Debt default in United States? - Page 8
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Thread: Debt default in United States?

  1. #71
    During debt-default in United States, I thought the dollars was going to crash but to my surprise,dollars later survived the challenges and everything was going on smoothly thereafter.We need to be careful how we react to speculations that go on in the market so that we do not get trapped by following the majority opinions. I am always careful on how I go about this kind of information though the worst could happen at times but it is better to wait and see things before taking any actions on trading

  2. #72
    Quote Originally Posted by layigold View Post
    During debt-default in United States, I thought the dollars was going to crash but to my surprise,dollars later survived the challenges and everything was going on smoothly thereafter.We need to be careful how we react to speculations that go on in the market so that we do not get trapped by following the majority opinions. I am always careful on how I go about this kind of information though the worst could happen at times but it is better to wait and see things before taking any actions on trading
    That might be true. Dollar will collaps and then gold will raise much higher than current price. But you need to know too that many other countries got a lot of debt also beside this one. And that is why perhaps before dollar will collaps then they will collaps first. We need to know which one will fail first and invest accordingly with that.

  3. #73
    You have tried to point out a fundamental aspect of the USD and its possible impact. I really appreciate this. We traders have to care these things, especially when there is something about the USD flies in the market. At the end of the day, the USD plays most important rule in the Forex market. Although it was posted ages ago, but we saw how the market moved yesterday because of the US president election.

  4. #74
    US Dollars is a currency that used mostly over the world, US is one country that have big macro economy, even they in crisis like 2008 when many Bank have bancrupty, it's just make a little effect to US dollar (imagine now US has strong than before), I don't think it will debt default, besides that europe still weak, they don't get better, even England is get out from Euro, many people say it's better if europe is better to use their own currencies than have one currencies.

  5. #75
    Quote Originally Posted by yhuudy View Post
    US Dollars is a currency that used mostly over the world, US is one country that have big macro economy, even they in crisis like 2008 when many Bank have bancrupty, it's just make a little effect to US dollar (imagine now US has strong than before), I don't think it will debt default, besides that europe still weak, they don't get better, even England is get out from Euro, many people say it's better if europe is better to use their own currencies than have one currencies.
    I know about that too and i think that even if US Dollars is being used around the world quite a lot, it does not mean it is the strongest currency. Even you can check their current debt at record high around 19 trillion dollars. That is crazy and i think Trump might even go crazy to solve that problem too. This debt problem might cause a bigger crisis.

  6. #76
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    Quote Originally Posted by Value trader View Post
    Hi traders!

    You know me as price action trader, normally I’m careless about news, but this time things can be different.

    Let’s talk a bit about possible default in United States. How it will affect markets and real sector?

    First of all, I think that default scenario doesn’t absolutely make sense to politicians, either democrats or republicans. Every serious politician knows that he will do political suicide if US will go bankrupt. I should mention that market probably is not too serious about default in US. Otherwise, Gold futures would rally and trade somewhere near 1500 USD per ounce.

    Is Gold rising?

    Look at the Gold futures chart (GC) with expiration in December 2013, we see that market obviously has no interest in Gold. As you know, during financial crisis demand for gold is very high. It seems that broad market doesn’t bet on this scenario

    Attachment 1874



    Why is this happening?

    It started not yesterday or even not 2-3 years ago. In 2001 (!), when USA had positive trade balance, they were unable to cover a single penny of their debt. So, not surprisingly they can’t do it today. Their economic model is designed to consistently raise debt ceiling. If years before that it was considered as necessary but optional, now they simply can’t stop. So, I think, they will not allow United States to go bankrupt – dollar is the only valuable commodity for export in this country.



    If it happens, what to expect?


    First of all, don’t panic. Remember – markets will tend to act «flight-to-safety» scenario. But in this case, I would play against the crowd. We might see temporary decline of US dollar, and it would give good price to invest some cash in dollar buying cheap (of course, I’m talking about keeping ones money in currency, not about speculating and trading).
    Psychological reaction of decline is expectable, but don’t be with the crowd – step aside! In longer term perspective demand for US dollar will increase because QE program will be terminated after the default – termination of QE will bring deficit of dollars and increased demand.


    Bottom line:

    I don’t believe in default, but keep an eye on markets and be very careful if flight-to-safety scenario will start happening. No short term techniques will be reliable in this case – no levels will be working, volatility can become tremendous. Just keep an eye and be aware.
    these are good informations and thanks for it, there is no doubt that economy and policy of the USA affect on its currency and the pairs related to it, and they move the pairs according to the direction they want that can make balance to the currency and economy, so we need to understand the events to expect the movement of the market and trade well.

  7. #77
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    [lang=ar]is gold rising ? answer is that no one can know unless he know really how the economy goes in the next few years so better be careful when you trade gold then the best way to trade gold is using the technical analysis and make money from this way of trading , you can use patterns and price action[/lang]

  8. #78
    Quote Originally Posted by AmrHesham View Post
    is gold rising ? answer is that no one can know unless he know really how the economy goes in the next few years so better be careful when you trade gold then the best way to trade gold is using the technical analysis and make money from this way of trading , you can use patterns and price action
    The current condition will indicate a better gold over the longer term i think. While it might fall down in the face of a rate hike, it will go down to the recent dovish federal reserve in updating their own growth projection. it is something good for speculators too.

  9. #79
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    I could not understand, how the country fail to pay the debt. And how the country that has everything about the natural source and human source can being trapped in debt? And to whom the country just like america debt to? Is there super power country without debt in this earth? But why each country in this world has each own debt? To whom the each country in this world debt to?

  10. #80
    as a way it is right now because are publishing the debt ceiling has been enhanced and also the federal performs has been named back so i would likely count on this market to be able to ne theoretically generating therefore this pressure on the is usually dept problem has been solved, so i would likely count on foreign currency such as Foreign greenback and also newzeland greenback observe some benefits from the nearest long term.

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