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Currencies Go Berserk As Bernanke Kills King Dollar

Tyler Durden's picture


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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Wed, 07/10/2013 - 19:03 | 3739406 Martial
Martial's picture

And so it begins.......

Wed, 07/10/2013 - 19:06 | 3739426 Charles Nelson ...
Charles Nelson Reilly's picture

Or ends....

Wed, 07/10/2013 - 19:10 | 3739443 AssFire
AssFire's picture

with a queef....

Wed, 07/10/2013 - 19:22 | 3739500 prains
prains's picture

right in your beef

Wed, 07/10/2013 - 19:22 | 3739503 THX 1178
THX 1178's picture

Or your teef (sez will smiff)

Wed, 07/10/2013 - 19:24 | 3739511 clownfishheaven
clownfishheaven's picture

Where is my milf?

Wed, 07/10/2013 - 19:25 | 3739516 THX 1178
THX 1178's picture

On the shelf...

Wed, 07/10/2013 - 19:30 | 3739532 nope-1004
nope-1004's picture

Small like elf....

Wed, 07/10/2013 - 19:31 | 3739536 James_Cole
James_Cole's picture

Yippie-Ki-Yay MotherFuckers

Wed, 07/10/2013 - 19:39 | 3739561 TruthInSunshine
TruthInSunshine's picture

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.

Wed, 07/10/2013 - 19:41 | 3739577 prains
prains's picture

Yes but they make really good HAKA


I wouldn't want to be James Cook a hundred years from now, excuse the pun

Wed, 07/10/2013 - 19:48 | 3739601 TruthInSunshine
TruthInSunshine's picture

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 credit
Wed, 07/10/2013 - 19:49 | 3739610 fonzannoon
fonzannoon's picture

I'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?

Wed, 07/10/2013 - 19:58 | 3739642 Herd Redirectio...
Herd Redirection Committee's picture

So it turns out the USD was a massive bubble?  Who knew?

Wed, 07/10/2013 - 20:50 | 3739812 emersonreturn
emersonreturn's picture

HRed:  lol

Wed, 07/10/2013 - 19:58 | 3739643 Divided States ...
Divided States of America's picture

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.

Wed, 07/10/2013 - 20:17 | 3739691 fonzannoon
fonzannoon's picture

I am seeing the 10yr at 2.57% Looks like Everyone is buyin what the bernak is sellin.

Wed, 07/10/2013 - 20:22 | 3739719 francis_sawyer
francis_sawyer's picture

All I can say is... 'Stolper'



Wed, 07/10/2013 - 20:30 | 3739746 Al Huxley
Al Huxley's picture

Or more like 'buyin' what he'll be buyin' right back from them'.

Wed, 07/10/2013 - 20:32 | 3739755 fonzannoon
fonzannoon's picture

Al, is this a lose control moment, or just a keg refill for the drunks?

Wed, 07/10/2013 - 20:38 | 3739775 Al Huxley
Al Huxley's picture

Much as I'd love to see some real chaos, I suspect its still just another keg refill.

Wed, 07/10/2013 - 20:42 | 3739785 fonzannoon
fonzannoon's picture

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.

Wed, 07/10/2013 - 20:55 | 3739829 francis_sawyer
francis_sawyer's picture

The only thing that Bernanke knows to do with toothpaste is make people drink orange juice or coke after holding it in their mouth...

Wed, 07/10/2013 - 21:13 | 3739872 James_Cole
James_Cole's picture


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. 


Wed, 07/10/2013 - 22:17 | 3740066 Spigot
Spigot's picture

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

Thu, 07/11/2013 - 01:40 | 3740543 Mobius Poop
Mobius Poop's picture

We'll all be playing Mah Jong by 2015.

Thu, 07/11/2013 - 06:52 | 3740713 malikai
malikai's picture

Should have been playing Go since 1999, but there will be plenty of time to learn.

Wed, 07/10/2013 - 21:08 | 3739866 Al Huxley
Al Huxley's picture

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.

Wed, 07/10/2013 - 20:06 | 3739665 logicalman
logicalman's picture

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.


Thu, 07/11/2013 - 01:29 | 3740528 StychoKiller
StychoKiller's picture

Sorry, this petri dish is full up, go find yer own!

Wed, 07/10/2013 - 23:52 | 3740337 Element
Element's picture

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" ...

Thu, 07/11/2013 - 04:04 | 3740638 theliberalliberal
theliberalliberal's picture

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



Thu, 07/11/2013 - 06:34 | 3740690 Element
Element's picture

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

Wed, 07/10/2013 - 21:58 | 3740009 Luckhasit
Luckhasit's picture

Dude you fucked up the flow!

That is the most egerious error.

Thu, 07/11/2013 - 04:11 | 3740643 theliberalliberal
theliberalliberal's picture

i guess he'll live in terror

Wed, 07/10/2013 - 19:28 | 3739529 prains
prains's picture

trying not to be a Gilf

Wed, 07/10/2013 - 20:45 | 3739797 Son of Loki
Son of Loki's picture

So it's, "Pip, Pip, Away!"

Wed, 07/10/2013 - 20:51 | 3739816 pods
pods's picture

You can be hip, like a G-Milf?


Wed, 07/10/2013 - 19:25 | 3739517 BurningFuld
BurningFuld's picture

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!"

Wed, 07/10/2013 - 21:33 | 3739923 SRSrocco
SRSrocco's picture

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 2013

Wed, 07/10/2013 - 21:39 | 3739948 Silveramada
Silveramada's picture

right pathetic, who is afraidof the boogyeman Bernank???


here the art.

Wed, 07/10/2013 - 19:11 | 3739448 DawgAss
DawgAss's picture

Is this fucking joke finally coming to an end?

Wed, 07/10/2013 - 19:14 | 3739458 CSA
CSA's picture

I prefer to call it a nightmare, but I guess joke will suffice.

Wed, 07/10/2013 - 19:24 | 3739514 tmosley
tmosley's picture

Killing joke.

Wed, 07/10/2013 - 19:39 | 3739565's picture

My dog's got no nose.

Wed, 07/10/2013 - 19:51 | 3739626 erg
erg's picture

How does it smell?

Wed, 07/10/2013 - 19:52 | 3739628 Creepy Lurker
Creepy Lurker's picture


Wed, 07/10/2013 - 22:16 | 3740062 NYMom
NYMom's picture

Saw Killing Joke at the Ritz, NYC in the 80's- sheesh - haven't thought about that band for years.

Wed, 07/10/2013 - 19:15 | 3739464 noless
noless's picture


Wed, 07/10/2013 - 19:16 | 3739480 Thomas
Thomas's picture

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".)

Wed, 07/10/2013 - 19:33 | 3739543 bonderøven-farm ass
bonderøven-farm ass's picture

So this is what a taper looks like?

Wed, 07/10/2013 - 19:39 | 3739569 JamesBond
JamesBond's picture

So this is the way the world ends, not with a bang but a taper?

Wed, 07/10/2013 - 19:40 | 3739574's picture

They're burning the taper at both ends.

Wed, 07/10/2013 - 19:50 | 3739614 GS-DickinDaMuppets
GS-DickinDaMuppets's picture

I thought a TAPER was what keeps your butt hole from SLAMMING SHUT during your morning constitutional.....WTF.


Doing God's work - GS-DickinDaMuppets

Wed, 07/10/2013 - 20:31 | 3739750 Al Huxley
Al Huxley's picture

He should probably just keep his fucking mouth shut for the rest of his term - just flat out refuse to talk anymore.

Wed, 07/10/2013 - 20:49 | 3739809 DanDaley
DanDaley's picture

Yes, but hubris got him (and us) into this mess, and hubris keeps him talking.

Wed, 07/10/2013 - 21:43 | 3739963 NoDebt
NoDebt's picture

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.


Wed, 07/10/2013 - 20:53 | 3739813 RockyRacoon
RockyRacoon's picture

Seeing them all at once is a treat!



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.

Wed, 07/10/2013 - 21:40 | 3739954 NoDebt
NoDebt's picture

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.


Thu, 07/11/2013 - 00:12 | 3740413 Downtoolong
Downtoolong's picture

Isn't that's what all Mafia bosses eventually do?

"I take da fif. I ain't sayin nothin."

Wed, 07/10/2013 - 19:24 | 3739508 HaroldWang
HaroldWang's picture

Coming to an end?? Not even close. They can keep this going for years. Already been doing it for a few as it is.

Wed, 07/10/2013 - 20:56 | 3739831 DaveyJones
DaveyJones's picture

really, how can u measure the world's tolerance? No one has any idea how long this con game can go

Wed, 07/10/2013 - 21:38 | 3739942 JuliaS
JuliaS's picture

Bernanke is acting like a homosexual trying to get back into the proverbial closet.

Wed, 07/10/2013 - 19:12 | 3739452 CrashisOptimistic
CrashisOptimistic's picture

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.

Wed, 07/10/2013 - 19:20 | 3739495 noless
noless's picture

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?

Wed, 07/10/2013 - 21:15 | 3739884 Serenity Now
Serenity Now's picture

Good point.  The ULCCs (supertankers) actually CAN'T go through the Suez Canal.  Their draft is too deep.  

Wed, 07/10/2013 - 21:26 | 3739915 yogibear
yogibear's picture

As Bernanke and the Fed weaken the US dollar much further oil should skyrocket.

Wed, 07/10/2013 - 22:24 | 3740087 Prometheus418
Prometheus418's picture

Check it out:

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.

Wed, 07/10/2013 - 19:05 | 3739418 nmewn
nmewn's picture

Gold bitchez.

Wed, 07/10/2013 - 19:13 | 3739453 Chief_Illiniwek
Chief_Illiniwek's picture

I'm naming my next pet "Gold Bitchez"

Wed, 07/10/2013 - 19:16 | 3739477 CSA
CSA's picture

Good idea, but make sure he stops breathing before you bury Gold Bitchez.

Wed, 07/10/2013 - 19:34 | 3739549 BringOnTheAsteroid
BringOnTheAsteroid's picture

I hope your new pet can swim 

Wed, 07/10/2013 - 20:28 | 3739736 francis_sawyer
francis_sawyer's picture

So ~ Your next pet is a catfish eh?... [or are you going with a lobster or crab]?...

Wed, 07/10/2013 - 20:47 | 3739801 Son of Loki
Son of Loki's picture

$1,545 is what Goldman predicted a few weeks ago. Citi said $1,800 again.


They may be righter then you think.

Wed, 07/10/2013 - 19:18 | 3739488 nmewn
nmewn's picture

Just be careful calling for it around trailer parks and housing projects ;-)

Wed, 07/10/2013 - 19:32 | 3739539 kaiserhoff
kaiserhoff's picture

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.

Wed, 07/10/2013 - 20:24 | 3739726 Fred Hayek
Fred Hayek's picture

I thought he was more of a comb over man . . to cover his tiny bald spot.

Wed, 07/10/2013 - 19:33 | 3739541 A82EBA
A82EBA's picture

lol almost sharted

Wed, 07/10/2013 - 20:28 | 3739737 Pareto
Pareto's picture

he he .  thats fucking funny!

Wed, 07/10/2013 - 19:05 | 3739423 Peter Pan
Peter Pan's picture

How I long for the day of a gold currency so that all these graphs are no longer needed.

Wed, 07/10/2013 - 21:54 | 3739994 viahj
viahj's picture

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.

Wed, 07/10/2013 - 19:07 | 3739427 ekm
ekm's picture

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

Wed, 07/10/2013 - 19:12 | 3739451 walküre
walküre's picture

so where to put the money now that paper turns to shit?

Wed, 07/10/2013 - 19:18 | 3739482 ekm
ekm's picture

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

Wed, 07/10/2013 - 19:27 | 3739513 prains
prains's picture

some are investing in bicycles, myself in beats per minute


either way I'll be covered....running either to or from a kill

Wed, 07/10/2013 - 20:17 | 3739704 logicalman
logicalman's picture

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.



Wed, 07/10/2013 - 20:44 | 3739791 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

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.


Wed, 07/10/2013 - 21:22 | 3739909 klockwerks
klockwerks's picture

Advice, buy a LOT of bullets

Wed, 07/10/2013 - 21:53 | 3739992 Herd Redirectio...
Herd Redirection Committee's picture

Advice, don't be the low-hanging fruit.  Being  a part of a good community will go a long way.

Wed, 07/10/2013 - 21:20 | 3739897 howenlink
howenlink's picture

Why would somebody downvote that?

Wed, 07/10/2013 - 21:31 | 3739927 ekm
ekm's picture

it beats me

Wed, 07/10/2013 - 21:57 | 3740005 ziggy59
ziggy59's picture

Maybe its his 18 yr old son....

Wed, 07/10/2013 - 20:05 | 3739663 Almost Solvent
Almost Solvent's picture

What's the address of your "gym"?

Wed, 07/10/2013 - 20:32 | 3739758 ekm
ekm's picture

let me give you a hint:

I do not want to ask him how he made his money

Wed, 07/10/2013 - 21:21 | 3739903 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Does he sweat linguine sauce?

Wed, 07/10/2013 - 21:40 | 3739952 WmMcK
WmMcK's picture

They used to say that Liz Taylor's blood type was Ragu.

Wed, 07/10/2013 - 20:16 | 3739700 Al Huxley
Al Huxley's picture

Ole' Ben can't even open his fucking mouth anymore without wrecking AT LEAST one market.

Wed, 07/10/2013 - 19:07 | 3739429 semperfi
semperfi's picture

bernanke:  "That taper thing last month, I was just kidding"

Wed, 07/10/2013 - 19:07 | 3739432 Mordan I
Mordan I's picture


Wed, 07/10/2013 - 19:07 | 3739433 Steel Magnolia
Steel Magnolia's picture

Little message from George;

You guys are

Wed, 07/10/2013 - 19:07 | 3739435 tao400
tao400's picture

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.

Wed, 07/10/2013 - 19:14 | 3739461 MeelionDollerBogus
MeelionDollerBogus's picture

and the equation of my scatterplot is holding on the matches of both too.

Wed, 07/10/2013 - 19:10 | 3739442 Pancho Villa
Pancho Villa's picture

Poor Stolper. Bernanke tanks the dollar just after his trade is stopped out.

Wed, 07/10/2013 - 19:14 | 3739457 socalbeach
socalbeach's picture

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.

Wed, 07/10/2013 - 19:11 | 3739445 DosZap
DosZap's picture

I  said earlier (like everyone else here),  he KNOWS he cannot stop QE, to Infinity, or till the biatch dies.

Wed, 07/10/2013 - 19:15 | 3739467 CrashisOptimistic
CrashisOptimistic's picture

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?

Wed, 07/10/2013 - 19:25 | 3739515 Hohum
Hohum's picture

C is O,

Maybe he will.  Higher WTI keeps the drillers drilling.  At least until it all goes to shit.

Wed, 07/10/2013 - 20:01 | 3739657 CPL
CPL's picture

Sept?  Next week.  It's already closing the gap on 107.

Wed, 07/10/2013 - 20:30 | 3739745 Herd Redirectio...
Herd Redirection Committee's picture

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). 

Wed, 07/10/2013 - 21:05 | 3739857 CPL
CPL's picture

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. 

Wed, 07/10/2013 - 19:11 | 3739449 BORT
BORT's picture

Price Stability, Bitchez

Wed, 07/10/2013 - 19:12 | 3739450 Dr. Engali
Dr. Engali's picture

There are no currency wars. It's all to boost domestic consumption.

The Bernank

Hah hah suckers. Try business planning in tis environment.

Wed, 07/10/2013 - 19:17 | 3739484 walküre
walküre's picture

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.

Wed, 07/10/2013 - 19:22 | 3739502 Dr. Engali
Dr. Engali's picture

I keep getting pop-up ads for homeland security training. If you can't beat them join them.

Wed, 07/10/2013 - 20:05 | 3739661 Herd Redirectio...
Herd Redirection Committee's picture

Don't do it, Sven, thats defeatism!  (assuming your first name is Sven, of course)

Wed, 07/10/2013 - 20:12 | 3739686 jon dough
jon dough's picture

I think it's just Sv.


But, he's right, don't do it, Doc.

Wed, 07/10/2013 - 20:35 | 3739764 Al Huxley
Al Huxley's picture

What sites could you have possibly been visiting that have tagged you as a good recruit?

Wed, 07/10/2013 - 19:36 | 3739556 Everybodys All ...
Everybodys All American's picture

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.

Wed, 07/10/2013 - 19:40 | 3739571 1eyedman
1eyedman's picture

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!

Wed, 07/10/2013 - 20:31 | 3739751 Herd Redirectio...
Herd Redirection Committee's picture

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?

Wed, 07/10/2013 - 21:44 | 3739965 Everybodys All ...
Everybodys All American's picture

Yes, but the tptb will tell you it's growing economies when in reality you and I know it's inflation masquerading as growth.

Wed, 07/10/2013 - 21:40 | 3739955 Everybodys All ...
Everybodys All American's picture

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.

Wed, 07/10/2013 - 19:14 | 3739459 One And Only
One And Only's picture

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.

Wed, 07/10/2013 - 19:36 | 3739557 prains
prains's picture

It's reality TV......."So You Think You Can Oligarch"



Wed, 07/10/2013 - 20:34 | 3739762 Herd Redirectio...
Herd Redirection Committee's picture

"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.

Wed, 07/10/2013 - 21:39 | 3739949 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

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.

Wed, 07/10/2013 - 19:14 | 3739462 HowardBeale
HowardBeale's picture

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!

Wed, 07/10/2013 - 19:16 | 3739479 CrashisOptimistic
CrashisOptimistic's picture

Their value will be nothing.  But their price will be whatever the HFT combat algorithms say they should be.

Wed, 07/10/2013 - 19:15 | 3739472 e m m
e m m's picture

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.

Wed, 07/10/2013 - 19:16 | 3739475 apberusdisvet
apberusdisvet's picture

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.


Wed, 07/10/2013 - 20:06 | 3739667 Herd Redirectio...
Herd Redirection Committee's picture

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.

Wed, 07/10/2013 - 20:33 | 3739760 Totentänzerlied
Totentänzerlied's picture

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.

Wed, 07/10/2013 - 20:38 | 3739774 Herd Redirectio...
Herd Redirection Committee's picture

The point is, (hyper)inflation isn't our fault.  We can only prepare (or attempt to do so) for it.

Wed, 07/10/2013 - 19:17 | 3739481 starman
starman's picture

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!!

Wed, 07/10/2013 - 21:12 | 3739878 Raynja
Raynja's picture

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.

Wed, 07/10/2013 - 19:19 | 3739492 Bear
Bear's picture

And in the meantime VIX hits record lows ... volitility is gone forever ... long live calm markets!

Wed, 07/10/2013 - 19:19 | 3739494 jubber
jubber's picture

You have to think the Chinese will dump their Treasuries on the back of this shit

Wed, 07/10/2013 - 19:45 | 3739596 walküre
walküre's picture

They have bigger headaches than that. Their hand is forced to give up on tightening or else.

Wed, 07/10/2013 - 19:21 | 3739497 docmac324
docmac324's picture

Two days before payday, Bastard!


Wed, 07/10/2013 - 19:22 | 3739499 disabledvet
disabledvet's picture

Who was that guy at Goldman again? Stolper? "after a while you might start think Mr. Market has it in for you."

Wed, 07/10/2013 - 19:24 | 3739509 TrustWho
TrustWho's picture

Bernanke said: "HyperInflation for the whole damn world is GOOD, because Amerika needs it. Everyone is my damn bitch--take that G-20."

Wed, 07/10/2013 - 19:37 | 3739562 TrustWho
TrustWho's picture

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!  

Wed, 07/10/2013 - 20:31 | 3739747 TrustWho
Wed, 07/10/2013 - 20:59 | 3739836 TrustWho
TrustWho's picture

Most on this site may not understand my intent, but Bernanke is a traitor....


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