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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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Mon, 02/03/2014 - 15:05 | 4396562 papa_lazarou
papa_lazarou's picture

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

Mon, 02/03/2014 - 15:10 | 4396594 Millivanilli
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!
Mon, 02/03/2014 - 15:12 | 4396619 jbvtme
jbvtme's picture

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

Mon, 02/03/2014 - 15:22 | 4396645 Ignatius
Ignatius's picture

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

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

Mon, 02/03/2014 - 15:22 | 4396683 cossack55
cossack55's picture

Don't forget the US FUBAR........er.......ugh.......dollar.

Mon, 02/03/2014 - 15:27 | 4396714 InjectTheVenom
InjectTheVenom's picture

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

Mon, 02/03/2014 - 15:48 | 4396806 TheLooza
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.....

Mon, 02/03/2014 - 15:21 | 4396678 Say What Again
Say What Again's picture

Tengo un Bonar grande

Mon, 02/03/2014 - 15:31 | 4396745 forwardho
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.

Mon, 02/03/2014 - 16:08 | 4396902 akak
akak's picture

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

Mon, 02/03/2014 - 18:49 | 4397652 TheFourthStooge-ing
TheFourthStooge-ing's picture

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

Mon, 02/03/2014 - 15:14 | 4396620 walküre
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?

Mon, 02/03/2014 - 15:45 | 4396802 lasvegaspersona
lasvegaspersona's picture

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

Mon, 02/03/2014 - 17:43 | 4397366 Quantum Nucleonics
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.

Mon, 02/03/2014 - 15:08 | 4396596 aVileRat
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.

 

Mon, 02/03/2014 - 15:13 | 4396617 Renewable Life
Renewable Life's picture

I can just hear those fucks in the WH going......."wait for it, not yet.......not yet, wait for it.......no 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!!

Mon, 02/03/2014 - 15:24 | 4396698 Turin Turambar
Turin Turambar's picture

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

Mon, 02/03/2014 - 15:37 | 4396761 mac768
mac768's picture

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

Mon, 02/03/2014 - 15:04 | 4396565 midtowng
midtowng's picture

I wonder what the chart looks like minus Brazil?

Mon, 02/03/2014 - 15:06 | 4396569 market le pew
market le pew's picture

Dropping like a BRIC

Mon, 02/03/2014 - 15:13 | 4396612 TruthInSunshine
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.

Mon, 02/03/2014 - 15:24 | 4396675 Ghordius
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

Mon, 02/03/2014 - 15:55 | 4396852 TruthInSunshine
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."

Mon, 02/03/2014 - 16:14 | 4396937 disabledvet
disabledvet's picture

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

Nope.
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 Morgan...you have hedge funds that are now swimming towards all this chum.

Mon, 02/03/2014 - 15:06 | 4396570 Jlasoon
Jlasoon's picture

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

Mon, 02/03/2014 - 15:07 | 4396589 camaro68ss
camaro68ss's picture

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

Mon, 02/03/2014 - 15:07 | 4396583 youngman
youngman's picture

Colombian peso down big today

Mon, 02/03/2014 - 16:19 | 4396965 disabledvet
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.

Mon, 02/03/2014 - 15:07 | 4396586 Oh regional Indian
Oh regional Indian's picture

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

Mon, 02/03/2014 - 15:13 | 4396615 Dr. Engali
Dr. Engali's picture

That bitch in Argentina is enough to make any BONAR shrink.

 

https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcS8RJ9JOyzoZKF22tLp...

Mon, 02/03/2014 - 15:16 | 4396647 fonzannoon
fonzannoon's picture

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

http://lh5.ggpht.com/_Ta44vaZ1Msk/SwQHpC7UcyI/AAAAAAAAD5I/fm9yIUIwph0/A%...

Mon, 02/03/2014 - 15:18 | 4396664 Dr. Engali
Dr. Engali's picture

MMmmmmmm Perky.

Mon, 02/03/2014 - 15:19 | 4396668 TruthInSunshine
TruthInSunshine's picture

Chile with a chance of nipples.

Oh...Argentina...nm

Mon, 02/03/2014 - 15:50 | 4396822 CrashisOptimistic
CrashisOptimistic's picture

Brazillian joke:

What is the difference between Argentines and terrorists?

 

Terrorists have sympathizers.

Mon, 02/03/2014 - 16:20 | 4396974 HardlyZero
HardlyZero's picture

Shrinkage because prune Yellin'

Mon, 02/03/2014 - 15:20 | 4396672 Hulk
Hulk's picture

rib cage kills my bonar...

Mon, 02/03/2014 - 15:38 | 4396762 Ignatius
Ignatius's picture

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

Mon, 02/03/2014 - 15:36 | 4396767 ParkAveFlasher
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?

Mon, 02/03/2014 - 15:45 | 4396803 superflex
superflex's picture

Virginity or motherhood has nothing to do with nips.

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

Winning!

Mon, 02/03/2014 - 15:15 | 4396628 philosophers bone
philosophers bone's picture

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

Mon, 02/03/2014 - 15:30 | 4396736 redux2redux
redux2redux's picture

Made me think of the scene from Despicable Me 2

http://www.youtube.com/watch?v=JHYkH4AHnnQ

Mon, 02/03/2014 - 15:15 | 4396638 shovelhead
shovelhead's picture

Those Falklands sheep are looking mighty nervous again.

Mon, 02/03/2014 - 15:22 | 4396677 Music101
Music101's picture

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

https://www.youtube.com/watch?v=XqWIS0O2gIk

Mon, 02/03/2014 - 15:24 | 4396686 Inthemix96
Inthemix96's picture

Ouch,

Bet that leaves a mark.

;-)

Mon, 02/03/2014 - 15:34 | 4396754 RMolineaux
RMolineaux's picture

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

Mon, 02/03/2014 - 15:49 | 4396825 CrashisOptimistic
CrashisOptimistic's picture

Bingo.  And the horse is bitcoin.

Mon, 02/03/2014 - 15:44 | 4396789 gwar5
gwar5's picture

HA HA HA! ......  Tyler said "Bonars"

 

 

 

 

Mon, 02/03/2014 - 15:45 | 4396798 alangreedspank
alangreedspank's picture

Aye, que grande el Bonar!

Mon, 02/03/2014 - 16:15 | 4396950 noob
noob's picture

Así grueso - se puede comer con un tenedor.

Mon, 02/03/2014 - 15:56 | 4396854 ShrNfr
ShrNfr's picture

No boners for bonars I guess..

Mon, 02/03/2014 - 16:22 | 4396990 HardlyZero
HardlyZero's picture

Beggin' for Bonars.

Mon, 02/03/2014 - 16:03 | 4396879 FieldingMellish
FieldingMellish's picture

Nothing worse than a shrinking bonar when you are just ready to plunge.

Mon, 02/03/2014 - 16:21 | 4396982 HardlyZero
HardlyZero's picture

Deflationary spiral ?   might help.

Mon, 02/03/2014 - 16:26 | 4397010 FieldingMellish
FieldingMellish's picture

Artificial stimulous?

Mon, 02/03/2014 - 16:09 | 4396916 WhyWait
WhyWait's picture

This is not the same Latin America it was in 1998 or even 2007.  The issues may be the same but they have learned a lot in their struggles with the international banks and lending agencies, they have learned a lot in the course of long bitter and sometimes bloody struggles with dictatorships set up to impose the will of the internationa banks and corporations.  The growing need for China, Russia, Iran and Brazil among other countires to break out of the dollar straight-jacket alters the international financial environment.  And we can bet there are people in each of those countries reading and seeing the same things we are about the unique international financial moment the world finds itself in.

I'm not going to try to predict what they'll do.  I do feel confident that it will be something different, perhaps quite unexpected, and that investors who cynically assume they know what's coming next because they've seen it all before - or because their theories tell them what will happen - will get hurt.

Best advice: Put yourself in their shoes, sey aside all judgments about how could they have put themselves in this position again.  Look into what they are writing. Think seriously what you would do.

Then let us know what you come up with.  

Take your time, the subject will come up again.

Mon, 02/03/2014 - 19:17 | 4397791 nonclaim
nonclaim's picture

Do not discount the armed forces and their internal support against a very much corrupt political elite. A monetary shock (yet another!) may indeed force "something different" but not unusual for the region.

Mon, 02/03/2014 - 17:03 | 4397175 Mi Naem
Mi Naem's picture

Oooh, I get it.  Bonar... shrinking... firmer...

funny. 

Mon, 02/03/2014 - 17:36 | 4397342 Ghostdog
Ghostdog's picture

They need Viagra for the shrinking bonars

Mon, 02/03/2014 - 18:50 | 4397662 SAT 800
SAT 800's picture

A droopy bonar? oh dear. "The trouble with Socialism is that you run out of other peoples money to spend"---Margaret thatcher.

Mon, 02/03/2014 - 21:21 | 4398352 Paracelsus
Paracelsus's picture

If Argentina had a sailing ship seized in a Latin American port for a lawsuit,could U.S. ships start to be seized for bad debts when the T-Bill market crashes? Just wondering..... 

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