Blast From The Past As Cable Plunges To Seven Month Low
And now for a quick blast from the past: on November 26, moments after Mark Carney was announced as the Bank of England's next "shocking" head (confirming our prediction that just this would happen), we made a very simple prediction, one which ran contrary to the conventional wisdom of the day, that Carney would pursue a sensible policy of preserving the strength of the British pound, namely the following:
It took Goldman's Mario Draghi about 3 hours to launch an epic EUR destruction campaign. Anyone going long the GBP here needs therapy
— zerohedge (@zerohedge) November 26, 2012
Sure enough, after rising very modestly in the days after Carney's coronation, cable has since imploded and moment ago touched on a new seven month low. Those who have been long the GBPUSD throughout the ensuing 600 pip plunge, can invoice Goldman Sachs with their therapy bills.
Why? Because back in early 2012 Goldman was already planning for the next round of global currency warfare, and needed its own operative to make sure that the BOE, which weeks prior to his appointment, said it was done with QE, would resolutely follow the trailblazing path set previously by such other Goldman tentacles as Mario Draghi and Bill Dudley. And, just as expected, it is already benefiting from the market's expectation that once the BOJ's reflation experiment ends in flames, it will be the Bank of England's turn to pick up the torch and boldly go where so many other Goldman central planning muppets have gone before.
Expect much more pain for GBP longs as every central banks does the only thing it can to boost global risk prices: devalue the purchasing power of its citizens while benefiting just the 1% of the legacy banker oligarchy whose wealth is dependent on the ongoing explosion in sovereign balance sheets.
Which begs the question: for all those who say don't fight the Fed, do they realize they are explicitly saying fight the BOE, BOJ, SNB, ECB and PBOC? And Venezuela of course.