Please Welcome UK To The Global Currency Wars

Tyler Durden's picture




 

When it was announced in late November that Goldman's Mark Carney would become head of the BOE (a "shocking" move only Zero Hedge predicted), we said that one has to be insane to be buying the GBP at those levels. Sure enough, it took just two short months before the implications of yet another Goldmanite's pro-inflationary policies would become apparent. To wit:

  • KING SAYS BOE IS READY TO PROVIDE MORE STIMULUS IF NEEDED
  • KING SAYS QE WAS CRUCIAL IN AVOIDING U.K. DEPRESSION
  • KING SAYS U.K. BANKS SOME WAY FROM CONVINCING MARKETS ON SAFETY
  • KING SAYS POUND DROP WAS NEEDED FOR U.K. REBALANCING
  • KING: U.K. 4Q GDP ALMOST CERTAINLY CONSIDERABLY WEAKER THAN 3Q

And the punchline:

  • KING SAYS REBALANCING NEEDED TO AVOID CURRENCY WARS

In other words, please welcome the UK to the global currency wars.

 

and thusly FTSE-100 stock futures reach 50-Month highs as the triple-dip is about to begin...

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Tue, 01/22/2013 - 15:52 | 3176528 ParkAveFlasher
ParkAveFlasher's picture

Penny-wise, Pound-foolish.

Tue, 01/22/2013 - 15:57 | 3176560 CH1
CH1's picture

Wait, is the show really starting this time?

Tue, 01/22/2013 - 15:58 | 3176562 I think I need ...
I think I need to buy a gun's picture

Lets have a party

Tue, 01/22/2013 - 16:01 | 3176575 Pladizow
Pladizow's picture

Fiat bullets preceed real bullets!

Tue, 01/22/2013 - 16:06 | 3176601 Divided States ...
Divided States of America's picture

So i guess going long Zimbabwe dollars now may be the next big trade since every other currency is being devalued faster relative to it?

Tue, 01/22/2013 - 16:09 | 3176608 trav777
trav777's picture

zimbabwe uses the USD.  Was just there.

Tue, 01/22/2013 - 16:09 | 3176616 Poetic injustice
Poetic injustice's picture

Oh my, how did you survive with all thos BLACK people around? Should have been depressing for your racially sensitive nature.

Tue, 01/22/2013 - 17:00 | 3176784 Tinky
Tinky's picture

It was a business trip, so he bought a few of them.

Tue, 01/22/2013 - 16:10 | 3176619 TerminalDebt
TerminalDebt's picture

How many of those did they print themselves?

Tue, 01/22/2013 - 16:14 | 3176635 agent default
agent default's picture

Why bother the Bernank will do it for free.

Wed, 01/23/2013 - 10:46 | 3178730 hooligan2009
hooligan2009's picture

slumdesia? now trav, you aint in the diamond business are you? ;>)

Tue, 01/22/2013 - 20:37 | 3177363 Al Gorerhythm
Al Gorerhythm's picture

KING SAYS REBALANCING NEEDED TO AVOID CURRENCY WARS.

Lets have a party! A rebalancing party! The unspecific "rebalancing" act pertains to "what" exactly? Bank balance sheets to be precise, both CBs and their subsidiaries in the "private" realm. Government debt needs to be rebalanced as well as private. The bank formula that needs to be rebalanced is the fractional reserve 10:1, safe lending perception policy. The government formula that needs to be reset is its indebtedness to GDP ratio. Governments use inflation to eliminate debt, banks use gold. Expect an increse in government spending through borrowing and expect an increase in the price of gold. 

Government spending will filter down to the stock market thereby posting nominal returns for captured investors in equity vehicles, such as 401k and national superannuation schemes, who manditorally invest in shares and government bonds. Perceptions achieved. Those invested in gold will see real returns when priced against those certificates of dwindling value or assets backed by them. Bullet dodged.

Just musin'

Tue, 01/22/2013 - 16:23 | 3176661 Bubble
Bubble's picture

Great, more inflation. To keep prices down they have to put horse meat in our burgers and water into our beer already. The cost of living here is getting silly without more of this shizz. But hey, prince Harry is a lad that shags brasses in Vegas and shoots brown folk in afghanistan, we can all be happy about that apparently. ('Harry's war' has been on loop on sky/fox news all fukkin day here).

Tue, 01/22/2013 - 16:57 | 3176769 Banksters
Banksters's picture

Savers told to stop moaning and start spending Savers should stop complaining about poor returns and start spending to help the economy, a senior Bank of England official warned today.

 

That was from 2010

 

I think this is round qe 5!

 

FUCKIN A

Finance, so easy a child could do it.

Tue, 01/22/2013 - 19:44 | 3177286 Acet
Acet's picture

I have to thank Mervyn King - he's the one that got me into Gold a couple of years ago when banks were paying 1% on savings accounts and (official) inflation was running at 5%.

He pushed me into finding a place for safe keeping of my savings away from the greedy hands of the likes of him, hence Gold. Never looked back since.

Tue, 01/22/2013 - 16:33 | 3176695 azzhatter
azzhatter's picture

Pretty sure that Ben "Magic Underpants" Bernanke just had an orgasm

Tue, 01/22/2013 - 16:05 | 3176594 Fiat Currency
Fiat Currency's picture

Won't be long and we can call it the Quarter Pounder

Tue, 01/22/2013 - 16:11 | 3176625 Say What Again
Say What Again's picture

I refere to it as; "Royale with Cheese"

Tue, 01/22/2013 - 16:15 | 3176639 CH1
CH1's picture

And I like my fries with mayo sauce.

Tue, 01/22/2013 - 16:27 | 3176674 Say What Again
Say What Again's picture

YES!!! 

Mmmmmm good!

Tue, 01/22/2013 - 17:00 | 3176786 WonderDawg
WonderDawg's picture

That is a tasty burger.

Tue, 01/22/2013 - 16:47 | 3176738 css1971
css1971's picture

1 pound of Sterling silver is today worth 290 GBP.

Tue, 01/22/2013 - 17:11 | 3176824 Grimbert
Grimbert's picture

£20.38/toz * 12toz/lb * .925 = £226.22

 

Tue, 01/22/2013 - 15:52 | 3176531 Say What Again
Say What Again's picture

Lets send a plane full of soldiers over there to help in the "war."

Tue, 01/22/2013 - 15:52 | 3176533 DrDinkus
DrDinkus's picture

lost too much money trying to short this mkt to bet on it...but things feel strange. all in QE on a global scale, egan jones silenced, whats next?

Tue, 01/22/2013 - 16:09 | 3176611 Mr. Hudson
Mr. Hudson's picture

Wage and price controls in Japan, then other Western countries will follow.

Tue, 01/22/2013 - 16:18 | 3176641 EscapeKey
EscapeKey's picture

In the blue cornerrrrrrrrr... the origin of our present monetary system, and the undisputed global reserve currency for hundred of years........

iiiiiiiiitt's United Kingdom.

(cue "Two Tribes")

Tue, 01/22/2013 - 16:37 | 3176703 css1971
css1971's picture

The BOE & pound's the grand old master at enslaving the populace. They even put the bars and chains on the money for all the slaves to see.

http://en.wikipedia.org/wiki/File:BritishOneNewPenny.jpg

Tue, 01/22/2013 - 18:02 | 3177006 Colonel Klink
Colonel Klink's picture

"Egan Jones silenced, whats next?"

 

The rest of us!

Tue, 01/22/2013 - 15:53 | 3176541 Temporalist
Temporalist's picture

Welcome Costa Rica too.  Shove this up your "colon".

Costa Rica’s Currency Tumbles as Capital Controls Bill Filed

http://www.bloomberg.com/news/2013-01-22/costa-rica-s-currency-tumbles-a...

Tue, 01/22/2013 - 16:02 | 3176584 Pegasus Muse
Pegasus Muse's picture

Jim Rickards interview.

Central Banks Repatriate Gold: How Will This Affect Investors?

http://finance.yahoo.com/blogs/daily-ticker/central-banks-repatriate-gold-affect-investors-170006263.html  

Tue, 01/22/2013 - 15:53 | 3176543 Jason T
Jason T's picture

King Dollar ..shit, Kudlow are right.

Tue, 01/22/2013 - 16:11 | 3176614 CaptainSpaulding
CaptainSpaulding's picture

 Dont forget about me

    Tom O'Brien

Tue, 01/22/2013 - 15:54 | 3176545 slaughterer
slaughterer's picture

KIng is going to drive the S and € up.   Gee, thanks.  

Tue, 01/22/2013 - 15:55 | 3176546 falak pema
falak pema's picture

when thieves fall out in race to bottom. Soon the City will be saying : " we love anybody thats worth over 1 million; fuck all those sheeple with british passports we have to sustain! "

Money is the passport to uber nationality...Give us back that lady on Statten Island! 

Tue, 01/22/2013 - 15:56 | 3176555 Overfed
Overfed's picture

"Moar stimulus!!!!!"

 

The fallout from all of this shit is gonna be epic.

Tue, 01/22/2013 - 16:18 | 3176646 EscapeKey
EscapeKey's picture

Soon, kids in school will be taught of Quantitative maths alongside "old school" maths (you know, the one where 2+2=4).

Tue, 01/22/2013 - 16:29 | 3176685 Mr. Hudson
Mr. Hudson's picture

Haha!! QE math will be needed to study New World Quantum Economics:

"The value of paper money is proportional to the number of guns pointed at your head".

 

Tue, 01/22/2013 - 15:57 | 3176557 fourchan
fourchan's picture

wheeeeeeeeeee race to the bottom.

 

must be bullish.

Tue, 01/22/2013 - 15:59 | 3176564 ziggy59
ziggy59's picture

Scotty, beam me the fuck up!, NOW! Theres less than no intelligent life here!

Tue, 01/22/2013 - 16:02 | 3176568 Cognitive Dissonance
Cognitive Dissonance's picture

KRUGMAN SAYS WE WELCOME OUR ALIEN OVERLORDS AND THEIR CONTRIBUTION TO GLOBAL GDP

<Krugman says its about time, almost out of ink.>

Tue, 01/22/2013 - 16:11 | 3176623 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

When it doesn't work Krugman will say it was too late and not enough.  He will say, "see I told you so".

Tue, 01/22/2013 - 16:00 | 3176571 Chupacabra-322
Chupacabra-322's picture

Rebalancing code for devalueing the pound that compounded with Cameron selling a huge chuck of UK Gold and well, they're FUCKED!

Tue, 01/22/2013 - 16:00 | 3176572 Mongo
Mongo's picture

Mervin King is the Barney Frank of the UK

Tue, 01/22/2013 - 16:21 | 3176652 EscapeKey
EscapeKey's picture

Then it's good he's soon replaced with another Goldmanite of questionable ethics ('98 Russian default stands out).

OH SORRY CENTRAL BANKERS ARE INCORRUPTIBLE.

Tue, 01/22/2013 - 16:02 | 3176578 LeisureSmith
LeisureSmith's picture

The Pound is getting Goldmanhandled.

Tue, 01/22/2013 - 16:02 | 3176580 jubber
jubber's picture

FTSE futures just hit a new 50 month high on the back of that and entering a triple dip recession!

Tue, 01/22/2013 - 16:05 | 3176587 Albertarocks
Albertarocks's picture

What does King's statement have to do with Mark Carney?  Carney is still at the BOC after all.  Let's not jump all over his case until he at least crosses the ocean.  Or were you just pointing out that you predicted something?  Because for the life of me I have no idea Carney's name is even mentioned in this piece.  Just sayin'.

Tue, 01/22/2013 - 16:11 | 3176624 Tyler Durden
Tyler Durden's picture

Here's why: Bank Of England Halts QE After "Potency Questioned" - November 8, 2012

Three weeks later, Mark Carney becomes the new head in a shocking move, and his upcoming policy changes, and by his we mean Goldman's, become canon.

The rest is now well known.

Tue, 01/22/2013 - 17:14 | 3176818 Albertarocks
Albertarocks's picture

Thanks for the reply Tyler.  I understand that part.  I've also been in full agreement with ZH that the squid's goal is indeed to infiltrate every central bank in the world.  I respectfully submit that I'm probably just as filled in about what their plans have been since the early 1700's as you are.  I have been for 40 years.  My only point is that it's too early to be bashing on Carney just yet for statements that King is making.  That's fair is it not?

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