• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

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'

~~~

BWAHAHAHAHAHAHAHAHAHAHAAH!

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.

WE NEED A FULL RESET!

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?

pods

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

 

http://srsroccoreport.com/huge-indian-silver-imports-on-pace-for-new-record/huge-indian-silver-imports-on-pace-for-new-record/

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

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

 

here the art.

http://zysites.com/silververitas/

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 CrockettAlmanac.com
CrockettAlmanac.com'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

Awful!

Wed, 07/10/2013 - 20:12 | 3739681 spinone
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

No

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