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EURUSD Plunges Below 1.30 As As Eurobond Yields Turn Negative As Far As The Eye Can See
Having promised "whatever it takes" and now doing what many thought was un-possible, Mario Draghi has managed to smash EURUSD back to 14-month lows below 1.30 (without actually buying one bond - just promising) and has sent yields on most European bonds negative to 2Y (and Germany near negative in 4Y).
EURUSD at 14-month lows...
Perihperal European bond spreads are collapsing...
and Stocks are surging in Europe...
As yields on most are negative to 2Y... Italy, Portugal, Spain, and Slovakia 2Y rates are doewn 8-10bps today!!
Charts: Bloomberg
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This will not end well.
We're all Japan now
https://www.youtube.com/watch?v=gEmJ-VWPDM4
OK.....now that wasn't unexpected.
Tyler was so surprised he stuttered while typing!
"EURUSD Plunges Below 1.30 As As..."St stt stop it. You know how sensitive he is about that.
Will send Euro-cash into American equities. Not to mention, the FED will raise rates in Jan. Last hurrah for the USSA stock market, might provide enough support to keep the stale economy limping along until late 2016.
https://www.youtube.com/watch?v=zV3UuMOfiaQ
Oh the powers of destructive debt-deflation. I smell default, yeah!!!
Patience.
http://4.bp.blogspot.com/-cMXcgEwZw5E/T2MZ_WI0NRI/AAAAAAAACnk/ogqM2WvJlP...
Back to the future..
Like in 2011..
1.24 ???
How about oil at 89.. squeeze the rooskies.. obummer, emperor could dictate that we drain the spr.
gee, maybe he could bring back the silver certificate.. nah.. another guy tried that once.
it just does not get better than this.
I think the spr is already drained. Theres only a few barrels left, and all that is going to go to the military so they can maintain the peace.
sing, fat lady, sing...
Currency wars ignite!
And Putin marches on..........
What a Collosal Case of Collective Cranial Flatulance.
We're well into the currency wars, the trade wars are already beginning. Shooting wars are on deck with a weighted bat...
It's not really a war if they are all on the same side. It's more like playing "hot potato" with friends...
The gold and silver "mini-puke" operator is in on the green ?
I remember when a tanking eurusd was bad for stawks
This is just stupid, buying bond at the price that will give you back less after a few years?
Negative yields are immaterial.
The question is: Will the bond appreciate from here? Bond investors don't care about the yield; they just want to sell them at a profit.
Indeed; we are all Japan now.
Long: Cash, Bonds, Gold...
relevant
https://www.youtube.com/watch?v=LNsbbORorfk
FIAT falling faster than heads in Syria. JPY and EUR diving. Next up GBP. USD soon after.
So the "market" is showing that there is no risk in Europe in the short term?
Or that there is imminent crashing in Europe and every last fiat is being stuffed into anything and everything that offers a modicum of government protections?
Or we actually live in a machine derived fantasy world while they harvest our bio-electricity?
Or I'm dreaming?
pods
World trade will grind to a halt because of these policies. Eventually and I believe it's happening right now no one will trust anyone's credit line.
At some point the return on loaning money is simply not worth the risk! It might soon become apparent the economic efficiency of credit is beginning to collapse and the additional money poured into the system coupled with lower rates can no longer drive the economy forward. When this happens we are at the end game.
Why do you want to loan money if most likely you will never be repaid or repaid with something that is totally worthless? When this happens the only safe place to store wealth will be in "tangible assets" and the only lenders will be those who print the money that nobody wants.
The collapse of credit can pose major problems such as what we saw when many sellers were forced to demand payment up front before shipping goods in 2008. More on this subject below.
http://brucewilds.blogspot.com/2014/06/the-economic-efficiency-of-credit...
bank create the money they loan thanks to the fractional reserve paradigm & they charge huge interest on top of whatever the ecb rate is.
there is no collapase of credit there is collapse of a system that was designed to collapse (they could not be so stupid as to imagine thatcreating money out of thin air could be a viable system for the people).
open your eyes & understand the process of money creation & you'll get it eventually
Exactly, this is the same as a haircut. Europeans won't be able to afford non-european produced goods/services unless drastic action is taken soon (next decade) and the snowball will begin growing as American/Asian profits decrease for decreasing consumer base (Euroarea).
DB will sell more FX swaps and interest rate swaps, all is well.
We give you "THE CLIFFS OF INSANITY" yield rates. Ha Ha Ha
The Euro-zone is engaged in a talkathon, with fear of an immediate collapse off the table the members of the Euro-zone much like their political counterparts in America just talk about solutions without any action.
For us in America news from across the pond dribbles out in small doses with almost daily media boost of promises that things are about to get better. Now with war a possibility they can only just keep talking. For more on all of "what is not happening" see the article below.
http://brucewilds.blogspot.com/2014/04/euro-zone-update.html
EarlyShift's got the 'As As' flu.
There are a lot of "As's" in that headline. Maybe Tyler meant to confuse the robots, if he did he should have thrown in a couple "asses". There are plenty of them out there.
Don't fire on that gold/silver purchase until you see the heights of their lies.
Its seems no one is factoring in that juice little knock on EU GDP coming very soon when the Russian sanctions start biting chunks out of it.
Wake and Bake 'merica. Things are not as bad as they seem in 'merica once you've got your m-Card.
http://en.wikipedia.org/wiki/Medical_marijuana_card
http://www.bancaditalia.it/pubblicazioni/econo/quest_ecofin_2/qef136/QEF...
Read about Target2. That's what ECB policy is about.
ECB --- Target2
Fed ----Derivatives
Natural rule of thumb:
Monetary policy cannot replace scarcity of resources and output
Draghi Top. Yep I'm calling it. Hell, Dax down 50 since he started talking.
I heard from Carl that he's a switch hitter with a low at-bat average.
There's no problem though, walking by a TV I just heard Cramer proclaim Dragi a 'brave, great man of vision, not like Hitler.'
No shit.
What are you, posting mobile from Costco or one of your other 'merican box stores?! Ah the hypnotic box of virtuous enslavement reached out and pinched you on the ass with a triple wammy. Cramer, Dragi, Hitler.
"walking by a TV"......
No actually they have a couple TV's on down at primary security, I work in the Langley ops center.
BTW, where you live has no TV's?
it's the euro$ yoyo, less of a currency war than their way to keep market alive.
next yoyo reversal phase with q4 usa trade balance ? should be spectacular anyway (already -40billion with a weak $... -100B to come ? )
1.25 Euro great call Goldman, lets try for 1.19 as EU Banks collapse, RUNS
Stop those stock/exchange quotes, turn on the pawn shops, FINE THOSE BANKS BILLIONS.
turn on those inversions.
Raise the minimum wage to $ 15 an hour, in Chi Congo.
Close those fast foods and car washes....
Lol, Draghi to US? Euro crap! anybody wanna push on my string Yellen, mines bigger...
let me get this straight. Debase all currencies and sell gold? something smells.
Who cares about yield. It is knowing my money is safe in sovereign debt. Demand will go ballistic now.
How is Draghi's PLACEBO working out thus far?
Draghi is up 10 big figures on (how many?) UST's held by Brussels at the NYF? Not a bad trade. This has a couple more months to run, German car companies buy their EUR for next year's sales between now and Xmas. I tend to think they bartered silence on the Ukhie lunacy front for another 10 big figs. When Draghi is given the Wittelsbach Prize and made an honorary Bavarian you should all applaud. The chutzpah, if nothing else.
This just in from LA Times reporter Trish Takanaka, "It looks like the lawns throughout the state can now be watered with cheap french wine"....
Rinse and repeat: Inflation at the median supported by our central planners as the soldiers return with pockets full of money. Oh well, so much for the jubilee idea.
parity 2015 BELIEVE
Europe's most shittiest Banks hitting new highs BNP SOCGEN UNICREDIT etc
Obviously the primary objective was achieved, pump up stawks.
Maybe the only thing left to do is declare a bank holiday in the US and when we all wake up Monday morning the decimal point will have moved over one place.
Yellen must have a plan in place to print up some emergency money to stabilize the USDEUR rate. I'm sure Japan will comply also.
FTSEMIB up 2.5%, Banks +5% i.e up 750 points
ICH WILL DIE DEUTSCHE MARK ZURUECK!
SCHEISS EURO!!!!
A down euro was showing last month
http://bullandbearmash.com/chart/euro-monthly-falls-sharply-larger-trend...
USD has been too low for too long. Should break above 85.