Trap for Investors (3) - Too Big To Fail: Foreign Exchange (Forex) Market

Data from:

Well, this is a known fact. Isn't it?
After the Nasdaq bubble, then by the Housing Bubble, followed by the Subprime Mortgage Crisis... What all US had done, and still doing it now, is to continue printing more money, and they call it stimulus and bailout.

So, we need not to be an economist to deduce that US Dollar is getting weaker and would continue so unless there is a change in the course of action.

Meanwhile, the people who hold on to cash in term of US Dollar would naturally doing their best to protect the value of their money by converting it into other "safer currency". Adding those traders and speculators encouraged by the financial houses... It is leading to another BIG BUBBLE, and it is already FORMED! That's hidden inside the Forex Market.

So, how Big is this Forex Market actually? Any idea?
Let's look that the short clip from his documentary,"Debt as Money II", Paul Grignon had a summary on that: " The transactions taken place in the Foreign Exchange Market in one week EXCEED the total value of the World Trade for Real Good & Services in the entire year."

(start from 3:11 -> 3:50)

While Forex is a HIGH LEVERAGE vehicle, some brokerage houses margin offer up to "400-to-1" or "100 to 1"!

When the public been seeing the trend of US Dollar continue for years to become weaken, they would want move their US Dollar to something else. EURO seems to be an Excellent choice, as it be trending up and up for years.

Did you ever ask that IF the Public is Right that the US Dollar is continuing to get weaker week by week, and month by month for another sure period of time, let say one year or two as suggested by some Gurus who sold newsletters...
Where are they got to claim their profit from???

So, when it come to a time that the statistics indicate most of the public money had already been sucked into Forex Market and BET on the EURO Win Over US Dollar... Something MUST HAPPEN...

So, now we have Greece Financial Crisis surface up....
Possibly follow by Portugal, and even possibly follow by Spain...

This would Create a FEAR for people to hold onto the EURO.
It will come to a point, like a crowd in a building that suddenly caught big fire everywhere, all people want to rush for the small exit all at one time, many would be burned.  And, it could collapse the EURO in a very short period of time.

Is this yet another unpredicted event?
Actually, we are all co-creating the event.
We can choose to follow or not to follow.

"When masses of people succumb to an idea, they often
run off at a tangent because of their emotion."
- Humphrey B. Neill
(The art of Contrary Thinking)


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