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A Very Busy Day For The Dollar Plunge Enforcement Team
That's right, we have a patent pending on that particular term. In other alpha news... oh who are we kidding. Ride the beta to DXY 0. There are trillions of deflation threats to take head on, courtesy of several Fed-favored prop trading desks. China is giddy that its $2.3 trillion in dollar denominated assets are worth another $10 billion less just today.
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Ummm... Patent? Or is it Trade Mark that you mean?
yes, maclaren. you are right.
were you the kid in the front of my english class who would correct the teacher every time they made a spelling mistake on the chalkboard?
Isn't Marla supposed to be some legal expert of some sort? You would have expected her to at least correct whichever TD this is.
Don't try to grammar nazi zh, he will wear your ass out. Just go with the floe [sic].
When pigs fly!
Dear ol' "Floe" [sic].
Isn't that photo from an Arnie movie? That's awesome.
That ugly creature is our leader Kuato, the head of our underground resistance effort on Mars from the "Total Recall" flick, which graced silver screens everywhere in 1990, staring "Ahnald" of Terminator fame.
Ahnald is now Governator of California, the state which is currently falling into the ocean courtesy of 2012, in a theater near you this weekend.
Did I cover everything?
http://www.imdb.com/title/tt0100802/
It's just like The Purple Rose of Cairo... O.o
We must all ask ourselves why China, Japan and various other large holders of dollars and dollar denominated assets aren't screaming bloody murder.
When people and entities don't act in their apparent best interest, I figure I have their best interest figured wrong or there is something I'm not seeing that has an out sized influence on them.
In other words, I'm clueless and need to rethink the situation. And ideas? Bueller? Bueller?
http://www.youtube.com/watch?v=TO68zwTXFWk
Could they be thinking that if the US collapsed so would demand for their export based economies?
along with the trillions of dollars of debt they would have to use for toilet paper??
along with the trillions of dollars of debt they would have to use for toilet paper??
(11 seconds, not 3 minutes)
10, 11, 12 oh it's getting serious 16,000!
http://www.youtube.com/watch?v=-nvL5D5I0c8
Good night Rosie!
I'm guessing China isn't quite done exporting their deflation. "In the fullness of time" as the saying goes.
I thought about that. So is Japan doing to same thing or is their playbook set up differently? Maybe my problem is not understanding where each country is coming from, where their own best interest is.
I dunno...I guess they're just hoping for the best, in terms of consumer prices and exports. I don't think they're in for a very fun ride once China lets loose though.
China has to keep its population employed making stuff, even if that stuff is sold at a loss.
For the Chinese leadership unemployment is literally a life and death issue, in that social disorder will lead to their deaths.
When looking at it from perspective, maximising returns on an investment portfolio is a somewhat lower priority
+1 Right answer
China is FAR down the rabbit hole on this one. I guess we'll all get a chance to share stories at the bottom.
The chinese migrants to cities have families in the countryside that they can go to. Thanks to Mao's land reforms.
Even then China has literally completely changed from even 20 years ago. The Chinese people couldn't even dream about having lifestyles that they have now.
China is obtaining a lot of technical and technological expertise from the west, which is why they are playing this ponzi game. The Chinese are thinking long term. It was recently announced that China now has a supercomputer in the 5 thanks to American technology.
It is really a life or death situation for America. When the dollar collapses, forget about a 70% consumer economy. Much of the US manufacturing is related to the military-industrial complex anyway so the industrial sectors in the US will not be immune from unemployment either. It is the US that should fear social unrest above everyone else. You think that the richest most well-armed country in the world is going to take lightly to becoming a third world country overnight? You have another thing coming for you.
And if all currencies competitively devalue the purchasing power of those currencies will go down regardless. That will drive commodity prices up regardless of demand. Hyperinflation has absolutely nothing to do with demand-pull inflation.
The bottom line is that the US economy has been built on trillions of worthless derivatives. If it were not for those derivatives the so-called wealth that the economy has been based on for the last ten years would not exist.
By the very fact that tier 1 ratios virtually no longer exist, exposes all of the hidden inflation in the system. If any government prints money that is unproductive what has happened, the purchasing power of that currency declines, even in Japan which was still the largest creditor nation in the world, at the time of its program and had a growing export market. There are differences of course, the US dollar is fiat and has the largest amount of debt in the world.
Eventually if our creditors peg to the US till their deaths, they will be dragged down to hell with us, literally they will go bankrupt first and be forced to liquidate their foreign exchange holdings at that point. This is the end game for countries like japan, if they continue to rely on the US.
During the depression there was no alternative to the British pound, and when the British defaulted on the gold standard the only known monetary system at that time the CONFIDENCE in the currency degraded which resulted with a collapse in orderly world trade. Mind you the dollar and the pound still had somewhat light pegs to gold at that time and did not excessively print unproductive money. That is all it takes, the eventual decline in confidence of the dollar, it has happened in history before, though not on this scale of a fiat currency based upon a ponzi economy.
This is why deflation cannot be the end game, if all of our creditors go bankrupt, who will be left to buy our treasury bonds? No one will be left to buy any US debt or dollars once they go bankrupt, that is a fact.
Maybe some missile tech deals will placate the Chinese?
EXCLUSIVE: Obama loosens missile technology controls to China
http://www.washingtontimes.com/news/2009/oct/15/inside-the-ring-2059116/
Ya maybe they can overpay for those damn minute man missiles that didn't work worth a crap in iraq. Another buy my crap toxic asset just taken to the military domain.
Power, being what it is, always seeks more. China seeing that the U.S. became the global superpower recognized that they had to take down the giant before they were stomped on. So how does one take down a giant? Use the gluttony and arrogance of the superpower to create a dependency on cheap credit and manufacturing. Before they wise up to the trap, they are already in a stranglehold. China holds on tight knowing full well it will go down as well. That's the plan. The gamble is the U.S. will be worse off coming out than going in. This is the process of global restructuring. No nation willingly gives up power. It gets taken away.
That's my amateurish working explanation of the conundrum of Chinamerica.
Some of the Indian tribes traded trinkets for their land too.
My research suggests the story of the Indians trading trinkets for land is a myth. All North American Indians (when the settlers first showed up in the 1500's) had a spiritual relationship with their land and no Indian ever thought they "owned" the land but rather were on the land and thus had a responsibility for the land, something our culture doesn't comprehend.
I believe it was a myth promoted to
1) justify taking the land
2) the white man wanted people (read others like them) to believe the Indians were stupid people, thus they didn't deserve the land in the first place.
It all comes down to the perceived (and probably very real) question of survival vs profit/benefit. While the world outside of the US may want a strong dollar, it is really not in their long term self interest, since they know that a stronger dollar means apocalypse.
DPET!
Enemies of the United States might not complain as we destroy ourselves.
It is a common myth that the US has any enemies.
The US is everyone else's host. They drink our blood to survive, and we love them for it.
Even radical Islam uses the US as a strawman to keep their own underclass under strict mind control. Nice for them, not going to last though once the US drops off the international map and closes its doors "gone fish'n" for 20 years. Then we'll see if they've got anything besides oil bucks and the Koran to back up their claims of moral superiority.
If we go down, you'll see quickly how all sorts of other houses collapse. Including the myth that China owns us.
China is the one looking down the barrel of a gun, not the US. We can go quietly into that long night (a few nutter corn-pone Nazis and one or more crushing civil wars not withstanding) but China could blow Asia into 2 billion pieces of human shrapnel one of these days, and accomplish the task in a month. Nowhere else could that happen -- and no *when* else but now.
Islam has existed long before the US. It will continue its campaign for jihad until it is extinguished. Their is no individual in islamic countries, there is only the state/islam/good and non-islam being evil. Western christianity is not even Middle Eastern christianity, so in no way would a parallel between westerners' interpretation of christianity and the purely semitic expression of islam be comparable.
If the US collapses, there will be world war 3. A lot in the US are begging for a revolution. That is the wrong thing to do. Russia and China would see that as an opportunistic time to wipe us off the map. E.g. china may set off a war in the pacific to distract the US air force/ navy, the US itself will be under martial law and americans will be fighting against their own military. This leaves opportunity for russia to strike the US without warning. That in my opinion is the real danger here. The US military has not been preparing enough for domestic social unrest and the potential for a three-way war.
What the hell happened to the Meredith Whitney? Looks like she gave up working out 2x a day.
That said, she speaks real sense in a nonsense environment.
Perhaps eating too much restaurant food.
Her words were spot on...
interesting to see her come back out.
i still wonder about that july meeting with bair........
Her interview gave me such a hard-on; i love when she talks bearish to me.
get that interview posted asap - must watch.
uh-oh...don't let her former WWF wrestler husband hear that....he'll put ya in a "sleeper hold"
http://en.wikipedia.org/wiki/John_Layfield#Personal_life
Heard that she took an axe to the banks, and that caused this little selloff. I didn't see/hear - sounds true?
she didn't say anything really new if u have been following her her. it is noteworthy that she spoke uninterrrupted and absent the cnbc octo-box.
did say that she was the most bearish she has been on a long time due to valuations.
has no idea why the market keep going up, it is insanity.
harped on consumer credit contraction. negative on mid market banks and retailers. banks are still under-capitalized. still are going to suffer from residential and commercial real estate exposure.
spoke to Ben's MBS buying. "he has really painted himself into a corner because when he stops buying rates are going to rise". stated full out that he was merely kicking the can down the road, and "the worst thing he could do would be to extend the mbs purchase program".
see's a double dip next year.
doesn't believe the money on the sidelines argument. that money will go to productive use (business investment, education ect. ) and not into the great casino known as wall street (she didn't say the part about the casino).
"the worst thing he could do would be to extend the mbs purchase program"
Simply stunning to me the ignorance of even a bank analyst like MW. Doesn't she realize he will have to keep buying, because that is the only way Fannie/Freddie stay relevant?
With no Fed buying, Fannie/Freddie paper has no buyer, which means rates on Fannie/Freddie mortgages become uncompetitive relative to FHA, which means the mortgage market becomes 95% FHA, which means all those Fannie/Freddie "preserving home ownership" programs become pretty tough to execute.
There is no way out of MBS purchases for Bernanke, which is why I feel really comfortable holding my gold and oil positions.
While not a logical move, buying more MBS seems to be the emerging conventional wisdom around here.
My sense is that the Fed will revisit MBS buying, but do it at a more palatable juncture politically. All one needs is one large and scary "safety trade" to convince that masses that more MBS junk purchases may not be a bad option (which it is). Spooking the masses shitless will tank the equity markets, but support the dollar and rally the Treasury markets big time (that's really needed due to new issuance requirements).
Keep in mind that the Fed has given much thought about how they are going to rid themselves of this MBS from the CURRENT purchase plan-- and they don't have good answers. Even after pursuing a reverse repo strategy to get the stuff of the Fed balance sheet (we promise to buy it back, and besides, they have implicit govt gurantees)-- no one seems to want to touch these things. Little wonder.
The really sad thing is... there is no viable exit strategy that doesn't result in the Treasury making the Fed whole. The mere talk of an exit strategy, it seems, is nothing but an elaborate smokescreen.
I would never accuse CNBC of spewing bullshit (cough, cough), but the market sold off because the dollar changed directions, not what Whitney said, according to my screen anyway. Whitney started after the fall began. CNBC is again, full of shit.
I'm very suspicious she's trotting her butt onto TV precisely when the markets are hitting key resistance and downward sloping trends. But after the past few years, I don't even trust my mother any more.
Sorry ma.
I had the same thought CD (about MW not your Mom!)
agrotera, I told my mother in a phone call last night that I said I didn't trust her anymore her on a blog. I made sure to tell her it was a joke.
My mother immediately insisted I remove my comments and failed to see the joke. When I told her someone had commented on my comment so I couldn't edit my post, she told me I must do SOMETHING.
At 80 years old she has the right to see the world anyway she wants to, so I'm telling the world here and now that I do trust my mother.
Sorry ma. :>)
As Oblame heads to China to preach global warming crap, he may want to ease off the strong dollar talk.
Does he get warm reception over there?
"Oblame" (clever!!) is not in China "to preach global warming crap." You think that's what this is about?
Wow...just...wow. And if he really wanted a strong dollar, well...you get the point. Presidents HAVE to "support a strong dollar." What they don't have to do is effectuate policies that ensure one.
That's a really pretty chart, until the part where the Romulan's tachyon pulse defibrillator tears apart the warp coil's spacetime continuum, thereby causing the Porcine Pneumonia to infest Wal-Mart robotic hamsters and gold to reprice to its true value.
Otherwise known as just another Monday in the USA $1 Store.
well,if these foreign holders of dollar assets keep bidding for US treasuries what on earth do they expect.
Exactly. These foreign buyers can stop their purchases of Treasuries anytime-- if they indeed have a problem with the dollar.
Unfortunately, they obviously seem to beleive that exporting deflation is more important. Otherwise, we'd be running into major fail territory in long duration Treasury auctions.
Ahhh but they've moved all their purchases to the short end of the curve, which sort of says a lot on a couple of different levels. I think Ben's buying the 30 years....
Seriously, what caused that spike? Was it just the comments made today, or did someone put in a big buy order, then sell fast, Trading Places style?
It's Goldilocks nirvana today. Deflation for treasury bond holders, inflation for oil and gold, just right for equities. Everything goes up, except the dollar of course.
I am concluding that we are in a epic currency battle with China. The peg has to go.
The big problem is that it only solves part of the big problem.
yes, the president Hu of China even did not show up at airport to give Mr. Obama a reception. How should everyone interpret it?
I am convinced this is a financial war, and we are playing chicken with China. In addition, stock markets increasing is important just from an international cash flow perspective along with the situation with banks, pension funds, and the PBGC. In other words, securities are increasing BECAUSE OF THE ALTERNATIVE, THEY MUST. Everyone is looking for return in a zero percent environment forcing speculating - it is A. choose certain death/unemployment with 0% return or possible death/unemployment depending on the outcome of investing/speculating with other people's money (asset managers) - under this scenario which one do you choose? For the record the investment return assumptions of most pension funds are north of 7% based on long term returns while their liabilities grow based on the plan - SO CASH IS NOT AN OPTION.
You are correct, the US is attempting to get them to free float their currency.
This could be the philosopher kings (Rothschild/Rockefeller) attempting to reform China by having them develop their own economy and raising the quality of living of the chinese so they can consume the products their factories produce. This could happen if the philosopher kings have good intentions.
The alternative is that we want China to crash so that the US/Europe rule the world. By declining imports with tariffs and devaluing the dollar (chinese holding US debt), they could crash China. WWII gave rise to a significant amount of construction projects with rebuilding factories and production capability- can you imagine if China was not in the picture how much growth there would be in US/Europe countries starting manufacturing again?
I wonder if the two options above are based upon decisions that China will be presented with, if they have any say in the matter.
A. N. you seem to be able to see through the veil--thanks for your insight!
Meridith has been getting late night calls from Goldman.
Did the spike coincide with this breaking story:
http://abcnews.go.com/Business/abc-news-exclusive-obama-administration-s...
Is someone actually pulling back the curtain?
60K jobs isn't a story.
I wanna know if Fisher and Hoenig are running interference for Ben or if they've actually left the reservation. Guess we'll find out soon enough.
Hopium: hope filled delirium preached by the White House and Swallowed whole by the American Sheeple.
Very addiciting and here to stay. No patent pending for that term.
Isn't that what got Dennis Kneale off the air? He was a big dealer of hopium, but forgot the number one rule of dealers and got addicted to his own product... Let's hope that doesn't happen to the rest of the white house's dealers or else they might have a problem with their distribution network. The sheeple will not be happy when they have to go through rehab
A few dollars more...pretty sad really, to know that my parents fled one oppression and I end up in another vice.
Just trying to understand the same things here. Question to all. China's rant re USD. IS it just lip service? WOuld it not actually benefit them as a weak dollar means weak yuan and therefore would allow them to at least at the margin still be able to export.
Not an economist or as learned as the board but would welcome opinions.
Don't worry! According to Reuters "Bernanke watching dollar drop closely ". He even has his binocculars ready nearby so he can see it hit the ground when it completes its' 2000 ft drop from his helicopter.
Yes, and look at what happened when he stepped away and took his eye/fist/boot off it for a second - spike... Took a minute for the NYF to step in and hit the bids.
Hey, everyone needs a bathroom break once in a while, but I agree, soon these spikes will probably start getting more and more violent, so he might need to consider using a cafeter next time.
don't you mean celestial telescope?
And then when it hits the ground he can then land his orbiting heliship and switch to an electron microscope
that way he will also be able to monitor it closely....
+1,000
LOL.
Thanks for the chuckle - I needed it.
Whitney is on the dole. They gunned the stocks up - castrated the shorts, then brought on Gildilocks with a 'Goldman Script' to sell it off - blow out stops, and then back to business as usual. A maximal harvest, perfectly timed, and no one in the CNBC matrix seem to notice. Just another blip on the chart.
negative Whitney message take away; shorts charged up once again - for tommorows replay. And the beat goes on...
Special thanks to St. Blankfein (the lord works in mysterious ways).
LMAO Doc! For some reason Zero Hedge wouldn't post my message because I was using Government Sachs' accounting to calculate the CAPTCHA value. It kept saying "Error: *Hint* carry the 1 Sir Blankfein, we already marked it to model"
The dependence of the stock market on the US dollar value is not a good thing.
time123
admin: http://invetrics.com
How about D.E.A.P. Dollar Enforcemed Asset Pump.
Do you think Xerxes starts every day with this little ditty:
I couldn't get no silver, I couldn't get no gold,
You know that we're too damn poor to keep you from the Gallows Pole.
Hangman, hangman, hold it a little while,
I think I see my brother coming, riding many a mile.
Brother, you get me some silver?
Did you get a little gold?
What did you bring me, my brother, to keep me from the Gallows Pole?
You could tie it win Global Warming and the Xerxes conveyor belt that is bout to come crashing as soon China calls and raises ...