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Norway Enters The Currency Wars

Tyler Durden's picture





 

While the G-20 and the G-7 haggle among each other, all (with perhaps the exception of France) desperate to make it seem that Japan's recent currency manipulation is not really manipulation, and that the plunge in the Yen was an indirect, "unexpected" consequence of BOJ monetary policy (when in reality as Richard Koo explained it is merely a ploy to avoid the spotlight falling on each and every other G-7/20 member, all of which are engaged in the same type of currency wars which eventually will all morph into trade wars), Europe's energy powerhouse Norway quietly entered into the war. From Bloomberg: "Norges Bank is ready to cut interest rates further to counter krone gains that interfere with the inflation target, Governor Oeystein Olsen said. “If it gets too strong over time, leading to inflation that’s too low, we will act,” Olsen said yesterday in an interview at his office in Oslo.

The problem for Norway is that on one hand it, too, seeks to boost its export-business in an imitation of the beggar-thy-neighbor policies adopted by every other government, or artificial monetary union, with a printing press, while on the other, its property market which is overheating due to Norway's perceived status as one of Europe's safest money parking locations (alongside Switzerland) will merely heat up even more should the Norges Bank cut rates as it appears set to do, in order to preserve its front in the global currency war.

Olsen and his colleagues are torn between protecting exporters through lower rates that stem krone gains, and a policy that addresses an overheated property market. Western Europe’s largest oil exporter, which boasts the biggest budget surplus of any AAA rated nation, has emerged as a haven from the euro area’s debt crisis.

 

The krone sank as much as 0.6 percent against the euro following Olsen’s comments. Versus the dollar, it dropped as much as 1.4 percent. The krone was little changed at 7.3939 per euro as 11:57 a.m. today.

 

“A pronounced weakening of growth prospects, or a krone that is too strong, may over time lead to inflation that’s too low,” Olsen also said in the text of his annual speech held yesterday in Oslo. “Such development would be counteracted by monetary policy measures.”

Some will see in Norway's actions the germ of the same ruinous policies enacted by Ben Bernanke:

Low interest rates and falling unemployment have boosted private borrowing, with household debt estimated to swell to more than 200 percent of disposable incomes this year, according to the central bank. House prices, which rose an annual 8.5 percent last month, have surged almost 30 percent since 2008, almost doubling in the past decade. “Household debt and house prices are still moving up,” Olsen said. “These are the key reasons why the key policy rate hasn’t been lowered further.”

 

The dilemma has spurred debate on the extent to which monetary policy should target asset bubbles, or whether rates are too blunt a tool. The central bank will start advising the Finance Ministry on how much extra capital banks need to hold in their counter-cyclical buffers next month. That follows a proposal to triple minimum risk weights on banks’ mortgage assets to 35 percent and a separate recommendation to limit the use of covered bonds to finance mortgages.

 

Although growth in our part of the world is weak and real interest rates are low, many banks are still operating with high return targets, which could lead to excessive short-term risk taking,” Olsen said. “Banks and their owners should accept that return on equity will be lower, but also safer in the years ahead.”

Yet while hurting domestic home buyers, a weak FX policy will certainly help home sellers and everyone else looking to flip assets for a quick gain - a process that has taken the entire developed world by storm once more - and will most certainly aid exporting mega corps such as Norsk Hydro.

Companies such as Norsk Hydro ASA, Europe’s third-largest aluminum maker, have struggled to adjust to a stronger krone, which is pushing up export prices even as demand from Europe declines. The krone reached a record on a trade-weighted basis yesterday. Demand has left the currency 41 percent overvalued versus the dollar this year, topping 12 major currencies, according to calculations from the Organization for Economic Cooperation and Development.

 

Olsen also said yesterday the bank has no plans to talk the currency “up or down” and no “specific” level for what too strong means.

We may have heard that one before.

“It’s appropriate to use a few years to bring up inflation,” Olsen said. “Prices for Norwegian goods have increased considerably more than consumer prices, reflecting the improvement in Norway’s terms of trade. Incomes, output and employment are rising at a solid pace.”

Few years? Hasn't Mr Olsen heard that in Japan Abe plans on talking up the USDJPY by some 20% in a matter of months, and at last check economy minister Amari had a 13,000 Nikkei target by the end of March. Surely if a central bank does not stick to such a ridiculous hourly schedule it will lose all credibility. Or something.

As for Norway, its formal entry into the global FX war will likely take place next month:

The bank left its benchmark interest rate at 1.5 percent for a fifth meeting in December and signaled it may raise rates as early as next month to cool record debt growth.

The conclusion:

Norway’s politicians, central bankers and business leaders have joined forces in a push to weaken the currency. Kristin Skogen Lund, chief executive officer of the Confederation of Norwegian Enterprise, said krone gains were the “main” reason Norway’s exporters have a cost disadvantage.

And with that we return to the regularly scheduled C-grade gameshow infomercial straight from the G-20, titled: "The FX price is wrong; or let's lie to everyone just a little more."

 


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Sun, 02/17/2013 - 12:40 | Link to Comment Fredo Corleone
Fredo Corleone's picture

Does this mean King Oscar brisling sardines are going to go up in price ?

Sun, 02/17/2013 - 13:08 | Link to Comment A Lunatic
A Lunatic's picture

You can beat this inflation by simply switching over to Fukushima brand sardines. For a limited time only you can get a  free glow in the dark shark tooth in every can........

Sun, 02/17/2013 - 13:32 | Link to Comment knukles
knukles's picture

Now, as a dedicated sardine connoisseur, I pay particularly close attention to all things Norwegian.  Including the blonde ones.  But this really has me confused.

“If it gets too strong over time, leading to inflation that’s too low, we will act,

That statement makes no fucking sense.
A strong currency begets lower domestic inflation as the price of imports on a relative basis rises.... leading to deflationary pressures thereby inducing a Lower Currency Value to boost exports and goose the general level of prices.

See, this is the shit that explains a whole buncha problems.  To wit:

1. That politicians anywhere can't even explain what they're not talking about let alone understand it,

2. No wonder the whole world is fucked up with folks like this at the helm

3.  Shoulda entrusted the explanation to Mandy Bigtits when she has to sneeze because when she makes one of those cute girlish squeezing squeaking sneezing sounds her titties giggle and wiggle all over like a bowl of Jello pouring over the sides of the serving dish and nobody pays any attention to what she says because they're watching her tits anyway

4.  She doesn't know anything anyhow so just watch her tits jiggle and worry about the sardine and fish smells

5.  Explains why the last can of skinless and boneless King Oscar sardines in olive oil that I opened had hair growing on them

Fucking criminal.
Criminal, I say.

Whata wonderful world.

We're all gonna die painfully from this shit.  Can we not just be fucking left alone?

Sun, 02/17/2013 - 13:48 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

They won the Harlem Shake war, why not try currency war?

http://www.youtube.com/watch?v=bTFAmLPkgyg

Sun, 02/17/2013 - 13:49 | Link to Comment disabledvet
disabledvet's picture

Central Banker definition: "never saw a bubble he didn't want to a) create and b) destroy. "Lunatics with money." Europe is better off with Kings and Queens. "it's what works in the absence of a legal system"...especially when talking wealth preservation. and remember "when prices collapse...that trillion dollar deficit suddenly becomes...A TRILLION DOLLAR DEFICIT." industrial production has surged in the USA oh these many years...but "oil output" is amazingly considered "an industrial good"...which says to me "those industrial goods are very valuable indeed." http://www.youtube.com/watch?v=INIZqXsNxTg

Sun, 02/17/2013 - 13:56 | Link to Comment Orly
Orly's picture

Not necessarily.  In anaylsis offered by Andy Xie of Caixin Online a couple of weeks ago, he put forth that relative dollar weakness is a double-whammy on emerging markets like Norway:

"In a dollar bear market, the liquidity goes into emerging economies, causing their currencies and asset prices to appreciate. The double gains attract more inflow, eventually causing inflation.

These economies lose competitiveness along the way. It isn’t noticed when asset appreciation supports domestic demand. When the dollar changes direction, so does liquidity. The virtuous cycle on the way up becomes a vicious one on the way down.

The emerging economies already suffer inflation. The liquidity outflow leads to currency depreciation, which worsens inflation. "

http://www.marketwatch.com/story/consequences-of-a-strong-dollar-andy-xie-2013-02-04?pagenumber=1

So the Norwegians are in the "virtuous" part of the cycle now in that Krona gains spark domestic inflation (more money chasing fewer goods...). They also know that when the tide turns back, the cycle could get "vicious."  Luckily for them, they are a net exporter of petroleum, quite unlike Japan, so it will be easier to keep the currency in check. 

It just seems like they are trying to keep an even keel on thier money.

:D

Mon, 02/18/2013 - 08:37 | Link to Comment DanDaley
DanDaley's picture

It just seems like they are trying to keep an even keel on thier money.

 

"Keel" being a Norwegian word, ironically, I guess they know what they are doing.


Sun, 02/17/2013 - 13:32 | Link to Comment CheapBastard
CheapBastard's picture

"Flip that Huset !!"

 

When they start having "Flip that House" seminars over in Nroway I will drop everything and go. Can you imagine the chicks at those seminars ?! I'll sutff a few herring in my coat pocket...the women there love that sea captain smell.....

Sun, 02/17/2013 - 13:34 | Link to Comment knukles
knukles's picture

LOL

And be wondering which one of them didn't bathe this week.
You know, French sanitary standardas and all that.
Well come on, it is Europe FFS

Sun, 02/17/2013 - 13:36 | Link to Comment Fredo Corleone
Fredo Corleone's picture

"Sea captain smell"

Is this a new body spray offering from Axe ?

+1

Sun, 02/17/2013 - 14:43 | Link to Comment AssFire
AssFire's picture

Blindman at the fishmarket- "Good morning ladies."

Sun, 02/17/2013 - 13:10 | Link to Comment francis_sawyer
francis_sawyer's picture

It's just a case of envy because the Swedes were cornering the world market on Surströmming...

~~~

http://en.wikipedia.org/wiki/Surstr%C3%B6mming

Sun, 02/17/2013 - 13:20 | Link to Comment ThirdWorldDude
ThirdWorldDude's picture

I recommend you to never serve surströmming to non-Swedish guests because it might permanently destroy their appetite for fish.

Sun, 02/17/2013 - 13:35 | Link to Comment francis_sawyer
francis_sawyer's picture

damn nasty shizz... When the Knights who say "Ne" wanted Brave Sir Robin & Company to cut down the mightiest tree in the forest with... a Herring!... Little did they know how easy that would be... Just open a can of surströmming & place it underneath any size tree & the tree will be felled within minutes...

Sun, 02/17/2013 - 13:31 | Link to Comment knukles
knukles's picture

Reminds me of one of the girls I took out in college.  All my roomies and mates used to call them "Knukie's little piggies".  I guess I couldn't see them too well nor I don't have a clue what they looked like, but I did manage to do something with 'em.  The doc at the infirmary used to roll his eyes and go get the blood draw equipment when ever he saw me... even before he asked ma any questions.
Ah, but I digress.

I have eaten that shit.
Outside as recommended
If you can get past the smell, the taste is near heavenly.

Why is this reminding me of Mandy Bigtits and Paul Krugman?
No, I seriously have no clue.

Sun, 02/17/2013 - 13:52 | Link to Comment francis_sawyer
francis_sawyer's picture

What kind of sardines would you recommend most highly kuncks?...

~~~

Lately ~ I've just been eating SEASON Brand [because the price innt all that bad]... But I suspect they're the 'beer of champagnes' in th sardine world... I don't know any better

Sun, 02/17/2013 - 14:32 | Link to Comment knukles
knukles's picture

I actually prefer the SEASON brand.
But then again, I'm particular to the skinless boneless in oil.  And seems to me theirs are always nicely cleaned and packaged... sorta tidy like... and the sardines themselves are nicely sized.  If looking for the more traditional with skin and not boned, the King Oscars seem to be on the smaller side ... a bit more dainty.

That being said, whilst meandering about in lesser known shops, often the fruit and veggie guys owned by 1st gen folks (anything but the high end stuff) I'll try some off brand imported Moroccan, etc. for yucks. 

I stay away from the specialty snob stores.  Overpriced, no substance.  Most the regular stuff out there is just fine.

But like I say, SEASON is good by me.
Heck, more important is if making a sandwich, the quality of the onion and mustard selections dominate the sardine "brand".

You've got me hankerin' for a smelly sandwich, my man.

Sun, 02/17/2013 - 15:23 | Link to Comment francis_sawyer
francis_sawyer's picture

Yeah ~ that's the thing that got me onto SEASON... [skinless & boneless]... I like that convenience... I usually eat'em with plain crackers & mustard...

~~~

But, but... They're distributed by MANISCHEWITZ... End of the world!... francis_sawyer is a farce... [I wish they would stick to sardines & leave central banking alone]...

Sun, 02/17/2013 - 19:21 | Link to Comment Tippoo Sultan
Tippoo Sultan's picture

Season Sprats.

Sun, 02/17/2013 - 13:12 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

We're all inflationistas now.

Sun, 02/17/2013 - 14:30 | Link to Comment richard in norway
richard in norway's picture

Norway is stuck between a rpck and a hard place, house prices are still going up at a bubble like rate and lenders are being stupid, all the sub prime kind of nonsense is starting to happen here, but a rise in interest rates would send the kroner up and kill all the export industries apart from oil and gas. Seems like there is no choise but to feed the bubble until it pops

Mon, 02/18/2013 - 12:13 | Link to Comment Marco
Marco's picture

They can just print Kroner to buy Dollars and Euros instead of messing with the interest rate ... but then they'd get accused of currency manipulation. The only way you're really allowed to manipulate the currency is in a way which speculators can easily take advantage of ... TPTB will allow other measures in a pinch, but you better drop your interest rates as well if you know what's good for you.

IMO Norway should implement a negative income tax ... at that point they can just leave their currency alone for the most part and affect relative wage levels purely through "taxation" without causing unemployment. Given the oil wealth in Norway the negative parts of negative income tax (wage inflation at the low end) hardly seem a problem.

Sun, 02/17/2013 - 21:37 | Link to Comment PersonalRespons...
PersonalResponsibility's picture

Jesus fucking Christ don't say that!

Sun, 02/17/2013 - 12:46 | Link to Comment Super Broccoli
Super Broccoli's picture

damn and i wanted to swap bonds against krones !!!! what am i gona do now ?

Sun, 02/17/2013 - 13:40 | Link to Comment knukles
knukles's picture

Seriously

It's exactly this kinda shit makes ya getchur ass handed to ya in markets these days.
Anybody long Kroner is gonna get Monkey Hammered tonight.

Reminds me exactly of a big assed long position I was riding in Swissy some time ago, making a fucking bundle betting that all of Europe was gonna be swapping every Euro they could into Swiss francs to escape the lunacy of the ECB, et al.

And then fucking Swiss go bugger all with that 1.20 peg shit
Swissy dollar got hammered some 6% in moments
Get yer ass handed to you with political and central bank subterfuge.

Immoral of the Story:
Never Ever Trust a Central Bank

Sun, 02/17/2013 - 13:59 | Link to Comment Orly
Orly's picture

...and always use a stop-loss.

Sun, 02/17/2013 - 14:11 | Link to Comment Yen Cross
Yen Cross's picture

 I nominate Orly, for the sarcastic quote of the day! :-D

Sun, 02/17/2013 - 14:25 | Link to Comment Orly
Orly's picture

merci bien

Sun, 02/17/2013 - 14:35 | Link to Comment knukles
knukles's picture

My ego and arrogance blinded me to such trivial matters such as no cost downside protection, much to the dismay of my pocket book and decidedly victimization type role assigned to myself by myself blaming everything on the Swiss in the absence of having been properly prepared.

You speaka da truth.

Sun, 02/17/2013 - 14:55 | Link to Comment Orly
Orly's picture

Yeah but it ain't like I haven't learnt my lesson getting blow-torched before...more times than I care to admit.

:D

Sun, 02/17/2013 - 14:04 | Link to Comment disabledvet
disabledvet's picture

"he works for the Bankers...not the Government." this is ESPECIALLY true in Switzerland which "for all intents and purposes has no Government." Having said that..."they ain't got nothin' on Ben Bernanke." this guy has THEORIES. Is that Party about to come to an end? http://www.youtube.com/watch?v=ttoC1n8z9h4

Sun, 02/17/2013 - 12:47 | Link to Comment otto skorzeny
otto skorzeny's picture

another socialist ponzi scheme that would have failed years ago if ben shalom's cheap $ wouldn't have driven oil to $97 a barrel. these countries were better off if it weren't for the discovery of liquid black death.

Sun, 02/17/2013 - 13:55 | Link to Comment AssFire
AssFire's picture

the discovery of liquid black death...

I was working in the North Sea in the late 80's shortly after Piper Alpha...Lots of safety training to go offshore... unfortunately a girl in my course  harbored non-ocean crabs in her black Norwegian wool. Such a different time, the 80's big hair era.. If I ever saw a bush like hers today I would freak out. But being horney as shit at that age, neither that nor her hairy armpits could slow me down. Rich people don't get crabs- they get lobsters.

I have no point here, just sharing.

Sun, 02/17/2013 - 13:59 | Link to Comment francis_sawyer
francis_sawyer's picture

@otto

~~~

When I tell people that ~ they just stare at me with blank faces...

I love to try to make people understand how much 'asphalted over' land would be required, [in terms of horses, pastures, stables, farms, etc.], to service the island of Manhattan... TODAY... The mostly just look at me & go 'huh wha'?...

Sun, 02/17/2013 - 13:57 | Link to Comment francis_sawyer
francis_sawyer's picture

.

Sun, 02/17/2013 - 13:57 | Link to Comment francis_sawyer
francis_sawyer's picture

.

Sun, 02/17/2013 - 13:57 | Link to Comment francis_sawyer
francis_sawyer's picture

bitcoiners at it again...

Sun, 02/17/2013 - 13:04 | Link to Comment Xibalba
Xibalba's picture

The little horn from the ocean rises up!

Sun, 02/17/2013 - 13:07 | Link to Comment schatzi
schatzi's picture

Well that fucking sucks. Beginning last year I sold part of my shitty Euros to buy Norwegian Krone. If they start doing any depreciation in earnest, I'm fucked.

Sun, 02/17/2013 - 13:25 | Link to Comment Yen Cross
Yen Cross's picture

   Try (sek/nok, nok/sek depending on how your platform lists the base currency)... I've been doing pretty well with that trade.

 It's like watching paint dry, but a decent hedge against (cl). 

Sun, 02/17/2013 - 13:28 | Link to Comment deepdish
deepdish's picture

I would not worry too much. There will be some volatility due to words, but I am pretty sure the actions will not be entering a currency.

Everyone in our country are concerned with the housing prices and the fear of a bubble evolving. The Norges Bank can not cut its interest rates now, when they are starting to succeed in making the average working Norwegian more afraid of the housing prices and the future without oil revenues. We actually see people shopping less (numbers show that the shopping numbers are disappointing), less people take loans without paying down and the banks have become stricter in giving away loans (people now must have at least 15% equity).

 

The poltiitians and the Central Bank have set two priorities:

1) Putting breaks on the housing market

2) Adressing an increasing public sector and the costs associated with it (specially the pension costs). This one is not so much on the ruling labor party's agenda, but it will be on the agenda of the right wing coalition who will win elections in the autumn.

Sun, 02/17/2013 - 17:54 | Link to Comment HoldingHemen
HoldingHemen's picture

So in a policy that may be characterized as being contractionary, what role plays an expansionary fiscal state budget? Hypocratic fuckn socialist douchbag government! The fact is that politicians and their non-consistent beliefs are causing volatility in FX unlike in any other financial market! And for the record; any talk of CB independence is bull shi* talk!

Sun, 02/17/2013 - 16:39 | Link to Comment fonzannoon
fonzannoon's picture

schiff must be ready to have a total stroke. gold miners crushed, gold and silver monkey hammered. foreign currencies each taking their turn committing suicide and shorting treasuries has done nothing but blowtorch people. 

But Ford, GE and Bank of anything are kicking ass.

He must be losing his mind.

Sun, 02/17/2013 - 16:52 | Link to Comment Orly
Orly's picture

You may fall out when I say this, fonz, but keep in mind I am a technical chartist.  It's what I do.  Technicals, not "shiny" stuff.

Gold is ready for a rebound.  The pair has broken 2 standard deviations below its 28 week moving average, the CCI has hit extreme levels and reversing.  There is a bullish harmonic pattern that has formed on the Weekly chart and the G20 has said that global Central Banks will co-operate to ramp this thing higher.

Immediate upside target $1666, with the potential to complete the harmonic pattern and close the Bollinger band on the opposite side, leaving a potential upside target of $1698-1715.

Thought you'd like to know.

:D

Sun, 02/17/2013 - 17:06 | Link to Comment fonzannoon
fonzannoon's picture

Orly I know two things. first, i never had you pegged as a gold bear or hater. I truly think you just call it like you see it, right or wrong you do the best you can at just reading the tea leaves and leave emotion out of it.

Second, I have no clue anymore. I was asking Yen questions last night like a first grader because I am lost at sea. I think it is hysterical that Kito was so awful wrong betting hard against QE3 and we ended up with QE4 as well as 3. yet he was dead on right saying gold would drop.

i get that all these currencies are banging off each other. I did believe they could all do that while at the same time all dropping against gold. So much for that.

Debt and deficits don't matter, until they do. That can be a long ways away for the US. But I don't know how much longer they can keep telling everyone they are going to end QE soon because of the recovery and let rates start to rise when everyone knows that can never happen.

Sun, 02/17/2013 - 17:13 | Link to Comment Orly
Orly's picture

It has been my contention all along- rightly or wrongly, as it remains to be seen- that gold is a "risk-on" play.  Free money moves into the commodity sector and leaves very weak hands trying to make a buck.  How many paper gold holders are true believers is anyone's guess but I would put my money on the "not a lot" section.

Having said that, it can be assumed that the holders of physical gold are the true believers and if the global economy as we know it does indeed collapse, they will be proved right in the end.

Right now, there is a distinct dichotomy at work in the precious metals sector and that fact should be taken into account when assessing the viability of trading gold and silver.

:D

Sun, 02/17/2013 - 17:28 | Link to Comment fonzannoon
fonzannoon's picture

at this point it seems pretty much accepted that by trading the paper market, you know full well you have no access to the actual underlying metals. I can only conclude that anyone doing that is a weak hand that will be long gone if things continue to stay ugly or stawks continue to outperform.

There is something so incredibly scary about watching these markets slowly grind higher each day as any dip gets magicallh erased. It just does not have that euphoric feeling. it has the opposite. It just seems like there is a belief that if we can punch through some level then we can rocket higher. I guess we shall see.

When everyone realizes Zirp/nirp is here to stay or if anyone really gives a crap is what i sit back and wait for.

Sun, 02/17/2013 - 17:37 | Link to Comment Orly
Orly's picture

If you're a historian of the markets, what was really creepy was the entire 2006 move in SPX.  I was just getting into options and was thinking that there had to be some corrective move somewhere, some time...any time.

I got blistered all year as my SPY puts fell worthless over and over again.  You'd think I would have learned, but it didn't make any sense whatsoever.  Have a look at the chart in 2006 and you'll see what I am talking about.

I believe the same thing is going to happen again in 2013.  With the G20 giving the go-ahead for "co-operation" between central banks, the market is just going to grind higher every single day without even a hint at correction.

I think your feeling is justified now as it was in 2006.  There was no feeling of euphoria.  In fact, they kept using the words "wall of worry" to explain an umitigated ramp higher, which, I believe was the precursor and the "prime in the pump" for what came a year later.  It was all done on purpose and it was my first true exposure to how manipulated things are.

Sun, 02/17/2013 - 17:44 | Link to Comment fonzannoon
fonzannoon's picture

I remember 06 well. I bought my house at the end of 06 because I threw in the towel waiting for the big tank. People talk about getting blowtorched on here. nothing like getting blowtorched on the biggest purchase of your life. 

the problem is, if we get another 07/08 that means fed policy has failed. so what do you do when fed policy fails? Double down on the printing? is that the answer?

Sun, 02/17/2013 - 13:14 | Link to Comment ThirdWorldDude
ThirdWorldDude's picture

"The bank left its benchmark interest rate at 1.5 percent for a fifth meeting in December and signaled it may raise rates as early as next month to cool record debt growth."

 

Raise rates? Hell, I didn't know Norwegian CB was more concerned about it's overindebted citizens & savers than about corporative gains & trade balances.

Or, maybe it's just a lapsus calami and what Mr. Olsen really said/ wanted to say is "lower rates", in which case he better gets on with the program pretty fast since his neighbours Denmark and Sweden are so far #winning...

Sun, 02/17/2013 - 13:16 | Link to Comment Yen Cross
Yen Cross's picture

  Greedy bastards, isn't the spread in Brent/North Sea>West Texas enough for you?

Sun, 02/17/2013 - 13:42 | Link to Comment knukles
knukles's picture

nice....

Sun, 02/17/2013 - 17:23 | Link to Comment Yen Cross
Yen Cross's picture

 You are a> Good Professor. ;-)

Sun, 02/17/2013 - 13:31 | Link to Comment tom a taxpayer
tom a taxpayer's picture

Hmm. "make it seem…that the plunge in the Yen was an indirect, "unexpected" consequence of BOJ monetary policy". Kinda of like make it seem that a fire was an indirect, "unexpected" consequence of the pyrotechnic tear gas canisters.

 

Sun, 02/17/2013 - 13:28 | Link to Comment CheapBastard
CheapBastard's picture

'Too....strong...must...weaken....'

 

Note to self....

Sun, 02/17/2013 - 13:30 | Link to Comment Black Forest
Black Forest's picture

1 - From Bloomberg: "Norges Bank is ready to cut interest rates further to counter krone gains...

2 - The bank [Norges] signaled it may raise rates as early as next month to cool record debt growth.

So what?

Sun, 02/17/2013 - 13:39 | Link to Comment LMAO
LMAO's picture

"Low interest rates and falling unemployment have boosted private borrowing"

"Unemployment" in Norway is getting increasingly masked by pushing people into some disability or social welfare scheme in addition to the creation of non-productive govt' jobs. Soon enough everybody will be sucking the Gov teat. As anywhere else in Europe jobs are being exported to low cost countries in the hope that the oil will keep us afloat. The results of these disastrous politics will reveal themselves soon enough.

Sun, 02/17/2013 - 13:34 | Link to Comment MoneyThangs
MoneyThangs's picture

Tear down this delation! - Hillary 2016 then Paul Ryan 2024 - the future is only going up from here people!

Sun, 02/17/2013 - 13:34 | Link to Comment TheGardener
TheGardener's picture

"Leading to inflation that’s too low, we will act,"

Too low an extortion rate on citizens savings ? Let`s act now !

Stupid talk from someone scared of capital flight into HIS
currency area.

Sun, 02/17/2013 - 13:35 | Link to Comment AnAnonymous
AnAnonymous's picture

'American' economics is a funny thing.

Funny how countries like Venezuela and now Norway, whose economy are bound to oil export, are compelled to try to sell cheaper their oil. Which is a finite and highly demanded resource.

You could hide as 'americans' do behind a racial view for Venezuela but what about Norway?

You have to give that to 'americans', they know how to plan to achieve the depletion of resources on a world scale.

Norway trying to destroy their own currency to sell more of their oil.

What an achievement.

'Americanism' is definitively the best thing to have ever happened to humanity.

Sun, 02/17/2013 - 14:19 | Link to Comment disabledvet
disabledvet's picture

American wealth is "industrial" in nature and not resourced based...at least historically. (Rather ironic given the Rockefellers actually.) Which makes this particular economic "epoch" all the more striking because it appears "all the world's commodities belong to industry" given the bailout (ultimately) of the war effort and apparently nothing else. Now why are those prices falling again? http://www.dailymail.co.uk/sciencetech/article-2041106/Urbee-The-worlds-...
hmmm. "i can print a car now." what else can i "print" then? http://seekingalpha.com/symbol/ddd?source=search_general&s=ddd
http://seekingalpha.com/symbol/xone?source=search_general&s=xone
http://seekingalpha.com/symbol/ssys?source=search_general&s=ssys
judging by those stock prices "just about anything."

Sun, 02/17/2013 - 13:35 | Link to Comment q99x2
q99x2's picture

Return Norway to the reindeer.

Sun, 02/17/2013 - 13:40 | Link to Comment No Euros please...
No Euros please we're British's picture

They're not devaluing their currency, they're just pining for the fjords.

Sun, 02/17/2013 - 13:43 | Link to Comment VonManstein
VonManstein's picture

"The bank left its benchmark interest rate at 1.5 percent for a fifth meeting in December and signaled it may raise rates as early as next month to cool record debt growth."

"raise rates" !

 

Am i missing something here?

Sun, 02/17/2013 - 13:58 | Link to Comment steve from virginia
steve from virginia's picture

 

 

Norway petroleum production is declining sharply, that is its problem, not currency:

 

http://crudeoilpeak.info/wp-content/uploads/2012/04/World_crude_oil_grow...

 

EIA data: maybe the country can trade aluminum to Iran for more crude.

 

http://mazamascience.com/OilExport/

 

BP data: look to 'Norway', the petroleum peak is easily seen. Norway is more of a petroleum pipsqueek than a powerhouse. It's production has declined by half since 2000. New plays will not make up for depletion elsewhere in Norway.

 

 

 

 

Sun, 02/17/2013 - 14:12 | Link to Comment ptoemmes
ptoemmes's picture

In "honor" of Paul Krugman (stay with me here) and with apologies to Jason Bourne, Currency Wars will henceforth be referred to (by me) as The Krugman Currency Ultimatum.

 

Sun, 02/17/2013 - 14:10 | Link to Comment Orly
Orly's picture

The big take-away from the G-20 statement was:

"We reiterate our commitments to move more rapidly toward more market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals, and avoid persistent exchange rate misalignments, and in this regard, work more closely with one another so we can grow together."

Translation:

While it has been clear that we have been running games behind y'all's backs, what with the European banks getting a stealth injection every Friday night, what we mean to do now is bring these moves into the open.  All pretense of "currency wars" be damned.  We are one economy now and we are in a world of trouble.  The only way out is to co-operate and fix each other's problems.

Bottom line: Risk-on, baby.  SPX 1715 or bust!

:D

Sun, 02/17/2013 - 14:22 | Link to Comment Yen Cross
Yen Cross's picture

     The "gosh darn" yen can't even put in a proper 23.6%(fibi) retrace off that  high 70's floor?

  usd/jpy   { 77.091- 94.468 }  Retrace comes in @ 90.390.

Sun, 02/17/2013 - 14:32 | Link to Comment Orly
Orly's picture

I'll be on the other side of that bet, myself.  EURJPY, actually.

Look for continuing in-flows into Euro and accelerated weakness in the yen.  I think a cupping formation with a top at  EJ 139 is not out of the question.  If Euro went to 1.4 and the yen did nothing, that would still leave a 6% appreciation in the EJ.

With in-flows back into Euro, watch for further flows out of the Aussie but because they pay to hold the A$, we may be near the end of the out-flows.  The RBA is expected to hold rates steady for some time, so movement in the Aussie may have peaked- for now.  Until it is risk-off again...

:D

Sun, 02/17/2013 - 14:37 | Link to Comment Yen Cross
Yen Cross's picture

 Did I say anything about opening a position? ;-)  I'm having fun with gbp/aud & gbp/jpy.  gbp/usd is way over sold!

Sun, 02/17/2013 - 14:51 | Link to Comment Orly
Orly's picture

I beg to differ regarding Cable.

It broke a years-long wedge pattern, as seen on the Weekly chart, to the downside and closed the week below the trendline.

Longs have piled back in and what you may see is a re-test of the trendline (now resistance...) at ~1.565.  GBPUSD will probably hug that line for a while but the impetus is definitely to the downside.

When Mark Carney comes in, he is going to add to the UK balance sheet in a big way.  The UK economy is now entering a triple-dip recession and things are going from bad to worse over there now.  So a break back into the wedge seems quite unlikely.

:D

Sun, 02/17/2013 - 15:16 | Link to Comment Yen Cross
Yen Cross's picture

    To/Too each her/his own.  I respect you as a trader, and a person Orly. M/E and Russia/China like to clear trades through London.

    We trade on different time tables. I always respect your input.  ;-D

Sun, 02/17/2013 - 19:22 | Link to Comment VonManstein
VonManstein's picture

cable heading for 1.50 IMO and GBP cross' will take down the USD cross' with it

Sun, 02/17/2013 - 19:53 | Link to Comment Yen Cross
Yen Cross's picture

  I like you. Cable is leading the way. I love trading London. New Pork sucks.

Sun, 02/17/2013 - 19:59 | Link to Comment Orly
Orly's picture

I'll see your 1.50 and lower you to 1.42.

:D

Mon, 02/18/2013 - 07:29 | Link to Comment VonManstein
VonManstein's picture

Would you take parity?

Mon, 02/18/2013 - 10:57 | Link to Comment Orly
Orly's picture

I'd sure take it but I don't see it getting that low.  Gilts would be crushed to dust if that happened...or vice versa.

:D

Sun, 02/17/2013 - 15:05 | Link to Comment SpykerSpeed
SpykerSpeed's picture

Norway announces they're weakening their currency;  Bitcoin users unaffected.

Sun, 02/17/2013 - 15:51 | Link to Comment ThirdWorldDude
ThirdWorldDude's picture

I've always wanted to know how you geeks fondle your bitcoins...

Sun, 02/17/2013 - 18:13 | Link to Comment mkhs
mkhs's picture

Without rubber gloves, you get a nasty shock.

Sun, 02/17/2013 - 15:35 | Link to Comment Mountainview
Mountainview's picture

Every government is in the game. It's about government against privates. Gov's cover up their dismal balance sheets. They try to avoid the debt trap by inflating/devaluating and US/EU/UK/Japan will fail together.

We should follow the surplus providers in Arabia and the Far East of hints to escape the nightmare.

Sun, 02/17/2013 - 15:35 | Link to Comment orangegeek
orangegeek's picture

Mr Olsen can shove is up his wife's fjord.

Sun, 02/17/2013 - 16:00 | Link to Comment Haus-Targaryen
Haus-Targaryen's picture

Kill the euro and this problem goes away.

The two biggest problems with the worlds economy at the moment

1) The Euro
2) The Fed

In that order.

Sun, 02/17/2013 - 18:06 | Link to Comment JuicedGamma
JuicedGamma's picture

 

Who are the clueless junking your comment?

a. they like the Euro?

b. they like the Fed?

Can't imagine WTF they were thinking.  The Euro I will say is convenient when crossing borders, however, there is no way to have a currency union without political union.  Ah maybe that's what "they" want!

 

Sun, 02/17/2013 - 16:41 | Link to Comment NoWayJose
NoWayJose's picture

How dare those Norwegians run a country today without massive deficits, huge national debt, and central bank bond buying! Let them reap what they sow!

Sun, 02/17/2013 - 16:51 | Link to Comment JR
JR's picture

Inflation is one of the bankers’ greatest profit centers. It’s also a serious burden for the people.

When the Governor of the Central Bank of Norway speaks like this, you know you’re hearing just another banker operative. In short, it’s a given Olsen’s just another player in favor of constant stealing. It’s incredible.

If it looks like a duck, walks like a duck, talks like a duck, it’s a duck.

In fact, from 2011 through 2012, Olsen made at minimum 16 speeches to the Bank for International Settlements (BIS).

While inflation has been pushing and contracting bubbles and busts these many years, stripping millions of trillions, the bankers deny there ever has been much danger. In other words, you can’t believe anything they say because their statements are all based on self interests.

The people reject this banker philosophy of constant price increases; they don’t want to see prices go up, period; they don’t want to see coffee go up a nickel. It’s only the bankers and their captive economists who preach inflation, i.e., illegal counterfeiting of the currency.

Inflations are not a result of capitalism and sound money. Rather, as Ron Paul puts it, “they are a direct result of paper money and a central bank that is incapable of managing it.”  The current monetary system tempts everybody (including the politicians) into debt, crushes incentives to save, encourages massive fraud, and plays havoc with savers and fixed income recipients by destroying the value of their principal.

And to make it worse this banker-controlled government taxes the negative interest “earned.” What does this say about their motives?

The people simply don’t know how to respond to this constant harangue by the pipers of printing - the media, the captured university economists, the counterfeiters de jour - parroting the banker rant that we need 2+ percent annual inflation; that if something costs $2.00 today, it needs to cost $2.04 or $2.16 next year.  This is the siren song that puts the power and influence into the hands of those who control the creation of the new money and enriches their friends who get to use the money first before it devalues.

To sum up, the deflation versus inflation debate is beside the point; we’ve had almost steady hard-hitting inflation since the inception of the Fed fiat system. We all know things don’t go down in price except products where there’s efficiency created. And that’s not deflation.

Unchecked currency destruction has led to the current global economic and political chaos –the handiwork of central bankers absent any restraints on money creation.

Sun, 02/17/2013 - 17:21 | Link to Comment Yen Cross
Yen Cross's picture

 Well done J.R.   Global ponzi prescript at it's "self adorned" postscript.

Sun, 02/17/2013 - 21:00 | Link to Comment JR
JR's picture

It's amazing, Yen. It seems that all major news events today focus primarily on the words and actions of the central bankers.

Through the corruption they have wrought, particularly in the electoral process, the country has become so divisive that half the country hates, despises, the other half. This involves millions of people. We’ve never had division in America with this intensity before. The same can be said of the EU.

The rise of the central bank as the controller of not only the nation’s finances, but as the control support for war and domestic programs, has cut the authority away from political leaders such as the president and members of Congress.

Not only business people, but professional people as well, consider the president’s remarks insignificant because they have learned that the critical decisions on the economy and funding for foreign and domestic programs are made by the central bank.

The market does not even respond to comments made by Obama. But every pause, inflection or suggestion made by Bernanke can move the indexes by a minimum of 1 percent.

This spells serious trouble for the nation in that Bernanke is not an elected official and, in fact, his deliberations and contacts and even his actions are generally kept secret.

The Founders gave the leadership and decisions on direction and policy to elected officials. The Constitution was clear on which divisions of government held the responsibility. But when they are no longer responsible, and the people know it, the country goes off track, in a direction that is known only to the investment bankers who own the central bank.

A perfect example of America off-the-track is funding from this nation to bankers located in foreign countries. When General Washington was to make his most critical assault, he called for only Americans to be on duty in key positions. What would the Founders have thought about giving American taxpayer money to foreign bankers for reasons known only to them?

And speaking of filthy lies, wasn’t it Chairman Bernanke who called Congressman Ron Paul’s suggestion about foreign funding by the Fed “bizarre”?

In all these Fed-enabled wars of every stripe - wars for oil, wars for Israel, trade wars, wars on so-called terror, wars for regime change, wars involving extreme competitions – Americans and innocent people are getting killed. And all the while Bernanke is taking U.S. money and giving it to foreigners; the who, what, why, when and where known only to himself and the owners of the Fed. The shock for American patriots who have sought to safeguard this country and the liberties for which the signers of the Declaration of Independence risked their lives is that these bankers are international, non-national; that Bernanke is non-national.

Americans had better tighten the straps on their survival jackets and prepare for rapids ahead; as economic chaos and civil disorder ensue, the primary concern will be to stop these international central bankers in their quest for world government by replacing the current Congress with men and women dedicated to sound money and national independence.

Sun, 02/17/2013 - 19:26 | Link to Comment StychoKiller
StychoKiller's picture

Check into "Single premium deferred annuity", and

Tax Lien Certificates.

 

Sun, 02/17/2013 - 21:49 | Link to Comment JR
JR's picture

Thanks! I'm interested!

Sun, 02/17/2013 - 19:11 | Link to Comment trendybull459
trendybull459's picture

Untill the people stop to listen and respond to governmental flucks,like in Spain or Greece,untill people will let to those guys to put them spagetti on their years,provide expensive education,devalue agressivly and Monarch way the life savings,untill people do not get together-all this theater will go on untill your last 10pens in bacrupted bank will disapear.You have to crash monopoly of governments to print itself money as its long time got into robbery of those who really work and people starts to epply "barter" rules exchange,so government will loose most source of its revenie,by the way Russian black market money is balooning and Black today meaning good,because White today meaning Robbery!

we got new Forum in russia and in russian,but you can talk english(as most russians speaking it),to leave comments in translite or russian,what is good is that Russia absolutly free country if it apply to critics of their enemies,it takes some few minutes to be free from Big Brother watching being registred in Mail.ru

http://trendybull777.blog.com/

Sun, 02/17/2013 - 19:58 | Link to Comment Monedas
Monedas's picture

"Is that a sardine in your knickers .... or are you just venting pheromones .... because you want me to fuck you ?" .... Pick up line in Oslo

Sun, 02/17/2013 - 21:08 | Link to Comment JR
JR's picture

Trendybull459, I appreciated this remark on your site regarding the Next Great Depression:

"In the light of modern fiscal FED policies many of us watching how our life styles becoming misfortunes, single private banking entity irresponsible for bubbling our lifes at our expense without our agreement."

You have apply described the power of the central bank and the consequences impacting individuals that result from this secret world of the international banking cartel that has not only America, but the world, in its grip.

Good luck in your endeavor.

Sun, 02/17/2013 - 23:07 | Link to Comment Mister Minsk
Sun, 02/17/2013 - 23:26 | Link to Comment jtlien
jtlien's picture

You can always tell a Norwegian Finance Minister, but you can't tell him much.

Mon, 02/18/2013 - 01:51 | Link to Comment Usura
Usura's picture

The answer to this is simple for Norway and also for the Swiss:

Print mucho Krone

Trade these newly printed Krone for dollars

Use the dollars to buy gold

Repeat 

Mon, 02/18/2013 - 02:18 | Link to Comment resurger
resurger's picture

Fuck this recovery, i cant afford to pay rent now, my rent is up by 15% already

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