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Markets React Violently To China's Stealth QE
From copper to high-yield credit and from stocks to bonds and gold, markets are reacting violently to the headlines from China that they are unleashing another 500bn Yuan "stealth QE"... everything is rallying.. except the USD (biggest drop since May).
US markets...
Stocks are being driven by AUDJPY...
FX... USD's biggest drop since May!
with AUD and EUR bearing the USD weakness brunt...
HY credit tracking stocks higher...
Commodities are all surging...
Copper surges and halted...
Halting futures for 10 seconds...
Chart of copper futures - showing the 10 second halt $HG_F pic.twitter.com/WqACr9buLE
— Eric Scott Hunsader (@nanexllc) September 16, 2014
* * *
Let's hope risk asset algos aren't misinterpreting USD weakness-driven FX moves as a risk-on driver for too long...
Charts: Bloomberg
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Gold rallying (cough cough)
Don't worry everyone. The algos kicked in. Please resume "building assets".
No choice on China's part.
If they don't start printing, the US will import their inflation into China with more debased fed paper. There is a difference here, though. Once it all craters, the Chinese have gold, and the fed does not.
Yes, print yaun, buy dollars (in additon to real assets), leverage bitchez...
what the fed can do, the Chinese can do much better as there are considerable less barriers to this kind of intervention...
really now...
is this what the Fraud Markets are reacting to??????
a sick fucking joke of a country,economy, and markets...
fucking collapse already for fucks sake.......
There needs to be a complete lack of faith in all currencies before we win. So, print away fuckers.
Exactly, and I and my tribe will continue to turn that paper into productive assets. many to be used at a future date.
get your tribe in order.
Sshhh, KS, now go polish a Kruger and take a yoga lesson.
AU rises $6 is NOT "violently."
STILL no mention of China QE on CNBS. What assholes.
They haven't read ZH yet. Still reporting on things like AAPL, fairies, and the 'apparently' kid.
Remember when the SHTF in Egypt and the Dow tanked? Not one word from those assholes , not one fucking word.
'It's a risk-off type of day Jim, would you buy here?' Fucktards
What happened at 12:01?
liftoff
Wow - how nice!
Spiralling in a gyre.
+1 Spastica for the innovative use of Yeats.
Gold still has about 3-4 zeros missing from its price.
Maybe, but I am more of the thinking that oil is in a similar, if not worse, situation. many can get by without adding to their gold stash. Try getting by without oil or oil byproducts for a while...
I just wrote not 20 seconds ago that the DOLLAR is dumping due to China FX intervention and that this was being mis-interpreted as some kind of broad based rally.
This is all FX driven. China is trying to bail it's TBTF Banks/Politibuoro Insiders out of a heap of shitty commodities positions and RE loans today and the fuckers have done more of the usual: HK to London: BUY, Singapore to NYC: BUY, etc...
Globalism? Trade? What a propped bag of shitty junk assets chasing diminishing carry-trade returns this whole thing has become.
Yep, see Grande Tetons comment above.
Just got finished covering my long silver position flat ... and up it goes. Well, it was the prudent move at the time so no use berating myself.
A moment of silence for all the punk't shorts who went to bed Sunday evening with SPY futures down 1% and have since had their asses handed to them again ... there are easier ways to make money than shorting Chalky's prize index, fellas ... and as for the guys who just like to sit on the sidelines and beetch at the bad fed ... have at it.
So US stocks to the moon, while Chinese solars, for example, which will be funded directly and indirectly by Chinese money printing, drop?
Whatever happens it seems it's an excuse to ramp US stocks. The gap between US lala land and the rest of the world is preposterously large and growing by the day. Reserve currency is great while you have it. When you lose it, things get a little worse.
Hopefully folks will learn..
(With enuf whipsawing..)
I did..
Course I had to pay dearly for the wisdom..
just when you think you know the game and the rules...they change the rules
oh the VIOLENCE!
wish my coal would follow suit
---so bad debts in china, papered over with less than $100B, somehow mean companies inthe spx are worth more; or the AUD is worth more.
--an exactly what was the half-life of Draghi's last verbal 'anything it takes' (about 3 hours)
-- this may get completely reversed by 3pm, then the 330p ramp. imainge 20 spx points up and down inthe same day,must mean time to buy into an IPO!
Which part of ...........central command in a panic..........is not clear enough?
will cramer bang the china gong tonight? sick criminal little fucker...
China......biggest fraud on the planet:-)
Glad I spent my "lunch money'" on some Silver yesterday.Just buy the next dip in PM's.
So, what happens when the dollars crashes?
Since it is the world’s reserve currency – which means it is used by major central banks as collateral for their currency, a dollar collapse will cause all these other currencies to crash also. If, for example, the central bank of China holds $1.27 Trillion (as of 2014 May), a fifty percent loss of the dollar’s purchasing power will result in a loss of $0.635 Trillion for the Chinese central bank. Thus, an equal value of Chinese currency will go without collateral.
C’mon guys, what happens?
Can you spell “chain reaction”?
It seems logical that someone needs to provide an alternative to paper currencies. More importantly, how is it to be done? What factors, that influence gold, have to be considered? It’s a big topic… and here I just provide an intro.
Why should you give my words and experience any consideration? For 28 years, I provided a gold-based banking service; to be sure, I made mistakes… but I also forged a path for others to follow and, hopefully, to avoid some of the mistakes I made.
It’s a big topic… and here I just provide an intro.
Your intro is absolute nonsense. The price of any commodity over the long run is closely related to the cost of producing it. Gold is little different than any other commodity, sans the mystic of its worshippers. With only one oz of gold per person on earth, it can never function as a "backing of trading promises" and money is "a promise to complete a trade".
As your intro shows, gold needs to be orders of magnitude more valuable to function as backing of trading promises. Price gold where you say it should be and everyone will be digging up their back yards looking for it.
Thanks for your reply.
I hate to tell you, but, your attitude, and handlers, are what produced this society that has consented to a money unit that requires cannibalization of following generations of Americans to the end of time. You see, dollars come into existence by the process of monetizing government debt; this debt is the process by which a generation of tax consumers, financially cannibalize following generations of tax payers. To day it is financial cannibalization, tomorrow…
Don’t take my word for it, a former comptroller of the US will tell you the same, but in more gentle terms.
And then, it will be time to hold all those accountable for this heinous crime. Enjoy.
I agree with you. Our medium of exchange (MOE) is grossly mismanaged. We know this mismanagement produces inflation on an average level of 4% per year compounded. We know this is the government's way of taxing people who refuse to submit to their taxation directly.
But ... gold backing is "not" the answer. Eliminating government counterfeiting "is" the answer. And in doing so, we will eliminate much of government for it will no longer have inflation to sustain itself.
Inflation is "not" passed on to future generations. It is simply a continuous rot. Each generation gets its own opportunity to rot.
Thank God, if it wasn't for China we wouldnt be getting MOAR!!!!!!
The USDX looks like it's in for a nasty short squeeze later. It makes sense...Asia will be buying USD to lever up on the carry trade. (Buy $ to borrow against) Here's the usdx (5) hour chart. As you can see the MACD and RSI are moving to oversold.
A $8 hike in Gold is a "violent reaction" ???
Get a life you fagot
"Stocks are being driven by AUDJPY..."
Serious question: How's that supposed to work -- how can we say that? Everyone knows that correlation is not causation. So how would a change in AUDJPY affect the prices of large-cap US companies?
Alternatively, how do we know that a change in the prices of large-cap US companies isn't affecting AUDJPY? Or that both are being driven by some third factor? Or, that it's all a complete coincidence?