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This Is How You Kill The Dollar And Keep The Ponzi From Unraveling For Another Day
Congratulation Ben - thanks to you those ZH t-shirts just got more expensive. Dollar carry traders everywhere rejoice.
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WTF??
Just stops getting run through.
Fk this. seriously. Easiest trade right now is getting out of the dollar period. Fk 'em. Ben will avoid a depression but bring forward Armageddon. The US Govn have gone full retard.
done.
ZH just had to exchange dollars for euros to prepay the next 12 months of server bills.
I have a brilliant idea. It is brilliant. Americans should get into the trade of exporting Vaseline. This will ensure that lots and lots of Euro and Yen flows back into the country. I am sure, in the long run, Europeans and Japanese would require the best quality Veseline in abundance. What say,folks!Hehehehe.
To Ben and henchmen: Try defending 78 , you idiots , it's technical support.
don't look now but i just saw 77.97 at -.71 - all
in a matter of minutes....
of course
as roller coasters go this number is bound
to go back up but it does illustrate the wooziness
of the dollar...
Mayhem,
You ain't see nothing until 72.
when it breaks thru 72 and gas his $5/gallon again, thats when the cities will be a bad bad place to be.
there will be no more 'flight to safety' play into treasuries after that. falling market and dollar same time, imagine that.
Ben probably have no choice now but to actively defend the dollar now at the cost of the stock market, IMO.
I think this is the worst case scenario for Ben. Stoping QE did not stop the dollar decline.
I posted this comment before.
The U.S. Treasury said in a draft of a presentation that its $40 billion investment in the American International Group Inc. bailout was “highly speculative.”
This was in Bloomberg. Now the following sentence
"Then The New York Times got hold of Paulson's phone records for Sept. 2008, which detailed loads of calls between him and Goldman right before the government's decision to bail out AIG, a huge insurance company."
So all those money were just to save Goldman or what. I am a little lost here. Any help?
Peter Schiff is probably dancing and Mish is looking for the dollar to revert.
And Mugabee is proud of himself because even America is copying him.
...and Mish will win. But inflation is easier to understand than deflation so the argument goes on...
Is it me, or has the world (specifically the financial world) gone completely insane?
No, the markets have zero integrity now. I haven't a clue what they represent any more, they are just numbers with the heavy hand of government all over them.
Nah it's just you - this all makes PERFECT sense!!! NOT
Lol get used to it. Everything is going to be getting more expensive in dollars. Can somebody explain to me, how you consumer more if your wages are deflating and your currency is being systematically devalued, such that those wages can purchases less goods? Is that really bullish for an economy that is 70% consumer spending?
yes - as the toll of working more hours for
less money to buy fewers goods rises you will
drink more and need more medical care - all of
which is a 3 foot tall green shoot...
if there's a green shoot anywhere, i think it's in the middle of my chair...
@mdtrader
How about a HELOC ?
That ought to tide all of us over for a few years. lol
Yeah, sold a good chunk of dollars earlier today.
Things have finally gone into the totally fucking criminally crazy dept....imho.
Gas prices going back to $4 a gallon in a hurry ... heat home or eat will be the big decision on all those SS beneficiarites who won't be getting a raise next year.
I weep for my country.
Don't - it's the corrupt currency of a corrupt government - not the dollar our forefathers gave us. We're better off without it. Stick with the currency recommended by our founders and you'll be fine.
@pigpen
Don't worry.
Gentle Ben and Turbo Tim is watching out for all of us.
Perhaps we ought to ask Judge, he appears to enjoy a special insight of the Fed's actions.
LOVING IT.
gold not responding enough
comex will have to bust before gold finds its true price. too much paper gold and manipulation right now
It is disgusting how transparent the market manipulation has become.
Led by oil.
So much for the Canadian Gov't "talking down the loonie".
Q/E anyone?
The Canucks are fucked, a 92 cent loonie will gut Ontario. Alberta will shine, though, as oil goes through $100.
alberta will suck. 67% of revenue comes from natty. AECO spot today is $2.30. last saturday it traded $1.75.
on the oil side we produce in cdn and sell in usd. crude move is offset by cdn move.
Gov't in Alberta is nuts. Just get folks to shut in production til prices recover. Selling a precious resource at these prices is NUTS. Better to import from the US and run off the surplus first.
Great idea. You are a levered junior and you go to your banker and say guess what we are shutting in all our production. And the bank says guess what we are shutting you in.
U.S guys also need to shut in but they will know. Know why? Because the CEO's of large cap natty producers get bonused on making their quarterly numbers. And if they can't make it on margin, they are making it with volume. Not a very smart way to manage your business, but an excellent way to make millions of dollars if you are the CEO.
It's a variation of OPEC cheating. Sure, everyone agrees in principle that shutting production in is the way to go... except that there are a good many firms that need to generate cashflow... so if continuing to produce out your assets at ever-declining values is the way to buy your firm another quarter or two of life, you do it. Sum up the "cheating" and you still have gas moving from the gathering systems into the mainlines because someone needs the money in the worst way.
Gotta do more than talk. Watch for concrete actions in the next little while. Maybe a new referendum on separation would do it....
Yeah. I wonder if they'll make good on their threat and bring in QE Canadian style.
It looks like a race to the bottom is brewing. Eh!
At the last G8 summit, they all promised each other they would not "intentionally" devalue their respective currencies, and now they are all overtly doing it. Classical games theory applied to real life...
The short dollar trade became a lot more crowded.
I'm so fucking bored of this market - without sophisticated heat mapping metrics and explosive liquidity detection behind the bid it is a waste of time trying to trade this market with a balanced risk profile. Forget Alpha, Beta, Delta, Gamma Vega, Rho, Theta - Hedged caution long/short or call/put portfolios are useless - no correlations in anything- THIN VOLUME spiking the fucking FOREX MARKETS!! I have been out on the sidelines for months and no no rational risk prioritising strategy has even worked in theory for longer than a session or so. WHAT A JOKE THIS MARKET IS!!
Truly truly truly flip a coin and save your self the time spent researching and theorizing
You can bet Jim Simon's algos are kicking ass though...
Ya Let those people flip stocks night and day. That's what our society needs. Cost Added Resalers. Price Add Resalers. Let the struggle to retire begin. Work till you die.
or come to vegas and invest, our casinos have prettier carpet than the nyse casino floor.
1000 banks in two years = 1150 S&P
www.cnbc.com/id/32581463
Ted Kennedy is going to hell, and taking the dollar with him.
Hope he's not driving...
bravo, sir
(Boston brahmin accent on)
"ER AH MARY JO NEED A RIDE?"
"ER AH WE'LL CROSS THAT BRIDGE, ER AH< WHEN WE COME TO IT."
Please don't insult us brahmins by continuing to label these Bostonian bastards with our name.
The devil only accepts gold
Why don't you have sexual intercourse with yourself sir. Trying to politicize this as if one party is responsible for all this. This is just a typical attempt at trying to get us to take our eye of the ball and shield the real culprits. I'm so tired of you wing nut retards.
or you could calm down and laugh at the joke....geez
yes this action is certifiable. my favorite short of the moment is JNY -- Jones New York. Yup....with dollars turning into tissues, heating oil skyrocketing, gas over the month, and food costs rocketing.....
yup, people gonna have tons of cash to buy a snazzy new shirt.
the mutual fund "advisors" buying this stuff now should be frogmarched to jail.
Bernanke just realized he had to write another month's worth of DXY 79 calls.
Perhaps someone overseas finally had enough of the state sanctioned fraud in our financial system. This BS spewing from the Fed, The Treasury Dept and now the Clearing House Association about how damaging it would be disclosing information, "Gawd, we can't handle the truth", you never know, perhaps it is now nearing the final straw of acceptance.
Comprehend this.. Our financial system can only survive as long as we perpetuate fraudulent misrepresentation and withhold the truth from the world. OMFG!!!!
Can't handle the truth? Well, they can't exactly keep the truth from us. We'll know when a tank of gas is $7,450 and a gallon of milk is $299.95, won't we?
It's a gimmick. Just like running AIG up 40% to keep the market from completely dropping.
Looks like oil below $70 is no longer allowed!
so how much has that assclown Soros made shorting the dollar since Obama took office?
Soros never made money illegally
The illegality involved in ones accumulation of wealth is directly proportional to the level of philanthropy as one gets older. It's called Monmick's Remorse Law...
But if you can "do" philanthropy by donating the phantom profits from your Bernie M. account... it's a win, win for the oligarchy. Of course "doing" philanthropy by manipulating genetic cancer drug stocks a la the Convicted Felon Milken has to be way more satisfying...
A lot more than he donated to BO's campaign. Good investment, huh...
We need to keep the oil-producing companies satisfied, too.
Anyone think it's a coincidence that the dollar gets knifed when oil is threatening to test/break support?
This is exactly what crap looks like before it hits the fan. Nose plugs anyone?
One wonders if the recent coverage of Fed's stealth monetization program in the blogosphere - ZH, Martenson et. al. - has anything to do with the continuing plunge in the dollar. I mean investors - including FCB's - interested in self preservation HAVE to be paying attention to this sort of criminal activity by the Fed.
I seriously doubt if the market(dow) will ever go down 100pts on any given day in the next few months. This will go down as the biggest manipulation by the govt in the history.
1. South Sea Bubble
2. Mississippi bubble
3. Tulip Mania
4. Great Depression
5. Insane money printing of 2009
"Insane money printing of 2009"
More like "The Obama-Bernanke Depression".
Stimulated, QE-enhanced, bailout-enabled depresssion.
I give Obama a sort of a pass on the blame. Why? I have realized the President is actually not a very powerful person. Like his predecessor, he just does what he is told.
+2
I give Obama a sort of a pass on the blame. Why? I have realized the President is actually not a very powerful person. Like his predecessor, he just does what he is told.
I think there's certainly a lot of truth to what you say Ned. I would also add that Obama (like any leader or human being for that matter) views the world through his eyes and objectives........and, his objective is to get as much money to spend on his pet peeves and pet programs and the wall st gang is providing that money and as long as they do that, "everybody" wins.
Obama is Robin Hood?
nope....robin hood stole from rich, gave to poor.
obama is letting the rich steal as long as they get him his money to give to the poor.
Who is John Galt?
'Until men learn that of all human symbols Robin Hood is the most immoral and the most contemptible, there will be no justice on earth and no way for mankind to survive.'
So then, the rich should be allowed to keep what they have stolen from the poor?
Oh wait, it's not 'stealing' as long as the rich few make laws designed to impoverish the many. Then it's called thejust rewards of the 'hidden hand'.
So then, the rich should be allowed to keep what they steal from the poor?
Oh wait, it's not stealing when the rich do it. The rich few can just make laws designed to impoverish the many. Then it's called the legal rewards of the 'hidden hand'. Not that any laws should apply to the rich anyhow. We wouldn't want to 'over-regulate' them.
Ned,
Obama campaign took $$ from GS, more than any other candidate.
Obama is vacationing in a $25.000 / week home in Martha's Vineyard.
Mrs. Obama flying Air Force One over NY for a kid's birthday party.
Mr. and Mrs. Obama visiting Broadway and having the city stopping traffic and creating a huge mess.
Power corrupts, absolute power (as in majority Congress, Senate and White House) corrupts absolutely.
Imagine being Obama - sort of partly understanding it all but only getting one side of the story knowing that if he advocated tough medicine he would have Wall Street againt hi, the media moguls against him, the economy tanking worse short term, the market falling through the floor and probably the mob with opinions too.
It would take incredible insight, ability to articulate the dangers and guts to take the hard road.
The market looks like it is falling off a cliff and ....
no, can't have that, all longs are not allowed to sell and shorters are NOT allowed to make any money AT ALL
Who cares about the rest of the world and their currency or their goods they want to sell.
All that matters is to keep the stock market going to the moon, the HFT programs can only manipulate up markets and short squeezes
Its very hard to tell what is the dog, what is the tail, and which is wagging. But the signs of increased correlation have been picking up. Just about any (non equity) chart under the sun is at some key technincal level looking to break out. I happen to think that the past few days oil has been the big dog and everything else has been moving around it. Very interesting tho that everything reversed for the dollar/energy shortly after nat gas started breaking out to the downside.
I see, clicking twice will post something twice...well in leau of repetition i present this:
Scientists in Oregon have developed a technique that could be used to prevent certain genetic diseases. They've demonstrated it in monkeys and are anxious to try it in people. The technique raises ethical questions, however, because it makes a permanent genetic change not just in an individual, but in all generations that follow.
http://www.npr.org/templates/story/story.php?storyId=112248236&ps=cprs
Think about it this way folks:
things have been going the fed and the treasury's awy for a solid seven months now. How long before the massive fail shows up again and they are unable to juggle the equity, bond and currency markets to their liking. I say we're just about due to a massive fail by these guys any day or week now.
It's a clear third of a third wave in the DXY, also known as the "point of recognition".
This looks like the final wave down of the Dollar correction -- mark my words -- when the DXY bottoms ~75, soon, and makes a sharp reversal upwards, we will see the correlating crash in equities, commodities, etc.
The third wave down in the stock indexes should be brutal. Get ready to purchase some VIX options.
With ZH be creating an annual rewards event?!?!
Give trophies for (mail to recipient at last know address):
1) The worst financial decision of 2009
2) Most ignorant financial advisor and/or group for 2009
3) The most significant "Jumping the Shark" financial event of 2009
etc...
I really have to stop smoking weed so early in the morning...
All of my snarky comments aside, it appears that the Gov't just guaranteed all Muni debt insured by Ambac.
<insert Robot intraday chart of ABK here>
Dollar back above 78. Whew. For a second there I thought we had something to worry about.
Funny, somebody said the same thing at 100.
I can't remember that far back. This "market" exists in milliseconds. Everything that happened yesterday is forgotten today. Today will be forgotten tomorrow.
Listening to these idiots on cnbc talking about the fundamentals backing the AIG move is scary. Baghdad Bob
MORE BLOOD!!! MORE BLOOD!!! MORE BLOOD!!!
those congress hicks think they run the country. one would think last fall taught them the lesson.
ben
got to sacrifice that DXY! Ben' got to do what ben's got to do. Except that it's little scary to drop that DXY 1% in 10 minutes. did smart people say to bleed slowly, and not to cause any panic?
What is better, more taxpayer subsidized bailouts for public and private pension funds as boomers retire (or try to), or kill the USD and game the mkt?
Rock (raising interest rates)
The United States
Hardplace (killing the dollar)
Dont worry, as soon as those dollars are dropped into the black holes we know as "Banks", scarcity will take over and the dollar will rebound.
Anyone think keeping the peace with and within the oil countries has anything to do with this?
If we are in recovery, kick away the training wheels and pull the fed support out.
But we can't do THAT yet!!! Trouble in paradise?
Lest we forget, we have massive QE on top of fictional
earnings thanks to the financials no longer being required
to report mark to market. Wall Street and Washington must have a plan to turn all coming commercial real estate losses
into fat profits as well. Wish I were a fly on the
wall in Rahm's office.
Tyler, can you(s) please explain to me why the EUR is in such better shape than the $? I understand the damage being done by Ben Bubbles Bernanke but wasn't the European banking system just as F-ed as ours? Weren't they large holders of our toxic waste as well as their own and that of E.European consumers, corporates, and sovereigns? Take NAMA in Ireland, this is merely stealth monetazation of Irish toxic assets by the ECB. And look at derivatives exposures from Deutsche, BNP, etc. And the sovereign risk assumed by the ECB. Please explain to me how th EUR is the safe, responsible, fiat currency. Thank you.
Ireland's external debt, at US$1.8 trillion, equals 900% of the country's US$200 billion GDP.
The United Kingdom's external debt of US$10.5 trillion equals 456% of its US$2.3 trillion GDP.
Switzerland's external debt of US$1.3 trillion equals 433% of its US$300 billion GDP.
Then look at the Eastern countries, maybe not.
Monday 13th July 2009, Mr Evans-Pritchard DT Columnist predicts: “Without a radical change of strategy, the ECB risks pushing the weakest states into a debt-compound spiral that can only end in bond crises and/or the disintegration of Europe's monetary union – whichever comes first.”
Remember that the European Union’s "artificial" currency, is the euro, due to the actions of the ECB.
Reuters, Monday May 18 2009 Paul Taylor , May 18 (Reuters) - "The iron discipline we have come to expect from the European Central Bank has broken down, giving an unprecedented public glimpse of feuding over the direction of monetary policy in the financial crisis. As the 16-nation euro zone's central bank dangles its toes in the uncharted waters of quantitative easing [money printing] -- starting to buy assets in an attempt to help revive the economy -- its leaders cannot agree on how far to go and when to stop."
The again maybe just a sign of prudence?
Time will tell.
These external debt - GDP ratios are no different than the average American's mortgage/credit - income ratios. Actually, they are probably worse.
The dollar will not go down quietly. There will be a major rally before it dies...
Anyone have any thoughts on dollar bear ETFs like UDN, given the currency baskets involved? Even if one projects the dollar getting trashed long term, any reason to think the Euro central bank will navigate a different course re previous comments?
I'm torn. I've booked a vacation for myself and my family to Hawaii in April, 2010. Part of me wants the fraud to continue for seven more months. If the financial world unravels, I might have to cancel my trip.
Kim Jong Il might take care of that decision for you.
Well after draining fort knox as "security" on our national debt it's only fair that they endebt us to the point where we have no chance to pay it off and are simply working for arbitrarily defined owing. Defense spending keeps going up so we know the few people who actually run this thing really like war.
No big deal - just a mid-afternoon short squeeze based on a good technical setup.
Right now a warning signal worth watching is the bearish divergence of the NYSE High-Low Index.
Other than in the price of oil, where will this inflation (or the effects of a a week dollar) show up? It is showing up on asset prices, but I don't see it in consumer inputs except for oil and copper. This seems to me to be tremendously important, since China is the axe in both commodities, and it has the power to cause a steep corretion in both. Tell me where I am wrong, but at least in the short term, the public is not going to worry about a falling dollar as long as the price of oil doesn't explode.
john williams is predicting a big bump in august
for cpi... price inflation is still positive on pre-clinton
basis...
dollar was jumping at 75 usd until someone calmed
it down...even though fundamentals have it dropping
the inflation money is propping it up....
in fact, the doe or fed or treasury is keeping oil
above 70 since the middle east especially
dubai and abu dahbi are a pubic hair away from
a banking collapse....any collapse there will
ripple into the usa rapidly due to their need
to pull deposits from money center banks in
london and new york.....
folks are making too much of this swoon....it will reverse within a day or two.....if the dollar goes below 70 then there is reason for handwringing but for a 1 day event this is just utter nonsense and henny penny hysteria...it is one data point and by itself means absolutely nothing.....
and i am just as pessimistic about america's economy as anyone you will meet....
there are all kinds of currency swaps, hackstops, and interventions for this to be a permanent move....
ZH tshirts or a $100 bill? Both are so soft on my tushy, I just can't decide which I will use after I take a deuce!
Grab the five silver eagles while you still can for $100!
Ben is bombing the dollar to allow for carrytrade deleveraging? Are people pulling out of speculative positions? Bombing the dollar also forces people to dump dollars and speculate. I guess it depends WHO is delevering. If the big guns are delevering their positions(oil etc.) and going to yen or dollars behind the scenes it allows retailers to think that the rally is continuing while the smart money runs for the hills? Am I cynical here?
Unlike other countries that are lower on the global power brokers chain of command, the U.S. does not have such rampant inflation concerns as you might expect. If Nation XYZ is an exporter to the U.S, then the strength of their currency becomes a burden to the point that the relative lower value of the USD cripples their industrial output by flooding their markets with cheap goods that they cannot unload. The U.S. is not only the world's largest borrower but also the largest lender. By holding its position in the pyramid of global capitalism everyone else just gets their dicks cut off if they get too big. Geithner really should tell China if they don't already know the game.
Good point- I think China is about to wish it read the rule book in full.
More butter on my behind please... and stop throwing sand in there
Guys it increasingly looks like the main world currencies are being kept in peg by the respective central banks. From the Bank of England here in the UK talking down QE (when the pound looked a bit weak) to today's massive flooding of $s at 11:30 ET sharp (when the $ looked a bit strong), it's all beginning to look a bit, well.... "held".
Just a thought - explains how equities, gold and oil continue to pay no regard to fundamentals - and better than the short-playing surf-kids in Starbucks being fleeced by Goldman-Sachs "theory" ;)
On October 12, Bernanke is going to fix the value of the dollar at a discount of 38% of its value on October 1. Is this the chart I should use to determine that value, or, the SPY chart?
bernanke is perfectly coherent - killing the dollar is his last resort to create inflation (or beat deflation as he thinks it should be called).
Short of negative interest rate, that is what he has left to get people to spend the dollars he printed. The problem is he forgot those dollars he printed got stuck somewhere as bank reserves.
Obama looks to be heading for disaster in mid term elections in 2010 with Mr bean (sorry Mr ben) :)
Anyone an Elliot Wave person?
http://www.elliottwave.com/freeupdates/archives/2009/08/25/Forex-Don-t-T...
I know very little...but if they say a 5 wave formation is over...that would mean now is 5 waves down right?
Buy that new car.
Mutherfu*rs!
It's good for Boeing and their 160K direct employees. They've BK'd airbus. Weak dollar = strong multi-nationals. It's a no-brainer.
what ever happened to the word "traitors", " conspritors", " accomplicances"????? Who the hell needs enemies on camels, we have them driving limos to wall street evryday. Great God, how can so many be so ignorant