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Charting "King Dollar's" Creeping Attempt To Takeover The World
Presenting the creeping take over of the world by "King Dollar" over the past year... or heatmaps for FX dummies.
The charts below show which currencies of the world have been bloodied by the USD (red) or are victorious (green).
Naturally, in the past 24 hours, the USD is crushing everyone as the global liquidation and flight to "dollar safety" unwinds. After all, somehow the thinking goes that despite having $216 trillion in debt and unfunded liabilities in 4 years, the Federal Reserve will simply pack up its toolbox (which really has just one tool inside of it - a printer), pretend it will not inflate away the debt, and just go home.
This is roughly the same as the performance of the USD over the past week:
Compared to a month ago however, quite a few parts of the world are still beating the "king":
And certainly compared to a year ago:
So: more upside for the USD? Or will the market remember that traditionally a soaring USD is a very bad thing for the market, and certainly not a good for US exports, which however are stoically taking the pounding if it means stocks rise. However, now that the USD is rising even as stocks are falling, how will multinationals, and rather the billionaires behind them, act from this moment on?
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But, hey, how 'bout that Hindenburg Omen....
Tis but a flesh woumd...
A scratch? Your arms off!
http://www.youtube.com/watch?v=deuC8GPr31A
"All paper currencies are toilet paper, the dollar is simply two ply." - Thomas Caplin
That one goes in my favorite quotes collection.
Attempt?
USD strength = deflation = Phase 1 in KaPoom Theory.
On another note, re: Michael Hastings death:
"It seems to me that Hastings may have been dead, his car parked there, and then blown up with him in it.
They swapped cars and locations to hide explosive damage"
http://www.jimstonefreelance.com/hastingsmurdered.html
Seems plausible enough. Just like those soldiers and police officers who die in training accidents and helicopter crashes...
Over the past 24 hours BTC is up against the dollar by about 4%.
Not sure who this King Doallar is, but it's only doing well against other government script.
Yep Bitcoin holding up nicely. It's a buy at these levels.
"On another note, re: Michael Hastings death:"
Nice article with many good photos, but I disagree with some of the conclusions and photo interpretations. Still a very, very fishy wreck though. The gas tank of a Mercedes or, for that matter, most any decent modern car shouldn't have burst into flames like that from what looks to be a not very high speed collision.
Its time to summon the Holy Hand Grenade of Antioch!!
That was used a few years ago.
Sorry, Scotty, we beamed you but NSA split the beam, and we lack sufficent power to reassemble you. However, while inside the NSA server complex, could you send out some hot investment tips via my email (you ought to be able to find it on my dossier)? I'll gladly share some of the gains with your family out here.
C'mon, you pansy! (LOL)
At ~ 82 on the USD index as I write this, "The King" isn't looking particularly regal...
No indeed. It was > 84 only a few weeks ago.
KING DOELARR! RAHRAH!
h/t to Mr Lennon Hendrix...
RAH RAH RAH RAH ra-ra-ra RAH RAH
Who?
I did not write this my kid did, sorry
In the short(ish) term, the USD is going higher. Much higher.
Best lookin' horse in the glue factory.
The currencies are all pegged to each other anyhow.
The only reason they let the FX fluctuate, is to knock out your shorts.
Best looking whore in the whore house?
Fonz - a rising dollar in conjunction w/ rising yields in a record levered market...well, what you are saying is the Fed has lost control and lost it's nerve??? Is going to allow deflation to do it's work??? Especially after propoing this to record levels??? Doesn't seem like the Fed I know.
I am saying that....for now...perception is reality, and I was one of the few that was saying yields would reach these levels, which means I am capable of winning a coin toss....
The perception that is being hammered out now is that rising yields go hand in hand with the supposed economic growth that is taking place, along with the phony real estate recovery. So it is prudent, based on this bullshit smokescreen that has been presented for a while now, to pull back on QE.
This will play out for a bit. Money will come rushing into the dollar because we have finally gotten religious and now believe a strong currency will be the key to an economy on solid footing. Gas prices will fall. We will celebrate our buying power. Economic data will manage to hold up pretty well....
Right up until the fuckin thing happens. What a total shame too, because everything was just starting to hit on all cylinders. But that fuckin thing, whatever it will be, will send everything reeling. It will only be prudent to unleash a massive temporary stimulus. Same as it ever was.
Fonz - ur right and ur right - but my point is that 30yrs of ever lower yields have hdden the absent wage growth, allowed ever greater leverage, allowed the sick to remain alive at ever lower yields (relative yields...not absolute). To anyone now going to rollover today, tomorrow and for as long as yields remain "relatively" elevated from last time they rolled over...they will start falling apart and fast. Unwinding record leverage rips apart fast. All this talk about rising rates good for financials is completely missing the point that the only way they have been able to hide losses is via rolling over the walking dead at ever lower yields...if Fed doesn't act quickly, it's blow up time.
This is why people bought PM's against what the Fed may do next. Only way to put yields back in the box is a "Fed will do WHATEVER it takes" statement...otherwise, once the deleveraging / unwinding starts it will be very, very difficult to turn back.
Break S&P 1598 and a quick waterfall is likely to 1540 but that will be the least of the trouble if bond selling doesn't abate.
I have watched PM's drop from QE3 until now. There is something much more sinister at play with them.
What is interesting is that even at 2.43% on the 10yr CNBC keeps yelling at everyone to sell their bonds. Higher yields be damned.
USD is the biggest bubble in the world. Deflation means it gets blown that little bit bigger, before it all collapses.
The response to deflation WILL be inflation. Hyperinflation, loss of reserve currency status, loss of faith in fiat currency, in time.
Once banks have to start paying interest, either on their newly rolled over debt, or on deposits (because depositors now expect to be bailed in, thus are taking on risk by depositing) they have to lend out reserves. And THATS where it all comes undone.
After WWII America had the gold so they let France, Russia, Britain etc accumulate more gold until the Bretton Woods reset. Same thing happening today. They're giving gold the baby seal treatment so the Chinese can get a reasonable pile before the next reset. All the players need to show up at the poker table with the same pile of chips, right now the Chinese mostly have paper. Once the piles are representative, they will reset together: USD, EUR, Yen, GBP, yuan.
I like the "unwinding record leverage rips apart fast" part best.
Say goodnight John boy...
Gotta believe this is the climatic bottom PM's needed to stage their turnaround...ultiimate paper price despair on display while I gotta believe phyz is being loaded up by the truckload??? Asia sees a half off sale and is gonna get theirs while simultaneously the mining industry is getting crushed for bringing metal to market and say goodbye to exploration for new supply. Classic.
Are people rushing to dollars for 'safety' or to meet margin calls? My guess is the later. If it was for safety treasuries would catch a bid.
I believe they will Doc. Treasuries specifically. the rest of credit...not so much.
I believe they will too... only if this gets ugly.
Margin calls lead to dollar strength due to liquidation to meet the calls.
I have one question for whomever of Tylers wrote this:
What US exports is she/he talking about?
Mortgage applications for foreigners to buy US property.
The good news is, since we export nothing, our exports will not be hurt by a strong dollar, which, ironically, is the only thing we export.
Aha so we do export something!
We've exported 80% of our manufacturing.
Well, one thing I can tell you is that most of P&G products are still made in the USA.
Re: "What US exports is she/he talking about?"
I wonder about that, too. Hope it doesn't involve "supporting rebels."
http://upload.wikimedia.org/wikipedia/commons/6/6c/United_States_Export_Treemap.png
Setting up for an island top in Treasuries, maybe?
Then get ready for the long elevator ride DOWN.
That is a meaningless distinction.
The USD is a flame thrower currency. It's greatest power is in destroying things. Just ask Hamid Karzai, he can explain it better than me.
http://www.policymic.com/articles/38597/hamid-karzai-corruption-cia-sends-millions-of-dollars-in-ghost-money-to-afghan-president
Can I has some plez?
Makes one wonder just how much money has been printed purely for this reason and how much inflationary impact that's had on my life and now the impac that has on me being able to buy gasoline and feed my kids?
Fucking monsters they are. Uncaring, inhuman, fucking polluted minded monsters.
Somebody should do Karzai a favour and send him a Tilley hat. The fur hat is really dorky, not to mention sick.
http://www.foxnews.com/story/2002/04/24/hamid-karzai-famous-hat-made-from-aborted-lamb-fetuses/
I want a hat like that.
Only make mine out of aborted Wookies.
Is that you Tom O'brien? Is this me?
Looking forward to the day we see a raging Statist/Bankster Piking heatmap. Of course, that won't be televised....
The US Dollar is biased against six currencies with different weightings.
The Euro has the greatest negative bias on the USD. A table of all six and their weightings are below.
http://bullandbearmash.com/about/usd/
The man running the casino decided to program all the machines to pay out big. The gamblers thanked him by giving all their money to the cashiers. The man looked down and saw everyone holding chips, throwing massive bets on the tables.
When he saw most of the chips on the tables, he flipped the switch, turning the odds back to the house.
All of a sudden the previous winners started losing. At first they thought, well you can't win them all, and continued to bet. Soon most of the chips were in bins under the tables.
The gamblers soon left the casino. The man running the joint thanked them for playing. He was happy to let them think they were winning, trading and gambling away worthless chips. Once the customers were all gone, the man walked into his vault to count his score.
Thinking to himself, what a great life he lives.
For those of us who are color stupid those maps look remarkably similar....
In the last two Europe and China are green (strong)
bernanke is a genius. plain and simple. everything that couldve gone wrong hasnt. everything that he expected to break his way.....has.....
I think he pushes the limits and misses Jackson hole because he is getting hair plugs. When he shows back up in September we will all talk about his wonderful head of hair as if it were always there.
I could be mistaken, but I seem to remember learning about the differences between short and longterm economics in macroecon 201. Stocks and bonds going down simultaneously seems like a very ominous new phenomenon. Excuse me if i failed to pick up on your intended sarcasm.
no sarc...hes a genius....he has the world eating out of his fucking hand...he walks on water....he has:
given politicians room to spend spend spend with nary a squeek from anybody
recapitalized the banks
fixed the 401k/ira/pension fund nav disaster that wouldve sparked a riot from the baby boom generation
fixed the housing price disaster
destroyed the dollar competition (gold included)
kept inflation in check (and please dont give me the bullshit about your "this or that" gettting more expensive--all this printing hasnt sparked massive inflation)
borrowing costs for the govt are still at all time lows
do i really need to keep going........???????
and right now THAT IS THE REALITY.................
kito you might want to reconsider that 401k statement fix...most of the boomersa rein bond funds and they are currently getting crucified.
And remember, this is just A MOMENT IN TIME.
Now he has to keep it up. Forever!
Yeah, just like Greenspan fixed the .com crisis... Again, it's always that longterm that creeps up on you... But he is smart; just like Arthur Burns he'll be long gone when the negative impact of his printfest is rampant. Who rembers Arthur Burns?... The inflation crisis of the late seventies was all Carter's, Iran's, and OPEC's fault... Couldn't have had anything to do with the money printing of the early seventies. Then again, maybe Big Ben read a few more books since completely missing the housing bubble. Your rant is impressive but completely ignored the premise of my statement; economics is a slow moving ship, not a supersonic plane...
I have to agree with you kito. Recall all of those foresighted folks back in 2006-7 who believed that Greenspan had exited stage left in most timely fashion and left Ben B as the bagman who would take the fall. He has kept quite a few plates spinning for quite a long time now...and will be a tough act to follow.
A last dying gasp?
Fiat Money only holds value if you believe that when you go to sleep at night it will still be there in the morning. The US has at most a 3.62% chance of civil disorder. The US does not have citizens, it only has consumers. If the FED can keep "consumers" fed and scared watching TV then they win. CONSUMERS do not care about liberty, they only want to be free of want.
Anyone think the EU, China, Japan, Middle East, Africa, Asia, (I'm getting redundant) ... the rest of the planet has anything better than of 10% chance of keeping things together? Nope. Well except for PUTIN, he has good odds on staying in control.
The rich from all over the planet will come running into the arms of the FED. Life in the future is going to suck but that suckage will be distributed on a bell curve of 7 billion people. Ask yourself where on that curve you sit.
So, the demographic event horizons have been re-timed to cascading deceleration, and rates are turning...and the artificial borders are boiling steam....
All you really need to do is issue vibrators to the majority, which will never understand parenting, and let it grant itself the authority to tax its future generations...
Cream rises to the top, every time...black holes serve a purpose.
When a ship is sinking, even the rats know to run to the part that will be last to submerge.
Rats are great swimmers. They just bail right off the fucker.
Just as one might try as hard as ever to defy gravity after jumping off a 100 story building; creating something of value out of nothing goes against the laws of nature and will end similarly in a big SPLAT......
Dollar safety ha ha
Deflation Monster
The USD is the only game in town. The world reserve currency and the international currency. No place else to go. Good for people who are in cash. There will be a chance to buy cheap assets at the bottom of this deflationary phase. Then a squadron of black swans will appear and off we go into the inflationary phase, end of the currencies as we know them, new game. That is what I've garnered from the reading I've done.
Ka-Poom.
Dear Peter Schiff, Jim Rogers, Gloom, Doom and Boom friends, Ron Paul, Liberarians, ZH and other purveyors to the Bear Market,
As you can see, the rumors of my demise and death are highly exaggerated. I can stay solvent longer than you can, and I have more guns & ammo than you can ever dream of having. Guess which currency will will be the last one standing. Won't you behave now, or do you need to be disciplined?
Sincerely,
The Federal Reserve (and its $hareholder$)
/s
This is what they're secretly saying and laughing at our expense. Bass-turds!
We, the properly prepared, will survive. They will go to hell.
Reserve currency until it is not......then......
My bet is a new currency styled on the Euro. Gold on the balance sheet with gold marked to market, just like the Euro. I see China doing this too. I see a decrease in inflationary promises after this happens as currencies will have to compete. I see a better future when this happens as wars will cost real sweat and pain and not just paper promises.
Thank you fofoa for this vision.