Dollar Plummets As Expectations Of QE3 Spread

Tyler Durden's picture

While it is not surprising that the Swiss Franc is surging almost as much as silver in today's flight to safety episode, and even "value investor" Whitney Tilson is rumored to be shorting Netflix again after topticking his cover with immaculate perfection, what is a little disturbing is that the dollar has plunged to the lowest levels since February 3. The reason, of course, is that with global unrest spreading like Molotov cocktail fire, and implied US GDP plunging by 5% in the past week on the hike in oil prices, it is becoming very evident that the recovery myth is now over, despite claims by the NAR charlatans, and another round of quantitative easing is almost inevitable. What that means for the dollar is precisely what one can see on the chart below. As for the use of funds in the upcoming QE episode, perhaps the Fed can instruct the Primary Dealers to go out and buy some WTI this time instead of just crowding into Apple and REITs...

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Mr Lennon Hendrix's picture

Economists think a weaker dollar will improve the economy.

KING DOLLAR.

Dr. Richard Head's picture

The double-speak of the "media" and "economists" indeed numbs the mind.  Numb numb numb. 

SILVER GOD

Ragnarok's picture

Haven't we all learned to love Big Brother -> Ben Bernanke.

MsCreant's picture

The kind of love Big Brother gives is called "incest."

optimator's picture

But, remember the "Tribes" definition of incest.

"Incest is like money, its best kept in the family."

VegasBD's picture

The last couple times this has happened, I BTFD midday on forex and woke up to nice profits. Me regular trades make no sense now, but Im gonna keep BTFDs till it doesn't work anymore.

Sad.

Cindy_Dies_In_The_End's picture

dude naw.

 

the rumor yesterday was that Ben has to pull the plug.

 

Too many ticked off countries waiving their fists.

unwashedmass's picture

 

good job, Ben, good job. the world is in flames.

unwashedmass's picture

 

good job, Ben, good job. the world is in flames.

redpill's picture

OT: Existing Home Sales released

redpill advice: IGNORE THE VOLUME, LOOK A THE PRICES

As I've previously described, NAR Existing Home Sales are massively overstated, which was confirmed recently by a press release from CoreLogic, who tracks actual transactions.

http://www.calculatedriskblog.com/2011/02/corelogic-nars-2010-existing-h...

So when you see the NAR Existing Home Sales reported today,

http://finance.yahoo.com/news/Existing-home-sales-rise-rb-3604522441.html

Ignore the change in volume, it's statistically meaningless at this point.  The real news is that prices continue to fall.  In fact they've fallen to 2002 lows.  That means you would have needed to purchase your home over 9 years ago to be in positive territory.  Nothing like a lost decade of home equity to give folks another push toward strategic default.  (Try pricing them in gold for a greatly depressing view).

Further, I await the first bold property owner to get legal council and pursue the market-pumping Realtors for knowingly releasing inflated and fraudulent data.  Ok, so I won't hold my breath.

DonnieD's picture

I heard Baghdad Bob is the new spokesperson for the NAR. Apparently that Lawrence Yun clown wasn't doing a good enough job.

Temporalist's picture

More on the topic:

""It is really a foreclosure-driven market," said Ethan Harris, head of developed markets at Bank of America Merrill Lynch Global Research in New York, who projected sales would increase to a 5.38 million rate. "I don't think it is a sign of the market returning to health.""

http://www.smh.com.au/business/world-business/us-existing-home-sales-hit...

the mad hatter's picture

pray for king dollar that the DX doesn't break 77. That's the uptrend line that has been in play since 08.

 

i wouldn't be surprised if it did though. flight to safety does not mean flight to dollar anymore so one should back the truck on PMs.

Circlehook's picture

Anything REAL  Bitchezzzzzz!

umop episdn's picture

The Mock Starket goes up and the d lol ar is as good as GLD...until it's time for another round of queasing.

whatz that smell's picture

...just like that fuking midget G.G.'s sister!- she's queasy!

Sancho Ponzi's picture

The dollar is down more than half a percent today, and equities are still in the red. Rock meet hard place.

spartan117's picture

Yeah, I noticed that as well.  Not a very good sign. 

T Rex's picture

Would you loan money to a rapidly devaluing currency?

It ain't QE3 it's the piper.

 

 

LawsofPhysics's picture

Yep, both equities and dollar down, hard place indeed.  Anything real indeed, including titys and beer.

LawsofPhysics's picture

Yep, both equities and dollar down, hard place indeed.  Anything real indeed, including titys and beer.

topcallingtroll's picture

titys and beer are down too.  At least at my local tity bar.

Temporalist's picture

This may be disappointing then:

Lawmakers lukewarm, brothel owners seethe over Reid's call to outlaw prostitution

"The gallery in the Assembly chambers went silent Tuesday when Reid paused for applause after he told lawmakers from both houses that "the time has come for us to outlaw prostitution.""

http://www.lvrj.com/news/reid-urges-nevada-to-outlaw-prostitution-116672...

 

Fish Gone Bad's picture

"Primary Dealers to go out and buy some WTI this time instead of just crowding into Apple and REITs..."

They could, but everyone knows that REITs and Apple are sure things </humor>

jus_lite_reading's picture

There is only one way to prop up stock prices- devalue the dollar so it takes more dollars to buy less stock. Everything is great according to Dr. Deficit, a.k.a Kamikazi Ben.

Don't worry about oil. We don't need no stinkin' oil!

Whoops! There goes Axel Weber fleeing to his minisub!

scythian empire's picture

So long stocks or something right

jus_lite_reading's picture

No. Long silver/gold or anything tangible or that can be bartered.

If you go long stocks, you may never be able to find a buyer or sell out. Dr. Deficit has made sure, retail can only BUY but never SELL.

I won't even short deliciously cooked book companies like TOLL BROS simply because I may never be able to take profit.

Buy physical and all you can.

scythian empire's picture

I've owned a bit of silver (no longer at these levels as I'm thinking there could be some pull back), but based on the comment you yourself made, retail can buy but not sell (implying that i'd get some return in equities if owning over time).

Given the herd behaviour and adversion of change for the masses, I'm not quite ready to say that the dollar is flushed.  Maybe getting there for its status as a reserve currency though.  Ping Pang Pong is pretty annoyed with the monetezation stuff, though, really, what did they expect.

topcallingtroll's picture

Yeah what should they expect for attempting to peg us to oblivion?

dcb's picture

could be europe buying bonds as well with italy cds spreads, etc. I noticed it and thought this move strange as well

Hondo's picture

In which case Japan here we come......if we're going to create debt like water there is in fact NO differnce in the expected outcome of the US versus Japan.......all this proves one therom...that being every government official no matter where located is as dumb as a box of rocks.......makes no differnce....they can yelp all they want...the facts speak for themselves and you can't change those.

SWRichmond's picture

...if we're going to create debt like water there is in fact NO differnce in the expected outcome of the US versus Japan

Mish, is that you?  OMFG.  Empire?  Two wars in progress?  Domestric savings?  Reserve currency?  Export-based earnings?

topcallingtroll's picture

turning japanese is the optimist scenario!

scythian empire's picture

Maybe the mandate is to devalue the dollar just enough to get these home prices just in the black and thus take some of the stress of the banks?  Oh did they already give those back to the government, ie, we the people?

Cognitive Dissonance's picture

More power Scotty. I've got to have more power.

 

And yes Star Trek fans, I know the picture doesn't match the comment.

http://en.wikipedia.org/wiki/Star_Trek

Cindy_Dies_In_The_End's picture

Wait for it..it'll work eventually.

 

I heard yesterday Ben is pulling the plug. He'll have to go about his plan another way.

slackrabbit's picture

I canna print the money  fast enuf cap'n

SWRichmond's picture

Try reversing polarity, Mr. Scott.

I Got Worms's picture

An I'm a given' er all shees goot!

slackrabbit's picture

For gods sake Scotty, we've got the UK, China & EU helping US to print money...call the Austrailians, the Indians, Elvis and the women who runs the burger joint on the corner.....shit  even call Zero Hedge ...print man, print...Ohura call CNBS call in every last favour you have and dump every last bit of intergrity and get them to tell everyone 'OIL PRICES WILL NOT RISE'...we've got to keep this bs spinning

Pez's picture

Timmay: What if, now this is a big if, I give big banks US Treasury gift cards on top of 0% interest?

TheBernank: Hmmmm....rewards points, BRILLIANT!

 

Calculated_Risk's picture

I'm doubling down on dilithium crystals!!!!

Cognitive Dissonance's picture

What is this, a Star Trek convention? Sheesh. :>)

TBT or not TBT's picture

Cell phones?   The original series called em "Communicators"

Teleconferencing?    "On Screen"

1960's dude.   Everyone is infected by now.    Now if only the food replicators were on the market, this series of arab psychostate failures might not have happened.

Sucks_to_be_Smart's picture

I think it is slightly different? 

I believe Euro crosses are up because the Euro area + England has been talking more actively about possibility of raising rates to fight inflation.  With oil up so much and commodities following in an escalating geo political event, this might be a pair trade with commodities--if the trend continues, ECB and BOE will be faster to raise rates and thus currency will appreciate vs dollar where bernanke sees no signs of inflation. 

 

Does this make sense?

Dr. Richard Head's picture

It does make sense, but rhetoric and action are different in the world politic.  A rate raise would surely increase debt to GDP levels in the Eurozone and England. 

Either way, things seem to be flaring up in Greece yet again - http://apnews.myway.com/article/20110223/D9LIG4900.html

http://www.youtube.com/watch?v=T8uvzedUitY

http://www.youtube.com/watch?v=FYXiZeAks7Q

 

pazmaker's picture

"Does this make sense?"

 

Yes

zaknick's picture

Dont forget that the Russians and Chinese are actively propping up the euro with public rhetoric and deeds while worrying out loud about the banksters' dollar QE. These are the battle lines for now.