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Markets Have Knee-Jerked Everywhere
Draghi's 'surprise' rate cut has sent every correlated asset soaring this morning. Aside from the EUR crashing over 150 pips instantaneously, S&P 500 futures snapped 10 points higher to 1775; Treasury yields dropped 3bps; Silver and Copper jerked 0.5% higher (but quickly reverted in the former as the USD strengthened); European equities (especially Spain and Italy) popped 2%; and peripheral bond yields moved to new multi-year lows with spreads dropping 10bps or so. With Draghi now at ZIRP effectively, who's next top pass the easing parcel to (not the Chinese). What is interesting is that US equities, Treasury yields, and commodities are all fading just a little off that kneejerk - even as EUR presses lower.
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Don't jerk my silver bro!
Over.
Holy snikey! Look at what they are doing to gold. Getting an ass raping.
gold and silver both being buggered by a bull elephant.
may they all fukkin hang high
What else ya got besides the knee jerk thingy? That's just not workin right now. We need more dirty laundry.
Of course, and the morons doing the manipulating giving China some knock down prices to scoop up more real money,
It's almost as if silver is being manipulated down by someone, or something. /sarcasm.
hahaha. Dude, you are a terrorist if you buy silver, and your government hates you if you buy gold.
Our government is such a bunch of lying scumbags.
Manipulated? Really? I'm going to have to go back and see if I can find a clue to support your claim. I hadn't noticed anything that stands out. /sarc/
careful of the GDP print coming, if it misses inflation of 2%......i mean 2% "growth", bulls will have even more ammo. imagine the buying frenzy should gdp go negative!!!
silver and gold doesn't look like supposed "knee-jerk"
bump-up then down
seems a lot of dumb money waiting for an opportunity to leave the precious metal market
good for me heheh
http://www.safehaven.com/article/31717/the-ecbs-tough-balancing-act-bubbles-vs-deflation
Today, a small group of central bank chiefs can meet in private and wield unprecedented power over global markets, economies, and wealth distribution. They are held accountable to the ruling politicians that in most cases have no respect for the principle of sound money. Instead, in Europe, the UK, Japan, the US, and elsewhere, central bankers have become intricately linked to monetizing government debts, and financing the expansion of the welfare state. As such, disciplined and independent central banking, a cornerstone to any hope for sound money and credit, has been relegated to the dustbin of history.
Central banking, - ostensibly designed to combat high levels of inflation and promote economic growth, while overseeing the stability of the banking industry, has instead, morphed into technocratic planning boards that are constantly involved in rigging the value of the financial markets. Their principal modus of operandi is to encourage risk taking in the local stock markets, through massive injections of ultra-cheap liquidity. However, the result isn't better economic conditions, but rather the expansion of massive bubbles in various financial markets. In turn, central bankers have widened the wealth gap between the owners of equities, and the rest of the struggling population whose wages are sliding backwards, and is increasingly seeking out assistance through welfare programs.
Historically, the value of the stock market reflected the dynamics of the local economy, and would influence the social mood of the populace. A stock market that is booming would signal an up-and-coming economy that would be followed by increased business investment and the creation of good paying jobs. Rising share prices boost the fortunes of about 10% of households in the country, and triggers a greater propensity to spend for goods and services - otherwise known as the "trickle down" effect. Therefore, keeping a constant vigil on the behavior of the stock market, - has become the raison d'être of central banks.
In earlier times, stocks traded on the local stock exchange used to track or even anticipate the nation's business cycle. But that reliable role as a leading indicator began to seriously break down after the financial crisis of 2008. Since then, because of the hallucinogenic effects of "quantitative easing" (QE), - stock markets are no longer reflections of the health of the local economies or forecasting mechanisms of the business cycles. Instead, they are just slices of ownership in specific companies that are unreliable gauges of anything but the underlying strength of the companies they represent, their dividend payments and buybacks, and the schizophrenic mind-set of the traders who buy and sell the shares.
Deflation is a fucking myth as no society/currency has collapsed/died because their purchasing power was too strong.
The bottom line is that the carrying capacity of the earth is very real and there are now 7+ billion people all competing for a better standard of living, so there is plenty of demand for all the commodities and energy that makes that possible.
So many bullshit paper promises, so many liabilities, so few assets and collateral of real value...
hedge accordingly.
Well let's call it a credit collapse then. Deflation through productivity gains will not cause a collapse.
Those paper promises you speak of are also our money supply. When they evaporate, so does our supply of money (as credit today=money).
Rapid credit implosion would collapse society, they just never let it get to that point and cure it with hyperinflation (the FED loaning out $16T or so in 2008).
pods
Irrelevant, as anything of real value will and is being exchanged for services now (shit, just look at bitcoin). Create all the credit from thin air that you want, the calories available for consumption to make things of real value are what they are. Sure we have seen local currency collapses before throughout history. This time it will be a global occurance. Hedge accordingly.
Correct, and why is it that central banks are printing credit money till their eyes bleed?
Because if the money supply (including credit money) shrinks, then we can get a cascade of defaults.
As happened in 08 the mere flattening of the growth curve will cause the most over leveraged to fail (Lehman) which will evaporate more debt, so on and so forth until everyone is bankrupt.
What happens is that this is never allowed on a scale large enough to trigger the waterfall collapse. Central banks step in, and create and loan out reserves to cover these losses.
You know all of this. Why will you not see the root cause of the whole process?
Zimbabwe $ collapsed because they could not pay their debts so they printed until they could not buy the paper to print.
It is disingenuous to only blame the solution for the fall, and not the cause.
pods
Again, "blame" is irrelevant as TPTB have conceled themselves and have been pumping out fraudlent reports and lies for many years. As much as I would like to see the guilty parties put to death (suffer some real consequences), there is now too much dis-information and mis-information to make that possible.
Again it does not matter as the laws of Nature and physics will have their way with us (again). All eCONomies are really local at the end of the day and are getting more local by the minute.
hedge accordingly (get your tribe in order and be prepared, it's all we can do anyway...)
Yep, when this puppy breaks, it is going to be one for the ages.
pods
Strong dollar and markets shoot up? Yeah, that makes sense. More evidence that we are coming to the end of the "defationary" cycle. In truth we all know that deflation is a myth as no society/currency has collapsed/died because their purchasing power was too strong.
All you need to know now; when fraud is the status quo possession is the law.
When they finally decide to pull the plug on all of this blatant manipulation (or they are forced to by circumstances beyond their control), it's going to be truly epic.
I think it won't be so much a matter of "pulling the plug" on the manipulation but rather the markets realizing they're running out of rope like they just used up with this ECB rate cut.
Pfffttt.....The only thing that matters is that Twitter is launching today. I'm going all in and buying me a share on the opening.
There will be people who didn't learn from the Facebook fiasco. I wonder if the NYSE can handle the volume.
It's not like the NYSE has had its own share of problems. /sarcasm.
Think of how much stronger the Twitter opening could be if retail investors weren't getting TSLA margin calls.
I wanna buy some Enron today...
Looks like a trader/money changer logged in to red arrow us.
oh glad you eared that up mr obvious
Global Governence, NWO or whatever fancy Psyche Warfare/PsyOp lingo The Global Criminal Oligarch Cabal Bankster Intelligence Crime Syndicate would like to use is all identical to them. The goal all done by design & all done by Agenda is Centralized Power of the Worlds Governments with vertically integrated Global Economies owned & controlled by them.
A New World Order or New World Banking Order for The Global Criminal Oligarch Cabal Banking Intelligece Crime Sydicate. Next stop, Serfdom in a Totalitrian Authoritarian Global Fascist Police State Dictatorship.
And they want me to give my money to wall st....dont they have enough?
Any other bears still left? ;-)
ECB rate cut causes Euro stocks and gold to rise sharply followed by PM smack down. The rise in gold was logical and Euro stocks held the gains. I guess our friends got worried, though, and couldn't let this signal from PM to be seen. Stocks rising is different, of course, sends the "right" message.
The euro was at $1.39. It was their turn to fire a shot in the global devaluation war as they couldn't let Japan and the US get adavantage.
This will continue to be a globally coordinated debasement of currency versus everything else, while trying to maintain some semblance of parity across the currencies.
This is exactly what is going on. And it is not going to end well.
These people know game theory.
pods
Um, that's not a knee they've been jerking!
when is the day i will see all these assholes jumping and crying when the markets fucking crash?
i have waited for so long, i need this shit to hit the fan soon.
i guess it will feel so much better when it happens out of the blue
Since the math behind all this currency devaluation is exponential, we are now at the end of the "deflationary" cycle. The "markets" will now crash upward much faster.