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Did Jean-Claude Juncker Just Declare Currency War?
Some flashing headlines out of Reuters on what could be the first shot in the Transatlantic currency war. In a nutshell: Europe put a top in EURUSD at 1.40. As usual, Goldman's revised call for a EURUSD to 1.55 top ticked the market. From Reuters:
The euro erased gains against the dollar in early New York trade on Friday after Eurogroup Chairman Jean-Claude Juncker said he was not happy with the euro zone single currency reaching $1.4000.
Juncker also added that the EUR is too strong, and the weakness of the dollar is not in line with economic fundamentals. Perhaps not, but it sure is in line with monetary ones. We just hope Benny and his Inkjets will be willing mercenaries to kill the European currency (for a price), after they are done with ours.
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It's not official until the starter pistol is fired.
Ready........set..................BANG!
Now it's official. Let the games begin.
Thanks CD.. I need that laugh this morning.. My stomach hurts.. :)
Yep...didn't I see a report that Europes engine (Germany) had a second month in a row of declining exports? Currency war is on...no way the Fed is going to let the only bright report (non manf ISM) that popped due to cheaper dollar exports go away...it was the only positive thing they have.
Pass the popcorn.
This world is like a bunch of stupid spoiled brats fighting in a sandbox. Im moving to Phuket Thailand, buy a grass hut on the beach, and say 'burn world burn'.
I will buy you your first beer when you get here!
Oh NICE! Party on.
...you're really there? Like, *living* there?
More to the point, when was the last time you saw a war in which the goal was to blow your own head off.
Monetary suicide bombing
I imagine Bernanke sees himself in a Keynesian heaven with 50 virgins who love to hear the story about how the Great Depression could have been avoided if only they'd printed more money...
Awesome!!!
lol, nice.
+1
I really don't mean to be negative, but you outline the only potential way one can escape this insanity. Meaning the downgrading of your standard of living to the grass hut level and move very far away from "civilization".
If one wishes to maintain some semblance of his or her previous standard of living, there really is no hiding because you assets are tied into the very system that's insane. Even if your assets are in Gold and other PMs, you must still trade those PMs within the system you're trying to escape.
The divergence in standard of living is inevitable and is happening. The redistribution of wealth from USA to Kenya is a stated goal. A very few will be upgrading, most will not, many will be lucky to stay alive. Perhaps the real goal is to maintain your standard of sanity.
Precisely and very well stated. I recognized this a decade ago and thus began my personal spiritual journey, of which I occasionally write about here on ZH.
Our printers are faster than your printers. Bring it on.
+ 1 trillion ppm
Time will tell what happens but once the Euro stabilized after the massive fall there was probably a sigh of relief...now that relief is likely turning into sweat on the forehead as the currency continues to strengthen and placing stress on the export market.
well the pop in the dollar lasted about 3 minutes
I believe there is no war America can't win if we all pull together. With Bernanke at the helm I know we can drive the dollar down to the point where no one will want it. I for one am willing to pay $100 for a gallon gas so long as the stock market and real estate prices stay artificially inflated. As long we can prevent the banks from having to realize their losses I am willing to see the value of all my savings go to zero. My only regret is that I have but one Savings account to give to my county...... U-S-A U-S-A U-S-A
That brought a tear to my eye. I would wipe it away but I don't want to ruin my new $200 cotton t-shirt.
sad but all too true.
jean-claude junker said that? the french will tire of a currency war just as soon as any other.
white flag factories ramping up assembly lines now.
A currency war is good for the world economy because we need more people printing money to ensure that no one is left behind in this race to hell. This creates jobs you know...
NO worries, France will surrender shortly
Last time I looked, they weren't exactly putting up a fight. Then again, guess you'd have to go back to 1815 for that...
urban myth has it that french male babies are born with their hands up.
Funny part about this particular form of warfare, the first to surrender maintains what is left of their economy and power, while everyone else destroys themselves.
It's like WWII, only instead of the US bombing Berlin, the US was bombing New York.
What are the two most useless things in France? The Red and Blue parts of their flag.
How many gears does a French tank have? One - reverse.
They do produce nice wine though.
if they waste any more of my money buying american toilet paper dollars i will just get up and leave. do they think we benefit from giving americans free shit which is exactly what keeping euro artificially low does? banksters convinced politicians that down is the new up and that weak currency is good but that is bullshit no matter how many economic dogmas you can throw back at me.
With the strength of the Euro they should be able to buy lots of cheap ink from Bernanke.
all they have to do is let Greece....or Portugal....or Ireland.....or Spain.....or Italy....default on 1 debt payment....
The Europeans are walking a tightrope. They can trash their currency just like we are doing but their currency is subject to a shock from the bankruptcy of one of the peripheral countires so they can't thrash too much.
Fun and games. Nevertheless, I was wondering how long it was going to take them to speak up.
"the weakness of the dollar is not in line with economic fundamentals" SO they expect the dollar to fall further!?
Apparently so!
Come on JCT.
It is time to show them YOUR FAT-FINGER.
I want EURO200 per baguette right now.
Central Bankers rule!!
Jean Claude - you are awesome when the Chinese are behind you.
Although the Mussels from Luxembourg needs to work on his acting technique.
www.youtube.com/watch?v=HDY7AC7c4h0
CD,
Do you have an add-on program, or some other way/trick of posting pictures here? I'm stumped!
HD
No magic involved. You must be a contributor to post pictures on Zero Hedge.
Tyler was kind enough to pluck me from the ZH scrum last year and make me a contributor. Zero Hedge has been suffering from Tyler's misguided decision ever since. :>)
thank you Tyler....AGAIN!!!
Well, there must be some rationale behind Tyler's kindness...right? Or else, what the 'pluck'??? I'll keep my eyes open to see if I can spot those attractive qualities of yours...
So here I am, potential Mr. New-Guy, while awaiting that email from ZH confirming my entrance into the 'club' (and never forgetting Groucho Marx's comments about club membership...), and I've prepared about 30+ pictures to post, which I thought were funny... yet not knowing that I'll just have to continue to amuse just myself with them. Oh well, at least I didn't cause any more suffering to ZH. (smile)
Care to send some my way? I won't promise anything, but I might use some in the future. If I do, I'll be sure to give you the proper attribution.
Ya never know. :>)
ZHCognitiveDissonance at gmail dot com
Wasn't TD offering @zerohedge.com emails a while back?
I don't remember that.
But of course, based upon my ZH critics, I've been asleep at the wheel since well before I became a contributor. So how the hell would I know? :>)
PC load letter
At least it's a declared war. European politicians used to think that the young American republic was a babe in woods when it came to international political intrigue and backstabbing. How the times have changed.
I am so happy that our central planners are so wise and intelligent that can know the real valuation of a currency. I dont know why we have a market. They should decide the price directly.
+ 100. That gets to the crux of the matter. Because they have done such a wonderful job....
I suppose it's got its positive side. For one, "no child left behind" will become true, as all children will be in a world of shit.
Let's see money printers in which side are more productive.
one... two... three... four... I declare a currency war
bring it on jean fraude puncker!
fuk the euro, and the euro, and that eurofag
say hello to my lill friand (inf. fiats)
USA USA USA USA
Benny and the ink jets! You made that up? I'm stealing that.
Later: “August, 2007, was when this crisis began. And if you were really
watching the markets carefully, April is when it began, when the
various hedge funds started to hemorrhage. The stock markets carried
on until October of that year. And in many ways, consumer behaviour in
the U.S. did not change until the third quarter of 2008. So there was
a massive denial problem.
THE CURRENCY WARS LOG ENTRY:
The real issue is the pace of change not the direction of the herd. I was a nobody, so I could say anything I liked, but now the situation has changed."
Jean-Claude Juncker
and
Ben Bernanke
were last seen heading to thier respective shorelines to throw symbolic stones at each other
Currency war!! Wait, we have defective ammo:
http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=14664
This is just too funny. God forbid people lose confidence in how their near worthless fiat currency looks. :>)
Since all exports to other EU countries are tabulated as "exports" although they remain within the Euro Zone the primary cause is domestic EU demand.
... Germany in trouble when EUR/USD is over 1.34..
Time to short wallpaper stocks.
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