WORLD MARKETS TANKING: USD Is Losing Its Safe Haven / Reserve Currency Status!!! Funds Quit Emerging Markets!

THE STORM IS GROWING FAST!!!
MARKETS ARE TUMBLING AROUND THE WORLD — INDONESIA CRASHES AGAIN
Now this is an ugly day.

And we’ll get right to the big story: Indonesia.
The Jakarta market has been getting absolutely wrecked. For the second day in a row it has fallen more than 5%, as it’s the latest focal point for the big story of the year, which is the rush of money out of emerging markets.
Nearby, the Thai market (the SET) lost 3%.
Other losers:

• Japan -2.6%
• Italy -2%
• Germany -1.2%
• Spain -1.8%

http://www.businessinsider.com/morning-markets-august-20-2013-8
http://www.bloomberg.com/quote/JCI:IND
DOW BELLOW 15.000 LEVEL ANY MOMENT!!!
Gregor Peter ‏@L0gg0l 53 s
Today’s #forex action shows that the USD is losing its safe haven / reserve currency status, all peers are doing better
Russian Market ‏@russian_market 10 min
Look! Look! #UsdChf is trading below 0.92… But… but UBS said last week #UsdChf would go higher from 0.93
Jamie McGeever ‏@ReutersJamie 7 m
Euro at a 6-month high $1.3434. Dollar index at a 2-month low. I thought the dollar was meant to be king?
Jamie McGeever ‏@ReutersJamie 1h
Market Pulse; A volatile day in FX – Norway’s crown, Aussie and emerging Asia all slammed, euro at a 2-month high:
http://insider.thomsonreuters.com/link.html?cn=share&cid=1118212&shareToken=Mzo1ODc0Y2Q0Ni0wNWVlLTQ3ZWUtYTJlOS02NTEwNTAyNzgzNDg%3D
DOLLAR IS TANKING
http://www.marketwatch.com/investing/index/DXY
Russian Market ‏@russian_market 24 min
Must be a good joke: British Pound as the new safe haven of 2013? #GBPUSD 1.5675
Asia’s role as the world’s growth engine is waning as economies across the region weaken and investors pull out billions of dollars

The slowdown in economies such as Indonesia and Thailand is part of a “very, very global” weakness, World Bank Chief Economist Kaushik Basu told reporters in New Delhi yesterday. Photographer: Sanjit Das/Bloomberg

Asia’s role as the world’s growth engine is waning as economies across the region weaken and investors pull out billions of dollars.
The Indian rupee fell to a record low today, Thailand is in recession and Indonesian stocks have slumped about 20 percent since their peak. Chinese banks’ bad loans are rising and economists forecast Malaysia will post its second straight quarter of sub-5 percent growth this week.
The clouds forming in Asia as liquidity tightens and China’s slowdown curbs demand for commodities and goods are fueling a selloff of emerging-market stocks, reversing a flow of money into the region in favor of nascent recoveries in the U.S. and Europe. Emerging marketsfrom Brazil to Indonesia have raised borrowing costs in 2013 to try to aid their currencies as the prospect of reduced U.S. monetary stimulus curbs demand for assets in developing nations.
“The eye of the storm is directly above emerging markets now, two years after it hovered over Europe and four years after it hit the U.S.,” said Stephen Jen, co-founder of hedge fund SLJ Macro Partners LLP in London and former head of foreign-exchange strategy at Morgan Stanley. “This could be serious for Asia.”
Of the $155.6 billion investors poured into developed-market equity exchange-traded products in the first seven months this year, North American funds received $102.4 billion or 65.8 percent, according to BlackRock Investment Institute. Japan attracted a record $28 billion, while Europe-focused funds got $4.3 billion. In contrast, $7.6 billion flowed out of emerging-market funds.
http://mobile.bloomberg.com/news/2013-08-19/clouds-gather-over-asian-economies-as-capital-flows-back-to-u-s-.html
Russian Market ‏@russian_market 43 s
WSJ writes: Funds Quit Emerging Markets. (Again? Poor Russia)

Thai Stock Exchange to Hold Unscheduled Briefing as Stocks Fall

@Metis_Clio: Thai Stock Exchange to Hold Unscheduled Briefing as Stocks Fall

Thai Baht down more than 10% vs USD since April

http://www.fxstreet.com/rates-charts/live-charts/?id=usdthb&saxobank=1

India rupee down 46% from two years ago. Down 19% since May of this year alone

http://www.fxstreet.com/rates-charts/advanced-charts/?pair=usdinr

India on the brink of its own financial crisis
In a reprise of the 1997-98 Asian crisis, India’s stock market is plunging, bond yields are nudging 10% and capital is flooding out of the country
http://www.theguardian.com/business/economics-blog/2013/aug/19/india-financial-crisis-rupee-stock-markets

Here’s Why Indonesia Is Getting Demolished

http://www.businessinsider.com/what-is-going-on-in-indonesia-2013-8

It looks like 1998 again in China:
Of all the reporting trips I made in my Washington days, flying with Lawrence Summers to Beijing so he could kiss Zhu Rongji’s ring ranks among the most fascinating.
Anyone who has spent inside of five minutes with Summers knows he’s not the groveling type. But this was in January 1998, when Summers was deputy secretary of the U.S. Treasury, andBill Clinton’s White House feared China would devalue the yuan and toss more fuel onto Asia’s already blazing crisis. As we landed in Beijing, Zhu, China’s reformist premier-in-waiting, was the man to see first. Summers won pledges from Zhu not to weaken China’s currency and to keep Hong Kong’s dollar pegged to the U.S.’s.
http://www.bloomberg.com/news/2013-08-19/it-looks-like-1998-again-in-china.html
Gold Is Money, Get Over It
http://www.businessinsider.com/gold-is-money-get-over-it-2013-8
Currency rout hits India, Brazil, other emerging economies
http://www.moneycontrol.com/news/international-markets/currency-rout-hits-india-brazil-other-emerging-economies_938129.html
Deutsche: \”Either The Central Banks Lose Credibility Soon Or The Markets Have Overstretched Themselves
http://www.zerohedge.com/news/2013-08-19/deutsche-either-central-banks-lose-credibility-soon-or-markets-have-overstretched-th
Jamie McGeever ‏@ReutersJamie 1 min
Investment in euro zone periphery has collapsed by 36% from the peak, and is still falling sharply. Germany -7.5%, Ireland -60% – Goldman