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European Bloodbath Intensifies As Spanish Bond Yield Hits All Time Highs, EURUSD On Verge Of Going Bidless
As we speculated two weeks ago, the key word that will be regurgitated by all pundits through the end of the year is "contagion". Sure enough, the bond vigilantes who are now fully awake and stretching have brought a mauling to Spanish bonds, where 10 Year yields are now at lifetime highs. The chart below shows what will happen to US bond prices sooner or later. Should the 10 Year experience such a move in a comparable time frame, the Federal Reserve's $56.3 billion in total capital will be exhausted about 4 times over, and Ben Bernanke will be presiding over an insolvent central bank, begging for intelligent life from Proxima Centauri to have departed about 4.27 years ago in direction earth, bringing with it an extra $1 quadrillion in Terra backstop capital.
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I love when you talk dirty, Tyler.
EURUSD ~200pip move in just about 4 hours. FX desks must be going nutssssssssss. Cant imagine anyone has time to do a 'rational' hedge after picking up a position in any EUR pair today..
Tyler: "[Benron is] begging for intelligent life from Proxima Centauri to have departed about 4.27 years ago in direction earth, bringing with it an extra $1 quadrillion in Terra backstop capital"
Now that's just crazy talk.
Everyone knows the Centauians would have to bring $1 qunitillion!
BS! When we finally make first contact with alpha centauri, they will ask us "Did you bring the Zillion babillion? We need a bailout!!!"
LET'S DO THE MACARENA BABY!!
TORRO TORRO!!
Dear P-Centaurians, please bring gold. Thanks.
They only trade in quatloos, sorry.
What's the melt value on a quatloo these days?
The Andromedans have 1 sextillion of paper shorts to suppress the value of the quatloo.
I can't find an FX rate info on quatloos on NetDania...any idea how many quatloos to our earth-fiat?
Is it time to panic yet. Who's in charge of actually calling it?
Bueller? Bueller? Bueller?
Oh yeah, it's Hugh Hendry's job.
That *is* the operative question, and I like your reference to Hugh Hendry's post.
Funny how people don't like being forced to recognize "the inevitable". The Emperor has been naked for such a long time, that people no longer realize he's naked?
IMHO, this is a time of testing where people will get to understand what kind of people they are. It actually has little to do with the financial system, and everything to do with how you conduct yourself, relate to others, and handle adversity.
On the bright side, people will now die *knowing* what kind of people they are, as opposed to those that die in their nineties, "never having lived".
I couldn't agree more.
Personal courage and intestinal fortitude is not made or created. Rather it's always found or uncovered within, usually to the complete surprise of the person being courageous. I do believe that living an honorable and empathic life is the genesis for courage. It's a natural act to be courageous externally if, on a daily basis, you practice courageous thought and intent internally. Freedom and bravery, as with everything else, begins within.
So if I catch your drift, you're suggestion concern over our current situation. Hmmmm. Let me digest that one.
The FBI is executing warrants on Wall Street, the Koreans are chucking explosives at one another, Europe is oscilating in a vortex of financial implosion, we have structurally high and persistent unemployment, a housing market that continues to erode, record deficits, two open-ended wars, a mortgage-backed securitization problem emerging of epic proportion, Federal Reserve monetization of debt as a primary monetary policy, States and municipalities in financial peril, and Bristol Palin on the verge of stealing the election....
ALL THE INGREDIENTS FOR A MASSIVE RALLY!!!!!!
Damn you economessed, damn you to hell.
I completely forgot about that friggin' wall of worry. :>)
Had me lol over here, that pretty much sums it up alright!
lol brilliant
+++
Damn. I'd forgotten about Bristol.
Time to Panic!
that last graph looks like a diagram I got when I was 5 years old.
It was about tying my shoelaces:
Over the mountain
Down the cliff
hit rock bottom
...
just simply ..........Faggapotomus†
I humbly submit: "fagasaurus rex" for further deliberations
i boldly submit: Fagasaurus Sex†
Proxima Centauri will never aid us after we shot up one of their saucers back in '48.
I think you're meaning this earlier incident:
http://en.wikipedia.org/wiki/Battle_of_Los_Angeles
I think those were Empire of Japan balloon bombs..
I was referring to this.
http://www.ufocasebook.com/ltgorman.html
dammit, make it stop. The Power of Christ Compels YOU! The Power of Christ Compels YOU!
Didn't I just read a story that the Catholic Church was looking for more exorcists?
It's in The Washington Post so it must be true.
After 2 days of training, they are like TSA agents now.
I read someplace yesterday that TSA agents are like DMV employees with cattle prods.
Holy cow! Laughed so hard I fell off my chair. Thanks, I needed that!
That saucer was actually a weather balloon, from the Crab Nebula.
Meanwhile, throughout the conflagration....
Investors continue to pile money into the "safe havens"...
The higher the P/E ratio, the better.
LOL....
Uhhh, safe haven buying started when trading opened today due to Korean shelling. Those are all week long charts. If you want to show safe haven buying, post charts from today. This isn't rocket science. Use some common sense for once.
these are really entering classic blow-off top phases. the underlying products may be good but the P/Es are just ridiculous. we'll see if the tech sector can bring the entire market back again today or not. yesterday's mid-day rally was very unusual given the Euro, commodity, bond context in which it occurred. there is a huge S&P gap to fill on the upside.
And there are some huge Nasdaq 100 gaps to fill on the downside. Some gaps take years to fill.
Agreed. Lulu and netflix safe havens?
Qid
duplicate...
Indeed. Now that the Euro has broken down, we could see a re-trace of all the QE2 rumor ramp from 1.26. That would leave stocks potentially re-tracing back to ~1040. However, with yesterday's unbelievable buyback into the close we need to remain wary of that possibility.
i shorted DIS yesterday against 37. i got a feeling that a trip to disney is a little less important than getting your kids molested at the airport; plus the uptrend is broken on the 3 month.
I refuse to fly anywhere right now with that TSA bs going on. We really have to draw the line somewhere.
By 'investors' I assume you mean 'Banana Ben Bernanke'?
that stock LULU has a funny name.
Maybe I should put all my money over there
Blame Oprah and her favorite things for that POS.
Doesn't Oprah switch to her own production company in Jan 2011? Maybe I can invest in Oprah?
Smart man CD... getting long the female empathy trade. :)
'Safe havens' and no gold chart?
Yes, *plainly* in the event of a east Asian thermonuclear war or a European currency implosion, the first concern, beyond even shelter and sustencance, will be overpriced yoga gear and internet movie rentals.
The real safe haven is gold. Funny, no chart of that. You must be puking up blood.
I've been bangin NFLX since they figured out that streaming thingy.
How you say in your country-- "easy money?"
...Also setting up for a juicy acquisition.
sadly Europeans dont have The Ben Bernank
They just have Axel Weber waiting in the wings, ready to pull Germany out of the Euro.
Thats the latest whisper going round.
While everyones watching the Pigs their ignoring the man behind the curtain.
I wonder how the transition will be out of euro...
My guess is that it'll be all electronic until a new set of paper money is out of the printing house. Activity around printing locations (worldwide) should be carefully monitored for clues.
There are actually very few businesses in the world that print currency, mostly in Germany and Switzerland. However, they are all private and very good at keeping secrets.
Doom, Maybe you meant...
sadly Europeans don't have The B(enbern)ank.
Don't they? Isn't Chopper Ben sending billions of taxpayer-backed magic insta-poof-money overseas as part of all this TBTF bailout criminal enterprise? Remember, the 'fed' isn't made up of american banks only.
We've been helping prop up euro banks as well, and as the lender of last resort to the planet, Bernankenstein will hit the zero number key on that fed computer as fast as he can to continue kicking the can down the road to Funworld.
Are we talking quadrillions yet? Trillions sounds so passe....so 2008ish.
Does the Ben Bernank have any relevant industry experience?
Does South of the Border count?
I jumped out of this earlier today. This really did shock me just how much it bombed. Sorry, is still bombing.
This is the most important development for me. Forget Korea or China. If Spain keeps going higher the Euro will be in a dire situation. A bailout will become impossible, and we will finally see some defaults. That will echo throughout the world stock markets.
Exactly.
It will be an "assume the fetal position" market.
How's it impossible? Creating paper assets is magical and full of possibilities.
OOOPS! I meant to say paper liabilities.
Yes, forget Korea. It was such an obvious calculated political move by NK. It's all about Kim insuring a transfer of power to his son and getting the US back to the bargaining table to blackmail us for more free stuff. Waaaa, we have P-2 centrifuges, waaaa, we have artillery, waaaaaa, pay attention to us, waaaaa...
The South didn't retailate for sinking their ship, they won't provoke a wider conflict for this incident either.
HAVE A HOLLY, JOLLY CHRISTMAS...
When will gold be revalued to >$5000?
http://www.youtube.com/watch?v=gNIwlRClHsQ
How long will the Ben Bernank and Criminal Cabal maintain fiat religion and puritanical paperbug populism?
Prior to the end of 2011. You can quote me on that.
Does this mean Ben's attempt to lower the USD exchange rate has failed once again?
Sorry Ben. I guess it's time to hit the office and plot QE3.
quadrillion. has a nice ring to it.
We're going to need to create new words to describe the inputs necessary: EVOCTILLIAN, INFINITILLIUM, DODECADUPLAWONDERPILLIAN.
I like: Bankruptillian
Ah, the descendant of the "trifagatops"
Absolutely F'ing funny. Got peeps peeking into my orfice to see what the problemo is. I'm stealing that, sorry.
Overheard at the gas station: "Can you break a Bankruptillian?" Answer: "Yeah, but I'll have to give you all worthlesstillions back in change."
eleventy cajillion.
Bernankium
You forgot GODZILLIAN.
Things are Shirley geetin' hot around here.
Rumack: Can you fly this plane, and land it?
Ted Striker: Surely you can't be serious.
Rumack: I am serious... and don't call me Shirley.
http://www.youtube.com/watch?v=dBlqSCKYMN0
But they will be held to maturity so there's no problem, right? Right? It works for the banks, why not for the central bank...
<sarcasm/>
"...Ben Bernanke will be presiding over an insolvent central bank..."
will be?
just how does the printing press go bust?
the EU countries can't print their own paper but BB can and to counter such a massive fall in yield he could, gulp, buy more?
Even the "worst of the worst" is getting dryhumped today, like The New York Times..
And amazingly enough, no one cares, as the FED is the only one doing any buying of the garbage.
and Silver is down 19 cents to 27.45???
yeah right......
Remember, it's expiry day today. The backroom boys are straining like crazy to hold silver down until 1:30 pm. After that, *SPROING*. $30+ silver, anyone?
Nothing seems to be able to stop the mad stampede into retail stocks.
Look at that volume. Stampede my ass.
Pretty easy to prop up the garbage when only a couple trading desks are just setting the bid in an empty market wherever they want.
Robotroll posts the same chart over and over, now with a whiplash neck brace on and coughin up blood...
XRT is flat on the day. You should change your name to Confirmation Bias.
Gold reversing already and Silver did not follow. Remember, the line in the sand today is 1340.
?
gold shining much more than silver today, weee
This kids, is why diversification is important. Bwahahaha!
lol ya. its just silver is not an option for me unfortunately
You are the genius that keeps posting about gold and silver crashing daily even as they rise. Give it up, robotroll already has that gig.
Sorry, I was out for coffee; did I miss something?
Eurozone banksters providing cover for Bernanke's printing by talking up EU debt worries. The sequential, not concurrent, debasement continues, while all eyes are on USDX.
Does not matter how high Spanish bonds go because they said they are 'ok'. duh.
Wait until Austria banks finally collapse,as you can see in this link
http://www.economist.com/node/16892013, the situation in Austria is very bad indeed
As in 1931, it may well be the Austrian banking sector that is the final nail in the coffin of the current globalized financial order.
Every market on the planet is "RED" !
except Japan
http://www.sgxniftydowfutureslive.com/index_files/DOWFUTURES.htm
go figure ?
Italy and Spain getting Hammered !!!!!!!!!!!!!!!!!!!!
i don't think Japan was open today. last i checked their data was from yesterday.
The Dollar has made a higher high today, and also broke out of the channel line, bullish!!!
So do you think that after all this shit the globalists will fold their tent?
It has been said that arguing against globalization is like arguing against the laws of gravity.
Kofi Annan
Globalization, as defined by rich people like us, is a very nice thing... you are talking about the Internet, you are talking about cell phones, you are talking about computers. This doesn't affect two-thirds of the people of the world.
Jimmy Carter
NAFTA recognizes the reality of today's economy - globalization and technology. Our future is not in competing at the low-level wage job; it is in creating high-wage, new technology jobs based on our skills and our productivity.
John F. Kerry
We must take care that globalization does not become something people become afraid of.
Gerhard Schroeder
Contagion has become very much a phenomenon, and it's a phenomenon of globalization.
Lawrence Summers
At least Jimmy admits he's rich lol.
Sure it means something for the 3rd world...it means nice sweatshop jobs and some fucked up water and air.
SKerry is a complete fucking fool...does he ACTUALLY believe that the average American is in any way, shape, or form intelligent enough to integrate into this "new technology" economy??
What, these bumpkin white trash that average IQ 100 are going to become embedded software developers or data architects? HAHAHAHAHAHAHA. Perhaps he needs to read "Bell Curve." Half the white population, 3/4 of the hispanic, and 85% of the US black population have IQs below 100...this type of cognitive capacity renders them utterly irrelevant to this new "brain work" economy SKerry is bleating about.
presuming those numbers are accurate and that 100 = average then the direction is clear..... IQ scores will go the way of the SAT scoring.
The motto of the Clinton administration: If at first you don't succeed, lower your standards.
Is it standard operating procedure to automatically junk robotTrader's posts?
Yes.
Okay just wanted to verify the rules. Junk away spellbinder.
Tyler brings up an interesting point and one that I have been arguing for a while from the standpoint of deflation. Can there be a virtual bank run in the land of fiat? Could the central bank actually become insolvent?
It would appear that we are inevitably destined to follow in Europe's footsteps, but the big debate between inflationists and deflationists is the idea that The Ben Bernank will obviously print - while more hopeful souls trust that this kind of financial suicide will not occur.
Is Tyler hinting at the Fed's insolvency and thus a deflationary collapse/default?
it's worth considering.
Let's do a thought experiment. Which asset do you want to be holding if/when the bank that issues the paper money defaults? So, the Fed goes tits up, what will happen to the Federal Reserve Note?
I'm a bit confused, so maybe someone can throw a nigga a bone
The entire planet liquidates USD holdings?
"Could the central bank actually become insolvent?"
It already is, has been for quite a while. It's just that so far the rest of the world is still happy to get chumped, $9.034 trillion in international reserve assets as of last week!?
They don't call it a ponzi scheme for nothing.
A little turkey surprise for all those dollar shorts!
The doo doo is deep. Germany reported a record deficit this week. Germany is considered the "most solid" of the Euro zone nations, yet debt/GDP is ranked just under Portugal's (!) and 2 ranks worse than the UK (!).
There isn't much of a buffer here.
Burn baby burn. A nice day to sit on cash.
No worries, Erin Burnett said 'all is well' because the KOSPI didnt go down after it closed. What a fukin genius.
If Erin sucked more weiner her boobies would be bigger.
not suck but get penetrated and pregnant, boobies go B I G†
this happened n seconds...
come'on man...
http://www.silverseek.com/quotes/hoursilver.php
wtf. you are clearly not qualified to indulge here.
< moved >
¡Me cago en la puta!
The Promima Centaurus line had me laughing.
As a dyed-in-the-wool nerd I can't help pointing out that, while 4.27 years in the Centaurans' frame of reference should just about do it (allowing for relativistic corrections) they would need to have allowed a bit longer than that by Earth clocks. Unless they were massless, of course...
Of course.
Apparently AUD wanted to get in on the action. Lot's of correlations going out the window recently.
I suppose there may be a short period of time (a quarter or two) where US bond yields rise immediately before the system collapses. If anyone has ever done the budget math there is no way we can absorb a sustained increase in interest rates.
Larry Kudlow & Co. are still seeing "Green Shoots" growing up their asses....................
Hell the fuckin North Koreans shelled the euro lol...
Isn't it curious in a funny kinda way how just after QE2 and all the blather about killing the dollar, we suddenly get an outbreak of some shells here, a couple EU bond blowouts there, and next thing you know the ole bucky is still kickin?
That sure shut those congressfucks the hell up. Nobody is talking down the dollar now. The EU is such a clusterfuck; they never firewalled the currency. The core EU nations ran mercantile ponzis into their OWN union, setting claymores under their own currency. All the Fed has to do is flip some swap switches here and the EURUSD dances
"Britain has had the same foreign policy objective for at least the last 500 years... to create a disunited Europe."
http://www.youtube.com/watch?v=pIXH3-A8zMI
Best political satire ever.
Tyler, what do you make of this report from Skynews about Lord James claiming that "Foundation X" would like to rescue England? Is it crazy talk in Parliament or is there really a shadowing international organization with enough gold to start buying nations?
http://news.sky.com/skynews/Home/Politics/Foundation-X-Lord-James-Of-Blackheath-Tells-Sky-News-Group-Could-Pay-Off-Billions-Of-UK-Debt/Article/201011115795267?f=rss
Also, here is the actual Parliament speech, Lord James being the second speaker in the video. The first guy is supposedly dead already.
http://www.youtube.com/watch?v=Z69JQY929vY&feature=player_embedded#!
But it's all too much to believe, right?
75 bn to clear UK debt?
Wooooo, delusional.
First, we need to know if it's for real. Then we can debate how much is needed. Sounds like Foundation X is willing to lend whatever it takes.
Maybe it's just the royal family buying their country. Why else the UK? Plus, the royal family is one of the few known entities with that kind of wealth, aside from the Vatican, right?
Remember Brown's Bottom? This could be seen as basically selling back the gold to the UK after the price doubled a few times.
Let's just say that "Foundation X" doesn't use a romanized alphabet for their newsletters....m'kay?
A hieroglyph might be more appropriate, no?
Nonetheless, this "deal with the devil" probably won't be mentioned in public again until after it is either sealed or goes away. If it's sealed, then my congrats to the foundation. England will run high just a bit longer than otherwise, only to crash later, and kneel before their new old owners. Long live the queen.
Dollar has gone down against the Yen.