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Here Is What ECB Intervention Looks Like
Behold Jean Claude Trichet's fat finger. ECB now lifting every bid. Note that the PGB was at 84 before yesterday's two rumors that drove the market (both sovereign bonds and stocks) higher are now refuted. We have a suggestion: perhaps Trichet and Brian Sack can just take it out back and beat each other. The winner's currency goes to zero and the respective stock market goes to 36,000.
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Silver.
>>" ECB's Trichet, asked if ECB is buying peripheral bonds today, says has no comments on markets"<<
Umm hello? Are they fucking kidding?! It's called admission by being a dumb shit! Why would they say that? It's like the mafia king pin on the stand and he pleads the 5th about a murder... yeah right!
http://online.wsj.com/article/BT-CO-20101202-709038.html
"US Stocks Rise On Hopes Europe's Debt Crisis Will Be Contained"
Hopium.
And the D- journalism students over at Yahoo!Finance headline writing desk say 'Stawks up due to Consumer Spendin'
D- journalism?
You don't want to give them props.
D- = our best journalists for the past 30 years, and at this time we should move that lower.
Yahoo deserves a solid F, along with anybody on TV, any station.
common, thats not fair - brian is only 40 smt, he can easily beat up poor old trichet...if it was ben vs trichet that would be different :-)
Headline should read: This is what gov't raping tax payers to save banks asses looks like"
Why do you scream "intervention"?
The attack on the Euro over some stupid little debt issues is bullshit. It's intimidation and it's against a backdrop of major economies starting to vend into the Euro by CHOICE, not by guns and ammo.
Sorry, you've got it wrong. The Dollar is dead should be the true headline and all FED intervention in the Dollar is only going to kill the US more gently. Like that song, you know comrade.. killing me softly..
EURUSD 1.35 end of year and 1.45 July 2011
Yeah comrade, if I remember it was the US Fed with US dollars that saved Euro trash banks. Go do some DD and then make an intelligent comment.
Buy Euros while you can, comrade.
Soon the street vendors lining the streets and avenues of NYC will only accept hard cash, not soft Dollars.
It's been decided and all the FEDs men and guns and ammo cannot put humpty dumpty together again.
The imaginary exchange rate on some board in the US has no meaning anymore. You as a good and educated citizen can make an intelligent choice. Put your eggs into the FED basket case of diluted paper or follow the rest of the world and get some Euro cash while you can. They don't print as much.
Compare USD to toilet paper and EUR to Mona Lisa. There is a value to a FIAT that's not printed into oblivion.
King Dollar will never die! Never!
yes, dear.. time to pull the plug and take it off life support.
revisit that great youtube clip that was posted on this site yesterday. you know the one where stupid Americans line up for hours and then trample over each other to buy cheap trinkets at the Targets and Walmart accross this once great land.
CONTAGION is what China and Russia have started when they vended out of the Dollar. Nothing can contain that what will befall the US and the rest of the world.
Sure, EURO is boring, comes with uncertainty and debt issues BUT it's not printed into oblivion. You have to admit, that is a rare FIAT trait.
So, Euro tax bitches (aka citizens) are going to pay more and get less for their money. They will squeal a bit but they won't challenge the establishment. Euro tax bitches have far less debt and way more assets in many private hands than the American tax bitch.
It is what it is.
How is monetization of sov debt to cover domestic bank losses to creditors from banks around the world not 'printing money'?
Have you and Pooty-Poot worked out how to replace the reserve currency yet?
@Walkure
They don't do fiscal defecits because they control European Governments.
This does not stop their banking friends create massive credit for utterly useless unproductive activities in the consumption area that fills the vacuum of non-investment in utilities which is a direct result of low fiscal defecits.
Consumer Inflation or wage deflation (same thing really) does not solely come from the act of printing money - it is when this money is used for unproductive non - investment purposes which pushes up the real cost of commodities and goods (although service costs may fall as wages fall - increasing the spending power of the upper middle class at the expense of everybody else)
These guys are all the same - since the 60s they have had 100% of the power and they have not one idea about creating wealth since banks and banksters are merely a conduit for wealth creation or at least should be in its benign form.
Did you notice how Trichet got a tad emotional when he mentioned the Monetary element in the EMU.
His reference towards the European element of the EMU was referencing the executives - he stated that in the main the central bankers did not make any mistakes while its really the executives fault.
Speaking from a Irish perspective - during the early years of the Euro we reduced the fiscal deficit to 20% in GDP ratio and in nominal terms while the CBs oversaw a increase of monetory aggregates in Dublin of 20 -30% a year during the height of the property boom - this created pressure on the Irish executive to increase civil servants pay as without these increases nurses would have to commute a 100 miles to get to the local hospital.
The European banks did not need to buy sov debt in large amounts but preferred to engage in more speculative activities.
The European debt crisis is a direct result of the artificial 3% Gov deficit rule which forced savers into other extremely flawed neo-liberal consumption dead ends.
They created this mess and now they expect the treasuries to clean it up while at the same time reducing defecits - the arrogance of this bunch is truly astounding.
I hear you. My man is Axel Weber. He's the main man to watch for and listen to.
Now, your statement which I hear all the time that the European banks preferred to "engage" in more speculative areas is assumptive. The god honest ugly truth is that the Americans peddled their garbage papers like a 18th century traveling snake oil salesman and the banks bought in. Were the banks deceived? Fact, yes. Were the banks maybe even colluded into buying the shit? Maybe, we won't know for a bit.
Stay tuned. This is only the beginning.
The god honest ugly truth is that the Americans peddled their garbage papers like a 18th century traveling snake oil salesman and the banks bought in. Were the banks deceived? Fact, yes.
Sorry, mein fuhrer... but the only "fact" is that the euro banks knew exactly what they were buying into. The outsized profits were too big for them to say no to, as other banks would say "yes" and their profits at the end of the year would lag way behind relative to their peers... thus jeopordizing thier jobs. Besides that, you don't think they knew if this shit wwent down, the gov't (aka taxpayer) would have to step in?! Privatize the profits... socialize the losses.
Bitte...
Lets forget about American paper for a second - lets just concentrate on the malinvestment in Iberia , Ireland and other places to a lesser extent.
Axel Weber is the Augustus Gloop of the financial world - he just wants to maximise interest income to fill his greedy belly.
You get nothing - you lose , good day sir
www.youtube.com/watch?v=F9gRzmCf1EI
Milton Friedman didn't see the destruction of the Dollar coming. He had no way of knowing that the reserve currency status of the USD is not only questionable, it has been rejected as a result of the 2008 cluster fuck.
The world doesn't need Wikileaks to KNOW that the US is fucking everyone.
5 year dollar chart what destruction ??? Date or link ?
sorry, should have said the "COMING" dollar destruction.
LMAO! The jokes on you. Do some DD on what "makes money, money." I'll give you a hint- it ain't olives and wine! Another hint- the us has the biggest and most powerful of it. Get it?
That being said, I agree the dollar is toast, but then again, so is the Euro. The best one can do is buy gold and silver NOW before it's too late. But of course, I'd advise a wise ass like you to buy Euros...
I like silver and gold. Also like Uranium and energy in general. Russia is supplying China's unstopable growth and increased consumption of energy. They both are no longer trading in USD. Guess which currency they both like?
NOT the euro that's for sure. China's unstoppable growth! LMAO! Yeah ok, and there is no housing bubble! EVER
It IS unstoppable...some areas have been 'growth'd three times now.
My bet is on the Chinese consumer. There's over a billion of them. US companies are earning their revenue there and doing well, will continue to do well. Along with many others. Then there's India and not even talking about Africa at the moment. Growth opportunities galore just not inside the US.
The US has to learn to live within its means. Cannot spend like a drunken sailor. You agree with me there? Austerity would have been a good measure but Obama wasn't the man.
I'll take that bet.
I want you to hit me as hard as you can....
(obligatory)
http://www.youtube.com/watch?v=5akEgsZSfhg
And doesn't it make you feel good...and numb?
I couldn't resist the dark side humor.
Leave it to you to find the Sith Lord in a hot air balloon. So Obi Juan, any timeline on that other article you teased?
Not for a while, meaning a month or so. It's not complete and I'm working on other projects/articles as well. Plus I actually need to run my practice now and then. With the end of the year upon us, meaning tax selling/planning etc, I have a lot on my plate.
I have a lot on my plate.
No portion control at the Insane Asylum? Your public totally appreciates your generous time to share and will patiently await. Groupies are so pushy nowadays.
As insane as this might sound, I'm actually interested to see how it works out.
I assume we're talking about the same thing here, meaning a chapter of my still-being-written novel where the psyops campaign against Internet blogs and dissident web sites and the methods used are discussed in a fictional setting so everyone can maintain their plausible deniability.......of course.
As I write this novel, I really don't have a clue where it's going. I sit down when inspired and start writing. It goes where it's supposed to go. I simply transcribe and clean it up. In the case of this actual chapter, there is some research involved to make sure I have the facts straight. But I still don't know how it will be woven into the story line.
So I can't wait just like you. :>)
Perhaps you refer to the imminent arrival of your rebel USD swaps...
You will find we are well-protected here from your 'friends'.
CD, that is FANTASTIC!
I had no idea Blythe was an aeronaut.
There is a resemblance, isn't there?
This made me laugh out loud.
... and maybe humans will be saved from themselves by friends from the "Fifth Dimension" ... or maybe not.
Good idea, Tyler
Film it and broadcast pay-per-view to help "ease" the deficit.
should we be buying silver, or wait for it to drop back to $20/ounce?
why wait for 20$ - if you believe on it make it 10$....more paper profits for you :-)
Who's "we'", Chemotherapy?
ROFML
Silver going to $35 soon and will be $60 before seing $20 again.
We're talking US $, right? Your call in C$ or A$ could be correct though.
Haha
I read your posts up top and lol'd quite hard, but here i just had to comment.
USD is finding its new normal between .90-1.00 / CAD.
Hope that clears it up for you.
NFLX is getting pounded pre POMO. Question is, how will POMO affect it today?
Day in the Life of an Central Banker:
8:30am - Market expects ECB Bazooka
9:00am - No Bazooka
9:01am - Euro Dives - selloff - "Where's the Beef?"
9:45am - Trichet issues huge buy orders to "Buy the fucking Dip"
9:47am - Euro Shorts - SKEWERED !
10:00am - Trichet and Cronies - Back to bridge and booze for the day.
LMAO. Good one. Le Bérnank and 'buy the fucking dip' indeed.
Hyper-inflationists will hate me for saying it (well, the super insecure ones), but if you follow Charles Hugh Smith, the writing is on the wall, and all Central Bank intervention will ultimately fail to stave off deflation.
Yes, yes...Ben 'Bernank' has had a good run, but there's a tidal wave of dollar destruction coming, and Bernanke truly lacks the political capital to do the suicide mission to print (indirectly) faster than that destruction will take place over the next 36 months or more.
This is why Bernanke has been trying to stuff banks full of as much cash as possible - to give them as big a buffer as possible to give as many of them the best chance they have of weathering the coming storm of asset deflation (that many of them still carry on their books), lower demand for loans and lower revenues from other sources of traditional banking activity.
This amount of dollar destruction will make POMO look like a pimple on an elephants ass.
EVEN IF the hyperinflationists were proven correct, the end result is the same; both hyperinflation or massive deflation, on a longer timeline = end of the game for central banks.
There's a shitstorm coming of historic proportions. It will be one for the record books. 2011 is going to be a brutal year.
As a footnote, China may very well collapse in 2011. Watch developments there carefully.
Also, watch governents really put high holding and transfer costs on gold/silver/PMs. They fully realize the threat that an alternate currency to fiat currency poses to the elite.
I do not worry so much about the collapse of the dollar, deflation and having to restart industry. It can be done and on an honest footing as they tried to do with Glass-Steagall and the post depression cures (putting aside FDR's blundering about).
What I worry about most is that those acting like 7th grade queen bees, running about pretending to be important, will cast blame on others (just like the so called war on terror) of our species to deflect it from their own greed and incompetence and send us off into a brutally destructive war... that WILL involve nuclear weapons.
Both the US so called leadership and Chinese leaders are capable of pulling the trigger when the pressure get to them ... and IMO, it will.
No shitstorm. Just a healthy dose of reality and some good old fashioned humility for all.
China won't collapse. Have you been there? They're just getting started.
If Obama had balls, he would have cut welfare and cancelled unemployment benefits that the country cannot afford. Forget health care and forget utopian federal salary freezes.
The medicine this country needs is bitter but absolutely freaking recommended by all financial doctors.
You cannot continue to spend money you don't have. Simple. Cut the credit cards, cut the lines of credit. Go cold turkey and let the chips fall where they may. Enough with the softcore socialism and time for some hardcore capitalism to come back.
I've been to China 7 times in the last 3 years.
The real estate bubble in China is far bigger and even better sheltered from market scrutiny than any bubble in the U.S., Europe or Australia ever dreamed to be.
I spoke with the 'commoner' employees at the hotels I stayed at in China to get the real and juicy details (always a great strategy - talk to waitresses and bellhops - not CEOs and politicians) of how speculation is so rampant there, relatives are pooling money to buy and hold incredibly inflated apartments in cities off the beaten path (i.e. not even in major cities) based on the expectation of future demand.
And I saw the horrible shape of the grid in China first hand, where the only focus of the Chinese government is new industrial parks, whereas elsewhere, brand new towering condominium complexes arise next to shacks wih dirt flooring, and rolling blackouts rule the day.
I breathed the air, didn't dare drink the water, and saw scenes that made Las Vegas real estate speculation circa-2005 look tame by comparison (when I saw RV park 'pad sites' selling for $110,000).
China is the biggest bubble in the world right now. The drop in demand for Chinese exports from the U.S., Europe and even the rest of Asia is their death sentence.
At a time when China needs to grow a GENUINE 9% a year to keep additional work force entrants employed, they'll see far less than that, before sliding negative.
The Chinese central bank releases even less accurate information than the private U.S. central bank.
My take on their real estate is that the government got ahead of itself and the people got caught in a frenzy. However, the real issue is energy supply in China which is also the next greatest economic boom worldwide. You're talking about the rolling blackouts. The Chinese won't accept this much longer, the common people I mean. The government is investing billions into energy supply and infrastructure. There will be jobs for decades and it will lift more people out of poverty so they can move from the shack with dirt floor into the condo building next door.
Time will tell, but my money is on Chanos' thesis, literally.
China and the BRI (BRIC) are hopium x infinity.
Slave labor producing highly commoditized goods can only take a nation so far today, especially in an era of ever increasing automation (in retail, even, let alone manufacturing).
Labor is the cheapest commodity of all in our new global economy, and China can't even guarantee the necessary % of this for its own economic growth when there are now alternate bidders rising in Asia and elsewhere (this is why manufacturers get literally anything they want in China).
Chinese dependency on exports to fuel growth is its achilles heel. Unlike Germany and Japan, which innovate (yes, Japan innovated a great deal contrary to popular myth about it - refer to W. Edwards Deming), China never has been able to.
That a massive % of Chinese domestic consumption and investment is derived from real estate speculation is a giant, red flag.
'The empty, new, shiny cities of China'...
Perhaps that's is why the government is telling any citizen who will listen to buy physical silver and gold. Notice how China moves the price of gold (and silver, and other commodities) recently? Hving "been there" you know that it is a totally different world -- I call it the BORG (re: Star Trek) on steroids. You must know how important it is to "appear wealthy" as part of social status. People will carry designer clothes on their back and drive an expensive car but live in a 1 bedroom hovel. If gold and silver are equated to the "show of wealth" and there is a move afoot - watch the F out! Even the average guy can afford a little silver - now mutiply that times about 500 million. Chinese aren't totally stupefied by the Barneys PsyOps commercialism of the West (yet) and they have to put there money somewhere. It's not ALL going into real estate speculation.
I would love to see a comparison of silver and gold holdings between Chinese and US citizens at various income levels (relative weighted).
AuCanary GoldWisdom: China Considers Raising Gold Reserves ... Nov 17, 2010 China's gold reserves have reached 1064 tons, accounting for merely 1.6% of the value of its total foreign exchange reserves. That amount lags far behind the 8133 tons held by the U.S., and China ranks 85th out of the 101 economies ... http://aucanary.blogspot.com/ AuCanary GoldWisdom: People's Bank of China - Advisor: Why doesn't ... Nov 27, 2010 The U.S. should cut its government spending and sell some gold reserves to balance its budget and fund its recovery, the People's Daily overseas edition reported, citing Xia Bin, an adviser to the People's Bank of China. ... http://aucanary.blogspot.com/ AuCanary GoldWisdom: China GOLD imports exploding! Dec 02, 2010 43 minutes ago HONG KONG (MarketWatch) — China's gold imports are on track for a sharp increase this year, with data for the first 10 months showing bullion shipments up more than four times amid rising interest among investors seeking out a hedge ... http://aucanary.blogspot.com/ AuCanary GoldWisdom: Chinese govt advise gold buying - why? What ... Nov 29, 2010 The Chinese govt have been advising the people of China to buy gold, even going so far as to produce television programmes explaining the benefits and logistics of doing so. As we know from experience, the ability to print paper, ... http://aucanary.blogspot.com/ etc..."The medicine this country needs is bitter but absolutely freaking recommended by all financial doctors."
Medicine isn't needed. Medicine is the problem. We see medicine being administered now, and it's making things worse, the patient is getting sicker.
What we need is no medicine, no intervention, let the patient heal on their own, let the markets heal on their own, let the economy heal on it's own, as it will if we simply stop the intervention.
Of course that won't happen. The healing process can be uncomfortable, and would be uncomfortable for holders of wildly inflated paper assets who prefer keeping the patient sick to avoid the discomfort of healing.
In more specific terms, wildly inflated paper asset values must collapse back to real world market values for the economy to heal. It requires no medicine, no intervention, just sit back and let it happen. Medicine, intervention, prevents it from happening.
Just watched Drew Niv of FXCM interviewed on CNBC.
Mark Haynes "Knew Nothing" about currency trading.
He knew Nothing, Nothing.
Obviously, he is the biggest dummy on a station of dummies. A FOAD, I believe Turd Ferguson calls him...
Behold, the real stupidity/manipulation tool of recent market sessions responsible for recent levitation:
http://www.futurespros.com/energies/crude-oil
Why the hell can't these guys just leave EVERYTHING to a free market to decide instead of manipulating everything to the finest detail.
Oh right, then all of the criminal banks would be out of business, there would be no debt as money, the central banks would lose all of their power and all of the bankers would lose all of their power and privilege.
The masses, not having so far to fall, would be hurt, but hurt the least.
BUT BY ALL MEANS, THE DUTY OF THE WORLD IS TO MAKE SURE EVERYTHING IS PERFECT FOR THE STUPID F'N BANKERS.
duplicate deleted
to infinity and beyond...
I think the game is this: First the US is in big trouble and has to print money to support banks and bonds. USD - Down; EUR - Up. Then the MOPE about Europe is brought forth and US problems get swept under the rug for a few weeks as USD goes UP; EUR Down. This goes back and forth as often as long as they can keep up the ponzi. This way the banksters get the world to relatively value the two worthless currencies against each other in a 1000 pip range against a bunch of other relatively worthless fiats while devaluing both majors as much as possible and hoping the public doesn't get wise to this and bid gold to 10,000 while running over JPM and HSBC in the process...
Tyler - You're the best!
I can always count on your wonderfully sarcastic sense of humor.
What is PGB?
Portugal government bonds
ECB trying the same failed tactics as they did earlier this yr when Greece went tits up. Rape the market like no tomorrow and squeeze all the crappy bonds tighter. And then what? Do they really believe this changes anything? This doesn't do anything to correct the fundamental issues in eurozone periphery like the competetiveness probs etc. What it does is that it makes the PIIGSB-countries even less appealing coz there's no yield left to compensate the risk. And the obvious question is that who will be buying their bonds when they come to market next yr to fund their deficits? Or the yr after that or the yr after that...?
OK, here's a certifiably creepy Daft Punk video to encapsulate the 'situation' as we now know it....Technologic
http://www.youtube.com/watch?v=YtdWHFwmd2o
Round 1 of the 15 Round Super-heavy weight title fight went to JCT as he came out swinging hard and BS was caught flat footed by a hook to the jaw. BS stumbled, but didn't go down and was saved by the bell.
Round 2 opened with a stabilized and rejuvinated BS launching flurries of combinations to the head and torso of JCT pushing the contender into the corners on multiple occassions, but no bleeding wounds were opened and the bell just sounded ending round 2, and the fighters have retreated to their corners.
Watch the fight, live and in realtime here:
http://netdania.com/Products/live-streaming-currency-exchange-rates/real...|netdania_fxa&name=EUR/USD
Round 3 is now underway.
BLS BA+ unemployment: 4.7%.
Meaning? Drop dead.
BLS BA+ unemployment 20%.
Meaning? Drop dead.
No haircuts, not defaults.
I have a $20 on Trichet, Age and treachery trumps youth and ideals everytime. :-) of course senility does hurt as a fallback plan, worked for Reagan.