence of greatness.
the Bank of England was trying to SUPPORT the pound, by selling other currencies, so yes, they ran out of them.
The Fed, trying to WEAKEN the dollar can not run out of dollars to sell when they own the printing press.
Wow that is interesting Jim Roger’s is huge on commodity’s and said that was where the action would be it’s kind of scary though at the same time and about that zero inflation wrong
http://market-ticker.org/akcs-www?post=169140
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