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PIMCO On The Dollar As A Reserve Currency

Tyler Durden's picture





 

No deflation here, or maybe just positioning for a better reentry point for the "Authority on Bonds." PIMCO's Curtis Mewborne on Emerging Markets in the New Normal

EM Pimco -

 


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Wed, 08/19/2009 - 10:30 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:26 | Link to Comment mgarrett84
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This was very thoughtful of Pimco and Buffet to try to spur a little dollar weakness/ asset price inflation while we seem to be on the verge of the next round of the deflationary death-spiral.  

Wed, 08/19/2009 - 17:01 | Link to Comment iknowNOW (not verified)
Wed, 08/19/2009 - 10:33 | Link to Comment Anonymous
Wed, 08/19/2009 - 10:34 | Link to Comment B_Movie
B_Movie's picture

WRT SPY today will be interesting ..gap away and now a rally ...

any faliure to hold  will be a sure sign of weakness ...

looking like stopping volume in ESU09 5 minute bars this bar .......

bwdik

Wed, 08/19/2009 - 10:34 | Link to Comment Anonymous
Wed, 08/19/2009 - 10:35 | Link to Comment Anonymous
Wed, 08/19/2009 - 10:35 | Link to Comment John Self
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TD just grabbed this piece off the printer he shares with Curt Mewborne.

Wed, 08/19/2009 - 10:45 | Link to Comment mdtrader
mdtrader's picture

It's national destroy the dollar day. Crude inventories were interesting lol! Did they make that number up just for today!

Of course crude going up will do wonders for consumer spending. Let's all buy Nasdaq, not.

Wed, 08/19/2009 - 10:41 | Link to Comment Anonymous
Wed, 08/19/2009 - 10:51 | Link to Comment Cheeky Bastard
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http://www.smartmoney.com/marketcalendar/?story=events&event=Crude%20Inventories&wdate=8/19/2009 compare this to the year before; and compare crude derivatives and the transportation figures of those and the behaviour of traders and hedge funds, if the recovery ( im speaking hypothetically here ) is on the way crude could skyrocket to 08 highs. Mark my word. Of course if that happens we will have a depression similar to the dark ages; but fuck that as long as the boys on JPM commodity trading desk get their bonuses everything is good. ( they have those tankers waiting )

Wed, 08/19/2009 - 10:56 | Link to Comment Sqworl
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I guess someone read my post of Dollar collapse yesterday???

Wed, 08/19/2009 - 10:59 | Link to Comment mdtrader
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but what if the euro crashes first!

Wed, 08/19/2009 - 11:03 | Link to Comment Sqworl
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but what if the Pound crashes first? 

Wed, 08/19/2009 - 11:12 | Link to Comment asdf
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what happens when the sky falls down?

Wed, 08/19/2009 - 11:08 | Link to Comment Cheeky Bastard
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what if yuan floats ? 

Wed, 08/19/2009 - 11:15 | Link to Comment Sqworl
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Who's juan?

Wed, 08/19/2009 - 11:29 | Link to Comment AnonymousMonetarist
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If they made the  yuan convertible today the yuan would drop in value ... dramatically.

Closed system is the only thing that allows them to inflate.

Any yuan to dollar conversion comes from printing or borrowing.

Imagine the capital flows on the bust side of the Chinese cycle in an open system! boom ...

 

Wed, 08/19/2009 - 12:15 | Link to Comment Anonymous
Wed, 08/19/2009 - 10:37 | Link to Comment Oso
Oso's picture

JPM was painting the tape in SPY all morning into the open and afterwards, and someone just smoked DXY.  Any guesses who?

 

Also, i dont believe the oil inventory data for one minute.

Wed, 08/19/2009 - 10:42 | Link to Comment mdtrader
mdtrader's picture

Maybe crude is like unemployment and tankers drop off the list without being counted after 4 weeks without use!

Wed, 08/19/2009 - 10:46 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:12 | Link to Comment Oso
Oso's picture

Fed Up: buys $2.599B of the $13.087B dealers were dumping

Fed buys $2.599B in the 2020 to 2026 maturity range of the $13.087B dealers tried to unload. The previous 5 outings saw the Fed gobble up an average $3.05B of the $11.81B dealers were tossing

 

AH HA.  no wonder shit rallied and DXY puked.

Wed, 08/19/2009 - 12:21 | Link to Comment texpat
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Ha!!!

I saw the spike, and thought 'OMO!' And lo and behold.

Wed, 08/19/2009 - 11:14 | Link to Comment Cheeky Bastard
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and someone just smoked DXY.  Any guesses who?

 

Chinese, they liquidated 3.1% of their holdings last week, and are continuing to do so, the little pick up you saw in DXY was due to the British who increased their inventory by 30.1 percent. interesting the ratio of Chinese unload, and BoE purchase is 10:1; translated into the amount purchased is somewhere 1.4:1.

Wed, 08/19/2009 - 10:40 | Link to Comment asdf
asdf's picture

they propose to look at emerging markets but also mention that all em-currencies are not freely convertible. OK...

Wed, 08/19/2009 - 10:41 | Link to Comment mgarrett84
mgarrett84's picture

I agree with their point.  But those who are speculating will get roasted at current levels. 

 

Oso- I'm fading crude here,  bought back the puts I wrote lower.  The data was clearly known as seen in the run up the last two days.  

Wed, 08/19/2009 - 10:43 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:06 | Link to Comment Harbourcity
Harbourcity's picture

Decline slowing is not recovery.

 

Wed, 08/19/2009 - 11:34 | Link to Comment Anonymous
Wed, 08/19/2009 - 18:16 | Link to Comment Harbourcity
Harbourcity's picture

I guess that's true if the CRELI is akin to a Randy Newman song.

Wed, 08/19/2009 - 11:10 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:32 | Link to Comment Anonymous
Wed, 08/19/2009 - 12:51 | Link to Comment iknowNOW (not verified)
Wed, 08/19/2009 - 11:19 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:47 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:50 | Link to Comment Anonymous
Wed, 08/19/2009 - 10:50 | Link to Comment cocoablini
cocoablini's picture

I thought commodities would be relatively free from the FED marekting dept. but the numbers are shocking-shocking as in not believable for a second. What's next-PPT conjures up a hurricane for the oil market?

Wed, 08/19/2009 - 10:56 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:01 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:08 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:10 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:15 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:44 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:54 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:49 | Link to Comment Oso
Oso's picture

um, what?  do u expect house/auto prices to immediately correct to 30 years ago?  I mean, you expect prices to literally gap down???  Are u for real?????

 

outside of food (which actually i have noticed lately is becoming cheaper) i havent paid full price for anything in months, nor do i intend to. 

Wed, 08/19/2009 - 12:27 | Link to Comment texpat
texpat's picture

Come on!

Gas is down. Kroger are throwing out coupons like no ones business. WM are accepting anyones coupons. Gexa in Tx have leccy at 10.3 c/kWh, from cheapest contract last year which was 12.something.

All the industrial surveys show prices coming down at a rate of knots.

Sure, we may have a currency event and go to hyperinflation, but sure as hell, we are in moderate deflation right now.

Wed, 08/19/2009 - 11:06 | Link to Comment Sqworl
Sqworl's picture

Im hedging via mega millions friday...and the winner is NY State!  75% tax on prize.

Wed, 08/19/2009 - 11:17 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:52 | Link to Comment Anonymous
Wed, 08/19/2009 - 13:11 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:19 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:22 | Link to Comment AnonymousMonetarist
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The United States passed UK economically about a generation before pound lost dominant status.

Wed, 08/19/2009 - 11:24 | Link to Comment Anonymous
Wed, 08/19/2009 - 11:44 | Link to Comment Anonymous
Wed, 08/19/2009 - 12:29 | Link to Comment Anonymous
Wed, 08/19/2009 - 12:30 | Link to Comment Anonymous
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