Latin American Currencies Plunge To 2003 Lows, Argentine BONARs Shrink

Tyler Durden's picture

With today's plunge, Latin American currencies have collapsed by over 5% in th elast 2 weeks - the fastest drop in almost two years. Year-over-year this is a 15.75% drop, the largest such drop since Lehman. This drop breaks the 2009 lows and presses the currencies to their weakest since 2003... Bond markets are being crushed as short-dated Argentine BONARs have collapsed to 14 month lows.

LatAm FX at 11 year lows...


Argentina BONAR have seen firmer days.


Chart: Bloomberg

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papa_lazarou's picture

Who knew that if I invested in Latin America I would peso much?

Millivanilli's picture

US could default on debt 'very soon'


However Mr Lew cautioned that the government will burn through its leftover cash more quickly than normal because the Treasury will be issuing tax refunds.

   Filing electronically, NOW!
jbvtme's picture

how do you say "I've got a Bonar" in spanish?

Ignatius's picture

Is the Argentine Boner trading 1:1 with the Vietnamese Dong?

I'd think the Dong would trade at a discount.

cossack55's picture

Don't forget the US

InjectTheVenom's picture

is that a shrinking bonar in your pants or are you just happy to see me ?!

TheLooza's picture

It's obvious to me that a face ripping rally is about to happen. Fear has hit the exact right levels.  May lose money, but I'm just syaying...SPY is 174.4 as I write.....

forwardho's picture

By the looks of that Bonar chart, somebody just bload their load.

And the bonar is now tumecent.

Wonder what the refraction time is on that Member.

akak's picture

I wood like to ejaculate here that your turgid comments touching on the BONAR leave me firmly unimpressed.

TheFourthStooge-ing's picture

Unsociable Turtle takes offense to the dick jokes and withdraws, causing the BONAR to invert.

walküre's picture

Not touting myself here but I've been questionning all this rosy propaganda about how fabulous 2014 will turn out ever since it came out.

Just remember, TPTB want you to believe this year is a great year for the economy come hell or high water.

Recovered yet?

lasvegaspersona's picture

Lew could just have the money would be illegal but Holder won't prosecute and Congress has quit even pretending they care or have any power anyway.

Quantum Nucleonics's picture

Since the Fed has been implicitly printing to cover the deficit for the last 6 years, it can be said with some certainty that Lew has nothing to fear from Congress or Holder, at least until next January assuming Democrats lose the Senate in November.

aVileRat's picture

The trip to the hospital from that burrito was the first clue. The missing kidney and the doctor suggesting you take the baggie of Yaheo back to the USA for him was the second.

Strongly doubt tomorrow will bounce off this without some sort of ignition switch.


Renewable Life's picture

I can just hear those fucks in the WH going......."wait for it, not yet.......not yet, wait for one gets help this time until real blood is pouring from Wall Street.......nobody lift a fucking finger yet.....wait for it"

Because if you think Ol Bammer hasn't learned a thing or two about "running and controlling the world", your crazy!! In his mind he bailed out those ungrateful WS fucks last time and made them whole on their risk and gave them new bonuses to the moon and the motherfuckers "betrayed him" and "backed Romney" and the whole bit, so this time, motherfuckers will be on their knees when they come begging and they will have pens in their hands, ready to sign over the whole show to him!!!!

Then maybe Grandma Yellen will fire up the presses, but not a fucking minute sooner!!

Turin Turambar's picture

You must not be aware that this is being done on purpose.  Google "Cloward-Piven".

mac768's picture

Zee Germans look a bit gittery today as well....

midtowng's picture

I wonder what the chart looks like minus Brazil?

market le pew's picture

Dropping like a BRIC

TruthInSunshine's picture

All in all, Brazil's just another (and the smallest) BRIC in the Wall.

Wait until the full ugliness of the actual reality of China & India's economic misfortunes reveal themselves (because the Financial "Media" would never think to get ahead of that story; that might spook people in time for them to do something logical such as GTFO).

Simon Black, aka Sovereign Man, is wasting away in Margaritaville. He's looking for his lost shaker of salt.

Ghordius's picture

TIS, a thought for you ' cause you shine so much light in this place:

WTF would happen in such an environment to a Spanish Peseta, a Portuguese Escudo, an Italian Lira, a Greek Drachma, a French Franc? How would that be better? Inversely, where would the German, Dutch, Finnish, etc. currencies shoot up? How would that be better?

I feel vindicated in thinking for some decades that the EUR is a good idea, in such an expected, recurring environment. And the CHF is of the same opinion, otherwise it would not be hiding under the skirts of the EUR, like others

those are all just ripping tides from the mighty FED, the sun of the currency's planetary system

TruthInSunshine's picture

It would allow export-intense & dependent nations the OPTION (aka freedom) to try & stimulate their exports, if they so desired, via relative currency devaluation.

It would allow other nations not so heavily export dependent, and more desirous of stimulating domestic consumption, to tinker with currency valuation, interest rates, etc., as a means of encouraging either increased savings investment, or consumption.

In either case, much more of a nuanced approach could be undertaken, in a sovereign manner, in a way that is far closer to what natural levels of aggregate demand would dictate, which have the immensely beneficial impact of bringing about more normative/rational pricing of goods and services consistent with true aggregate demand, rather than idiotic "target rates" that will never be achieved and will only serve to further distort the economy's structure and encourage massive misallocation of investment, resources and encourage gambling/speculation based on monetary policies as set by incompetent central control & command "banks."

disabledvet's picture

The DMark provided discipline in the European monetary order. Once everyone "had their d-mark" did the spending profiles change?

Now unlike in the USA where you have/had "Bank Bailouts" in Europe you have bailouts of entire nations.
Of course Germany tries to set "limitations."

Forget just JP have hedge funds that are now swimming towards all this chum.

Jlasoon's picture

I'm having a hard time keeping up today. Too much too fast. 

camaro68ss's picture

I love the doom, makes my day a little happier knowing bankers are jumping.

youngman's picture

Colombian peso down big today

disabledvet's picture

Very interesting that like India (see below only with iron ore) so it is with Columbia and coal.

The USA is not shutting its market...not is it like Europe a "customs union" bent on trying to "win" the race to the bottom.

This is truly an awesome display of raw economic power by the USA...all done "by doing nothing" actually.

At some point "things will calm down."
In point of fact this almost never happens.

Oh regional Indian's picture

The spice MUST flow.'s all about the war on the people, aka the war on drugs via the disingenuous war on currencies....

fonzannoon's picture

Doc you are looking at the wrong Argentine chick. Take 2 of these and call me in the morning

TruthInSunshine's picture

Chile with a chance of nipples.


CrashisOptimistic's picture

Brazillian joke:

What is the difference between Argentines and terrorists?


Terrorists have sympathizers.

HardlyZero's picture

Shrinkage because prune Yellin'

Hulk's picture

rib cage kills my bonar...

Ignatius's picture

I keep sayin', ya gotta feed 'em sometimes and  it's the right thing to do.

ParkAveFlasher's picture

I can tolerate a little sternum/ribness if the mammaries hang nicely, in fact I think a little bone lends a certain authenticity to the rack.  BTW those are virgin nips right there i.e. this is not a mother.  THat means her abs still working and her cooter is still tight. 

Wow is it snowing out or what?

superflex's picture

Virginity or motherhood has nothing to do with nips.

Mrs. Superflex has full-time thumb sized nips and just turned 50.


philosophers bone's picture

The shrinking / deflating BONAR jokes WILL NEVER get old.  Please keep 'em cumming.

shovelhead's picture

Those Falklands sheep are looking mighty nervous again.

Music101's picture

Great charts... Look at these KARL DENNINGER STOCK PICKS CHARTS... quite a story they tell!

Inthemix96's picture


Bet that leaves a mark.


RMolineaux's picture

Clearly these countries need to put capital movement controls in place, but the horse is already out of the barn.

CrashisOptimistic's picture

Bingo.  And the horse is bitcoin.

gwar5's picture

HA HA HA! ......  Tyler said "Bonars"





alangreedspank's picture

Aye, que grande el Bonar!

noob's picture

Así grueso - se puede comer con un tenedor.

ShrNfr's picture

No boners for bonars I guess..