USD Falls as Default Approaches

USD FallsUSD Falls
As Default ApproachesAs Default Approaches
By
www.ForexConspiracyRep

One might think that it is aOne might think that it is a ForexForex
conspiracy revealedconspiracy revealed as the USDas the USD
falls as default approaches onfalls as default approaches on
United States sovereign debt.United States sovereign debt.
http://www.forexconspiracyreport.com/us

There is a stated reason for HouseThere is a stated reason for House
of Representatives blocking a newof Representatives blocking a new
budget and threatening to let thebudget and threatening to let the
United States default on itsUnited States default on its
sovereign debts.sovereign debts.

It is allegedly all about ObamaIt is allegedly all about Obama
Care, the health insuranceCare, the health insurance
program intended to guaranteeprogram intended to guarantee
health insurance coverage to allhealth insurance coverage to all
Americans.Americans.

The stated complaint is thatThe stated complaint is that
everyone will have to sign up andeveryone will have to sign up and
pay for some sort of healthpay for some sort of health
insurance.insurance.

Because a small group ofBecause a small group of
politicians do not like the law theypoliticians do not like the law they
are apparently willing to wreck theare apparently willing to wreck the
Federal Government rather than letFederal Government rather than let
a law that was passed by botha law that was passed by both
houses of Congress and signed byhouses of Congress and signed by
the President take effect.the President take effect.

Well, here is a Forex alert.Well, here is a Forex alert. ThereThere
could well be more than meets thecould well be more than meets the
eye to all of this. Is this really aeye to all of this. Is this really a
Forex Conspiracy?Forex Conspiracy?

We could not conceive of a betterWe could not conceive of a better
plot for a Cold War spy novel byplot for a Cold War spy novel by
the recently deceased Tomthe recently deceased Tom
Clancy . . .Clancy . . .

Hidden behind a lot of politicalHidden behind a lot of political
posturing is a plot to bring downposturing is a plot to bring down
the US dollar, the internationalthe US dollar, the international
currency trading system, andcurrency trading system, and
international commerce. . .international commerce. . .

Trading as USD Falls as DefaultTrading as USD Falls as Default
ApproachesApproaches

As Forex traders are aware theAs Forex traders are aware the
USD dollar has slid a bit on fearsUSD dollar has slid a bit on fears
that Congress will not come to anthat Congress will not come to an
agreement on a budget not toagreement on a budget not to
mention raise the debt ceiling.mention raise the debt ceiling.
http://www.forexconspiracyreport.co
m/usd-falls-as-default-approaches/

While some may consult theirWhile some may consult their
favorite FX Conspiracy Theoryfavorite FX Conspiracy Theory
others will simply short the USDothers will simply short the USD
against the YEN, GBP, EUR, CAD,against the YEN, GBP, EUR, CAD,
CHF, or AUD.CHF, or AUD.

Trading Forex options may be aTrading Forex options may be a
better idea as the current dilemmabetter idea as the current dilemma
may simply be politicalmay simply be political
grandstanding after all.grandstanding after all.

It is no matter whether this isIt is no matter whether this is
politics as usual, or a deeper Forexpolitics as usual, or a deeper Forex
conspiracy.conspiracy.

A trader can buy puts or calls onA trader can buy puts or calls on
the USD and limit his risk to thethe USD and limit his risk to the
cost of the options contract.cost of the options contract.

A put contract gives the buyer theA put contract gives the buyer the
right to sell dollars for anotherright to sell dollars for another
currency but confers no obligationcurrency but confers no obligation
to do so.to do so.

In each case the trader will onlyIn each case the trader will only
execute his options contract ifexecute his options contract if
doing so is profitable.doing so is profitable.

And, he can also simply exit hisAnd, he can also simply exit his
contract by making the oppositecontract by making the opposite
trade and never buy or sell USD.trade and never buy or sell USD.

Selling Options when the USDSelling Options when the USD
Falls a Default ApproachesFalls a Default Approaches

We often mention on these pagesWe often mention on these pages
that those who write optionsthat those who write options
contracts i.e. sell them commonlycontracts i.e. sell them commonly
make more money than buyers.make more money than buyers.

And we always note that onlyAnd we always note that only
traders with deep pockets engagetraders with deep pockets engage
solely in selling options contracts.solely in selling options contracts.

This seems to be especiallyThis seems to be especially
important now that the Unitedimportant now that the United
States government is looking at aStates government is looking at a
first time default on its nationalfirst time default on its national
debt.debt.

From our viewpoint it seemsFrom our viewpoint it seems
difficult to believe that the hatred ofdifficult to believe that the hatred of
a few politicians could be soa few politicians could be so
intense that you would risk harmingintense that you would risk harming
the nation while pursuing a singlethe nation while pursuing a single
political issue that could always bepolitical issue that could always be
addressed later.addressed later.

Where are you Tom Clancy whenWhere are you Tom Clancy when
we need someone to write a Forexwe need someone to write a Forex
Conspiracy thriller with Ben AffleckConspiracy thriller with Ben Affleck
in the in the starring role in thein the in the starring role in the
subsequent movie.subsequent movie.

And, on a serious note, do yourAnd, on a serious note, do your
own fundamental analysis and ifown fundamental analysis and if
you do not understand what isyou do not understand what is
happening and what you could dohappening and what you could do
about it, do not risk your moneyabout it, do not risk your money
and watch events unfold.and watch events unfold.

USD Falls as Default Approaches

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