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Forint In Freefall As Unicredit "Recommends" Hungary Central Bank Intervene
Hilarious. Any time reality kicks in, the bankers (in this case Unicredit, whose CDS looks so fingerlicking good here) have no other recourse than to beg the money printing acolytes of Keynesianism to push things back to the fake trendline of the credit-driven expansion of the past 30 years. We wish them well.
Alas, if the CHF is any indication, it is now too late.
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I am still waiting on all these Helicopters people on this blog keep telling are coming to save the day.
Famous quote out here.
"They'll just inflate it away"
Hahaha, sure, let me know when the helicopters come to rescue everyone. I wouldn't hold my breathe if I were you.
Hint, you are the helicopter and you stopped dropping money in 2007.
Yup! Like the choppers that rescued people from the top of the U.S. Embassy in Saigon. There were so many people attempting to get into those choppers that it almost caused them to crash. They had to leave with people hanging on to the skids.
Think of those choppers as contemporary gold...
Mako, the debts are in euro. You can't inflate them away by debasing the florint.
The US debts are in USD and Bernanke has a virtually unlimited ability to debase the USD.
It's apples and oranges, Mako.
It's not apples and oranges, it's all apples... there is no separate system.
"virtually unlimited ability to debase."
No such thing. What is he waiting for? I haven't seen any helicopters in my neck of the woods, oh yeah, they are coming, just like the nutbags told me 3 years ago.
YOU ARE THE HELICOPTER, just like in Hungary they are the helicopter.
There is no Helicopter Ben, you fell for the lie. If you can fund your own credit there would be no credit that needs to exist. There is no "unlimited", humans have no ability to provide "unlimited". There is no virtually unlimited, you are either limited or you are not.
The biggest helicopter to ever exist disappearred in 2007, no other helicopter has come in to replace this helicopter nor there be one.... who is the helicopter, you the US consumer... crashed and burned 3 years ago. Now all the little helicopters that relied on the big helicopter for it's fuel are crashing and burning.
It's either a 0 or a 1, you fell for the 0. "Sucker born every minute"... the top penthouse dwellers fully know the lie, they suck every ounze they can out of the lie and from the lemmings.
Mako, you have seriously lost it.
Uncle Sugar will seek every possible means of protecting his masters before he pushes the self-destruct button. Just be patient, your rants of "die here and now" because there is no answer are getting less effective with every passing day.
WHAT'S YOUR PLAN?
The top will suck you and the rest of the lemmings dry as long as possible, cycles within cycles, top knows this very well, you lemmings don't.
"self-destruct button"
They don't have to push the self-destruct, they just position themselves to profit as much as possible when they can no longer give you what you want, which is what you are able to produce for them. They certainly can't give you what you haven't produced back to you.
This up cycle within the larger down cycle will run it's course, another trap door will open up... they will be fine... you are here for them and you continue to believe the lie, they are more than willing to suck off you.
"WHAT'S YOUR PLAN?"
To get as far away from you lemmings as possible, ya'll be hacking at each otherwhen you eventually don't get what you want and probably most will not get what they need.
Basically you are central bankers wet dream, you just don't think you are. I assure you no helicopters are coming to save you, Ben has no helicopter, he has plenty of lies that you believed.
Mako, basically after I filter out all the insults in your post, YOU HAVE NO PLAN.
I thought so all along TBH. Ranting on blogs is one thing, seeing through this mess and making a plan to protect your family is another.
Good luck to you, Mako.
It's like saying what foxhole to jump when the tanks started rolling through Poland.
The best plan I can think of is to get as far away from nutbags like you. Ya'll be hacking and hurting each other, I mean if I could build a space station maybe that would be a plan, absent that, most are going to be fucked.
- Get the hell out of dodge
- Setup a chair and watch the fireworks
- With some luck the fireworks won't get too close, but very doubtful this time, most are screwed they just don't know it yet.... I at least know I am most probably screwed.
Basically, you are rat looking for an escape route on a burning boat way out at sea, there is no out.
Mako, lot's of people survived WWII and in fact prospered in the years that followed. Putting a gun in my mouth and pulling the trigger because a war has started is not my style.
For the record Mako, never once have I posted on this blog that I believe Bernanke will "save" us. Quite the contrary. If I expected that, I wouldn't be a big buyer of gold.........but then again you think gold is worthless too, so we're back to the beginning.
Seriously, good luck Mako. I enjoyed reading some of your stuff except the totally fatalistic aspect to them.
You put words in my mouth to support your delusions.
"Mako, lot's of people survived WWII and in fact prospered in the years that followed. Putting a gun in my mouth and pulling the trigger because a war has started is not my style."
Never once said humans would or would not survive, if nukes are used going the way of the dinosaur is a possibility but I never once predicted this.
Well, exactly you are not willing to put voluntarily jump off the cliff like a good lemming would do... which is why all you lemmings will be hacking at each other... someone is going to have to go. Last time 100 million, my guess 1-2 billion this time at least.
"If I expected that, I wouldn't be a big buyer of gold...."
Like I said a Ben's wet dream, you just don't know it.
".....but then again you think gold is worthless too, so we're back to the beginning."
Again, never said any such thing, you make stuff up. I have chicken wire as well, it's not worthless to me either. Heck, you can worship gold, silver, dirt, chicken wire any thing you choose... the choice is yours. In India they worship Cows and gold, and if I remember correctly rats as well.
You are basically trying to put words in my mouth to feed your delusions.
What's he waiting for?
JFC, man...you guys act as if the apocalypse is unfolding RIGHT NOW on your doorstep.
Fuck, during the 1000pt flash crash, NOBODY I worked with even KNEW what had happened.
And I looked outside, the power was still on, water still came out of the faucet, and people were actually still buying houses.
Things aren't as DIRE as everyone continually SAYS they are. The MATH on the balance sheet is dire, but in the real world? JFC, we STILL consume 18mbpd of oil per day against 82mbpd global production.
There's PLENTY for us. It's just not growing. GD, life goes on after growth stops.
Ben will do raw printing when the government forces him to. If it comes between deflation destroying the USG and the Fed, BB will be replaced with someone more pliant.
We need loss of confidence in the currency first, then there will be lots inflating away.
But your just one of those misguieded fools that thinks the USD is all of a sudden going to reverse course on its 100 year trend down
Tyler, thank you. Made 715 pips on EUR/HUF since yesterday and converted into USD. Keep on your radar work.
Yikes, this is not good. Way too many of these surprises happening.
Hindsight is 20/20 but they seem wholly unsurprising in retrospect.
Deflation until Hyperinflation....Gold Bitches!
always happens on a friday- This weekend should be the rollout of bailouts 2.0 to be sold to a public near you.
So HUF is off 2+% vs. EUR and EUR is off 1% vs. CHF.
Didn't I read somewhere that a fair amount of Eastern European loans were CHF denominated? If any of them are in HUF-land...well...just, "Wow."
It wasn't Keynesian econonomics that got us into this mess. It was supply side economics that allowed wages to stagnant (adjusted for inflation) over the past 30 years. So the middle class had to borrow, and borrow, and borrow to maintain the same standard of living, or purchasing power, as the previous generation.
"Borrowed time and borrowed world and borrowed eyes with which to sorrow it."--Cormac McCarthy (The Road)
or may be it was just a CONSPIRACY
The middle class had to borrow? No, it had to accurately assess the security and purchasing power of its salaries, and adjust spending habits down. At the same time, it had to stop voting for expensive benefits for people essentially better off than the average "middle class" family of four. In 1965 an elderly affluent person in failing health received little extraordinary care, and that at uninflated costs. Today millions of people receive many times their average prior earnings in care. The cash, note, does not go to these sick or joint-failing people. Bottomless pits of medical expense, joined to silly consumer spending, wrecked the so-called "middle class."
Military spending does not matter, only too much medical care for elderly? I don't think you can point to one thing and say "that is the problem." The expectation of exponential growth at every level (individual, business, government, etc.) is the problem, the rest are details at each fractilian level bearing this out.
Wrong.
It was USA Peak Oil in 1970.
Supply-side was a *reaction* to that.
Today will be a crash day.
Yesterday I took some serious hits on my puts and I can just feel a happyday comming right now :)
AND THAT'S THEY WAY, AHA AHA, WE LIKE IT! AHA AHA!
hate to say it but expect some serious fed intervention today
The Eurozone credit crisis is just not going to go away. I see that the dim bulbs over at CNBC have the top news as the oil spill, followed by the iPhone.
Dorsch has a new column out, and he does not paint a pretty picture fo the credit crisis: http://www.marketoracle.co.uk/Article20013.html
"the fake trendline of the credit-driven expansion of the past 30 years."
++++++++++++++THIS++++++++++++++
Note: Take a linear chart of the Dow and extend the trendline from the pre-Greenspan insanity and you get....Dow 5,000 in about 2015. Dow:Gold parity is in the bag in this time frame. Deal with it. All of the fluff has been an illusion.
This is just deleveraging as emerging economies' economicalness inflects below prevailing interest rates.
Hungary is like a backwaters oil well or gold mine...you only try to pump it once you've depleted the lower-hanging fruit. And it never was as profitable as that earlier fruit...ROI is necessarily lower. And it saturates and peaks quicker. The dollar system is just capping and abandoning marginally economical economies. That's all.
The dollars are needed for interest to the Fed and member banks. Interest is now sucking dollars out of the world. The consumer is the one who borrowed the dollars into existence and they found their way into Hungary by various routes. But, now that the consumer isn't borrowing in increasing amounts, dollar creation is in reverse. But the interest on all the debts remains and must be serviced via dollars which aren't increasing in supply.
CURRENCIES are supply and demand instruments. They are not MONEY in the absolute, they are commodities, albeit based in debt.
The Fed needs to find ways to get those dollars out there but they can't do it by lending because member banks realize there are no good longterm credit risks because the aggregate system is now in contraction.
The Fed will end up having to BUY dollar debts or liquify foreign entities at some point because we ARE the reserve currency.
A decline or relative scarcity of reserve assets causes deflation; this has been seen with gold on several occasions. Dollars are declining so money supplies levered atop dollars must also.
Crash! Oh dear! PPT Save Us!
Money doesn't grow on trees. If it did it would be finite in supply!