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Plungorama: EURUSD Under 1.19, EURJPY Under 109
All is not quiet on the Eastern and soon to be Western front: freefall in the Yen, Dollar and Aussie crosses. Complete global wipeout for the carry traders. Where is Paulson's bazooka when you really need it. It's ok though, Bernanke has things under control - in fact he is meeting to discuss raising the discount rate tomorrow.
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Bilderberg will save us...
Can they at least have the Diebold machines legalize cannabis first?
Final list of Biderberg attendees (scum):
http://www.prisonplanet.com/bilderberg-2010-final-list-of-participants.html
The usual suspects, big brother google, Larry Summers and his hedge fund buddies...
henry kissinger, charlie rose, richard perle and bob rubin. thank you, you have all been a big help.
Today is a great day comrades! We sail into history - Capt Marko Ramius
Yes Bitches short AUD/USD and EUR/JPY from well above. 8215 and 10921 I have a date with 107 shortly and 80 in the am
All going according to plan:
1. Ensure that the G20 communique comes out looking terrible. Europeans squabbling among themselves - disagreements with the US etc. Done.
2. Germany considering constitutionality of bailout. Done.
3. Bennie - meeting to raise discout rate . Done.
4. Euro - well and truly toast. Yep.
5. So now - the US can do whatever it likes. QE2, QE3, more cash for ------. etc etc. part on.
QE2, QE3, QE4, to infinity will be bullish for stocks. Don't see how equity markets go through 09' lows.
watch for a straight up shot today or before Europe opens.. from the Plungers wont matter as it will get shot down....
They can burn a few shorts for an hour, they are out of ammo otherwise.
Been spending their ammo on the stock end for the past 5 months.
US markets will be all down tomorrow, on big volume. This leg needs to see at least 1020 on the S&P, maybe below 1000 before we'll get a bounce.
in a few months, 1.19 will be looking great. so it's all relative i guess.
Man, maybe the Fed isn't inept?
I'm kidding, only kidding.
Many of the greatest products were the results of laboratory accidents.
Even the FED could goof something up and win every now and then, couldn't they?
And on a Monday too.
All good things must come to an end and it's same with the Wallstreet Weeds...just smile and wave boys...smile and wave ;-)
Guru rip.
Gang Starr - It's Gettin' Hectic:http://www.youtube.com/watch?v=ALdqWAWnwHc
Biggest question is will all of this market and economic collapse actually lead to destruction of globalism, its supporters and restoration of independent nation states, meaning that among other things we will finally get no more immigration, no discrimination against native population, no more zionist propaganda and control of governments.
Nope. Exactly the opposite.
Let the margin calls commence, or more accurately, continue en masse.
Yeah the trillions on FX 100X levered derivs should be causing some damage. I think we should be hearing more about liquidations but is quiet so far.
Howdy JPM?
Yeah that pesky zionist propoganda man. Gets ya just where it hurts.
I hate those meeces to pieces.
Yeah, how many of them are on Israeli TV advocating open borders in Erez Israel?
Eretz Israel.
You know, Arabs have no "P" in their language. Why would they call their land Palestine? Wierd.
alistine, knew a girl named alistine. wanted to do it allthetime.
It was the Brits who came up with the name.
It was the Romans that gave it that name, to put down the Jews.
At a place we used to dine, one of the dessert options was invariably pineapple pie (upside down cake really). We got used to hearing "bineapple bie" in the dessert recitation. It's still called "bineapple bie" in our house.
They didn't :)
http://www.palestinefacts.org/pf_early_palestine_name_origin.php
Yeah, but it sounds a bit different in Arabic. It is "F" Falastine.
Just FYI
Duplicated
With QE now the norm, the world is heading towards parity.
Tomorrow will be another great opportunity for you Leo to buy the dip.
That's Cruel!
Truly LOL'd on that one. Well played, sir.
Booyah!
BUY BUY BUY!
The sun never sets on Chinese solars!
LMAO !!!!
posting links to your website from Zero Hedge is probably the only way you get income from google adwords. I think I'll start my own dipshit website and post links to it on here so that if even 5% of the people are stupid enough to click on it I'll get enough beer money for the day.
hey when's my csiq you recommended gonna bounce? I've been holding since 32. Should I quadruple down? j/k
When I started reading the old goldismoney.info three years ago the goldbugs there were predicting exactly this scenario then. Currency race to the bottom (I told them it would be cyclic and sequential, which it has proven to be), sovereign debt crises developing, one final rush into USD "flight to safety", reserve currency and all that, then currency oblivion as sovereigns start to drop. Of all the sites I've been reading, the hardcore bugs there have been consistently right. Not about time frame, but then who is? They've had the sequence absolutely correct. Lehman Brothers was the dry run. We're gonna do it with the rods out (keff>1) this time.
This isn't really that complicated; either there's enough money, or there isn't. It's blazingly obvious that sovereign debtholders, savers and other currency longs are gonna get the haircut of their lives. Pensions? Social Security? Medicare? You've got to be shitting me. I accepted the fact almost twenty five years ago that there'd be no social security money for me. People looked at me like I was some kind of fucking nutbag. Promises get you elected, and thus personally rich, then someone else has to deliver. The ultimate scam, and it's all legal.
You weren't insane; you were ahead of the curve!
MP
Doesn't it seem almost so RANDOM, almost desperately random? But there is no structure there: they're flailing about, from this paper currency to that and back again, as panic alternates from here to there...gold speaks volumes. We are getting lower and lower on Exter's inverted asset pyramid.
Lets not forget who has been loading up on gold recently - the hedge funds. As they come off a horrible May and probably continue to bleed - getting blown out on all kinds of credit, equity and currency trades - they will have to liquidate - including gold. Then GLD will be forced to sell sell sell its huge hoard of gold cheap - to somebody ( China?).
So US happy - no more Euro - king of the hill. China gets a bit of action too - gets to buy gold cheap . Everybody happy.
And when those funds, being forced to sell their "gold", have dropped the paper gold price to a suitably low level we too can buy more. But buy the real metal! This can only lead to an eventual divergence between the paper price and the bullion price.
Don't bet on Soros or Rogers unloading their gold.
i like the cut of your jib.
I can't wait to wake up tomorrow and see what's happening with EU banking. You are right about Exter's Pyramid being illustrated.
Remember when Sunday was the usual day that things were saved and calm was urged?
That was awesome!
Once again Automatic Earth nails it.
http://theautomaticearth.blogspot.com/2010/06/june-6-2010-go-long-euro-at-this-point.html
June 6 2010: Go long the Euro at this point in time? Not me!
Ilargi: The cat is out of the bag (or Schrödinger’s box, if you prefer, to add some spice). And if not the whole cat, surely its tail is. Maybe French Prime Minister François Fillon spoke out of line, or maybe it was orchestrated, we’ll probably never know for sure, but the good soul brought the Euro down on Friday while at the same time confirming what The Automatic Earth readers have been able to read from me for a long time now.
Which is: Europe has been building a concerted effort to bring down the value of the Euro since at the very least the beginning of 2010. And the effort has been remarkably successful. While Americans often tout the power of the Federal Reserve, or the US Treasury Secretary, the comparative value of the US dollar has risen hugely in the past half year, which turns President Obama's goal of doubling US exports in the next five years into a red-nosed type comic relief exercise.
Mr. Fillion's "admission" leads some pundits to suggest that France and Germany are on different sides of an imaginary divide, but they haven't been paying attention. Germany’s economy is doing -relative to others- quite well, thank you very much, and many thanks to the falling Euro, and Angela Merkel has no reason to internally contradict Fillon's intentions, even though she may not have liked these to be out in the open. At this point it’s hard to guess when certain parties would like specific details known, even if Merkel looks like a musical director no orchestra member would or should like to clash with.
Mr. Fillon goes as far as saying that the European Central Bank (re: Berlin, Paris, Amsterdam) wants the Euro to achieve or sink below parity with the US dollar. Personally, I doubt that. It may be just a statement designed to speed up the fall of the currency. I’m thinking Merkel et al are aiming for $1.10-1.15 for the Euro. But they may have decided to go for the jugular, it's possible. A strong currency is great in times of strong economies, whereas a weak one fits weak times. It all depends on how Berlin and Paris view the future, which is something they'll never ever let the public in on. Politics, after all, is about looking ahead in silence.
Not that these people have some sort of absolute control, mind you. What's happening is that they have no choice. A very similar thing as applies to currencies in weak vs strong economic times also holds true for the relative value of exports to national economies. And I’ve talked about this before: very few people seem to understand that in bad economic times, where a lot of debt is involved, the relative values of exports rises exponentially.
What you can’t sell, you have to borrow, to put it into an albeit simplified way. We now see even Nouriel Roubini, who's been hiding in a dark humid doom corner over the past year, come out and say that a weaker Euro might save the Eurozone. Which, to wit, is what I’ve been saying all along: in order for Germany to save the union, and to bail out Greece and others, it will have to sell products, it’s really as simple as that, no big major mysteries there.
US Treasury Secretary Timothy Geithner calls for the opposite of all this: more domestic demand in the main Euro countries. Still, is he really that witless, or have the banks he works for in real life made trillion dollar bets on the very outcome we’re seeing develop before our eyes today, the US dollar doing precisely what no US manufacturer wants? That one I can’t answer. Geithner may not be the brightest light of day, but to presume he’s that thick is quite a different matter altogether. Still, yes, that would mean that he is actively trying to strangle US industrial capacity. Not a trivial trifle matter either.
A Euro at $1.40 or even $1.50 as always a threat to many parties, if only because many US products are assembled in 2 cents an hour economies. Parity? Perhaps, if Merkel et al are clear enough on the depth of the -inevitable- coming downfall (we don’t know what and how much they know). There would be a huge psychological advantage to a $1.10 exchange rate, but if Merkel knows what I do, and acts on it despite potential election losses (which I have no worries about), the decision may already have been made to aim for below parity, and the US interests have no choice but to rake in the profits from the resulting short trade.
And as we saw on Friday, Europe has a seemingly endless series of aces up its sleeves to achieve what it desires. Out of the blue, Hungary, which is not even a member of the Eurozone, became a major news item because of its awful economic prospects. That's where you get to think: look, the entire world, all of it bar none, has awful economic prospects. Why Hungary? And then the Euro went to below $1.20 for the first time in over 4 years. And you go: Ahhhh, Hungary, right!!, and next week Bulgaria, Romania, Latvia. By now I’m sure you get the idea.
And Washington will come back with: but we have New Jersey, and California, and Illinois, and they’re worse off than Eastern Europe by a mile, and we want exports too. Yeah, but the US has so far kept up the apperance that its central and centralized government will make good on all debt all over the 50-odd states. And as long as it keeps up that charade, Merkel wins. Whereas once that charade can no longer be maintained, there’ll be as many valid concerns about the survival of the USA as there now are about the European Union.
We're entering the reality phase of the economic downturn. The first party to recognize that has a head start. At the same time, as I indicated earlier, the major banks that own US and -most of- Europe politics and politicians may well have realized that a long time ago, and divvied up the loot well in advance. Still, go long the Euro at this point in time? Not me.
And then again, who's thinking about money when you see an entire and fast expanding (Louisiana, Alabama, Misissippi, Florida, Georgia, Carolina's and more) local ecosystem and economy go up into less than nothingness? What are our prorities, exactly?
really great site.
Yes, I agree.
Been reading that site since this crap hit the fan back in late 08. The only thing that bugs me about it though, is that it used to be published daily. Now it is published every other day, and they are begging for donations.
I'll read it when there is something new to read. Donate? Maybe when they get back to daily publication.
Don't worry! The Automatic Earth is evolving, new launch coming up in a few weeks. Stoneleigh even left her job and is touring the US and Europe on her own accord and warning people in a lecture series.
thanks, VK †
plus, they don't beg for donations.
reminders are different, gentleness just like
Ilargi.
me, i have believed in his words about germany, made sense since day one, huh VK.
apocalypse now?
What is GS's current call on the euro... I forget....
I believe it was 1.18 before the end of the summer.
Highly conservative indeed. Now that they are taking profits we should see a good rally.
They're still trying to make up for the last 3 times they stopped out.
I thought a couple of weeks ago they predicted 1.35...
http://www.zerohedge.com/article/euro-and-europe-update-and-latest-goldm...
SP futures already down over 1%....
The employment situation clinches it, they failed and know it.
The real depression began in Europe, the second big one will start there as well.
1%, the futures is bleak...
didn't we meet at the tuk u money managers forum in january?
"in fact he is meeting to discuss raising the discount rate tomorrow..."
LOL!!! A serious last ditch effort to head fake strength in currencies.
1.18 here we come.
Gonna be a very interesting week
With all the humans still driving in from The Hamptons, isn't it great that we have computers to do the trading for us?
Robot 1 sells euro
Robot 2 buys $
Robot 3 sells gold.
Bernanke has things under control - in fact he is meeting to discuss raising the discount rate tomorrow.
Bernanke is a peon.
And a douchebag
And yet, he is the Fed Chairman -- and neither of you are.
How do you know?
Nicely worded Timnyofthefed... lol...
good point ("they don't know you're a dog on the internet").
You act like the title of "Fed Chairman" is supposed to garner respect around here. As far as I'm concerned, he's no smarter than a burger flipper. At least a burger flipper provides a service or product beneficial to the US.
Average burger flipper is probably less deluded about the state of the economy, and their role in it.
And they most assuredly know they are not artists.
- bullshit.
or, at worst, kill a dozen of so people with some disease. the fed's metastasizing moral hazard and waste of trillions of dollars and precious time will lead to many more deaths, even without the very possible large-scale shooting wars some predict.
And what other 'details' will they be discussing besides the discount rate?
How to make sure that any decision that comes from the meeting does not appear to be geared for the benefit of GS in some form or fashion?
Patton: Thirty years from now, when you're sitting around your fireside with your grandson on your knee and he asks you, "What did you do in the great World War II," you won't have to say, "Well... I shoveled oil in Louisiana."
Patton: Men, all this stuff you've heard about America not wanting to fight, wanting to stay out of the war, is a lot of horse dung. Americans traditionally love to fight. All real Americans love the sting of battle. When you were kids, you all admired the champion marble shooter, the fastest runner, big league ball players, the toughest boxers. Americans love a winner and will not tolerate a loser. Americans play to win all the time. I wouldn't give a hoot in hell for a man who lost and laughed. That's why Americans have never lost, and will never lose a war... because the very thought of losing is hateful to Americans.
Great! Now we've got a fight to see who gets to the bottom first!
as bill murray's character in "stripes" had it: kicking ass for 200 years; we're 10 and 1 (now maybe 10.5 and 3).
Good news, now I can buy those John Lobb hand made cap toes for the price of a pair of sneakers soon and drink Mouton Rothschild for the price of a coke.
Greenbacks Bitches
Bad news is, your salary is now $10 per year.
WOW. Surprising, no stick-save attempt yet at defending 1.19. Rallied about 50bps from 1.1881 but thats nothing compared to the 200bp+ saves from the CBs earlier. Im assuming its too early for EU to be awake yet. Lets watch this rally next morning, id put a wager on that.
It is a long ride back on the L.I.E. when your not taking the Turbo Carrera. See after the rout on Friday the boys had to take the Jitney.
All CBers are currently in transit on their way home from S Korea. No one is manning the store...
I am short the market but I do think the Germans are stupid. Who will buy their Mercks, BMWs and Volkswagens ? Who will have money to buy Bayer's pesticides ?
This is a nation that started World War I by accident and got screwed.
It can happen again.
If this trend continues, I could use a Beamer.
And I could use an asprin
+200mg
Sweeeet!!
Parity for my late summer europe vacations.
Hot off the presses " How to see Europe on five dollars a day"
wear a Canadian flag.. for your own sake.
Amerikans are not welcome anymore.
Yeah we were not welcome the last time we looked down those Springfield Armory 30/06s while you spit on us in gay Paris for bailing your sorry kissy faces out.
Too bad it was your own money and your own government that financed Hitler to start the wars in the first place.
Who is fucking who?
This time is different. Europe, Russia, China and Japan circling the waggons.
Only thing that will save the world is to isolate the US, all US intelligence and all US imperialism.
How about the US pays Europe back for the crap fuck investments that were rated AAA, packaged and sold to unassuming European investors?
That's a few more billion the US cannot afford to pay.. because... well because the US is bankrupt AGAIN.
We financed Hitler HuH? whatever
Europe, China,Russia,Japan circling wagons? Dude we are going to smoke out of your sack from now on.
Isolating Us Imperialism to save the world? Well you have a good point there.
US pay back AAA rated investments? Well to quote Buffett "You should still do your own research"
And Yes we are bankrupt too bitch.
How the fuck do you think was Hitler able to build the party, the propaganda, the SA troops in a depressed economy that on top of it all was supposed to pay billions in reparations? Germany was broke, German industrials were not in a position to finance such a political effort. It was American money through Ford for example that supported the NSDAP effort.
Look, you have to understand that what your banks and rating agencies did was theft on a grand scale. Someone will have to pay for that some day. Just putting the garbage in bad banks and then downgrading Europe one state after another is NOT cutting it.
And are you telling me that the banks and rating agencies DID NOT act in concert with the political machine in Washington?
AS IF THE FED AND THE UST HAD NO IDEA WHAT WAS GOING ON?
Europe is NOT BANKRUPT. The US IS and can't handle that fact very well.
I would have to agree with most of that post except the first paragraph and the fact that europe is not broke. god bless
So . . you're shocked that the detail oriented Bush II administration was not intimately familiar with everything that the financial industry was doing?
According to Econned by Yves Smith, the gov't was absolutely clueless.
I think they Europeans will come out of this earlier, and in better shape than Old Liberty.
Amen brotha
Interesting idea. Perhaps it will be like Ford failing first...and then not having to be bailed out during the big crisis like GM and Chrysler.
Anymore?
I grew up in post war Germany and was indoctrinated for years and years by American friendly propaganda.
I woke up in 2008 when the shit hit the fan and the wizard was exposed.
Like me, there were many very much surprised to learn how the US had fucked Europe.
Pay us back. My family like many others worked hard for decades to save and put their economy on a solid footing.
That money the US (banks) stole through triple AAA rated garbage investments is not yours.
It was theft. This will later be considered a reason for war.
third times a charm so they say........Dang Kraut do we have to do this again? Wassa matter Germany running low on soap?
Haha, we were allies
Time to pull the troops out of Germany and Turkey while you're at it.
Uhhhhm, I live in America, and I knew better than to buy that crap. Really, think about it - can someone who barely qualifies for a loan ten times his yearly (stated) income really be a good investment? Just because it was wrapped in a Triple-A rating (from a someone paid by the seller) doesn't make it a worthwhile investment.
If it looks like poop, and smells like poop, and tastes like poop - could it be anything else?
Uhhhhm, I live in America, and I knew better than to buy that crap.
Yes, but did your state and/or local government know better? Because if they didn't, you're taking losses on it anyway.
Thank you, sir.
I do not blame the American people. This was a concerted effort by the banking cabal. Probably some European beneficiaries as well.
Bottom line however is that Europe will pay, which really means Germany will pay.
My parents, grandparents, family and friends have worked hard to make their economy work. Our banks didn't lend money to just anyone unless they qualified.
A first mortgage in Germany requires 40% equity, 2nd mortgages are available but qualifications are very strict.
The Germans real estate market has not boomed but it will not slide either.
Finances were solid before the market got swamped with toxic paper.
Greece living beyond their means is like Alabama getting subsidized. Not much different to Europe in the big scheme.
Except we will stand beside our Alabama brothers to the end. We all see what length Germany is willing to go for a stinkin greek, No?
hm, will you stand by new york and california too? How about Michigan?
Keep in mind, we're not in Kansas any more. There is no 'government of the people, by the people, for the people.'
um right we are going to break into 50 different countries over state budgets? I don't think of oz so much as Alice in wonderland after reading that one.
Don't be too surprised to see widespread and active secessionist movements in the USA before this whole financial and economic fiasco is over years from now. The growing nullification movement of federal laws in many states is the early warning alarm that the increasingly tyrannical federal government ignores at its own peril.
All the several states should remain confident in our resolute commitment to the pact we've made and which we've shared in good times and bad. Our love for our countrymen shouldn't be subject to question; our common culture, language, and economic interests binds us together.
Having said that, my own state has hardworking people, low taxes (but not yet low enough), abundant productive farmland, abundant energy resources, deepwater ports, an extensive rail network, a diverse manufacturing base, shipbuilding, and air terminals. What do the rest of you bring to the table?
All of the above, exception of shipbuilding. But our governor has great hair - does that count for anything? Oh, and we have NASA's Johnson Space Center. I guess with the shuttle program being scrapped that means more prime CRE to come up on the block?
We need to build a refinery.
Any Yankees who'd like to chime in are welcome. Michigan? Ohio? Anyone?
[crickets chirping....]
just funnin'....
Probably some european beneficiaries as well?
Your idiot banks went off just as irresponsibly as ours and knew just as well as ours that the rating agencies didn't rate anything. They didn't care. (just like ours).
Who do your banks want to blame for their foolish lending to the PIIGS? There must be someone else responsible. It couldn't be them. It must've been GPap and Zap and Silvio. Yeah, they couldn't have crapped in their own bed and now be asking german citizens to lie in it.
As for your history of pre war Germany, why don't you think about who wanted Versailles to be absolutely punitive toward Germany? Take a look across the rhine. If you want to see whose occupation of the Ruhr in '23 helped precipitate the hyperinflation, that would be another look across the rhine. Or, you could read about Gustav Streseman and see who he had Germany primarily trading with to try to get out from under Versailles. And then if you really want to place blame for Adolf, go look at old family pictures. Or old Krupp, Mercedes and other german industrialist family pictures.
or your pension fund or your federal reserve (maiden lane anyone? fannie mae and freddie mac?) no man is an island in this maelstrom of malevolence.
"Yes, but did your state and/or local government know better? Because if they didn't, you're taking losses on it anyway."
I am not sure that anyone can say what the State of Texas has invested in. I know that our local government (small, agrarian county) would certainly not invest in anything they don't understand - so that discounts everything but a passbook savings account.
By me taking losses on it, are you inferring wasted tax dollars? If so then I would agree. But, we waste tax money on all sorts of other crap too. As I recall, governments emulate non-profit business models. I have positioned myself to minimize my tax penalty wherever I can because of that.
Oh please, the reason Europe is sliding into a depression is because by law you can't fire Greek civil servants, and Europeans can retire at age 55 with a full pension, i.e. you made financial promises with your f-ed up welfare state that you can't keep. Apparently, no one in Europe studies math or the exponential function in school. To paraphrase Kevin Kline in the movie "A Fish Called Wanda" - Do you know where you would be without the good, ole U.S. of A? Do you? You'd all be speaking Russian.
wow.
That whole Dollar Reserve Currency and all its implications was lost on you people, huh?
Money always talks - no matter how much you hate Amerikans.
It wasn't your money.
Anyone can steal.
kinda like all those gold teeth you guys sold to swiss bankers?
"Anyone can steal."
As the Nazi's were prone to do during the last great disturbance?
You want to start shit with us again, go the fuck ahead
"Amerikans are not welcome anymore."
The French aren't all that welcome in their own country either, these days. Francais is used as an insult there. No shit.
Wtf?
No way its an insult being French in France. Clarification required.
Kudos to Europe to take their medicine now. While our boobs are practicing for the World Cup can kicking competition. For some funny reason I get the feeling that the Franks and Visigoths will be laughing last and the loudest. JMHO
Europe MUST stand unified.
This is an attempt to DIVIDE and CONQUER by the US.
The Dollar Kraken will be defeated and the world will be a happier and better place for it.
Please let it be different this time.
Let the internet put an end to the divisive, inflammatory tactics used to keep the people of all countries fighting each other, for the good of the cabal.
WHY?
I LIKE the death...
I LIKE the misery...
I LIKE THIS WORLD
Looks like the Euro PPT has made it to their posts. A little early for a Monday morning but they've clearly made it in.
Just curious - what site or app do you use to monitor the exchange rate?
Hey Doh!,
Try this site...
http://www.fxstreet.com/rates-charts/forex-rates/
http://www.netdania.com/Products/live-streaming-currency-rates-foreign-e...
thanks for the site
And someone explain to me this:
The FED and UST are on the same path of failed money expansion and Europe is doing the opposite, trying to reduce debt, reduce spending, austerity and everything possible to solidify a currency.
And yet the Euro keeps tumbling?
That is grossly manipulated. Doesn't make sense any other way.
Why would anyone put their trust in Dollars that are getting diluted more and more every day?
I understand the flight to safety and all that but shouldn't the Euro which is REALLY THE EUROPEAN MARK not get alot more credit?
Europe can afford to kick Greece and Spain out if they have to.
THE US CANNOT KICK OUT CA, AZ, OH, FL ..
This does not make sense other than to assume massive manipulation by the FED to kill the Euro and the markets in order to help sell crap UST paper or DC can't refi its debt anymore than Greece could.
What if Europe, Russia, China, India, Japan, South America and Africa said, enough of this bullshit. Start to trade in a gold backed Euro or gold backed Remnibi and simply refuse to acknowledge the USD as reserve currency?
So there would be some pain and some writeoffs but in the end, wouldn't it make sense for Europe, Russia, India, China, Middle East, South America, Africa to diss the US and the USD completely?
Are we really supposed to listen, learn and follow the advise from corrupt institutions on Wall Street and incompetent community organizers in the White House?
We can surely do better than that.
USD is a paradigm that is not yet broken. People still believe it as the "flight to safety" destination. I agree it makes no sense at all.
Walkure,
I have lived in Europe. I consider "West" Germany to be my second country. I am an American, from a military family, so know that for context.
If you look around the world, you can see some very obvious events happening. If you have a little experience in these things, you can read them for "tells".
Iran, which hates the US has announced its selling most of its Euros over the Summer. They are buying gold and ... ya US Dollars. Why? Thats the Tell.
France blackmailed Germany and made a big play that they threatened to leave, and they were the great leader of europe, while using the German balance sheet for a 1 Trillion dollar bail out. Merkles response to those events, quietly, is the Tell. She announced changes to trades, to make sure no one can make specific money on the exit of Germany from the Euro. THAT is the TELL.
China has announced calming things at the top level, while their states, countys, cities are no longer allowed to use Euros... THAT is the TELL.
If you look at the Equity ratios on Euro banks vs American banks... That is the Tell.
If you are sitting at the table, and you dont know who the mark is...
TELL me then that my EURO savings accounts will be fine across German banks.
I'm divested in USD, CAD and EUR and gold.
Not willing to part with all Euro cash and bonds for gold.
-1 for bashing AZ for no reason
Yeah...I can explain it.
The USD is the reserve currency. Most world debt is denominated in it. In the case of deleveraging, the USD will paradoxically strengthen.
The Euro is bootstrapped atop the dollar, a fiat backed by reserves of other fiat.
If someone backs a currency with gold, the same thing will happen to it as happened to the gold-backed BW dollar; it will get speculative attack mounted against it to get hold of the gold.
A backed currency cannot last long in competition against an unbacked one as a matter of Gresham's Law.
The Euro is really the Mark? You mean the Millard mark or the Rentenmark? OH NO, here we go with this Aryan blond hair fair skin thingy again.
And, as for kicking out AZ,CA,Fl ect I don't think you fully grasp the concept ot the UNITED States. As for you, in bed with Italians and Portugese well....... maybe that was'nt a good idea after all considering europe's regional history . But you know, its kinda like penis envy United States----United EU.
We are in a range trade on ES. Expect a test on the 1050 and a bounce.
People just dont realize this is a daytrade market, and if you fail to recognize will get burned
What do expect from 26 countries with disparate economies, cultures and productivity? The EU is a political entity created by unelected committees peopled by lazy and stupid bureacrats looking for a way to earn tax free income whilst the great unwashed slave for their benefit. Problem is no one, except the germans, actually does anything that anyone outside of the EU really needs. It will fail, as all grandiose schemes created by silver spoon socialists lacking the street smarts of a turnip. Fuck them!!
I don't know if Ford bankrolled Adolph Shickelgruber, but I DO know Ford was a big fan, along with Lindbergh and W's grand-daddy Prescott. If not all, then a LOT of those FDR-hating right-wingers back in the 30's in America were great admirers of the National Socialists. And even today, many - not all, but a lot - of the supporters of Sarah Palin and the Tea Party still feel the same way, but they keep it on the down low. They talk about "the real America" and "give us our country back" - they're white supremacists, just like the far right was back in the 30's. But Nazi is such a dirty word...
[quote]"What I can't figure out is why some people are so threatened or angry
at the Tea Party movement. What threatens them?"[/quote]
Perhaps what threatens the "Progressive" world view of those others is the
Tea Party principles: Small government,
fiscal responsibility, following the Constitution, and education about rights.
After all, none of these principles actually support the "Progressive" notions
of an all-powerful US Govt. dictating everything EVERY Citizen should or should
not be doing while they're alive in the USA.
There are no valid (or perhaps honest is better) counter principles to be had
for the typical "Progressive" (Socialist Decepticrat?).
Can you imagine arguing in favor of an "Irresponsible Fiscal Policy?"
How about "Ignoring the US Constitution?" How about "Less Rights Education
for our Children?" Let's see the hands in favor of a LARGER Federal Govt...
If they were to be completely and Intellectually Honest about what they
("Progressives") are supporting, everyone would see the "Emperor has no clothes."
So they have to grasp at straw men, such as "Racism", "Idiocy", "Hatred", etc.
to hide their own lack of good counter arguments.
I have actually gotten into arguments with progressives about the Constitution and had them tell me they love it dearly, and then immediately tell me that the reason they love it is because it can mean whatever it has to. It's unbelievable. And yes, I see a lot of crap innuendo about Tea Partiers being closet Nazis. It's all they've got, and your reply above explains it.
Unfortunately, my comment was threaded properly. I was chiming in to a discussion much farther up, when someone was basically saying it was nonsense to say Hitler got support from America.
Who said I was a progressive? I'm all for small government, fiscal responsibility, etc.
The flip side of the coin I was speaking of is that of course, many left wingers loved Uncle Joe back in the day, and there are probably still some closet communists.
Both parties suck. But I do find the republicans slightly more reprehensible cause of the racism thingy. Racism in this country a "straw man"? Google "southern strategy" if you don't know what I'm talking about...
Of course, not all republicans are racist. But all racists are republican... (and I suppose you could say not all democrats are communist, but all communists are democrats, etc).
Two things I find interesting:
1. In Europe, they make no bones about this stuff. In France, for instance, about 10% of the population votes for The National Front, while another 10% votes for the communist party.
2. I find it interesting - and I have no idea why it's like this - but in this country, it's socially acceptable to call a liberal democrat a "socialist" or a "marxist", while it is not socially acceptable to call a hard-right winger a "fascist" or a "nazi".
Updated DOW charts:
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
Looks like more of the same, intervention, at 5:30am.
Must keep things under control until the fed can pull rabbit #40 out of its old and tired hat, maybe...