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dm_scott
07-31-2009, 02:00 PM
"Some U.S. embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of U.S. cash to purchase currencies from those governments, quietly. But not pound sterling. Inside the State Dept., there is a sense of sadness and foreboding that 'something' is about to happen ... within 180 days, but could be 120-150 days."

http://www.marketwatch.com/story/schultz-paints-bleak-picture-of-future

Is this a legit source, or a fear monger?

Kaa
07-31-2009, 02:09 PM
...Tyler?

Kaa

rbgarr
07-31-2009, 02:10 PM
Awfully vague about that "sense of sadness and foreboding".

pefjr
07-31-2009, 02:24 PM
Is this a legit source, or a fear monger?Scot

Its market manipulation. They sell dollars, spread the rumor, buy the dollars back, party all summer. Its common Wall Street policy. Churning in the dollar.

Kaa
07-31-2009, 02:33 PM
Its market manipulation. They sell dollars, spread the rumor, buy the dollars back, party all summer. Its common Wall Street policy. Churning in the dollar.

Except that none of the legit players is likely to believe such stupid rumors...

Kaa

dm_scott
07-31-2009, 04:41 PM
I was actually looking for information, not an argument, and while I must admit to a lack of knowledge about investing and the market, I don't believe that seeking that knowledge makes me "likely to believe such stupid rumors...
".

But thanks for the advice.

ljb5
07-31-2009, 04:55 PM
"Some U.S. embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of U.S. cash to purchase currencies from those governments, quietly.

US Embassies are not our normal outposts for international money exchange.

Of course, they do a lot of business in the local currencies, such as paying the cleaning crew and the groundskeepers, so they keep local cash on hand. But that's just petty cash and is completely insignificant on the world currency market.

dm_scott
08-01-2009, 10:13 AM
Funny, found that link while reading on the US Dollar Index and forecasts that it might take another drop down into the "70's" area, like it was last March.

The article I was reading felt that the "Bank Holiday" was too far out there, but that it might make sense for the Gov to prep in advance for what appears to be an upcoming drop in the dollar.

Hence the instructions to embassy staff might actually make sense, try and save bit of coin by taking advantage of current exchange rates.