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Euro Surges On News Chinese White Knight To Make Repeat Appearance, Attempt To Bail Out Europe For Second Time (Just As Unsuccessfully)

Tyler Durden's picture


Back in January we wrote with some amusement that China would be Portugal's knight in shining armor following a "Reuters report that Portugal is in the process of making a private placement of bonds, without announcing details on size or the buyer... The WSJ has just confirmed that China was indeed the buyer, and the amount purchased was €1.1 billion." Since then Portugese bonds have tumbled and China has taken at least a good 10% loss. Five months later, it is time to kick the can once more down the road, courtesy of the Chinese yet again, who not surprisingly don't want to experience a partial wipe out on their foolish investments across their soon to be European protectorate should Greece file tomorrow. The FT reports: "Asian investors including the Chinese government are expected to represent a “strong proportion” of the buyers of Portuguese bail-out bonds when the eurozone’s €440bn rescue fund begins auctioning them next month, according to senior fund officials.  Klaus Regling, chief executive of the European Financial Stability Facility, told reporters on Wednesday that Beijing was “clearly interested” in the Portuguese auctions and that he expected China to participate." And whoever said that stupidity follows an arithmetic progression was wrong. It's exponential: "He argued the intense interest from Asia and other international investors showed renewed confidence in the future of the euro as a currency." Uh, no. That was the bullshit excuse in January. Now it is merely an attempt to not get destroyed in the upcoming massive pan-continental "rights offering" which will see existing "investors" take haircuts of up to 50%. But since when does Europe even pretend to tell the truth.

From the FT:

“[Asia] is a region that has money to invest in the rest of the world,” Mr Regling said. “They don’t want to go only into one currency. They don’t want to go only into one asset class . . . They look at us and come to the conclusion it’s a good way to diversify.”

Chinese officials have expressed interest in investing in European assets as a way to diversify holdings in their sovereign wealth and other investment funds, which have historically concentrated on dollar-based assets. While Beijing has acknowledged it remains a significant holder in Portuguese and Greek sovereign bonds, Chinese officials have been reluctant to disclose where in Europe it will make investments.

Christophe Frankel, EFSF chief financial officer, confirmed that China had participated in its January auction, which raised cash for Ireland’s bail-out, but declined to disclose how much Beijing had invested.

China’s involvement in the triple A rated bonds issued by the bail-out fund could be an indication Beijing is focusing on ultra-safe assets rather than more risky sovereign bonds for countries such as Ireland, Portugal and Greece

In the meantime, absent this latest cash infusion, Lisbon would be broke within a month:

The move, coming soon after the bail-out was approved by EU finance ministers last week, reflects Lisbon’s urgent need for cash, with nearly €10bn in debts coming due by the middle of next month.

Naturally, the euro which can no longer discount a future further than 1 day or at most a week ahead, is surging. If history is any indication, the move is to be faded, as now it is China's turn to experience the half life effect of repeated and flawed "interventions" which have already forced the SNB and the BOJ to cease and desist from pretending they have more money than the capital markets (or, in China's case, prevent the inevitable). If anything, this last ditch pre-rights offering smacks of nothing short of desperation on the side of Europe's bloated, privileged and endlessly lying kleptocrats. That said, all the shorts which recently flipped out of the USD into the EUR will likely keep the covering momentum going for a while before the same weak marginal hands that got evaporated on the recent move up in the USD experience the same fate on the other side of the Atlantic.


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Wed, 05/25/2011 - 21:17 | 1311288 Ray1968
Ray1968's picture

Short the spike. TD is right... this will soon fade.

Wed, 05/25/2011 - 21:37 | 1311337 Ahmeexnal
Ahmeexnal's picture

Gives anyone wishing to dump their euros a little more bang for the euro so they can then exchange it for PMs, cocoa beans, parrot feathers, bags of salt, dung beetles, or any other tradeable items worth something,  before the euro -and the rest of all paper money- collapses to recycled toilet paper status.


In other news, China is building a new "wall of China" in order to prevent the hungry smelly dirty uncultured paupers of europe from entering the middle kingdom when TSHTF.

Wed, 05/25/2011 - 21:50 | 1311410 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

What's the bid/ask on dung beetles.  I WTB.

Thu, 05/26/2011 - 00:38 | 1311990 Cdad
Cdad's picture

Seriously, is this the reason the Euro just went apeshit?

The market saw sizable stop-loss euro purchases at $1.4120 and $1.4150, encouraged by a Financial Times article quoting the chief executive of the European Financial Stability Facility as saying China was "clearly interested" in buying bonds for the Portugal bailout to be issued in mid-June.  Reuters


You mean that a desperate bailout king in Euroland says this...with no actual bailout bond buying, and the Euro moves 2 cents?  So this non story is placed to suggest we are good through June?   You have got to be kidding me.  So I guess the criminal syndicate known as Wall Street was very nervous about that S&P 100 day sma issue today. 

Zero market integrity.  None.  In fact, more evidence that there is no market anymore.  

Good grief [and by that I mean just commence with the zombie apocalypse already because this bullshit is getting so tiring that I rather think I would prefer a world with the flesh eaters to one with these jack ass bankers]

Thu, 05/26/2011 - 00:52 | 1312021 Orly
Orly's picture

I'm about yay tired of getting monkey-hammered by this crap myself.

Thu, 05/26/2011 - 01:25 | 1312076 RoRoTrader
RoRoTrader's picture

what are you like a fucking saint or something, orly?'s the way i see it; China bails out the US for Years and that no longer works so its on to the next lowest common denominator which is nation states within a single currency union with a negotiated backstop by the ECB which itself is technically bankrupt.

and, to top that off the mayor of Dublin, Ireland is selling the notion that the Chinese will be coming to the Party....with plastic santas for all dummies to go around.

where is the ira when it is needed

get real........not you, Orly.... you are more than real.

can we spell/smell desperation...........the mayor of is obviously King

can you just imagine the historic implications of the Chinese in Paris?!?!.......NO!!!!!!

short the GBP, equity indexes, NZD tonight........looking to short OIL

Thu, 05/26/2011 - 01:39 | 1312106 Harlequin001
Harlequin001's picture

China prints a shit load of new Renminbi which it uses to buy a US T Bill, pledges that as collateral to a European bank for a credit line which it uses to buy Irish or any other kind of imploding debt.

If the US dollar tanks, China simply prints more money and buys another US T with which it makes good on its collateral to the European banks. If Ireland fails it demands hard assets in repayment.

This shit has got to stop. Our politicians are committing TREASON, for which we will need to slaughter our children on the mantle of nationalism when the Chinese come demanding payment on their debt.

The Chinese conjured this stuff up from thin air and will demand hard assets in repayment. What does it take to get people to understand this? These politicos are selling our countries out for nothing.

People have been shot for less...

It will take complete repudiation of all these debts and a gold standard to stop this, nothing less.

Thu, 05/26/2011 - 03:34 | 1312239 Orly
Orly's picture

But couldn't it work in the opposite direction for the Chinese?  I mean a blowback or backfire?

Suppose the Chinese conjure up renminbi and then turn around and buy all of this European paper.  Maybe they have to sell US dollars to do it and hedge their bets with physical metal, precious and base.  The USD continues to go into the tank and it turns out Gross was right and that Treasuries are a bad move.

The world panics as the US has to raise rates to raise capital and the flight is again to precious metals but not necessarily the USD.  The Chinese print more money to buy gold and European sovereign debt because they are now in the pickle they were before with the US, in that they have to keep buying or the whole thing comes down around their ears.

Inflation in China soars.  The price of gold and silver and copper and zinc soar along with it.  There comes a massive slowdown in the US economy- another round of stagflation- and we muddle through.

Meanwhile, commodity prices come off hard, maybe even crash.  The Chinese are forced to sell their commodities at a massive loss in order to keep their European investment hopes alive.  The economy is basically insolvent.

There are riots in the streets of Beijing.  US manufacturing comes back strong with new investment.  The Chinese economy becomes a net importer and inflation soars again in basic goods.

Two billion people say no mas (or whatever it is they say in China...) and there is a massive regime change, making the Middle Kingdom safe for Western "democratic" capitalism.

It seems they are going from the frying pan to the fire on this one.  I think it's all in the plan. The old bait-n-switch.

Thu, 05/26/2011 - 05:25 | 1312315 Harlequin001
Harlequin001's picture

Orly, I think the problem here is that you're still thinking pre crash. China has a problem ostensibly with a rising currency from a budget surplus, the US has the oposite. China needs a good reason to slam the Yuan whereas for the USD it is inevitable.

I can see no good reasson why the Chinese would want to hedge their bets with pm's; they want a weaker currency and magicing it up from fresh air is their only way to weaken it; buying USD's first slows the dollars decline in the short term.

My problem is that they are using this money created from nothing to compete with me and everyone else's hard earned cash. When they call it having been given hard collateral in exchange we will be at war.

Thu, 05/26/2011 - 07:10 | 1312405 Zeilschip
Zeilschip's picture

People on ZH are forgetting that the average income in some parts in (western) China is around $2. I mean China is waaay from becoming a global player, all the stories about China's $3 trillion reserves, well US firms have $3 trillion parked just outside the US, never mind what they have inside the US.

Thu, 05/26/2011 - 07:36 | 1312446 Harlequin001
Harlequin001's picture

I think this is getting off topic a bit, China is better known for its human wave tactics as opposed to sophisticated military technology, my point being that the US cannot afford its carriers and missiles; it is not the ascent of China but the decent of the West that is the problem.

My point in all of this is that there is no limit to how much of your stuff I can buy if I can create unlimited free money in my own currency, and there is no limit to how much pain you can suffer trying to repay it if you can't print it.

We need a gold standard, pure and simple...

Sovereign wealth funds should be banned.

Thu, 05/26/2011 - 07:39 | 1312447 Harlequin001
Harlequin001's picture

'People on ZH are forgetting that the average income in some parts in (western) China is around $2.'

absolutely, just think what happens next when a $5 bag of rice goes up by $5.

China calls in its debt to buy rice...

Thu, 05/26/2011 - 07:09 | 1312400 Mountainview
Mountainview's picture

The Chinese will buy the Greek Crown-Jewels,i.e. the last cash flow positive assets the Greek State owns. Afterwards it's darkness and default + exit EURO.

Thu, 05/26/2011 - 01:26 | 1312079 tiger7905
tiger7905's picture

Great Rob McEwen interview. His perspectives on Europe and bailouts, as well as gold and silver of course.

Thu, 05/26/2011 - 08:53 | 1312651 Pegasus Muse
Pegasus Muse's picture

Good stuff.  McEwen is one of the best CEOs in PM the mining industry.  His interests are properly aligned with stockholders.  Own stock in his companies.

Thu, 05/26/2011 - 07:32 | 1312438 Popo
Popo's picture

Easiest short ever.   Why do monetarists think they're in the driver's seat?   The arrogance would be funny if it weren't so sad.

Wed, 05/25/2011 - 21:18 | 1311294 chump666
chump666's picture

I know what a joke.  China is a economic and financial joke.  Check the NZD spike, claims are coming out china that they will buy New Zealand too!  So looking forward to China's meltdown in 2011.


Wed, 05/25/2011 - 22:55 | 1311646 something fishy
something fishy's picture

Go NZD! 

Thu, 05/26/2011 - 07:19 | 1312408 Zeilschip
Zeilschip's picture

Let me guess. You looking forward to making cheap shoes and toys in the US doing 14 hour shifts right? Question is though do you have the necessary skills?

Wed, 05/25/2011 - 21:25 | 1311301 lolmao500
lolmao500's picture

China has got to do something useful with their useless dollars. Like buying bankrupt countries so they can be their slaves in the future.

In other news :

New FBI Files Alleging AIPAC Theft of Government Property and Israeli Espionage Released

So... how long before those AIPAC traitors are arrested?

Wed, 05/25/2011 - 21:50 | 1311406 Bay of Pigs
Bay of Pigs's picture

This part caught my eye,

"These files, available on the Internet for the first time, reveal activities that undermined rule of law and governance.  They have wrought massive economic harm to American businesses and workers.  We urge all concerned Americans to carefully review and ponder the implications of these FBI files and other documents now available from the Israel Lobby Archive."

War on Terror indeed. Who are we fighting again?

Wed, 05/25/2011 - 22:43 | 1311592 Fedophile
Fedophile's picture

In 1985 Israel had a GDP a full 2/3s of one percent of US GDP; how much damage could have been done?

That part caught your eye because it's sensationalized. If the headline read, "a little political espionage and back and forth over tariffs that would effect only 7 companies", like the reports did (but who follows up on sources?) no one would have taken a second look.

It's a non issue; nothing to see here.

Thu, 05/26/2011 - 00:22 | 1311739 Cthonic
Cthonic's picture

I used to wear a blue suit to a certain system program office every day and learned rather quickly which foreign military sales attachés required the utmost vigilance.  It would be an error to downplay the scope or opportunistic nature of their intelligence gathering operations.

Wed, 05/25/2011 - 23:20 | 1311746 Bay of Pigs
Bay of Pigs's picture


Thanks for catching the date on that. 

Why the hell is this old news being posted right now lolmao500? I don't like AIPAC, but a 26 year old story?

Wed, 05/25/2011 - 23:25 | 1311751 Cthonic
Cthonic's picture

Because the FBI just declassified and posted it recently.

Wed, 05/25/2011 - 21:29 | 1311314 luckylogger
luckylogger's picture

double down always worked really well for me.

Didn't one of those Arab countries double down on Citi stock at 35 or so?


Wed, 05/25/2011 - 21:50 | 1311418 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

The doubling down has been watching POTUS grab ankles and "double down" for his arab brethren.  Shameful.

Wed, 05/25/2011 - 22:35 | 1311571 Kevin... Who su...
Kevin... Who suffers from Cassandras curse's picture

When you bet small..... You lose when you win?

Wed, 05/25/2011 - 21:28 | 1311328 MountainLotus
MountainLotus's picture

China want to buy a lot of EURO bonds so that it can get rid of some of US dollar and some europeans might have feel more good toward China.

Wed, 05/25/2011 - 22:37 | 1311583 Spitzer
Spitzer's picture

Eurozone: Fuck it, we are going to kick in freegold

China: Wait...We want to get more gold first

Eurozone: Ok then, buy some bonds

Wed, 05/25/2011 - 22:52 | 1311630 Ahmeexnal
Ahmeexnal's picture

More likely:

eurozone: Please help me, I'm european!

China: Confucius say we buy some eurotrash bonds, but with collateral.

eurozone: anything you ask, but please help me, I'm european!

China: Confucius say we take all gold and your women under 25 as collateral.


Wed, 05/25/2011 - 21:34 | 1311329 mynhair
mynhair's picture

Surges?  WTF?

1 hr for USDHUF to break below 190, or I'm going to bed.

(With a set 189 buy in)

Wed, 05/25/2011 - 21:28 | 1311330 gwar5
gwar5's picture

China is smart.

They get to play the good guy and prospect for future European naval bases. The ECB  will be still left to face the pitchforks.

Thu, 05/26/2011 - 05:59 | 1312338 ForexFilms
ForexFilms's picture

Yeah, maybe China will be the new ECB when it's all over.

Wed, 05/25/2011 - 21:33 | 1311353 chump666
chump666's picture

It's a distraction for their (China's) illiquid time bombs - banks.  China should just stick to what they do best building more zombie apartment loans and malls and excepting imported inflation from the US.

Some say we got 2-5yrs before the whole financial systems just collapses.  I am looking at 2011 when i hear this vomit from China

Wed, 05/25/2011 - 21:37 | 1311354 Ecoman11
Ecoman11's picture

Christine Lagarde who? Don't worry baby, Daddy is in town now.

Wed, 05/25/2011 - 21:38 | 1311360 mynhair
mynhair's picture

She be ugly.  Best they can do?

Wed, 05/25/2011 - 21:45 | 1311382 knukles
knukles's picture

Full tilt hegemony gets a little great, a lot mediocre and a whole bunch just plain nasty.

Wed, 05/25/2011 - 21:46 | 1311401 Ahmeexnal
Ahmeexnal's picture

she so feckin ugly, she could be a modern masterpiece

Wed, 05/25/2011 - 22:13 | 1311489 disabledvet
disabledvet's picture

well--she was named after a car with an attitude problem.  and we all know about women who are compared to cars...

Wed, 05/25/2011 - 21:37 | 1311365 wretch
wretch's picture

Never go full retard, man.

Wed, 05/25/2011 - 21:40 | 1311366 AccreditedEYE
AccreditedEYE's picture

What fools.. They keep trying to buy power in an Anglo-dominated world. They better keep building aircraft carriers because they are going to need them to collect.

Wed, 05/25/2011 - 21:41 | 1311371 frippy
frippy's picture

How stupid is China? Prediction: when America cedes the crown of alpha dog, China will not be there to claim it. I bet Germany comes in and scoops it up while China fumbles with its ridiculous 1000000 year plan.

Wed, 05/25/2011 - 21:44 | 1311381's picture

Tyler....what are your thoughts on Schiff vs. NIA....

Wed, 05/25/2011 - 21:44 | 1311391 Tyler Durden
Tyler Durden's picture

Haven't followed it, but here a counter question: in exposing fraud and corruption, which the NIA has done in recent months, some of which work has ended up on Zero Hedge, has it backed its findings and observations with facts, and if so, is it providing incremental information over and above what is available in the Borg?

If so, who cares if Vision Victory, or whoever is the purported head of the organization, is the 3rd coming of Tim Sykes?

Wed, 05/25/2011 - 21:45 | 1311400 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

I defer to Mr. Durden.

Wed, 05/25/2011 - 22:02 | 1311444's picture

Ronald Regan had it right..."Trust but verify.." holds true with any of our sources.... I don't mess around with Penny stocks anyways because I prefer my gambling to be conducted in Casinos....I still hope they are above board so as not to taint their message...

Wed, 05/25/2011 - 21:46 | 1311394 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

Wed, 05/25/2011 - 21:42 | 1311384 Cult_of_Reason
Cult_of_Reason's picture

Buffet said, "You only find out who is swimming naked when the tide goes out."

China is trying to prevent the tide going out because China is swimming naked too.

If there is another global financial crisis that start in Europe, Chinese Ponzi scheme economy will be exposed.

Wed, 05/25/2011 - 21:45 | 1311385 mynhair
mynhair's picture

This is looking way too wonky.  Taking 2 USDHUF at 190.7, if it gets there.

Ok, got 1.  Back to 189.

Wed, 05/25/2011 - 21:42 | 1311386 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

Apparently the US leadership does not have a patent on stupid.  The Chinese have bought everything in site, time for them to sunset like Japan.  The demographics suck because of 1 child policy.  It's all a pipe dream, but like the end of money printing.  Money Printing for wallpaper is coming.

Wed, 05/25/2011 - 21:46 | 1311388 jkruffin
jkruffin's picture

I guess Goldman is going to do anything and everything to get that 1.55 Euro/USD huh? I mean the fraud couldn't be more blatant than today.  I guess its just a matter of time tonight before we see the 300 pip move north on EUR/USD.

Wed, 05/25/2011 - 21:53 | 1311427 chump666
chump666's picture

Probably, they are a stupid firm, rich, but stupid.  The came out few days back and said "yeah bullish on commodities"  even though China's PMI sank, which is probably heading under 50 now (real data) with a nice dash of stagflation.  They know that.  Right now a big bull trap has formed on a major false breakout in the last 48hrs.  Sell on rallies towards the end week. THe China spec on buying toxic European shit came from one article - that's all!

If there are offers are top and big knock out calls...pretty safe to say you'll see some sudden selling.

Wed, 05/25/2011 - 21:50 | 1311408 samseau
samseau's picture

This is obvious.  China is trying to have the USD default before the Euro.  China is competing against the USA, and wants to see their main competetor suffer.

Wed, 05/25/2011 - 22:58 | 1311651 Ahmeexnal
Ahmeexnal's picture

Yes, this is possibly true. But this could backfire on the PRC.

He who defaults first, wins.

Thu, 05/26/2011 - 06:15 | 1312346 SirPlayomic
SirPlayomic's picture

He who does not default decides the next game's rules. China wants to be the guys that make the rules this time round, just like USA did after WWII, as that way their currency has the best chance of getting preferrential treatment, maybe even reserve status.

Wed, 05/25/2011 - 21:49 | 1311414 bob_dabolina
bob_dabolina's picture

A MASSIVE blowup has been made; just not realized. 

Throw 1 bad apple in the cart and the whole batch gets rotten. 

Wed, 05/25/2011 - 21:53 | 1311421 surfsup
surfsup's picture

Sitting right at the big 382 fibo now...  A retest of this is normal -- what it does from here is everything...

Wed, 05/25/2011 - 21:56 | 1311429 alien-IQ
alien-IQ's picture

Well...that explains the USD spelunking. I'll wait to see if the DXY bounces off 75.50 and the E/U fails to break 1.4185 and go short then if all conditions are right...otherwise it's a beer and watch.

Wed, 05/25/2011 - 21:56 | 1311430 mynhair
mynhair's picture

Putting in for 1 at 190 on USDHUF.  I may have pooched this.

Wed, 05/25/2011 - 21:57 | 1311440 RobotTrader
RobotTrader's picture

Looks like bad news for stock market bears tomorrow.

Relative strength in FCX, OIH, EEM, etc. was a heads up that another "Risk On" blast was right around the corner.


Wed, 05/25/2011 - 22:09 | 1311445 mynhair
mynhair's picture

Oh yippee, I have 3 days of roll to recover.  I don't believe it.

I never lose when hammered.

That's what a big balance is for.

Wed, 05/25/2011 - 23:19 | 1311520 RoRoTrader
RoRoTrader's picture

What is your call, Robot; 12450/500 resistance for the Dow, or a break above?

The Chinese thing looks like a stick save.........for the moment. Love the one you're with.

btw, when the FED comes to collect your gold in exchange for your share of the national debt owed to its private banks will you be taking it Greek and paying without question?........just for the record, you are a patriot at heart, right?

Wed, 05/25/2011 - 22:04 | 1311451 MikeNYC
MikeNYC's picture

Just like when all those Germans bought those Greek bonds.

And of course the Chinese announced this so, er, they'll buy them when EURUSD 1.60 instead of EURUSD 1.31?


Wed, 05/25/2011 - 22:16 | 1311488 mynhair
mynhair's picture

Minute to minute, boy.

Wed, 05/25/2011 - 22:07 | 1311461 camoes
camoes's picture

Wait till Benny Boy does a head fake and ends QE2...Risk Off down the cliff, then everyone will be beggin' him for QE3 and then to the moon S&P, Oil, Gold, Silver...rinse and repeat bitchez

Wed, 05/25/2011 - 22:07 | 1311464 oogs66
oogs66's picture

one more round of comes eu, ecb, and fed....scary to be short stocks

Wed, 05/25/2011 - 22:07 | 1311466 RoRoTrader
RoRoTrader's picture

The Chinese peasant class certainly has a nice future to look forward to; the Portuguese beaches and Spanish villas by the dozens.

China's Club Med.

Is the Eiffel Tower next?

Wed, 05/25/2011 - 23:01 | 1311664 Ahmeexnal
Ahmeexnal's picture

Nah, they'll pass on the tower. Chinese like PMs, not junk.

Wed, 05/25/2011 - 22:05 | 1311467 Weimar Ben Bernanke
Weimar Ben Bernanke's picture

They only reason China wants to save(which will not work) the euro is to have the EU lift the arms embargo against it. With this China would get all the latest western military advanced technology. China wants to gets its hands on those Eurofighter Typhoon jets,maybe some Leclerc tanks,Leopard 2a5. However the EU is so fucked up that not even China could save it. If Greece defaulting could destroy the eurozone imagine when Spain has to ask for a bailout. The EU will go down in history as the biggest fail ever. Hey at least those rapture,Israel first,Sarah palin supporters will stop thinking the EU will be the seat of power of the antichrist. I hope the EU fails and I will not shed tears when it collapses.

Wed, 05/25/2011 - 22:20 | 1311512 lizzy36
lizzy36's picture


Can hardly wait for the Chinese to hold Trichet's balls to the fire the same way the held Hank Paulson's, over their MBS holdings in Freddie and Fannie.

Wed, 05/25/2011 - 22:24 | 1311513 max2205
max2205's picture

Hot money. They are throwing a couple USD $Billion here and there like Macau

What else are they going to do with their trillions of USD?

Wed, 05/25/2011 - 22:24 | 1311525 mynhair
mynhair's picture

Ok, USDHUF seems to have stabilized.  Going for 1 at 190.5.

HUF is a good proxy for CHF, for you that wonder.

Thu, 05/26/2011 - 00:15 | 1311940 OddFieldIsStrong
OddFieldIsStrong's picture

Mynhair, I am curious why you don't go straight for CHF then. Why use HUF as proxy?

Thu, 05/26/2011 - 00:16 | 1311941 OddFieldIsStrong
OddFieldIsStrong's picture


Wed, 05/25/2011 - 22:28 | 1311533 disabledvet
disabledvet's picture

The euro is looking more and more like the proverbial "pyschopathic killer in the sorority house."  "When he's up he's coming after you.  When he's down he's coming after you, too."  I don't see how Europe's economy can function with that thing bouncing around like a super-ball with a bad sense of humor.  I will say this "at least you know the dollar pretty much stinks" throughout this "whole kaplooey."  Perhaps the the Eurolanders should start a blog?....Hmmm.  Then again...maybe not.

Wed, 05/25/2011 - 22:44 | 1311553 mynhair
mynhair's picture

Well. got an order in for 7 USDHUF at 189.  Make or break time.

No upside stops. 

Downside doesn't exist.

Wed, 05/25/2011 - 22:46 | 1311600 kito
kito's picture

china does not care if it loses money, what is gains is far more valuable. the role of a creditor. it will dictate what europe does. it will take what it wants, as it will be owed to them. to call china foolish is to not look past your nose.

Wed, 05/25/2011 - 22:48 | 1311605 mynhair
mynhair's picture

Chinee?  Dream on, like they are a FACTOR yet.

Wed, 05/25/2011 - 22:45 | 1311606 buzzsaw99
buzzsaw99's picture

China is going to stick their finger in the dyke.

Wed, 05/25/2011 - 22:47 | 1311610 mynhair
mynhair's picture

Gonna pass on this opening....

Cumon, dykes and fingers?

Wed, 05/25/2011 - 22:53 | 1311622 buzzsaw99
buzzsaw99's picture

Greek? Dyke? I had to do something with it even though it was really wrong. I see that now.

Wed, 05/25/2011 - 22:55 | 1311648 mynhair
mynhair's picture

Greek?  You said Chinee!  Have another swig, I am.

Wed, 05/25/2011 - 23:18 | 1311695 buzzsaw99
buzzsaw99's picture

A chinee panda named imf wannabe walks into a restaurant, sits down, and orders a Gyro sandwich. He eats the sandwich, pulls out a gun, and shoots the waiter dead. As the panda stands up to go, the manager shouts, "Hey! Where are you going? You just shot my waiter and you didn't pay for your sandwich!" The panda yells back at the manager, "I'm a panda! Look it up!" The manager opens his Greek dictionary and reads the following definition: A money lending marsupial of Asian origin, characterized by black and white coloring. Eats shoots and leaves. Austerity bitchez!

Wed, 05/25/2011 - 22:57 | 1311640 chump666
chump666's picture

China is doing the art of war stylee...Now they are selling EUR. 

Wed, 05/25/2011 - 22:57 | 1311655 mynhair
Wed, 05/25/2011 - 23:00 | 1311663 mynhair
mynhair's picture

Why is the title to this story racist?

White knight?  Not Yellow, Brown, or Kenyan?

Wed, 05/25/2011 - 23:04 | 1311668 theinebriatedsot
theinebriatedsot's picture

Slopes want more bonds? Must not be any more gold to be had for their FRNs. Either that or the Euro-kleptocrats sold their souls to the Chinese so they'd buy 'em........

Wed, 05/25/2011 - 23:02 | 1311672 mynhair
mynhair's picture

USDHUF refuses to hit 190.50.

Might have to chase a little here.

Wed, 05/25/2011 - 23:10 | 1311696 chump666
chump666's picture

China doesn't give a damn about the EZ - except Germany.  Massive Chinese offers on the EUR.

It's got a sinking feeling again. 

Wed, 05/25/2011 - 23:13 | 1311706 CD
CD's picture

Do you mind if I ask as to the source of / reason for your ongoing obsessive drama with the HUF? And BTW, relative to other fiat denominations, how stable do you estimate the HUF to be?

Wed, 05/25/2011 - 23:12 | 1311690 prophet
prophet's picture

Wow, what a move, almost half a percent in thirty minutes, and people give robo grief, geez. 

Wed, 05/25/2011 - 23:14 | 1311702 chump666
chump666's picture

with china net selling rather than buying = a bull strap

Wed, 05/25/2011 - 23:19 | 1311729 qussl3
qussl3's picture

How do you tell that china are net sellers? thanks!

Thu, 05/26/2011 - 00:03 | 1311898 chump666
chump666's picture

traders out of asia see CIC related selling.  look at the chart now.

Thu, 05/26/2011 - 00:04 | 1311904 qussl3
qussl3's picture


Thu, 05/26/2011 - 00:47 | 1312009 chump666
chump666's picture

then you got buyers into europe open. 

but china is talking shit like they always do...hopeless investors.

Wed, 05/25/2011 - 23:55 | 1311883 CelticWarrior72
CelticWarrior72's picture

Questions for you ZH'ers

1) If Greece defaults, what happens to the yields of the remaining PIIGS?
2) Which of the remaining PIIGS will be next to default?
3) How many Eurozone countries will remain when all is said and done?

Thu, 05/26/2011 - 00:07 | 1311914 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

Interesting thread...mynhair's USD/HUF gig has kept me on the edge of my seat.

Thu, 05/26/2011 - 00:31 | 1311968 XRAYD
XRAYD's picture

So now Goldman Sachs might have to compete to see who will own Greece, and then Ireland, and Protugal, and Spain, etc?

Thu, 05/26/2011 - 01:35 | 1312093 AldoHux_IV
AldoHux_IV's picture

The fact that the chinese want to prevent the inevitable makes me realize how idiotic they are as well.  This ponzi will blow up around the world and no one sovereign is safe.

Thu, 05/26/2011 - 01:50 | 1312124 chump666
chump666's picture

Europe is eating this China crap up right now even though there was heavy China selling few hrs ago. How embarrassing a country (China) has the biggest economic bubble in history governed by closed door maoist releases one article that they 'might' by junk from EZ, also nearly toxic NZ bonds go bid on the China con job.

Market will need to see the money next 24hrs


Thu, 05/26/2011 - 02:36 | 1312200 chump666
chump666's picture

maybe not 24hrs hedge funds aint buying the china dribble

Thu, 05/26/2011 - 02:03 | 1312152 ThreeTrees
ThreeTrees's picture

Oh that's how inflation is gonna come home to roost.  The Chinese have finally found something to do with their trillions in reserves;  by funding sovereign budget shortfalls!

Thu, 05/26/2011 - 02:11 | 1312163 chump666
chump666's picture

* China's CIC ready to spend NZ$6 bln on NZ assets and government bonds, will   buy A$6 bln in Australian assets also

...they are getting desperate. It's a smoke screen to cover up how shit the economy has become.

Thu, 05/26/2011 - 03:50 | 1312258 oak111
oak111's picture

an alternate explanation:


May be China diversifies, selling $s (or at least getting less) and getting Euros. Because they may have even less confidence in the $. Remember, beside short-term acts, they also have a long-term perspective.

Thu, 05/26/2011 - 04:49 | 1312301 chindit13
chindit13's picture

China's whole national strategy is built upon maintaining the peg to a weak dollar.  Propping up the euro lets them prolong the game, while they fight domestically (Chinese central bank vs. the Communist Party) over whether survival of the status quo is more likely under inflation/high GDP or steady prices/high unemployment.

The other part of their strategy is to run trade deficits with Germany and Japan, both to keep those countries happy with the relative value of their currencies and to obtain products the Chinese hope to reverse engineer.

Thu, 05/26/2011 - 06:31 | 1312359 writingsonthewall
writingsonthewall's picture

Meet the new white knight - same as the old white knight.

Thu, 05/26/2011 - 09:10 | 1312722 Dolemite
Dolemite's picture

Sell EuroUSD and stocks
Buy long end of US treasurys

Thu, 05/26/2011 - 09:15 | 1312765 g speed
g speed's picture

IMHO its not about money, its about property-- I keep remembering the Japanese interest in NYC ice rinks.-- maybe a little behind the curtain talk about how the Chicoms can pick up some valuable assets when the country defaults-- kind of like "they will have to give you some national treasures when they can't pay" type of talk. Big Banks and China-- great combo. 

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