Collapse of the dollar

[On Our own]

I know this is the emergency preparedness forum, not financial news, but I am increasingly concerned over things like the ICE simply voiding several thousand transactions friday with no news coverage at all...

OK so we have worked on the preparedness issue, but a dollar collapse requires more thought about barterable goods?Maybe?

What say you experts? How do you prepare for a dollar collapse?

 

[k0xxx]

IMAO, by doing basically what we are already doing, trying to become more self sufficient. Working to not having to rely on "the system" for our food, heat, etc., at least in the early stages of the chaos that would follow, while things get sorted out. It's generally the same as for preparing for any type of disaster.

In most of the dollar collapse scenarios that I have read, essential services such as food distribution, may break down (at least in the short term). This would be due mainly to the cost of fuels skyrocketing. In such a case people may have to rely on a local bartering system for things that they need, if those things are even available.

I have a small amount of gold and silver put aside for bartering, but mostly I have items of "real" value, like extra soap, salt, toilet paper, etc. Even if we are fortunate enough to escape the major effects of a dollar collapse, these things are useful, and having extra will save us money in the long term.

So, keep working on being more self sufficient, and you are way ahead of the general public.

 

[Wifezilla]

Check my Year's Worth thread. I figure even if I am wrong, having a years worth of necessary items on hand wont hurt one darn bit.

 

[enjoy the ride]

OK- what transactions are involved? Why "cancelled?" If it is not in the news, where did you hear of it? If it's in another blog, where did they hear of it?
Usually stories like this are something simple or pretty non-meaningful. More info needed.

 

[SKR8PN]

OK- what transactions are involved? Why "cancelled?" If it is not in the news, where did you hear of it? If it's in another blog, where did they hear of it?
Usually stories like this are something simple or pretty non-meaningful. More info needed.

Ditto. More info needed please!

 

[On Our own]

This is it.

ICE Cancels DXY Trades After "Impossible" Action Moves Index 9% Higher, $ Plunge Enforcement Team Arrives At Crime Scene
Submitted by Tyler Durden on 11/20/2009 09:30 -0500

CME Currencies Dollar Dollar Index Dow Jones Dow Jones Industrial Average DXY Euro Futures ICE Plunge Enforcement Team VOW

Some crazy action today on the CME around 7 am Eastern when dollar index futures surged an unbelievable 9% from 75.38 to 82.18. As apparently the CME has never seen what happened to VOW stock when the short squeeze was recreating Armageddon over at permabull Larry Robbins' office (i.e. stock moved up 100% in about an hour), we can see why they would be confused by what could have been the start of the dollar short unwind when the second leg of the Ukrainian plunge occurred earlier. So instead of validating these trades, the CME has decided to simply cancel them: because fat fingers in billions worth of futures are just so prevalent.

From MarketWatch:

The IntercontinentalExchange is probing trades in U.S. dollar index futures that briefly showed a massive 9% jump on Friday morning.

The lead contract surged as high as 82.18, up from a 75.38 close on Thursday. Such a move was improbable given that in spot markets, the dollar's moves against major currencies such as the euro were limited to about 1%.

The ICE agreed, and according to an exchange official, all trades above 76.50 were being cancelled. The ICE was still investigating the cause of the incident, the official said.
Dollar index futures were still elevated after the incident, up a more modest 0.7% to 75.91.

The move briefly had an impact on other markets, as futures on the Dow Jones Industrial Average fell as much as 99 points.
The dollar "plunge enforcement team" has been promptly woken up from its Larry Summerseqsue narcolpetic slumber and will rectify any and all attempts at a returns to fair market value.

It does show up on several business sites, but mostly in obscure places not the front of the WSJ.

 

[On Our own]

This from Market Watch

ICE probing spike in dollar index futures
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STORYCOMMENTS SCREENER (56)
AlertEmailPrintShare By Steve Goldstein, MarketWatch
LONDON (MarketWatch) -- The IntercontinentalExchange is probing trades in U.S. dollar index futures that briefly showed a massive 9% jump on Friday morning.

The lead contract surged as high as 82.18, up from a 75.38 close on Thursday. Such a move was improbable given that in spot markets, the dollar's moves against major currencies such as the euro were limited to about 1%. See Currencies.

The ICE agreed, and according to an exchange official, all trades above 76.50 were being cancelled. The ICE was still investigating the cause of the incident, the official said.

Dollar index futures were still elevated after the incident, up a more modest 0.7% to 75.91.

The move briefly had an impact on other markets, as futures on the Dow Jones Industrial Average fell as much as 99 points.

U.S. stocks and the dollar have been moving in opposite directions of late, with traders tending to borrow against the low-yielding greenback to reinvest in other assets.

That process is reversed when traders are less willing to take on risk.

Steve Goldstein is MarketWatch's London bureau chief.

 

[enjoy the ride]

OK- I'm may be very dense- but why should I get worried about what a private futures trading company does about what sort of looks like either a computer glitch or company attempt to cause an artificial spike in dollar futures?

 

[On Our own]

Dollar index futures were still elevated after the incident, up a more modest 0.7% to 75.91.

The move briefly had an impact on other markets, as futures on the Dow Jones Industrial Average fell as much as 99 points.

A single company whose "glitch can drop the market by 99 points? They're a private company like the FED is a private company. It is a controlled currency futures exchange. The amount of money that it would take to make it move like that is staggering.

Perhaps it was an incompetent move on the part of one gov't or another, but why would that be surprising? Currently the US and China are struggling over the comparative value of the dollar to the Yuan. We actually want to keep the value low and they want to push it higher so they can dump more of it. People keep thinking we want our dollar value to be high and China wants it low but it is the exact opposite.

 

[hikerchick]

Tyler Durden is an imaginary character from the movie "Fight Club".