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John Taylor Says He Is Now Long The USD As Of A Week Ago

Tyler Durden's picture




 

John Taylor is again making the media rounds, following last week's CNBC appearance in which his punchline is that next year was going to be "truly miserable", today he was on Bloomberg continuing his thesis of how doom and gloom will be with the US for a long, long time, and that courtesy of no QE3, risk is about to go bidless (he differs with the Zero Hedge outlook only on whether there will be QE 3 or not). His response to what an environment of no fiscal or monetary stimulus (in case it was not clear): it is bullish for the JPY, bullish for the USD, bearish for commodities and bearish for stocks. More importantly, in terms of timing, Taylor says that after being short the dollar, he went long a "week and a half ago" and expects a big upside USD catalyst in the next "3 or 4 days." which he follows up with the cryptic: "Our analysis of the markets has shown that they are very, very dangerous." Another trade that JT has on is a long JPY, short EUR - the reason for the EUR bearishness is that Taylor is very "confused" by the second European bailout. As for his long USd conviction, it is based on his belief that the market appears to believe that QE 3 is coming, and that once it is made clear that there will be no further monetary easing (good luck with that), the dollar will surge, following a slowdown in the economy, and a shortage of dollars.

 

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Mon, 06/06/2011 - 13:11 | 1343664 Racer
Racer's picture

EU's Rehn says Europe has contained sovereign debt crisis"

Hmm, that's got an eerie ring to it.. now where have I  heard something like that before?

Mon, 06/06/2011 - 13:14 | 1343674 vxpatel
vxpatel's picture

doesn't that statement guarantee a default...like Ireland, Iceland, Lehman, etc etc etc

 

Mon, 06/06/2011 - 13:27 | 1343701 jus_lite_reading
jus_lite_reading's picture

This falls into the Bill Clinton "I did not have sexual relations with that woman" lie...

On to bigger things... TYLER DURDEN why are you not reporting anything about TEPCO STOCK XPLODING TODAY?? THATS BIG NEWS!!!

Mon, 06/06/2011 - 13:11 | 1343666 LeBalance
LeBalance's picture

We will see about QE3.  Whether a socialism of the risk of the elite onto the backs of the masses is called expressly QE3 or not, I believe strongly that it will happen.  Since the political will is generated by the elite, theirs is the voice that will be heard.

Mon, 06/06/2011 - 13:11 | 1343675 camaro68ss
camaro68ss's picture

Whos going to buy US Goverment bonds? QE3 is a must!

Mon, 06/06/2011 - 13:14 | 1343684 Boston
Boston's picture

Everyone who'll be selling risk, that's who.  

When the USD gets bought, where do you think those dollars will get parked?

Any severe downdraft in equities, etc. will be VERY bullish for US T-notes.

Mon, 06/06/2011 - 13:32 | 1343713 camaro68ss
camaro68ss's picture

There is nothen bulish about T bills with a threat of downgrade

Mon, 06/06/2011 - 13:28 | 1343712 Ura Bonehead
Ura Bonehead's picture

Just the opposite.  The ending of QE will insure money flow into US Gov debt.  Commodities and equities get punished, the 'risk off' means that the dollar makes a big run as money flows back into dollars and bonds.  1 + 1 = 2.

Mon, 06/06/2011 - 13:37 | 1343736 trav7777
trav7777's picture

what dollars?

The leverage will be repaid...there will be a collapse in credit.  The dollars outstanding will vaporize.  That is deflation.

There won't be enough dollars to bid USTs up and the auctions cannot self-fund.

Those who expect an increase in the value of the currency of a bankrupt sovereign are going to be in for a rude awakening.

Mon, 06/06/2011 - 13:47 | 1343751 Boston
Boston's picture

Credit collapsed in late '08.  

What did the 10-year do?  What did the USD do?

They both took off like a rocket.

Mon, 06/06/2011 - 14:18 | 1343882 chartcruzer
chartcruzer's picture

the COT for the dollar closed the week indicating there will be a bounce soon.  However, ,,,,

by any reasonable measure the USD is still in a down trend long term

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s218820698]&disp=P

even short term the dollar is still selling off

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s218820698]&disp=P

Ill wait for clear signs of a bounce or an international fiscal explosion before going long

 

Mon, 06/06/2011 - 16:10 | 1344299 Urban Redneck
Urban Redneck's picture

The US public debt (both budgetary and debt refunding) was a lot lower in 2008.

Mon, 06/06/2011 - 16:21 | 1344325 trav7777
trav7777's picture

credit only failed to grow.

The sucking sound that persistent $1.5T deficits will make is a lot bigger than any of that.

The 08 collapse was a global run on money markets...anyone who thinks this won't extend to sovereign paper is foolish.

Mon, 06/06/2011 - 14:01 | 1343817 oddjob
oddjob's picture

Exactly, in the end all there will be is debt, and debt is not an asset class for anybody outside New York.

Mon, 06/06/2011 - 13:37 | 1343738 Sean7k
Sean7k's picture

The end of QE would be a default on the debt- who buys bonds or the dollar in that scenario? People still need commodities- the shortages still exist. Equities would get trashed, but they have been due for 20% re-tracement for awhile. 

This is a timing play by the Elites. Dress up tragedy to get QE3 and put her on parade. 

Mon, 06/06/2011 - 13:35 | 1343723 Temporalist
Temporalist's picture

I believe Jim Rickards adroitly addressed this in his recent interview on King World News:

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/6/4_Ji...

 

Basically the bailed out banks have no choice but to continue buying treasuries because that was the condition of the bailouts.  It is easy for the treasury to "persuade" primary buyers to buy since they would not be solvent today were it not for the government backing. 

Mon, 06/06/2011 - 13:55 | 1343791 Oh regional Indian
Oh regional Indian's picture

Detroitly distressed indeed.

ORI

Mon, 06/06/2011 - 15:13 | 1344099 LudwigVon
LudwigVon's picture

READ ZH TD !!! FODD-RANK BILL creates market for debt needed to fund the leviatian state. TD just told you that the PD's will need Billions of Treasuries to pos as good collateral when a couple Trillion of OTCs are onboarded to central exchanges. Jeethner is working on longer maturity bonds as well was the rumor for a bit. anyone else? This is a nice hold-over, a nice hard kick of the can. But it only works once. 

Mon, 06/06/2011 - 13:15 | 1343676 oogs66
oogs66's picture

Sad but true

Mon, 06/06/2011 - 13:29 | 1343714 Ruffcut
Ruffcut's picture

I'm short (fully naked) on dollars, and long on debt.

Mon, 06/06/2011 - 13:10 | 1343671 camaro68ss
camaro68ss's picture

Party on Bitchez, the games not over yet

Mon, 06/06/2011 - 13:16 | 1343680 MrTrader
MrTrader's picture

John Taylor´s funds are all down this year:

 

MTD

YTD

NAV/Share   

Global Currency Program

 

Funds 1

   Onshore

-4.47%

-7.98%

136.17

   Offshore 

-4.47%

-7.98%

92.05

Composites

   Funded 2

-4.43%

-7.77%

   Funded-EUR 2

-4.53%

-7.73%

   Funded-GBP 2

-4.55%

-7.82%

   Funded−HI Alpha 2

-13.42%

-22.47%

 

Multi-Strategy

 

Funds 1

   Onshore

-6.09%

-4.73%

165.25

   Offshore

-6.09%

-4.73%

324.33

Composites

   Funded 2

-6.08%

-4.79%

   Funded-GBP 2

-7.23%

-5.80%

   Funded-GBP
           HI Alpha
 2

-8.99%

-7.11%

 

Global Financial Markets

 

Funds 1

   Onshore

-8.13%

-9.32%

90.68

   Offshore

-8.13%

-9.32%

3,739.89

Composites

   Funded 2

-8.13%

-9.32%

 

Volatility Program

 

Composites

   Funded 2

-3.76%

-3.35%

 

Global Rates Alpha Program

 

Composites

   Funded 2

2.25%

2.75%

 

Notes:

1. All fund returns include interest and are net of fees.

2. Represents net returns of all fully-funded discretionary accounts.

Past performance not indicative of future returns.

 

Mon, 06/06/2011 - 13:15 | 1343686 topcallingtroll
topcallingtroll's picture

Yep. He shuda held treasurys and cash instead.

Ten year at 2.1 in two years or less?

Mon, 06/06/2011 - 18:35 | 1344935 equity_momo
equity_momo's picture

1 handle on us 10yr by 2015.

Mon, 06/06/2011 - 13:13 | 1343682 topcallingtroll
topcallingtroll's picture

Hahaha!

Way ahead of you John!

I got long the dollar about a month or so ago.

Gold still looks strong, however.

Mon, 06/06/2011 - 13:14 | 1343683 ATM
ATM's picture

I think he is right in the short term. Dollar strenghten v. other paper currencies as QE2 fades and no QE3 immediately appears.

Then - next crisis - and QE3, 4, 5 ,6.......

Politically QE3 won't happen right away. How soon it will be when it does, I am not sure but in the mean time I can see a higher dollar, much lower rates then the next round of printing and debasement.

I personally dumped almost all my meager investments in stocks etc and bought treasuries and cash about a month ago (on top of physical gold and silver).

I think the ten yr can drop to 2.5% or even closer to 2% before the next big print. Then it will probably be print to infinity time.

Mon, 06/06/2011 - 13:31 | 1343709 Boston
Boston's picture

Bingo!

I just hope that the commodity correction is strong enough to drive down the PM's far enough to provide a great buying range.  If the drop off in industrial demand doesn't temporarily crush silver, I'll be kicking myself for not buying more at today's prices.

So I'm long T-notes, gold/silver/platinum, and looking to unload the Treasuries during max pain in the risk assets markets and buy more PM's (and probably equities and high yield) at firesale prices.

 

Mon, 06/06/2011 - 15:46 | 1344235 gmrpeabody
gmrpeabody's picture

 

Sounds like a plan.

Mon, 06/06/2011 - 16:35 | 1344388 ATM
ATM's picture

Just be patient. Treasuries will continue to rally, dollar stonger, commodities down as everyone fears the great deflation.

But how can we possibly have real long term persistent deflation when no one works and the central banks will all be running the presses 24hrs a day?

It's going to be a head fake that gives us a buying opportunity if we're patient and awake.

In the meantime I'm still adding some PMs along the way because I am not arrogant enough to think I cannot be wrong, but I don't think I am. Sitting on a bunch of cash and biding my time..... 

Mon, 06/06/2011 - 13:21 | 1343688 Trillax
Trillax's picture

While I agree with his main points, I disagree about the strong dollar.  I still strongly believe there will be a time here shortly in which the dollar will lose it's Reserve status and people will flee like roaches when the light is turned on.  Before this happens however, the long awaited 'paradigm' shift will happen (i.e. Mega-Robo Black Swan event) -- whatever that might be.

Mon, 06/06/2011 - 13:47 | 1343758 Temporalist
Temporalist's picture

There are too many CBs colluding for that to happen that quickly; they are all in dollars too.  I believe it is a matter of time but it just won't be as sudden as some would like.  I've been telling people about the end of dollar hegemony for years now but as you can see it's just not going to be an "event" it will be a series of long slow happenings.

Mon, 06/06/2011 - 16:21 | 1344329 BorisTheBlade
BorisTheBlade's picture

When 'strong dollar' is mentioned, it is usually defined as being strong vis-a-vis other currencies, mainly euro, in which case he maybe right. However, ultimately dollar being strong vs euro is highly irrelevant since euro is fundamentally flawed itself. Dollar will weaken in terms of purchasing power (so as other currencies, only slower), even if with a short break for another run-from-the-risk cycle. There is no way to sustain dollar reserve status in the long run, the only thing that keeps it as a reserve currency is the allmighty force projection, which also has its limits.

Mon, 06/06/2011 - 13:18 | 1343689 NotApplicable
NotApplicable's picture

Tell Mr. Taylor that the dollar's strength is transitory, being indicitive of a move down through Exeter's Pyramid. Of course, this flow of monetizing financial paper will serve only to undermine any remaining capacity for the dollar to act as a long-term wealth storage system, and wealth will move through it into a superior meduim, gold.

But I bet he already knows that.

Mon, 06/06/2011 - 13:18 | 1343691 SunBlaster
SunBlaster's picture

shortage of dollars- impossible

Tue, 06/07/2011 - 03:26 | 1346115 skip90291
skip90291's picture

Really SunBlaster? Impossible? Sounds like you don't need all your piles of worthless dollars you're keeping in your mattress, so why not give me some?

I sometimes feel that being overly confident over a single prediction within an infinitely complex system is the epitome of hubris.

Mark Twain said it best: "It's difficult to make predictions, especially about the future."

Mon, 06/06/2011 - 13:21 | 1343695 BlackholeDivestment
BlackholeDivestment's picture

...ah come on QE3? They did not come all this way to Zero Out and die on 2112. Oh no no. It's time to call 911 and go global into the green fuzz. http://www.youtube.com/watch?v=K2QKu4ayXEg

Mon, 06/06/2011 - 13:26 | 1343696 Franken_Stein
Franken_Stein's picture

 

So he places his bets on a "feeling" ?

He doesn't know what it is, but he bets some millions on the dollar for some reason becoming stronger within 3-4 days ?

Huh ?

 

Has he stumbled across a chart pattern that we still don't know of ?

Or is it a combination of technical indicators like the ominous Hindenburg omen that makes him think so ?

 

Or the recent barrage of hits concerning NFP, ADP, SNAP, ISM and so on ?

I mean feel-based trading is not very lucrative, to say the least.

 

Mon, 06/06/2011 - 13:26 | 1343705 bugs_
bugs_'s picture

or he got a message on his cell from deep shah

Mon, 06/06/2011 - 13:33 | 1343730 truont
truont's picture

Taylor is signaling that he has some (insider?) information that he can’t get specific about.
The timing (3-4 days) shows that he believes he has credible, actionable information.
My guess is Taylor thinks he has been tipped off to a Eurozone problem in 3-4 days.

But why does he think that QE will end, I don’t know.
How can it end now? We should not have ever even started it, then, if we are just going to end it now.

Mon, 06/06/2011 - 14:59 | 1344048 GeneMarchbanks
GeneMarchbanks's picture

How about this: He's awaiting the news of the Greek situation which should come out sometime this week, they can't play kick-the-can forever. The DXY should react to this and maybe pop above 74 where I think that it could be a buy. Awaiting confirmation that is all. I see about a 15% drop in the DXY if he's wrong. He needs to be wrong at some point. Made some great calls though. But during the whole interview he was all " I think" "maybe" let's not forget this dude is a Goldmanite.

Mon, 06/06/2011 - 13:27 | 1343702 wandstrasse
wandstrasse's picture

An Euronaut On Inflation

After failing to repair the Hubble Space Telescope, my favourite German scientist cast a hand full of Euro-coins into space. He muses: 'When on earth there is inflation, these coins are missing.' Completely new point of view, I felt urged to share it here.

http://www.dctp.tv/?ref=spiegel&/#/kosmos/helge_schneider_hubble_schraub...

Mon, 06/06/2011 - 13:50 | 1343771 magpie
magpie's picture

haha those are awesome, especially with Berling and Schneider.

Mon, 06/06/2011 - 13:28 | 1343703 Quinvarius
Quinvarius's picture

He said this same stuff last week based on the foolish assumption that no QE is good for the Dollar.  No QE will collapse the Treasury market and take the dollar with it.  QE is bad for the dollar.  No QE is worse for the dollar.

Mon, 06/06/2011 - 13:35 | 1343719 mayhem_korner
mayhem_korner's picture

No QE will collapse the Treasury market and take the dollar with it.  QE is bad for the dollar.  No QE is worse for the dollar.

Over what time horizon?

Mon, 06/06/2011 - 15:17 | 1344115 Quinvarius
Quinvarius's picture

I am pretty sure the Fed will keep buying Treasuries from whomever wants to sell them at inflated prices no matter what they call it.  The only bet I am actually willing to make is continued debasement of the currency, whether it is reflected in Treasury prices or not.  I guess my point is the Fed and Treasury have probably figured out they cant stop feeding money into the ponzi scheme too.

Mon, 06/06/2011 - 13:26 | 1343706 narnia
narnia's picture

John: the Chinese, the Japanese & oil producing nations are more than happy to sell you as many $ as you wish to purchase.  Maybe it's time to reconsider the long term risks to you and your clients of the fiat currency fund business.

Mon, 06/06/2011 - 13:36 | 1343727 Sean7k
Sean7k's picture

I agree. I think the Chinese would jump on it with both hands. Anyone thinking there aren't enough dollars is an idjut. They want to get out of their treasuries now. 

Mon, 06/06/2011 - 13:59 | 1343760 GoinFawr
GoinFawr's picture

Right right right. Any transitory strength in the USD is triggering divestment while the divesting is still good. Hindsight doesn't lie.

One ezception narnia: CANADA just elected the "I can't believe we're not Americans yet" party to a majority, so Mark Carney has an open license to do whatever his fellow GS alumnis instruct him to do, while Japan is being forced to tap out.

Mon, 06/06/2011 - 13:27 | 1343707 Missiondweller
Missiondweller's picture

Though I can see a Euro crisis boosting the USD short term I just cannot imagine a longer term situation that is strong dollar. He seems to indicate the euro crisis is about to cause people to flee to the dollar. longer term though, I just don't see it.

If Ben has shown us anything is that he'll find new forms of QE.

Mon, 06/06/2011 - 13:35 | 1343722 JW n FL
JW n FL's picture

Dear James,

The United States may be about to let oil giant TransCanada build 1,702 miles of pipeline -- they call it “Keystone XL” -- to funnel highly toxic tar sands from Alberta, Canada, all the way to refineries in Texas and Louisiana.

The only person standing between TransCanada and its plan to corrupt the American Midwest and vulnerable Gulf Coast in the name of oil profits is Secretary of State Hillary Clinton, who can either approve or deny the Presidential Permit needed to cross the US-Canada border. 

Today is the very last day for public comments on the project. Please click here to sign the petition now, opposing the pipeline.

Keystone XL would endanger pristine areas of Montana, South Dakota, Nebraska, Oklahoma, Texas, and Louisiana -- as well as the Ogallala Aquifer, the largest source of water for drinking and crop irrigation in the country.

TransCanada claims the pipeline will be safe, but they said that last time, too.

When TransCanada was hammering through approval for their first pipeline, they swore the pipeline would only leak “every seven to eleven years” -- but its pumping stations have had 12 spills in just the last year. Last Friday, the U.S. Department of Transportation had to order TransCanada to shut down the pipeline because of ongoing safety concerns.

Right now, oil companies are pulling out all the stops to urge Secretary Clinton to permit this disastrous new tar sands pipeline.

Fight back against TransCanada and protect American health and safety. Public opposition is the only way to convince Secretary Clinton to stop the pipeline, so please sign the Sierra Club’s Change.org petition today:

http://www.change.org/petitions/stop-a-new-oil-pipeline-across-the-midwest-deadline-june-6

Thanks for taking action,

- Patrick and the Change.org team

Mon, 06/06/2011 - 13:50 | 1343789 Missiondweller
Missiondweller's picture

Clearly what our failing economy needs is less jobs and higher oil prices. (sarc)

Mon, 06/06/2011 - 13:36 | 1343725 fonestar
fonestar's picture

I don't understand you idiots who are one week long, one week short, long, short, short, short, long, long, long, short.

I am long silver and gold and I will always be long PM.  Duck and weave with a freight train and your eventually going to get CREAMED!!

Mon, 06/06/2011 - 13:40 | 1343735 Franken_Stein
Franken_Stein's picture

 

Bukkake style.

That goes without saying.

Oops, now I've said it.

 

Mon, 06/06/2011 - 13:42 | 1343740 scratch_and_sniff
scratch_and_sniff's picture

The dollar has not been responding to risk like it should for over a year now, whether or not that will change if things get really brutal, who can say. But what he is suggesting is that particular correlation is going to spring back to life...within 3-4 days??? Hummm, i think hes confused, he sounded like he was...that girl helped him out by changing the subject, they probably want him back on the show or something. He's "short the dollar now and long the dollar a week ago"?, he "dosent know what it is"...wtf, he's lost it.

Mon, 06/06/2011 - 13:43 | 1343753 Imminent Collapse
Imminent Collapse's picture

I just went naked short on the dollar.  September 72.  I feel better knowing that John is going long. 

Mon, 06/06/2011 - 13:52 | 1343792 Lord Blankcheck
Lord Blankcheck's picture

"Common sence is trading at an all time low,on heavy trading volume"

 

            Gil Scott-Heron

Mon, 06/06/2011 - 13:59 | 1343806 vxpatel
vxpatel's picture

One of the richest most powerful men in the world says..."Our analysis of the markets has shown that they are very, very dangerous." 

 

and these numb nuts don't try to get an elaboration???? WTF? Ridiculous 'interfarce'

Mon, 06/06/2011 - 15:01 | 1344046 Oh regional Indian
Oh regional Indian's picture

We should consider the hint dropped. No elaboration required.

ORI

Mon, 06/06/2011 - 14:03 | 1343820 mayhem_korner
mayhem_korner's picture

Dow gonna break 12K this week....?

Mon, 06/06/2011 - 14:00 | 1343822 camoes
camoes's picture

They won't call it QE3 that's why he's right, it will be permanent QE ongoing on the Fed

Mon, 06/06/2011 - 14:04 | 1343824 XenoFrog
XenoFrog's picture

If I did my job as poorly as this guy does his, i'd have to go back to my highschool job of blowing guys for quarters at the bus station. I guess John and I aren't so different afterall. 

Mon, 06/06/2011 - 14:38 | 1343945 ILikeBoats
ILikeBoats's picture

What is your current pricing? Have you seen any deflation?

Mon, 06/06/2011 - 14:30 | 1343828 Miles Kendig
Miles Kendig's picture

IF Bernanke makes the point this year, just like last year, of making stocks suffer through Q3 to help create the narrative for more QE then we will likely see a sub 2.3 print on the 10yr before Labor Day.  Combine this with still greater flows out of the PIIGS domestic banking systems, EUR sovereign risk, EUR/CHF continues flaming, redemption's from JPY to fund domestic operations, continued inflation driven slowing in China  and no let up in ag and the 2 print on the 10 if not before the Labor Day holiday, then Columbus Day in the US is in the cards.  If this fails to rekindle the animal spirits in US RRE Bill Gross's marginal trades should be made money good. 

Meanwhile, Baltic dry, HY corporates (especially in Europe), industrial commodities and RRE (especially in Asia & the US) are going to have some rough sledding this summer.

Mon, 06/06/2011 - 17:36 | 1344687 abalone
abalone's picture

Good to still hear the voice of reason in this myriad of fanatical perceptions

Mon, 06/06/2011 - 14:09 | 1343851 iLoveMisesToPieces
iLoveMisesToPieces's picture

There is absolutely now way to stop QE because the deflation process will be absolutely brutal and very sudden.  It isn't in the interest of the banksters to deflate their assets nor the serfs to lose another 50% of their home's value.  These people all think in nominal terms.  Everything is going to crash either way; the path of least resistant is to continue inflating until the dollar collapses.  Party until the walls fall off or sober up and start rebuilding?  I think we know which choice America will take.

Mon, 06/06/2011 - 14:29 | 1343909 qussl3
qussl3's picture

If you had to choose between cratering the EUR or the USD, you pick the one which doesnt have the guns.

Like it or not, it is in the interests of TPTB to keep the USD going for longer simply because the US military answers to the USD and not the EUR.

Mon, 06/06/2011 - 15:08 | 1344074 nah
nah's picture

subsidized corporate finacial/political manipulation of the state

or

let individuals determine their assets and influence outside of a 'system'

.

my bet is on QE3 if only for the paperwork

Mon, 06/06/2011 - 14:36 | 1343956 sellstop
sellstop's picture

Silver Wheaton is the tell. Lots of liquidation for some time now.....

gh

Mon, 06/06/2011 - 14:37 | 1343957 sellstop
sellstop's picture

Silver Wheaton is the tell. Lots of liquidation for some time now.....

gh

Mon, 06/06/2011 - 14:46 | 1343973 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

JT is obviously not that strong on market timing then,if he shorted the E/$ a week and a half ago,he is down over 300 pips already. Ireland,Greece and Portugal are all bust and the Euro is exploding higher against the terminal British pound and the Emergency Room dollar.How much is left to the upside if the Greek bailout is sorted in the next couple of weeks?

Several sales reps I know have commented recently how eerily quiet the motorways are over here in England,unusually quiet for no apparent reason.None other than a complete collapse of what is left of the UK economy,that has yet to be reported by the mainstream media who are always late and never really give the real reasons behind events.

More QE is required by the Bank of England,they will just print it up,no reference to or permission required from the Treasury,the Fed as we all on ZH know, is quite happy for the stockmarket to decline and the economy to deflate to the point where congress will literally beg them to initiate QE3,in the process removing all blame and pointing out to any critics that they were only responding to the crisis and the demands of congress. 

Mon, 06/06/2011 - 14:54 | 1344033 mogul rider
mogul rider's picture

Why wouldn't they stop QE3?

There are only fish left in the pool all the sharks have moved on. Qe was about the elites inflating to get their cash out after the Lehman disaster.

 

It's all good now, insiders, friends, family are out and the fish are in.

Mon, 06/06/2011 - 15:48 | 1344238 iLoveMisesToPieces
iLoveMisesToPieces's picture

They got way too greedy.  Instead of pumping things just enough to be able to handle the deflation and buy the proceeding dip, they've created a credit and fiat bubble they can't escape.  Deflating the bubble will be so violent it will create massive civil unrest and a mass awaking which is bad for bankster  business.  Extend and pretend until you can't anymore, I see no other option for TPTB.

Mon, 06/06/2011 - 14:59 | 1344053 Flatchestynerdette
Flatchestynerdette's picture

this is what makes the trade. with all eyes on the us treasury/fed i don't think they can do QE3 under the light of the sun. its only in the dark that roaches proliferate.

Mon, 06/06/2011 - 15:11 | 1344105 Yen Cross
Yen Cross's picture

  How can Taylor be long usd, and long yen @ the same time?  I suppose he's long usd/chf as well. Nothing like catching a falling knife!

Mon, 06/06/2011 - 21:11 | 1345477 Stax Edwards
Stax Edwards's picture

With EUR/JPY as he stated in the vid "Leaving the dollar out of this"

Mon, 06/06/2011 - 15:20 | 1344123 Peak Everything
Peak Everything's picture

Nicole Foss makes a persuasive argument that there will be no need for QE3 because Europe will blow soon and flight to safety will support $USD. I suspect JT is anticipating same thing. They both seem to think this will be bad for gold because people covering equity margins will sell gold. I disagree. Not all flight to safety will go to $USD, some people with brains will also flee to gold and it won't take much to offset those selling gold to cover margins.

p.s. When I heard about meeting between German and US heads of state this week my antenna twitched.

Mon, 06/06/2011 - 15:43 | 1344226 YHC-FTSE
YHC-FTSE's picture

Hmmm. So that's what senility looks like. 

Mon, 06/06/2011 - 16:26 | 1344336 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

So where has my last post gone?"My account" shows no record of my last post and also threads I have not posted on,I am assuming a server glitch and not a perverse form of sensorship.Please prove me wrong Tyler..

Mon, 06/06/2011 - 17:37 | 1344678 Itsalie
Itsalie's picture

toilet paper to surge? well given the number of RMB accounts opened in HK banks funded with short dollar trades, you have to wonder whether this is the reverse transfer of wealth that Ben and his masters have in mind. In any case if Taylor is right, then alot of people would be jumping from high rises across asia.

Mon, 06/06/2011 - 19:40 | 1345172 SovietCong
SovietCong's picture

"The cycle has turn"? "There's a shortage of dollars in the world"?! Mr. Taylor, apparently we live in parallel worlds.

The only reasonable interpretation of that babbling may be that he counts on the sheep being dumb enough to miss QE3 once it has arrived because it will be disguised as something other than the good old outright POMO, thus triggering a panicky response. Going long market stupidity is a risky (if often profitable) business, and it sure does have its limitations.

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