Tyler Durden's picture

12 Signs That An Imminent Global Financial Crash Has Become Even More Likely

As we hurtle toward the absolutely critical months of September and October, the unraveling of the global financial system is beginning to accelerate.

Tyler Durden's picture

Emerging Market Currencies To Crash 30-50%, Jen Says

"[The] devaluation of the yuan risks a new round of competitive easing that may send currencies from Brazil's real to Indonesia's rupiah tumbling by an average 30 percent to 50 percent in the next nine months, according to investor and former International Monetary Fund economist Stephen Jen."

Tyler Durden's picture

Asset-Price Inflation Enters Its Dangerous Late Phase

Asset price inflation, a disease whose source always lies in monetary disorder, is not a new affliction. It was virtually inevitable that the present wild experimentation by the Federal Reserve - joined by the Bank of Japan and ECB - would produce a severe outbreak. And indications from the markets are that the disease is in a late phase, though still short of the final deadly stage characterized by pervasive falls in asset markets, sometimes financial panic, and the onset of recession.

Tyler Durden's picture

How To Trade China's "Nuclear Option" Devaluation, According To SocGen

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...

Tyler Durden's picture

8 Capital Markets 'Threats' To The Central Bank Narrative

The week's weakness started with the surprise yuan devaluation, but the moves in everythingfrom crude oil to U.S. government debt signal that investors and traders are telling the Fed to hold off for now. Will U.S. policymakers listen? Make no mistake: the Fed marches to its own data-dependent drum. These indicators will only tell you if the central bank has the right tempo to support markets.

Tyler Durden's picture

How China Trades US Treasurys When It Wages Currency War

Ever wondered how a nation wages a currency war? As Reuters reports, Chinese state-owned banks were selling dollars on behalf of the central bank to stabilize the yuan around 6.43 against the dollar on Wednesday, foreign exchange traders in Shanghai said, as the devaluation collapse got a little out of hand. This follows wholesale dollar-asset buying to weaken the Yuan. But that leaves the question, how did they get the dollars? As the chart below shows, by trading Treasuries...

Tyler Durden's picture

Dong Unleashed: Vietnam Preserves Currency Shrinkage With Wider Trading Channel

Many years ago, we said that the real comedy in the world of FX won't start until Vietnam start devaluing its currency. And even as Vietnam decided to slash its Dong on numerous occasions over the years we were looking forward to all the amusement the Asian country, once engaged in physical war with the US would provide us in its response to the just launched FX war with China, in order to preserve its currency's ongoing shrinkage. We got the answer overnight when Vietnam announced it would widen the dong’s trading band on Wednesday to further weaken the Dong in response to the comparable shrinkage by China, its biggest trading partner.

GoldCore's picture

Gold Price Rises After Currency Wars Reignite As China Devalues

China surprised global markets yesterday by devaluing its currency on concerns about sharply decelerating Chinese economy

Tyler Durden's picture

Be Afraid: This Is The Fed's Last Remaining Strategy


Phoenix Capital Research's picture

Central Banks Are Beginning to Lose Control

The significance of these developments cannot be overstated. Central Banks will be increasingly acting against one another going forward. There will more surprises and more volatility across the board. Eventually it will culminate in a Crash that will make 2008 look like a picnic.

Tyler Durden's picture

10 Year Yields Plunge: A Very Confused Wall Street Tries To Predict What Happens Next

There was some serious fireworks in the Treasury market overnight, and especially just before the PBOC decided to intervene in the market not once but twice to undo at least some of the devaluation it caused earlier in the trading session. In fact, at one point the yield on the 10Y tumbled as low at 2.05% before levitating higher courtesy of Beijing (which may well have dumped some TSYs just at that moment to prop up the CNY), even as across the pond Germany's 2 Year bond dropped to a fresh record low. So what happens next? Well, it's not like the sellside is very useful in actually providing actionable advice when something not in the script happens, but for the record here, courtesy of Bloomberg, is what the 'experts' are saying.

Tyler Durden's picture

Gold & Silver Surge As Dollar Dumps

Just 3 weeks after the world could not purge itself fast enough of 'pet rocks', Gold is pushing to one-month highs this morning (at $1120) and Silver just broke a key technical level at its 50-day moving average as USD weakness and global turmoil have seen Precious metals gain for the last few days...

Tyler Durden's picture

Dollar Tumbles As Fed Rate Hike Suddenly Looking Very Uncertain To Goldman, Bank Of America

After China's shocking currency devaluation, which some more conspiratorially-minded observers have concluded was China's retaliation to the west for the IMF's recent snub that pushed back China's evaluation for inclusion into the SDR to some indefinite point in 2016, the only question on everyone's mind is whether the Fed will delay or outright cancel any imminent "data-dependent" rate hikes as a result of the implicit tightening of monetary conditions thanks to China, and the dramatic appreciation of the USD which would not have taken place without China.

Tyler Durden's picture

Yuantervention: PBOC Devalues The Yuan, Then Scramble To Support It In The Open Market

As we noted earlier, the most surprising development out of this mornings repeat rout in the Chinese currency was not that it happened: after all as we laid yesterday out there is at least 10-15% in immediate downside left for the Yuan but that shortly before the market close, China's central bank intervened via "at least one major Chinese state-owned bank sold large amount of dollar shortly before market closed, prompting rapid gain in yuan, according to two traders at onshore banks" Bloomberg reported adding that at least one state bank continuously sold dollar until USD/CNY reached around 6.38.

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