EES The Forex Establishment

EES the Forex Establishment

Federal deficit surges to 1.42 trillion as 99th bank closed

2009 federal deficit surges to $1.42 trillion...

 

California bank becomes 99th in US to be closed in 2009...

FDIC bank fund in the red until 2012...

Total Collapse Will Come - Marc Faber

“We can no longer stop the big wave of dollar weakness,”

Oct. 15 (Bloomberg) -- The dollar may drop to 50 yen next year and eventually lose its role as the global reserve currency, Sumitomo Mitsui Banking Corp.'s chief strategist said, citing trading patterns and a likely double dip in the U.S. economy.

"The U.S. economy will deteriorate into 2011 as the effects of excess consumption and the financial bubble linger," said Daisuke Uno at Sumitomo Mitsui, a unit of Japan's third- biggest bank. "The dollar's fall won't stop until there's a change to the global currency system."

The dollar last week dropped to the lowest in almost a year against the yen as record U.S. government borrowings and interest rates near zero sapped demand for the U.S. currency. The Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners, has fallen 15 percent from its peak this year to as low as 75.211 today, the lowest since August 2008.

The gauge is about five points away from its record low in March 2008, and the dollar is 2.5 percent away from a 14-year low against the yen.

"We can no longer stop the big wave of dollar weakness," said Uno, who correctly predicted the dollar would fall under 100 yen and the Dow Jones Industrial Average would sink below 7,000 after the bankruptcy of Lehman Brothers Holdings Inc. last year. If the U.S. currency breaks through record levels, "there will be no downside limit, and even coordinated intervention won't work," he said.

China, India, Brazil and Russia this year called for a replacement to the dollar as the main reserve currency. Hossein Ghazavi, Iran's deputy central bank chief, said on Sept. 13 the euro has overtaken the dollar as the main currency of Iran's foreign reserves.

http://www.bloomberg.com/apps/news?pid=20601109&sid=a_A5nqmw9Dq8

Dollar collapse, hyperinflation, geopolitics, and a new gold backed currency update

New York Commercial Real Estate Collapse

Dollar weakness, curious comments from Japan

Wednesday, October 14, 2009 11:35:00 PM

* 15 Oct 09: 03:35 GMT (SGA) - FX NOW! USD/JPY, GBP/JPY Flows - MoF Fujii (after Minezaki yest): stable FX important

Alas! Some comments from MoF Fujii after "curious" comments from MoF Naoki Minezaki yesterday. MoF Hirohisa Fujii says stable FX is important both domestically and internationally - Jiji- Reuters. On FX, USD/JPY at 89.40-43, with MoF seen cautious of USD/JPY breaking toward 88.00 handle and January 87.10-12 lows - lows since 1995 - even as MoF Minezaki comments yesterday that no need to intervene when JPY rises, pushed USD/JPY from 89.30 to 88.83 - something which MoF Fujii may not want? USD/JPY bids at 89.00-20, offers still 89.80-90.00, stops on break of 90.00-05.WL

* 15 Oct 09: 03:31 GMT (SGA) - FX NOW! GBP/JPY, USD/JPY Flows - USD/JPY offers 90.00; but Cross/JPY demand to push it over

USD/JPY at 89.44-46, capped by exporters, Asian selling, but supported on back of Cross/JPY demand - with higher Aussie, Kiwi, and Euro, including Cable supporting Cross/JPY. Offer 90.00, stops above 90.00 level, while bids at 89.00-20 on the downside. Talks M.E. accounts, real money have been good buyers on dips, not surprised to hear more support at 88.50-60. GBP/JPY edging back up, to 143.55-65, while Cable up at 1.6050-55, as BoE MPC Paul Fisher rejects market views that BoE is talking down Cable to boost exports. GBP/JPY Bids at 143 lows, eye stops above 144.00. WL

US Dollar Crashes Through Major Support Level

Posted: Oct 14 2009     By: Dan Norcini      Post Edited: October 14, 2009 at 12:51 am

Dear Friends,

This evening in Asian trade, the Japanese Minister of Finance once again restated the new view out of Japan that the level of the Yen is no longer an obsession with the monetary authorities of that nation. His comments were interpreted by the Forex markets that intervention to stem the advance of the Yen is most unlikely. With that, market participants wasted little time bidding the Yen into a strong advance.

Those statements of his, combined with that of Federal Reserve Vice Chairman, Donald Kohn, that the US economy would not experience a quick or sharp recovery out of its recession, were both read by traders that US interest rates were not going anywhere anytime soon. Carry traders then beat the Dollar down below critical support near the 76 level on the USDX as they rushed into higher yielding currencies such as the Aussie and Loonie. The Euro also shot up to another new yearly high.

It is looking more and more like the current Administration has set on a course of deliberate destruction of the US Dollar and with it, the economic might that the US has enjoyed since post World War II. As said many times on the pages of this web site, the profligacy of the US has inescapable consequences and we are now seeing a rapid acceleration of the same. The fall in the Dollar is picking up momentum and that is why we are witnessing gold moving into new highs.

But gold is more than a Dollar phenomenon – Gold priced in terms of British Pounds and in Euros is relentlessly moving higher as both Great Britain and Europe, the fading West, are debasing their currencies as well.

Protect yourself from the theft of your wealth by these conscienceless politicians and monetary officials for they have sold their citizenry down the river and plundered them in the process far more thoroughly than Attila and his army of Huns ever did to Rome of old. At least the Roman inhabitants were aware of the rape and pillaging of their substance – when the general public finally awakens to the despicable looting of their treasures by these reeking buzzards, they will rush into gold with a fury that will shock even many of the readers of this site.

Click chart to enlarge this evening's action in the US Dollar in PDF format with commentary from Trader Dan Norcini

Seeking Alpha: Is the world conspiring against the US Dollar?

http://seekingalpha.com/article/165092-is-the-world-conspiring-against-the-u-s-dollar It is not unusual to see the U.S. dollar down against the Canadian dollar, and other currencies, on a day when stock market indexes are rallying. In the old days of this stock market recovery, this action would be attributed to investors leaving the safety of U.S. Treasuries and embracing risk overseas.

However, on Tuesday, the U.S. dollar's downturn is being blamed on something a little scarier: The Independent newspaper has a scoop whose headline says it all: "The demise of the dollar."

http://www.breitbart.com/article.php?id=CNG.e272eaa74dccc30f21c6ff7638b0f37b.461&show_article=1

The United Nations called on Tuesday for a new global reserve currency to end dollar supremacy which has allowed the United States the "privilege" of building a huge trade deficit.

"Important progress in managing imbalances can be made by reducing the reserve currency country?s 'privilege' to run external deficits in order to provide international liquidity," UN undersecretary-general for economic and social affairs, Sha Zukang, said.

Speaking at the annual meetings of the International Monetary Fund and World Bank in Istanbul, he said: "It is timely to emphasise that such a system also creates a more equitable method of sharing the seigniorage derived from providing global liquidity."

He said: "Greater use of a truly global reserve currency, such as the IMF?s special drawing rights (SDRs), enables the seigniorage gained to be deployed for development purposes," he said.

The SDRs are the asset used in IMF transactions and are based on a basket of four currencies -- the dollar, euro, yen and pound -- which is calculated daily.

China had called in March for a new dominant world reserve currency instead of the dollar, in a system within the framework of the Washington-based IMF.

New Currency Announced – Dollar Alternative

http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

The demise of the dollar

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

The demise of the dollar

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

Roubini warns stock markets have risen too fast as Fujii Japanese Finance Minister warns against JPY rise

http://www.bloomberg.com/apps/news?pid=20601087&sid=aM2YCVc3cUOI Oct. 5 (Bloomberg) -- New York University Professor Nouriel Roubini, who predicted the financial crisis, said stock and commodity markets may drop in coming months as the gradual pace of the economic recovery disappoints investors.

"Markets have gone up too much, too soon, too fast," Roubini said in an interview in Istanbul on Oct. 3. "I see the risk of a correction, especially when the markets now realize that the recovery is not rapid and V-shaped, but more like U- shaped. That might be in the fourth quarter or the first quarter of next year."

http://www.bloomberg.com/apps/news?pid=20601087&sid=ajTxz9pHQaNw Oct. 5 (Bloomberg) -- Japanese Finance Minister Hirohisa Fujii issued his clearest warning yet that his nation is open to intervening in the currency market even as the Group of Seven declined to criticize the tumbling dollar.

"If currencies show some excessive moves in a biased direction, we will take action," Fujii said Oct. 3 in Istanbul after a meeting of G-7 finance ministers and central bankers. He declined to say if the yen is now trading in such a way.

Socialnomics: Social Media Revolution

TONY Blair is set to be made the first President of Europe in weeks, The Sun can reveal.

http://www.thesun.co.uk/sol/homepage/news/2663036/Tony-Blair-to-head-the-EU-within-weeks.html

TONY Blair is set to be made the first President of Europe in weeks, The Sun can reveal.

The essence of the banking industry

Democratic Fundraiser Gets 24 Years For Fraud

http://www.npr.org/templates/story/story.php?storyId=113318532

Former Democratic fundraiser Norman Hsu was sentenced to more than 24 years in prison Tuesday by a judge who accused him of funding his fraud with a "conniving use of the political process."

U.S. District Judge Victor Marrero sentenced Hsu to 20 years in prison for his guilty plea to fraud charges and another four years and four months in prison for his conviction at trial for breaking campaign finance laws.

The judge said Hsu stole more than $50 million from hundreds of investors in a 10-year fraud by winning their confidence with a pristine reputation, even as he ripped them off in a complex Ponzi scheme, a recipe that the judge noted fits many white-collar crimes.

He called Hsu a "wolf in sheep's clothing."

He said his "conniving use of the political process to fund his fraud" made his crimes "much more sinister and reprehensible."

USD Index Flows

FX NOW! USD Index Flows - IMF snapshot shows USD drops as % of total reserves in Q2 2009
Wednesday, September 30, 2009 12:17:00 PM



* 30 Sep 09: 16:16 GMT (LDN) - FX NOW! USD Index Flows - IMF snapshot shows USD drops as % of total reserves in Q2 2009


A report that may be of some interest has come over Reuters. the IMF released a report that during Q2 2009, USD as a percentage of total reserves fell from 65% to 62.8%. The decline comes in the context of a climb in total reserves during the quarter by 4.8% to USD6.8 trln. The chart above shows what the USD Index did during the time period highlighted. It is worth noting that the USD index has continued to fall, which may suggest that whatever is happening to total reserves, the USD is likely to be an even smaller percentage once the Q3 data is compiled and released. M.B.


* 30 Sep 09: 15:35 GMT (NYC) - FX NOW! AUD/USD, USD/CAD Flows - Crude oil bounce helping commodity currencies


Since the release of what was a mixed bag on the EIA inventory data report, crude oil rallied to USD68.45 from USD66.25 and has helped commodity currencies AUD and CAD take back losses. In terms of the EIA data, the report showed a larger than expected rise in crude stocks while gasoline fell further than expected and distillates were up by less than anticipated. Equities are now starting to drift off lows but will need more momentum to break AUD/USD's high of 0.8837 and USD/CAD's 1.0712 low. SI


* 30 Sep 09: 15:11 GMT (NYC) - FX NOW! EUR/USD, GBP/USD Flows - No great excitement at fixing


No great excitement on EUR or GBP at the month/quarter end fixing. Cable is off lows of 1.5946 but bounce is not gathering much steam. EUR is near 1.4620/30 as equities hover near lows, but eye crude oil which has advanced in the wake of the EIA inventory report and could boost energy sector stocks (and the overall index), which would thereby give EUR a nudge. SI