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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ParkAveFlasher's picture

Penny-wise, Pound-foolish.

CH1's picture

Wait, is the show really starting this time?

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?

trav777's picture

zimbabwe uses the USD.  Was just there.

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.

Tinky's picture

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

TerminalDebt's picture

How many of those did they print themselves?

agent default's picture

Why bother the Bernank will do it for free.

hooligan2009's picture

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

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'

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).

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.

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.

azzhatter's picture

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

Fiat Currency's picture

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

Say What Again's picture

I refere to it as; "Royale with Cheese"

CH1's picture

And I like my fries with mayo sauce.

css1971's picture

1 pound of Sterling silver is today worth 290 GBP.

Grimbert's picture

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

 

Say What Again's picture

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

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?

Mr. Hudson's picture

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

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")

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

Colonel Klink's picture

"Egan Jones silenced, whats next?"

 

The rest of us!

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...

Jason T's picture

King Dollar ..shit, Kudlow are right.

CaptainSpaulding's picture

 Dont forget about me

    Tom O'Brien

slaughterer's picture

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

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! 

Overfed's picture

"Moar stimulus!!!!!"

 

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

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).

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".

 

fourchan's picture

wheeeeeeeeeee race to the bottom.

 

must be bullish.

ziggy59's picture

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

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.>

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".

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!

Mongo's picture

Mervin King is the Barney Frank of the UK

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.

LeisureSmith's picture

The Pound is getting Goldmanhandled.

jubber's picture

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

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'.

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.

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?