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Currencies Go Berserk As Bernanke Kills King Dollar
We noted earlier the brief chaos that the minutes created but - following Bernanke's promise to print moar - the after-hours collapse in the USD against every major (and minor) currency pair in the world is tremendous. USDJPY is over 200 pips off the day's highs (JPY surging below 98.50), GBPUSD is getting smashed higher (+275 pips from pre-close), and EURUSD is screaming higher (up 220 pips from the US close breaking above 1.3200). Retaliation for Carney and Draghi's comments? Who knows... but the currency wars are back on (and the 'other' currency is surging to $1290 per ounce).
and a little context...
For those who want a comp of the magnitude for the EURUSD's nearly 300 pip move so far, the EURUSD moved just a little more, or 370 pips, on March 18, 2009, when the Fed announced QE1!
Charts: Bloomberg
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And so it begins.......
Or ends....
with a queef....
right in your beef
Or your teef (sez will smiff)
Where is my milf?
On the shelf...
Small like elf....
Yippie-Ki-Yay MotherFuckers
New Zealand's economy is rapidly disintegrating, as part and parcel of the Chinese Flu, just as Australia's has.
There's not going to be soft landings all around.
As far as currencies go, the last thing the EU nor Japan can tolerate at this point in the game of high stakes poker, are reflating currencies.
Ask Korea how that's working out for them.
Yes but they make really good HAKA
I wouldn't want to be James Cook a hundred years from now, excuse the pun
I made a comment earlier in a different thread about how the last 4+ years have been an absolute debt-fueled reflationary boom (inevitably destined to bust as they do), but forgot to post this juicy morsel of prima facie evidence as to how a debt/deficit dependent economy (i.e. a negative real growth one) NEEDS MOAR DEBTORS IN ORDER TO MERELY TREAD WATER:
White House pushes for home loans to people with weaker creditI've been kind of jammed up, can someone tell me when this whole Bernanke thing went from half the fomc wants to taper by the end of the year to moar QE?
So it turns out the USD was a massive bubble? Who knew?
HRed: lol
Looks to me like this is his own intentions. He now thinks the system will collapse before his exit so hes basically saying that when it does, its not his fault and is his fellow fomc buds. This weasel is covering up his tracks. Maybe the other members will call for tapering in followup meetings, the opposite of what they did last time when benny was the one mentioning tapering.
I am seeing the 10yr at 2.57% Looks like Everyone is buyin what the bernak is sellin.
All I can say is... 'Stolper'
~~~
BWAHAHAHAHAHAHAHAHAHAHAAH!
Or more like 'buyin' what he'll be buyin' right back from them'.
Al, is this a lose control moment, or just a keg refill for the drunks?
Much as I'd love to see some real chaos, I suspect its still just another keg refill.
I am amazed at how worked up everyone is getting. The 10yr has dropped 10bps. Gold is still below 1300.
I mean, we are getting all riled up here? The only thing this proves to me is he owns the market. He can actually stuff toothpaste back in the tube.
The only thing that Bernanke knows to do with toothpaste is make people drink orange juice or coke after holding it in their mouth...
Treasury + Federal Reserve + Pentagon = most powerful trifecta on Earth.
The 'economy' is really just an offshoot of whatever those three are up to.
Ben Bernanke is great at his job… with a caveat depending on whether you go by his official job description or the historical precedence of what the fed chair is actually for.
just 'fuck' is all I can say, just 'fuck'
bond and currency position losses are gonna be like shot gun wounds, center abdomen
big holes with nothing but splintered spine and intestines protruding out the exit
Ol Bennie is making the USA and US$ look like an internet start up penny stock
the eastern bros not gonna play same as western bros in this shit fest
We'll all be playing Mah Jong by 2015.
Should have been playing Go since 1999, but there will be plenty of time to learn.
I think those outsized short positions by the hedge funds are kindling for a big fire, though. Its one thing for the bullion banks to load up on the short side, but its a bad place to be when you don't write the rules for the market, especially with so much evidence of physical shortages. I can't think of a dumber ' the trend is your friend' play. Could be a few bodies left if they all start rushing for the exits.
If you look around or listen with decent filters to the ads on the radio (No TV here - Radio at work, unavoidably) it's fairly obvious to anyone with a few functioning brain cells that the only thing that matters i debt.
Cars are not to get you around or enable you, they are there to produce debt - Been calling 'em debtmobiles for years (don't have one)
Credit card companies sending 'guaranteed' approval shit.
WE NEED A FULL RESET!
Sorry, this petri dish is full up, go find yer own!
Australia's economy is going down like a sack of shit. We may have a positive GDP, but most major sectors are already in recession/contraction (call it what you want) and have been for many months. Now the mining and energy sector is chucking a spaz too, the whole top-end is stagnant or recessing.
and so much for the insane blurb at the beginning of 2013 that RE was going to approximate the idiotic surge in prices in 2009. However the media keeps pumping the story that demand and price is higher, because RBA rates are currently low, and structural RE shortages etc. ... so how screwed in the head can you get? ... to buy an overpriced house, at top of the market, on a 30 year mortgage, just before a wave of global sovereign defaulting, trade war and currency collapses ... because a transient RBA rate is currently low.
People are idiots, oh yes, but banks and RE spruikers are just plain crooked-mongrels ... and our dirtbag Govt always encourages them to smash the 'aussie-battler' ... it's growf u know! ... but ever wonder why there are so many 'battlers' in the 'burbs, "doing it tough"? Just last week numerous commentators saying Australia never had it so good, problem is, it's only good for a fraction, the rest are all porked.
And it sure wasn't due to the function of pure economic capitalism, it was as usual the govt-enabled money-changer extremist financialism, creating our debtor-utopias.
AUD only wants to go back-up because we don't outright print and monetize debt yet, we are still only debasing via fractional-reserving new money creation, and ourselves to oblivion ... the "quiet achiever" ...
No No No, didnt you read the paper. FortescueMetalGroup's (FMG) Andrew Forrester said everything is A-O-K.
That's why, after neally going belly up with Iron Ore at ~$90 a few months ago, he has slashed a couple of thousand jobs and halted expansion of Berth 5 even though its now +$130/ton.
Obviously, it costs contractors shit loads to Mob and De-Mob from site to build these wharves, so the decission to tell McConnell Dowell to go home (after building berths 1 to 4 back to back) must not have been made lightly.
But yet "we're OK, mate"
I reckon the earnings this xmas will be week with lower AUD strength limitng battler's ability to "buy random shit".
dont worry though, maybe a plummet in perth property prices might get as back off the top of most expensive place in australia list
Best we can say about FMG is maybe Forrest-gump got a healthy fright and rationalized his investment for the shish-storm to come. He can grease the pineapple enema for TV and market statements, but I'm sure he knows it's going to hurt.
Suspect Harvey Normal (etal.) are going to get the pineapple up the date as well, demand was even struggling with high AUD, but now the imports are going to be ~10% higher, as inventories are replenished near this 92 cent level. Who's going to be paying up to 10% more retail for 'random shit'? No one who doesn't have to, is who.
And that does not even factor in the major price increase at the pump we're now seeing. That has to flow through too. A falling AUD is a good thing, yes, but only if it really plunges, and takes oil down with it. But what we have now is not only higher prices (i.e. new records coming very soon), but a comparative REAL price that's well above what we effectively experienced in June-July-Aug 2008.
Retailers are going to get smashed, and before Christmas I suspect. Just today unemployment rose above the level we experienced in first half of 2009, and it's very likely to rise from here.
RBA, meet ZIRP
Dude you fucked up the flow!
That is the most egerious error.
i guess he'll live in terror
trying not to be a Gilf
So it's, "Pip, Pip, Away!"
You can be hip, like a G-Milf?
pods
I know everyone on here likes to say:"Fuck You Ben!"
Now everyone on here should feel good right now, as the world is saying:"Fuck You Ben!"
I am really quite surprised that grown adults in suits and ties still believe anything that Bernanke has to say. I watched that video today with Rick Santelli on CNBC. He and Dylan Ratigan are (and were) the only two individuals on CNBC that have made any sense whatsover. When Rick went off on Bernanke saying "Does that stragegy sound rational to you?"... and then we had three other clowns regurgitate how things are going to be fine (business as usual)... we know we are in serious trouble.
The whole Financial Paper Fraud System is going to implode and it will be quite interesting to see what the NITWITS say about GOLD & SILVER then.
If you haven't read my post below, I recommend it. It looks as if the Indians are going to purchasing a record amount of silver in 2013. Yes, it has already been published that they have already purchased 2,400 tonnes as of May compared to 1,900 tonnes silver for all of 2012.
However, what they do for the rest of the year is very interesting:
Indian Silver Imports on Pace for New Record in 2013http://srsroccoreport.com/huge-indian-silver-imports-on-pace-for-new-record/huge-indian-silver-imports-on-pace-for-new-record/
right ...is pathetic, who is afraidof the boogyeman Bernank???
here the art.
http://zysites.com/silververitas/
Is this fucking joke finally coming to an end?
I prefer to call it a nightmare, but I guess joke will suffice.
Killing joke.
My dog's got no nose.
How does it smell?
Awful!
http://www.youtube.com/watch?v=oShTJ90fC34
Saw Killing Joke at the Ritz, NYC in the 80's- sheesh - haven't thought about that band for years.
No
Bernanke now can see both the rock and the hard place simultaneously. Can't threaten to shut off QE. Can't threaten to keep it. Who could have imagined that jamming trillions into the monetary system could lead to a cunundrum (which is Hindi, which literally translates "totally hosed".)
So this is what a taper looks like?
So this is the way the world ends, not with a bang but a taper?
They're burning the taper at both ends.
I thought a TAPER was what keeps your butt hole from SLAMMING SHUT during your morning constitutional.....WTF.
Doing God's work - GS-DickinDaMuppets
He should probably just keep his fucking mouth shut for the rest of his term - just flat out refuse to talk anymore.
Yes, but hubris got him (and us) into this mess, and hubris keeps him talking.
Maybe some of that, too. Mostly he has the same blind-spot as many "academics." They live their life devoted to logic. They don't get that some things (like the market) don't always work on logic. Just dog-psychology and herd behavior take over and they are utterly ill-equipped to understand or deal with those kinds of situations.
Seeing them all at once is a treat!
ALL | USD | EUR | JPY | GBP | CAD | CHF | AUD | NZD
ALL | Gold | Silver | Platinum | Copper | Palladium
Gold / Silver at $1,300 / $20 is the line in the sand. Let's see if they can stop them there.
Thank you, Al. Been saying that all along. He should just STOP TALKING. Moar "transparency" sounds good on paper but that's about the last thing we need right now is him opening his yap again. This is what my brother (a pilot) would call "pilot-induced oscillation." Everything you try makes the situation worse because you're running half a step behind the machinery, so stop trying to fix it and sit still for a second.
Isn't that's what all Mafia bosses eventually do?
"I take da fif. I ain't sayin nothin."
Coming to an end?? Not even close. They can keep this going for years. Already been doing it for a few as it is.
http://www.youtube.com/watch?v=dEtm_Q2LK9g
really, how can u measure the world's tolerance? No one has any idea how long this con game can go
Bernanke is acting like a homosexual trying to get back into the proverbial closet.
It's slowly becoming relentlessly clear that oil decides everything. What a coincidence that he decided the economy is too weak at $106 WTI to risk taper.
And he's also smart enough to know that those tankers supposedly at risk in the Suez Canal can just go around Africa instead. He knows Egypt has nothing to do with it.
They will cancel/reorder based on route, it would be cheaper than waiting, and honesty its a meager price to pay.
Oil in the summer is consumptive in the north, theres leeway without people dieing near immediately, the failed crops however..
If the Suez is jit, then it will flow, for a price. Who leads egypt currently?
Good point. The ULCCs (supertankers) actually CAN'T go through the Suez Canal. Their draft is too deep.
As Bernanke and the Fed weaken the US dollar much further oil should skyrocket.
Check it out:
http://www.hypermiler.com/
I've been using some of these techniques for about three weeks, and even though I was skeptical, it did increase my fuel economy by almost 50%- and that's picking and choosing which things I was going to do.
The biggest one was taking the county highways instead of the bypass on my commute, and driving 45mph to and from work. Yes, that does piss people off a little, but I picked roads that are straight and relatively flat, so it's easy for people to pass.
Also inflated my tires to 5% over the stated rating (they suggest 10%, but that seemed risky,) and started putting the car into neutral to coast up to stops and turns, as well as taking corners at whatever speed I'm still going, rather than hitting the brake and then the gas.
It's an interesting thing to try, I suspect it's a love or hate thing- most of the time, you have to drive like an old lady, but there are times when you're taking a corner at the bottom of a hill at 50mph+, and that kind of makes up for it.
The end result after the first tank was getting an older sedan from 26-28 mpg to 40 mpg, and it only added 12 minutes per day to my commute (6 min each way.) All in all, that's only about $10 a week for me and a trivial amount of time, so it's not a game-changer- kind of like getting a 1-hour a week part time job that pays $10 an hour- not hard, but not very rewarding either. But if gas does skyrocket, it's a useful thing to have learned.
All that being said, unless gas really goes up, I'm probably not going to be able to resist driving fast for long.
http://www.youtube.com/watch?v=FONN-0uoTHI
Gold bitchez.
I'm naming my next pet "Gold Bitchez"
Good idea, but make sure he stops breathing before you bury Gold Bitchez.
I hope your new pet can swim
So ~ Your next pet is a catfish eh?... [or are you going with a lobster or crab]?...
$1,545 is what Goldman predicted a few weeks ago. Citi said $1,800 again.
They may be righter then you think.
Just be careful calling for it around trailer parks and housing projects ;-)
This is like the old days of Communist China.
People are wagering billions, based on which side Ben will part his pubic hair.
Momma mia.
I thought he was more of a comb over man . . to cover his tiny bald spot.
lol almost sharted
he he . thats fucking funny!
How I long for the day of a gold currency so that all these graphs are no longer needed.
there is a moment of existence when the shackles loosen from upon your shoulders, slide down your arms gaining a momentum that alleviates your hands from restraint. the sound of your bonds dropping onto the hard earth gives breath to the new existence that the soul breathes in. the next moment and it's consequences are to be decided by you, not them.
Bernanke became famous by luring suckers after that CNBC interview saying that housing market is strong
Bernanke is walking away by luring suckers again today that interest rates won't be raised.
Take Benny seriously at your own risk. He's the ultimate predator
so where to put the money now that paper turns to shit?
it depends on how much you have
If you have like my acquaintance at the gym, about $20 million, that's a tough one. He's got $10mn in physical gold
If we're talking $50k, or $70k, cash under the mattress if you can manage to protect it
The actual paper with a number on will be great when margin call from the white house is given
some are investing in bicycles, myself in beats per minute
either way I'll be covered....running either to or from a kill
Fitness is a subject much under appreciated in a SHTF situation.
At 58 I can out-cycle my 18 year old son (just about and it burns his arse!) - and he's the fittest of his group of friends. We often do 5 or 6 hours of intense trail riding together or all day hikes with packs.
It feels real good too.
That ain't saying much considering kids these days. Up until I was 17 I'd ride like that with a lit cig in my mouth and 12 pack of beer on the rack on the back. I wasn't some fitness guy either, it was out of necessity not for exercise purposes. I agree though on the fitness part these days, you got to be able to move faster and for long continuous durations than the free shit crowd once the free shit dries up and they turn into hunting pack animal types, especially when you are on their menu and you don't have enough bullets to put them all down. It is better to bug out and fight them on your own terms than be forced into a confrontation where you are in an unfavorable situation. Shit happens sometimes though and you got no choice.
Advice, buy a LOT of bullets
Advice, don't be the low-hanging fruit. Being a part of a good community will go a long way.
Why would somebody downvote that?
it beats me
Maybe its his 18 yr old son....
What's the address of your "gym"?
let me give you a hint:
I do not want to ask him how he made his money
Does he sweat linguine sauce?
They used to say that Liz Taylor's blood type was Ragu.
Ole' Ben can't even open his fucking mouth anymore without wrecking AT LEAST one market.
bernanke: "That taper thing last month, I was just kidding"
Burp.
Little message from George;
You guys are pic.twitter.com/qwKElGtrMA
Gold is at 1288 now. Wow. Hopefully ZH this saturday at around 10 PM, after the movie with the wife and her tucked into bed, puts up another great article on something under the surface and not obvious and we can bang it out again for the next couple hours. What happened with Bernanke today is so mind blowing that it will take a couple days to gain equilibrium again.
and the equation of my scatterplot is holding on the matches of both too.
http://flic.kr/p/f17z1s
Poor Stolper. Bernanke tanks the dollar just after his trade is stopped out.
You mean poor muppets who follow his advice so GS can take the opposite side of the trade. Stolper probably got an added bonus lol.
I said earlier (like everyone else here), he KNOWS he cannot stop QE, to Infinity, or till the biatch dies.
OTOH it's hard for him to print money if oil continues to ramp.
Imagine a world of September with WTI at $130. Think he'll keep printing?
C is O,
Maybe he will. Higher WTI keeps the drillers drilling. At least until it all goes to shit.
Sept? Next week. It's already closing the gap on 107.
Then BB will have to print money in order to lend it to end users.
They are monetizing the debt (and will continue to do so). They are devaluing the currency. That in essence means decreasing your standard of living (raises equal or greater than inflation mean you are treading water).
Worse, it would prompt more long holders of bonds outside the US to dump them adding a bit more fiat on the pile floating around out there.
Energy prices always effect the economy in the immediate term. Food, getting to work, shopping, public transportation.
Price Stability, Bitchez
There are no currency wars. It's all to boost domestic consumption.
The Bernank
Hah hah suckers. Try business planning in tis environment.
Impossible. All for the governments. I think I'm shopping for a brown shirt tomorrow. Might as well hide among them until we're being liberated by someone else.
I keep getting pop-up ads for homeland security training. If you can't beat them join them.
Don't do it, Sven, thats defeatism! (assuming your first name is Sven, of course)
I think it's just Sv.
But, he's right, don't do it, Doc.
What sites could you have possibly been visiting that have tagged you as a good recruit?
This is about trying to pay down the sovereign debt with cheaper currencies with each world currency taking their turn and of course all orchestrated so that no one currency falls completely out of favor. If done correctly years go by and the debt is paid off with a cheaper currency in each country and no one knows the difference.
pay down debt?? now thats funny! none of the keynes krew have ever planned on paying down anything and it only 'puzzles' them when young poiticians get in there and say 'hey lets reduce the tax burden for the future'....b/c they KNOW in the long run, theyre dead!
No one knows the difference except the price of commodities and precious metals will be up 300% in all currencies, in what, 10 years? 12?
Yes, but the tptb will tell you it's growing economies when in reality you and I know it's inflation masquerading as growth.
Let me be clear paying it down with a cheaper debased curency does not mean they are planning to pay the debt off entirely.
Inflated currencies allows the debt systems to continue issueing more debt.
These central planner are fucking nuts.
Taper, MOAR, economy is strong, economy isn't strong, the sky is blue, the sky isn't blue.
Maybe that's the strategy. Just change your mind every week and keep people guessing.
It's reality TV......."So You Think You Can Oligarch"
riveting
"So You Think You're A Crony?"
Tonight, watch as millions of retirees are told their social security cheques will have 50% of the purchasing power they thought they would.
I've always said the ulitmate reality show would be celebrity bomb squad. Drag out the C- listers like Kathy Griffin, Vanilla Ice and Booger from the revenge of the nerds movies and have them difuse bombs on live broadcast with no delay. I guarantee every episode would break ratings records with people tuning to see if they snip the wrong wire blow themselves up. Once you go through all the C- listers you can do special editions like team competitions putting the Federal Reserve crew up against ECB crew.
http://en.wikipedia.org/wiki/The_Surreal_Life
So if I keep all my dollar-denominated stawks and the dollar goes to zero, what will happen to value of my stawks?
Help me Mr. Wizard!
Their value will be nothing. But their price will be whatever the HFT combat algorithms say they should be.
That escalated quickly. Seems, these monkey trend trades tend to get killed by central planners these days. First the yen collapse, now the king dollar meme. But I guess the smart money was hedged, so no margin clerks will threaten the stock market uptrend.
The only problem with gold at $5000 is that gas will then be at least $20 per gallon.
But somehow, some way, I can learn to live with it.
sarc/
That is Bernanke's sin.
But if gold was at $5000, and gas at $20/gallon, and you have no gold, that is your sin.
If gold is at $5000 and gas $20 and you're thinking about using your gold to buy gas, sin ain't got nothing to do with it, more like plumb stupid. At those prices, anyone with gas better have a private army if they plan on keeping it.
The point is, (hyper)inflation isn't our fault. We can only prepare (or attempt to do so) for it.
I fng knew it! we are in an Currency war!! at epic proprtions! the main reason for selling off gold by US to bring China to its knees!!! China knows and want new world reserve currency or SDR by IMF !!!
Let the wars begin fuckass!!
That or the Chinese crashed the gold market with their u$d to buy phyz and crash London and new York banks while solidifying a new reserve currency.
You heard it here first: http://www.zerohedge.com/news/2013-07-10/bernanke-speaks-live-webcast#comment-3738988
And in the meantime VIX hits record lows ... volitility is gone forever ... long live calm markets!
http://www.youtube.com/watch?v=Xaw0oDqDFlY
You have to think the Chinese will dump their Treasuries on the back of this shit
They have bigger headaches than that. Their hand is forced to give up on tightening or else.
Two days before payday, Bastard!
Who was that guy at Goldman again? Stolper? "after a while you might start think Mr. Market has it in for you."
Bernanke said: "HyperInflation for the whole damn world is GOOD, because Amerika needs it. Everyone is my damn bitch--take that G-20."
Another group he bich-slapped today, all the stupid people who think $17 trillion government debt is a problem that should constrain government spending, Bernanke said:
You fKng idiots, if you want spend it I am going to print more, More, MOre, MORe and MORE and give it to my Bankster mafiaso and there is NOTHING you can do. Take that Ron Paul, I have the POWER!
Insults for Bernanke---> http://www.youtube.com/watch?NR=1&v=PSEYXWmEse8&feature=endscreen
Most on this site may not understand my intent, but Bernanke is a traitor....
http://www.youtube.com/watch?NR=1&v=a6vwXbQZvJo&feature=endscreen