China, Australia, Brazil, Canada, Sweden - it is beyond us how anyone can declare the crisis isn’t spreading. Be prepared – there are going to be lots of opportunities to both make and lose money. But first, you have to recognize what is happening.
In 2013, Samoan Air became the world's first airline to charge passengers according to their their weight. Now, two years later, Uzbekistan Airways has gone one further than the pay-by-weight model. The Tashkent-based airline has installed special weighing machines in the departure gate zones to weigh people and their hand luggage, noting that some overweight people could be excluded from busy flights on smaller planes if limits are exceeded... "We are not selling seats, we are selling weight."
Near-term dollar outlook, with some views on oil, Treasuries and S&P 500 thrown in for extra measure.
Most Americans have no idea that the U.S. corporate fraudulent government can legally lie to you every single day to get you to believe whatever they want you to believe and then turn around behind closed doors and laugh at you for believing their legal lies. Try telling that to most Americans and see how they look at you. This is another example of a hard-to-handle lie that is pushed on Americans every day; and the average working American has no time to truly wrap their heads around this stunning fact so they bury their heads in the sand instead, unwilling to look at the issue because they fear they won’t know what to do with the information.
“The EPA was basically deceptive...It was incompetent and stupid for them to go up to that existing plug and try to remove it without knowing how much water was upstream and behind it... I just can’t believe they were so incompetent that they would go in there and attempt to do this - unplug the Gold King mine - without a backup plan."
The most pivotal importance of China is that it was the world’s latest financial hope. The yuan devaluation shatters that hope once and for all. The global economy looks a lot more bleak for it, even if many people already didn’t believe official growth numbers anymore. Because we’ve reached the end of the line, the game changes. Of course there will be additional attempts at stimulus, but China’s central bank has de facto conceded that its measures have failed. They just hope you won’t notice, and try to bring it on with a positive spin. Central banks are not “beginning” to lose control, they lost control a long time ago. The age of central bank omnipotence has “left and gone away” like Joltin’ Joe. Omnipotence has been replaced by impotence.
All of this raises an interesting question about the future of the US dollar. Because if an economy as large and powerful as China’s has had to concede defeat, does this mean that “King Dollar” will rule forever? No chance.
New lows in Mexico, Brazil, Peru, Chile, South Korea, Taiwan, Malaysia, Australia, Indonesia, and Thailand... but apart from that - Fed rate hikes and Yuan devaluation are irrelevant?
China has officially gone the "nuclear" route, SocGen says, and the read through for the global economy is not good. Here's how to profit going forward...
The overnight market has been a repeat of yesterday's action, when following China's repeat 1.6% devaluation of the CNY (which was to be expected since the PBOC made it quite clear the fixing would be based off the market value, a value which continues plunging), the second biggest in history following Monday's 1.9% plunge, traders appeared stunned having believed the PBOC's lies that the devaluation was a one-off and as a result the E-Mini tumbled overnight, and is now 30 points lower from last night's PBOC fixing announcement, trading at around 2058, and far below the "magical" 200-DMA support line, which has now been solidly breached.
Overnight the world realized that there is much more devaluation to come, which in turn led to a tidal move higher in the EURUSD as the European banks who had been short the EURCNH (probably the same ones that were long the EURCHF in January ahead of the SNB shocker) continued covering their exposure, and in turn pushed the EURUSD well above 1.11, while the CHF continued to tumble alongside the USD at least when it comes to Europe. In Asia, and local emergin markets, however, it was a different FX story enitrely.
To help remind readers of what happens when the entire world engages in wholesale currency war, here is a complete list of all the recent FX interventions, courtesy of Stone McCarthy.
The demise of the dollar has been greatly exaggerated. Here is how I see the near-term outlook.