This page has been archived and commenting is disabled.
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
»
- 41211 reads
- Printer-friendly version
- Send to friend
- advertisements -
+1 Ron Paul
L0L
How high does crude go? 147 again?
with inflation adjustments over five years...around 231 a barrel.
The oil producers need $230/bbl to survive because nobody's buying it, according to the EIA.
At this rate they're going to need John Hilsenbarth to put out an article to walk back from the Bernank's walk back in order to settle the markets.
Is anyone else seeing some shorting opportunities here?
i cant speak for everyone obviously, but me personally, i will not short or long this market until it crashes.
all i can do is load up on my physical gold and silver so when shtf, i am prepared accordingly.
tomorrow should deff be an interesting ( and prob painful day for us zerohedgers with stocks prob going to soar) but in the long run, all we can do is prepare accordingly.
things are deff starting to unravel. there are massive bubbles all over the place, it is so fucking scary.
Keep cool, keep calm and stay out of the troubles.
http://www.youtube.com/watch?v=TB2N9Iqpbbk
It's got to feel pretty intoxicating to have the markets and the fate of the global economy by the balls like Bernanke does. Taper on bond rout 1994 magnitude, taper off equity bull. We used to have these dramatic events 2-3 times per decade. Now we have them 2-3 times PER WEEK. Looks like an unstable system approaching the runaway point. Frequency increasing, amplitude increasing, and Bernanke adding more energy into the system. Physics and engineering systems theory provides many examples of what happens in these cases. Whether a flash crash, a coordinated group of funds or a sovereign move, something will trigger a massive shift in the market that takes this nonlinear.
This is my problem. I keep interpreting this in the realm of physical and scientific realities and get so confused this can continue as long as it does. All natural systems cannot withstand such prolonged chaos without dramatic cataclysmic shifts. This is a never ending nightmare for us wage slaves. Of course I guess it depends on your point of view. Probably the banksters see it as the longest orgasm of their lives.
Miffed;-)
Your lament made me think of this bridge
http://www.youtube.com/watch?v=Az503VJ6kHw
Wow, thanks for that! I was gazing at the oscillating bridge and remembering my resonance frequency lecture in college physics when I got to the part where the man is nonchalantly walking off it. Dear lord, if that were me I'd be running with a pee stain on my pants!
Miffed;-)
I'm a bit more than miffed with these fucks, but I feel pretty much the same confusion.
Credit where it's due, these bastards seem to be endlessly creative when it comes to holding the bag of shit that is the banking system together. However, when the bag bursts, it will be seriously messy, which is why Ben doesn't want to hold it much longer.
A Merry Christmas to us all; God fuck them every one! ( sorry Dickens)
Massively Miffed ;-)
LOL !!! Thanks for the laugh !!!
@miffed
It might seem like a long time, but a generation from now Lehman to the end of this summer won't even be a full paragraph.
You got that right. If this whole train wrecks, then my income will be at risk and I like my income. Sorry if I sound like a steeple.
Power is INTOXICATING! Power corrupts and Absolute power corrupts ABSOLUTELY!
ZH needs to get Paul Roberts content - this is BRILLIANT http://www.paulcraigroberts.org/2013/07/10/putin-dresses-down-the-group-...
The diplomatic source reports that during that G8 meeting, Russian President Putin delivered a long intervention on that subject.
The prominent European diplomatic source reports that in his statement, the Russian President addressed the leaders participating in the G8 meeting, saying:
“You want President Bashshar al-Asad to step down? Look at the leaders you’ve made in the Middle East in the course of what you have dubbed the “Arab Spring.” Now the peoples of the region are rejecting those leaders. The revolution against Muhammad Mursi in Egypt continues and anybody who knows the character of Egyptian society is aware of the fact that it is a deeply rooted secular society of varied cultures and civilizations with a history of advanced political activity. It will never accept attempts to impose things upon it by force. As to Receb Tayyib Erdo?an [in Turkey], the street is moving against him and his star is beginning to wane. In Tunisia the Muslim Brotherhood-Salafi rule that you formed there is no longer stable and the fate of Tunisia won’t be very far from the army seizing power, because Europe will never accept chaos on its borders and Tunisia is an entry way to Europe.” (Putin said this before the Chairman of the Joint Chiefs of Staff of Tunisia resigned to declare his candidacy for president of the republic. Note by as-Safir.)
Putin went on: “You have spread anarchy in Libya after Mu‘ammar al-Qadhdhafi. Nobody can put together an authority capable of working to rebuild the state there. Yemen after the departure of ‘Ali ‘Abdallah Salih lacks stability in government and there is no peace in the streets. Military and security unrest continues to prevail in all the regions of the country. As to the Persian Gulf, the whole area from Bahrain to the rest of the states there is sitting atop a volcano,” Putin said.
The diplomatic source reported the Russian President as saying: “You want Russia to abandon Asad and his regime and go along with an Opposition whose leaders don’t know anything except issuing fatwas declaring people heretics, and whose members – who come from a bunch of different countries and have multiple orientations – don’t know anything except how to slaughter people and eat human flesh. You use double standards and approach the crisis in Syria using summer and winter styles under one roof. You lie to your own peoples so as to further your interests. This is none of our business. But it is impermissible for you to lie to us and to the countries and peoples of the world, because the international stage is no longer yours alone. Your ability to monopolize it the way you did two decades ago is now gone for good.”
Putin continued: “In Syria all of you are standing on the side of the forces that for the last 10 years you have claimed to be fighting against under the rubric of ‘fighting terror.’ Now today you are with them, helping them to take power across the region. You declare that you’re going to arm them and work to facilitate sending their fighters to Syria to bring it down, weaken it, and break it up.” Putin asked, “In God’s name what kind of democracy are you talking about? You want a democratic regime in Syria to take the place of the Asad regime, but are Turkey and the countries you’re allied with in the region blessed with democracy?”
Putin addressed US President Obama specifically, saying: “Your country sent its army to Afghanistan in the year 2001 on the excuse that you are fighting the Taliban and the al-Qa‘idah Organization and other fundamentalist terrorists whom your government accused of carrying out the 11 September attacks on New York and Washington. And here you are today making an alliance with them in Syria. And you and your allies are declaring your desire to send them weapons. And here you have Qatar in which you [the US] have your biggest base in the region and in the territory of that country the Taliban are opening a representative office.”
Putin turned to the President of France [François Hollande] to ask, “How can you send your army to Mali to fight fundamentalist terrorists on the one hand, while on the other you are making an alliance with them and supporting them in Syria, and you want to send them heavy weapons to fight the regime there?”
British Prime Minister David Cameron came in for some of Putin’s sharpest remarks, when the Russian President told him: “You are loudly demanding that the terrorists in Syria be armed and yet these are the same people two of whom slaughtered a British soldier on a street in London in broad daylight in front of passers by, not caring about your state or your authority. And they have also committed a similar crime against a French soldier in the streets of Paris.”
The diplomatic report indicates that the leaders gathered at the summit were surprised then when German Chancellor Angela Merkel supported every word that Putin said in his address. She declared her rejection of any solution in Syria other than a peaceful one, saying “because the military solution will lead Syria and the whole region into the unknown.” She strongly opposed arming the Syrian Opposition, “so that these weapons don’t get into the hands of the terrorists who plan to use them in attacks against cities in the European Union.” She also indicated that she did not want to see some of her European partners getting involved in military and political adventures that would only serve to further deepen their financial and economic deficits, “because Germany is no longer able to serve as a financial and economic rescue line for those countries in order to help cover up their mistakes.”
As-Safir newspaper, No 12522, Saturday, 6 July 2013.
http://www.assafir.com/Article.aspx?ArticleId=654&EditionId=2506&ChannelId=60427
Instability and turmoil in the region might be a feature of U. S. policy, not a bug.
well there we go again the ruskies the only nation with the testicles to go against the fascists again.. how long before we start supporting them this time....
Doesn't Vlad get right to the point of the illegal, running dog neofascist regime in "Washington?"
These people are insane with power lust and if not stopped they will kill us all either by genocide or nuclear war.
Americans must oppose the criminal cabal which has stolen power from the People and surrendered our sovereignty to faceless international moneylenders!
****
McPain and Miss Lindsay as Beavis and Butthead:
"hehehehheh, Beavis, this vial says Super Ebola."
"Hhehehehehheh, duhh Butthead, must be a new drug. Open the vial and shake some out."
"hehehhehehh, yeah, dude we'll snort it up!"
I bet Ron Paul had coffee with Putin earlier that day.
+1 Ron Paul
L0L
so, is one to assume we, or traders, should believe what BB says? he says things to make people react in a certain way, while he has to DO nothing. game theory. while the carnage in 'conservtive' investors portfolios is being completely missed by any media outlets (its all stawks all the time-the only asset that matters)....a nice little nudge by BB can make it all feel better. you dont think he's just talking his own book? once everyone else 'acts' per his intonations, he is free to act to his own ends. what are those ends, is the only question.
Yippee Ki-Yay for price stability. How about those energy markets. WTI at 106 and RBOB Gas at 300. Yippee Ki-Yay.
The way these batshit crazy currencies are moving, I'm going to have to carry a small bag of 'CheesePope gold' around my neck, in case my fiat becomes worthless.
It would make me about "Half Hard" if Gold would spike $150.00 for the evening. :)
WE ARE GOING MUCH, MUCH HIGHER WITH ALL THE PRECIOUS METALS NOW, ESPECIALLY GOLD!!! BACK TO PREVIOUS HIGHS!!
its days like these that give me satisfaction in knowing that the world is still falling apart....wait...that doesnt sound right......................
yields droppin Kito. Nothing is falling apart.
am i the only one to see a big backpeddle from the bernank?? let me check the bond, dollar and gold markets.......nope........there are others.....
You are the first one on here to remind people he is in control. He may have backpedaled. But you actually think he has lost control? You don't think this is just a bunch of monkeys trading their free money?
no fonz, dont confuse my sarcasm for advocating that the end has begun.............he is still in control.....its the fact that he had to backpedal...which he clearly did....at least for now....that shows how screwed up things are...........as i said...........it shows the world is still falling apart.........................
how bout switching to dashes ---- you know ---- as a change of pace ---- how bout it ---- please --- your ellipsis use is driving me nuts ------------- is your shift key busted?
Actually, he's not using ellipsis. He's just stringing a bunch of dots together.
You would be correct. My mistake. He wasn't leaving any words out -- just lazy I guess.
I ain't got one o' them smartphones. Didn't qualify.
As long as Bernanke is willing to go all in and gamble the very existence of the world reserve currency, he is in control. Thats the problem. The market will force him all in, over time.
Diversionary headlines in 5, 4, 3...
Emergency Manager Kevyn Orr Cancels Detroit Blight Tour With Creditors
http://www.mlive.com/news/detroit/index.ssf/2013/07/emergency_manager_ke...
“Mr. Orr still encourages the city’s creditors to visit and tour the city on their own to see first-hand the issues ordinary Detroiters must deal with each day," said Nowling. "If creditors do take the time to see all of Detroit they will better understand why the Emergency Manager proposed a restructuring plan that focuses on creating a strong, viable and solvent Detroit that is able to provide the most basic of services."
And the next day's headline will be:
All Detroit Creditors Dead
Thats awesome. "Let me show you Detroit. Here, come down this alley..."
I take that to mean that the playa's see no taper and QE4 in the wings (?).
because a jew wiggles his nose - markets rally - bewitched, bernanked, bothered, and bewildered.....................
Bersernke.
And Bernanke still can't work out why UST yields are going up. You know I wouldn't f*ck with China, they could take on the Fed/Treasury (drive up rates on Fed balance sheet and reduce interested payments to the Govt) in a blink of an eye, no problems. They very nicely messed with the JGB and Japan ETF markets in June. Now that beaded nut has just sent a oil bid, he is pushing Japan/China closer to a conflict over Nat Gas:
http://www.channelnewsasia.com/news/asiapacific/risk-of-incident-from/73...
Big sells on USD, 5ma (daily) support on AUD looming, Gld correlation tight, Brazil increases rates, South America dumps $, watching Asia...stay frosty.
Chump what exactly did Bernanke say that won't be undone by the next positive data point when everyone screams taper again?
Where was the "get to work Mr. Bernanke" line today? I must have missed it.
If people scream taper he will take some air out of the Stalingrad & Propaganda.
"Recently Japan has often played up the so-called China threat and unilaterally caused tensions and confrontations," (from link above)
Pot, meet Kettle.
Fonz,
From todays speech? Nothing. It was QE stock market juice up. The Fed is playing a game with equity markets, UST market had priced in Sept tapering, this begun in Jan for a balance sheet/bond unwind more so with January's press release and Bernanke/Fed starting to worry http://www.federalreserve.gov/pubs/feds/2013/201301/201301pap.pdf:
"Depending on the path for the balance sheet and interest rates, the Federal Reserve’s net income and its remittances to the U.S. Treasury could be significantly affected during the period of policy normalization.”
The Fed is stuck, they'll need poor data to allow them a reprieve on any unrealized losses building on their balance sheets. So meantime they will play with equity markets as a gauge, that is how stupid they are, the Fed knows company earnings are crap, so they will test how reliant everything is on them to provide money to the cronies.
But yields going up could be Asia/China dumping. The Fed is arrogant to think they can control the yield curve
thanks Chump. I must be the most jaded mfker out there. I just see moar of the same and a successful jawbone to boot.
pleasantly annoying
keep it coming
http://www.youtube.com/watch?v=XMLiqEqMQyQ
I need a vacation.
No vacation for me, I'm just waiting for doomsday.
thanks chump i always learn alot from your posts. +1
thanks.
I think the spike in UST yields is what really put the fear into Bernanke and caused him to taper the taper talk.
If interest rates continue rising after this, it will be Panic Time at the Fed.
> Now that beaded nut has I hope you meant "bearded", but what difference does it make at this point?
Another 3% PER DAY currency move. One of these days someone who is massively on the wrong side of one of these trades is going to blow the whole financial system to smitherines. Tomorrow the massive bond selloff will resume, interest rates bolt to such hights that it will force Bernanke to make another speech pledging to end QE by next Fiday. The big boat is starting to rock back and forth pretty violently now.
Oil to 120 should be great for the economy some "expert" on CNBloomfox told me so. It means the economy is strong and since it barley counts in CPI or core core inflation(Japan) I don't have to worry about paying more for food or gas or anything else I buy because it will be transitory. Plus its good for nations that actually produce goods because even though their input prices rise they can charge more for those goods. Wow maybe I should be on CNBloomfox.
Hey, that's great! Then, Oil at 150$ should really "grease" the economic wheels!
For all those who have been misled:
Fed's main scope of work is Confusion and Propaganda, not monetary policy.
Fed is literally the KGB of Finance.
A lot of you might not know, but 80% of KGB's scope of work was Propaganda, not spying.
It is in Fed's scope of work to mislead the market by words and catch people by surprise by actions.
Conclusion: Rate hike coming abruptly extremely soon since the economy has died.
Margin and collateral calls on White House order are on the way.
A rate hike coming?
I have to give it to you. You are really letting your balls hang out now.
Like so:
UU
I've said it before, if banks have to start paying interest on deposits, its step 1 toward currency destruction. If they have to pay interest, they have to earn interest, i.e. lend out reserves.
Looking at the plunging mortgage apps and sales (ouside of Cali where houses are bought by The Mongolian Hoards) makes me think more like a rate cut. Ben's Bossmen are bankers and they would not like the housng makret to collapse too fast.
The Feds ONLY job is to protect the interest of the shareholding banks.
Fed members are mostly academics and have no guns and command no army
when gold was officially money, they had some power, they could withhold the gold as bankers did to Lincoln
Well, Lincoln printed money and avoided them
Now, the gov can simply create electrons on a computer.
Here's a snapshot of some electrons the gov helped fabricate but which Cali won't be able to print/tax/steal away
Their debt is higher than thought (how could that be?)
http://www.economicfractalist.com/blog/wp-content/uploads/2013/07/Slide4...
easy answer - they'll pull a Detroit
That's the beauty of electrons
Maybe we can just dump the electrons into the Dirac Sea and let the positrons finish 'em off.
LOL
That's the physics equivalent of ....bankruptsy
good one
http://academia.edu/323246/PhD_Thesis_of_Paul_Dirac
dirac's phd thesis, hand written
Sweet! I know how I'm getting to sleep tonight.
Seriously, most / all of this high end stuff goes right over my head.
But, if I stick with it, the brain seems to appreciate it.
ekm. bolztman equation still unproved; releasing a stopper and allowing fragrance to fill the room. bb gives the living proof, even if not as yet rigourous.
OK, digesting that hurt a bit, this late in the evening and this deep into my scotch. As I tried to allude to, not the sharpest whoozit in the whatsis.
But, if I got it, and I think I did after a bit of research, I think you nailed it.
Kudos, most excellently said. Thanks for the brain gain.
no contest
Dirac spelt generalization wrong...
i upped arrowed you for the excitement and mystery you bring to this site!!!!!!
my virtual bow to you as thank you
humbled
Ditto, ekm, keep it coming.
I don't see it ...
i hope chinese banks crash tonight, that is our only slim chance at a red open tomm.
do you guys think we can close red tomm? we will almost certainly open much higher, but will the rally fade, or will tomm be a day where bernanke has assured all the public that this is not stopping anytime soon, and maybe the dow hits 15,600 tomm or so and who knows, maybe the s&p hits 1690 tomm.
lets see how asia opens up tonight, and see if they caught bernanke fever
It's like watching Pinks with a dozen idiots racing to have the worst currency.
This is Ben doing a Rich Christensen currency move:
http://www.youtube.com/watch?v=QXyfvqyqSwk
Ben should have such nice pecs!
After finally reading Zerohedge, Bernanke decided the Fed needed solid advice from MillionDollarBogus_ so they hired him on.
The Morgue and the FED are about to be busted for selling off all of the United States Gold Reserves. Arrest them.
Don't let them get away.
"Dumpster Full of Gold Krylon Paint Cans Found Behind Ft Knox"
B.K. Huff-n-stuff
"He can't do a little, 'cause he can't do enough"
Additional Research At Ft Knox
(AP) Ft Knox, long the home of the US Gold Reserve, is taking on new, secret duties, according to COL Paynt Thinner.
"We have found that Tungsten represents a special metal that can be fashioned into almost anything," Thinner said, as the first truckloads of the metal were delivered today. The exact purpose of the work is classified, but COL Thinner said it might surprise a number of people if the secret research was leaked. Unofficial word is that the Army plans to use the Tunsten in some sort of hi-tech camouflage operation.
Image of the suspect: http://i.cdn.turner.com/dr/teg/tsg/release/sites/default/files/imagecache/750x970/documents/0721051gold1.jpg
(needs some bennyizing by wb7...)
COL Thinner!
Those gold spray cans are not for tungsten bars, but for Binny boy's Inhalant use.
Oingo Boingo - It's a Dead Man's Party
http://www.youtube.com/watch?v=_UbGtjnluyY (4:16)
The sun don't shine on the same dogs ass everyday.
wisehiney
Yeah.
Wait, what!?
woof
bad doggie
no biscuit..
Just watched Bernanke's statement, "This country needs an accomodative monetary policy for the forseeable future". The F^&%er has absolutely gone JAPAN! He has destroyed bonds, commodities, PMs, interest rates, the dollar...it's all stocks or currency armageddon.
I feel a tad sorry for all those Japanese housewives who've supported their husband's sake habit by playing the currency markets. I suspect that more than one has something under her komono for Mr. Bernanke.
Hey, I remember one of those Insider guys on a website said that Chalky was going to "kill the dollar" this summer.
Maybe it is true, not BS. You never know about some of those sites.
Currency WOAR!
In Chairsatan they trust.
I don't have any dollars.
The only monetary policy that works to get a consumer economy out of a recession/depression is to allow the consumers to have more real consumption power.
Printing does just the opposite. It leads us further down the rabbit hole in the form of ever more unaffordable goods,less and less demand for them, and resultant increases in unemployment.
The Fed had 2 choices, print or let garbage assets fail. It chose to print. End game is to devalue and print out of debt.
Expect more QE, not less. As $85 billion isn't doing it anymore the Fed will do more.
I believe that is the actual goal, unfortunately.
Chalky wins again.
Ben Bernank and the Fed, the US dollar slayer. Hopefully Bernanke started global dollar dumping.
Bernanke and the Fed have really shown they cannot and will not stop QEing.
At some point with the US having over $20 trillion in debt and a lot more of unfunded obligations people around the world will denounce the US dollar.
To hyper-inflate is the Fed's end game at some point.
Much more printing and devaluation to come..... Until the US dollar crashes abd burns.
QE1 started November 2008 and concluded in March of 2010, the Fed purchased $175 billion of agency debt securities and $1.25 trillion of mortgage-backed securities
In QE2 the Federal Reserve purchased $600 billion through in Treasury securities and started in November 2010 and was concluded in June of 2011.
QE3 and would pump $275 billion pumped into the economy. In total over $2 trillion has been injected into the economy by the Federal Reserve
I hope one day to wake up in a world that makes sense........
Until then, there's ethanol.
Persistent unemployment and inflation 1% below target will be the reasons to expand QE...he told us today.
Let's all stop celebrating gold at $1300 when it ought to be at $50,000. Talk about playing the fool's game. Just hold onto what you have and if you have any extra paper money ( unfortunately I don't) then buy and stack.
$50,000 might be a stretch, but soon enough we will see gold at $5,000 - if you can get it!
I think it will eventually come down to 'do you have Ag/Au or don't you'
Those with will do better than those without.
It's still the top of the first inning and TPTB are still up to bat as they have been for the last 100 years. It's still a loooooong waaaaaaay to go before the end of the game......
Taper? What taper?
He really wanted to say another TARP to shift more money to his member banks. Print happy Bernanke and the Fed.
On the 100th anniversary of the establishment of the Federal Reserve, Bernanke has guaranteed that neither the United States nor the Federal Reserve will exist 100 years from now...
Charts look like icecream melting in the hot summer sun. I can hear Berstanke now: "I'm meltinggggg!"
You all do realize that as things get real the doomers and preppers and savers will be targeted, right? And the bankers and prostitutes and illegals and welfare queens will be lauded as the salt of the earth?
I'm not saying not to prepare, but it's a bit of a pickle. What you do, do quietly.
And here I was, thinking that would be a good time to go hunting bad guys.
ZH is the bad guys (to "Them").
Meh, I'm already dead ten times over, solid advice though.
Wow, what did he say? He was talking about asset bubbles & the need to reduce leverage when I stopped listening.
i am never one to want oil to climb, because that means paying more at the pump.
However, i have finally said fuck it, i want oil to fucking go haywire, go as high as possible, i dont even care anymore.
i want to see oil at 150 plus, if bernanke is going to play this game, something has got to give. i want all currencies and commodities to go fucking insane, and make this fucker pay.
no more fucking calm. it would be nice if the bond market actually stood up to this fucker and send a message.
im fed up with seeing futures up triple digits on terrible news, yet whenever we have a red day, its like days like today, where although its red, its basically a flat day.
i hope egypt closes the suez canal and oil goes to record highs. i hope the dollar fucking crashes, i hope the whole world goes ape shit, and chaos erupts.
Be careful what you wish foar.
The banking community, and fed, have yet to produce a Snowden, Hastings, Assage, Manning, etc. ..... At least a live one.
And bonds are going to be bid because the dollar is going to zero?
This bond pump tonight will be more than reversed by the closing bell tomorrow.
You heard it here first.
Armageddon
http://youtu.be/mON5WmA5REk?t=1m10s
-rA
00:23 EDT Au @1285.50
Prob be a wash anyway at London AM fix and the CrimEx open....good to see a little green anyway...albeit the paper pushers pretend pricing in skittles crapping unicorn bernank world.
When it hits it will hit fast - and it will be too late to buy PM. There will be none available - at any price
Fuck
It really is the USD vs the rest of the world - makes sense - USD is used for about 60% of global trade.
Here's the numerical breakdown.
http://bullandbearmash.com/about/usd/