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The Crowded "Long-Dollar" Train Just Got Even More Crowded
With two weeks of weakness, one might be forgiven for thinking the crowded "long-dollar" train had let off a few passengers (after its post-Bretton Woods record-breaking streak of gains).
But no, as Goldman notes, that train just got even more crowded... as overall USD speculative net positioning is now the most long it has been in recent memory.
EUR net shorts increased $1.4bn to $24.6bn.
JPY net shorts decreased $1.2bn on the week to $11.8bn.
* * *
...and is likely not over yet... as even though the net short has been unwound extremely rapidly, in 2007, the yield compression did not stop there.
Source: Goldman Sachs
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I'm long sanity, because the longer we go on this timeline, the shorter in supply it seems to be.
Do not question the dollar, peasant scribe. I have a hospital room you can share with a medical tourist from Liberia.
Bow down!
His Royal Highness,
Barack Hussein Obama
all i ask about king dollar is if im going to live in poverty my leaders need to live in poverty as well
That looks to me like the northbound Obama Enterovirus D68 Express.
Hey, isn't that how Barry snuck into the USSA?
When the train wreck will materialize, the ones that will not go for the nailgun, will have plenty of power and motive of fighting-back by... blogging, hilarious.
Ramping the USD this week hints at bad news on the "Taper" front next week. That, or another round of bombing is about to start. Or both. Or neither. Sometimes, the dollar gets strong "Just Because." Goldman can explain.
Well the rest of the world is in a panic and thinks the dollar is 'safe', boy are they in for a surprise.
I'm long nets.
Candy striped Ebola nets.
I'm short sanity and patience.
There are no net shorts in t he COT report from the CBOE. every short is offset every day by a long. always. if you can just get that one fact straight it would be very helpful; people like to "interpret" the COT report; but if you actually look it up you'll see the the number of shorts and longs is identical. So this is some species of reading the entrails of pigeons; because it doesn't correspond to any reality.
That sounds like it's made complex by eCONomists on purpose..
All the currencies are dirty shirts. Which are the dirtiest, which are relatively clean?
Pardon me for doubting the Squid, but there is no science of macro-economics, and as far as I know, no stable set of definitions for even talking about macro. That's mainly why Milton Friedman gave up on the whole scam, so what are "speculative longs?" They seem to mean anything not clearly hedged or off set in American markets, but there is no end of problems with that, starting with investment flows in the bond market.
Just think of the dollar as the red charmin of currencies.
umm
The Euro is a net creditor with no trade deficit.
Depends on how you define 'science'. Astrologers says they use science too and it works about the same way.
getting closer to the event horizon
We can only hope so!
Yes, I can see the water in the toilet bowl swirling faster now....
Idiots.
Has anyone ever asked: "Why are none of these dirty shirt currencies being cleaned?"
Buy Gold
Yes, because our guys* help keep them dirty.
* CIA, DOD, NSA, Fed.
p.s. Which of these Dirty Shirt players is going to turn down a stack of blank checks, signed by the Fed? Would you?
does it seem that every Sunday the reading is the same.
Listen.
You mean "CANNED" goods. Murdock Spam-in-a-Can?
Hmmmm.
Listen Zero Hedgers.
This is the train that Bangalore Equity rides into work every day.
"Don't you judge me"
Signed,
Bangaboy
OH!
and hes not milliondollarbonus...
i think MDB holds the ZH world record for the most junks on one comment...
828 JUNKS
6 greenies
I thought it was a pic of the MexAm RR.
Listen Pessimistic.
Have you seen that guy around The Hedge, Haywood is his name?
You know, Haywood Jablowme? You'll like his stuff, nice and creamy it is.
Banger are you listening?
B.E. Nope, but you're here BangaEquus
Only a blatant homosexual would want another man to perform oral sex upon him, Bangalore,
When the ISIL Muslims overrun your Nation, Bangalore, then you will be a prime candidate for the Hangman's Noose.
LISTEN,,,
BANGER..
its time for...
THE TROLL TIP OF THE WEEK...
to get more traffic to your JUNK TALLIER..(the little red button,) you need a better topic...
MDB would talk trash about gold bugs (if the price of gold dropped a nickel...MDB would yell (allcaps) how stupid we were...
also how the stock market was going to EAT the gold bugs for lunch...
and RT's favorite, pick a stock, a real DOG...and start talking it up...even when it dips..never lose faith...thats a sure way to get trashed... I MEAN TRASHED!
also, you need to get the avatar i told you about...
hope it helps... :)
P.S. I HEARD YOU HAVE A BONE IN YOUR NOSE...TRUTH OR TRASH?
Thats Long King-Dollar Train to you!
I see plenty more room on the train. No reason record cannot become recorderer.
Do you work for the FED or the SEC? :)
Of course ZH is speaking of federal reserve notes, debt instruments becase they are not redeemable for anything other than goods. I find it sort of odd that people take my digital FRNs and give me gold or silver. Hell of a deal if you think about it.
Not trading it...but will in 10 years...figure FRNs would be worth less, now does that make sense? No, but not much does.
This is all very interesting because last time I checked most Americans were SHORT a dollar.
Listen Pan.
And in "REAL" terms that dollar is only "WORTH" fifycent.
OH!
Now that's how you do it.
Listen, Slick. A gentleman in a black suit is coming to your place. Agent K.
Be sure to smile when he asks you to look at the birdie.
Hey Bangalore,
You have to be dreaming if you think your dollar is worth fifty cents. And even if it is worth 50 cents that too will go in the great haircut that approacheth.
PP
Well, mountain of debt requires regular service and servicing dollar denominated debt creates deflationary tidal waves. But this recent strengthening is curiously timed, or is it just me.
UDN at a 4 year low for the last couple weeks, a deal is a deal. It's 40 at night now and I'm still wearing shorts.
A dollar. Been to a store lately? What can you get for a dollar that is so awe inspiring?
Listen 25.
True story. Last time I was in USSA I went to a store called Sam's club with a mate from work who had a "MEMBERSHIP". Everything is supersized and filthy expensive. A box of bloody washing powder was $23 US.
Anyhow.
As we proceeded to queue up at check out a young Mexican couple was in front with 100 items in their shopping buggy. When the cashier began to speak to them they looked confused. It was a Spanish only couple as it turns out so we waited for the Sam's Club translator to arrive. The Mexicano's didn't "REALIZE" that their club card has expired 3 years ago and begged for a one-time freebe.
No was the answer so the Mexican lady walks along and proceeds to ask everyone in line if she can use "THEIR" card, in Spanish mind you. Finally she was successful and begain the checkout. almost $300 was the total and she swipes her "ACCESS" EBT card. $14 had to come from her pocket.
Ahhhh. America. Land of the free and brave.
You're toast!
Don't know how it is now but you used to only pay a 5% upcharge if your card expired.
"All aboard! The Dollar train to the bottom of a cliff. All Aboard that's going aboard!"
An American, not US subject.
"A dollar denominated investment is in actuality a bet in the violence of the DC US being able to keep the petrodollar propped up just a bit longer."
ha ha ha...amazing.. this is what happens when you get central banks not matching long term fx swaps to neutralize the impact of surplus "targeted at domestic collateral" held by the dominant private sector financial institutions.
it is also what happens when there are no performance metrics like those that weed out the numbskulls in the private sector edgelike hedge ratio efficiency or risk adjusted alpha and expect a civil servants to have a clue about what the end result of their actions actually is, across the full gamut of the economy.
not regulatory arbitrage, but relative QE arbitrage! the financial sector can suck out profits from the ones and zeros created by central banks in relative "money being printed with no asset backing and for no reason" by central banks.
the central banks of the US, Canada, UK, Europe, Japan and China are engaged in a "race to debase" in their own virtual reality, so that they can have pleasant retirement cocktail parties amongst the economic train wrecks they create by facilitating profligate government spending and poor credit allocations amongst investors as these central banks play the game called "i created better ones and zeros than your ones and zeros".
game on! (- and on and on and on)
That's a nice image to accompany the story - the moment the dollar derails, the exact same thing will happen to the morons hanging on to the mythological long dollar train.
Man, those coyotes are getting resourceful.
Its called "getting the hell out of currencies that are about to fail." Bottom-line is other currencies are under assault because both economies are weak and countries are buried in debt they can never repay at real market interest rates. When investors become unwilling to buy the bonds of heavily indebted nations causing the bond bubble to burst the values of currencies in those countries will tumble.
While there are not many Bond Vigilantes there are a slew of Currency Vigilantes and they are ready to make their presence known. Recent weakness in the value of the Yen, Pound, and Euro must not go unnoticed. The Currency Vigilantes are acutely aware of when a currency is overvalued or ready to be re-pegged and pounce on the weak currency to tear it apart. The article below questions just how stable the currency markets really are and may be a signal that currency trading is about to get very wild. Please note, this may also be sending a signal that the whole system is unstable and the stock market is about to drop like a stone.
http://brucewilds.blogspot.com/2014/10/fed-concerned-that-stong-dollar.h...
Guys, these charts are wrong, the world economy - exceptional - is fine.
Unfortunately we will have to cull secóias to print QE 7-10.
You know ....
Need tree to make paper.
hehe.
>>>Guys, these charts are wrong, the world economy - exceptional - is fine.
According to the local press, everyone Down Under knows that the US will be the locomotive of global recovery. No, I am not making this up.
Gentlemen, i give you the United States of America... the next Germany!
@ August:
Print more money, we need raw material to make confetti, streamers and other things to the carnival in Rio de Janeiro.
The fuck is that thing will be a lot of green but if you use creativity, with a bit of chlorine and some gouache ...
It could get pretty ...
hehe.
they need money they dont even care about our government
.
secret is bitchez
Thats just a few of his close friends coming up through Mexico. Each has sworn on the ass of a camel that he is Ebola free. Things are looking up.