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Angry Eurodollar Traders Have Had Enough: "This Is The Year The Fed Is Going To Lose Credibility"
After 6 years of false starts and always, relentlessly, constantly wrong Fed Funds futures projections...
... The one group of traders that has had the most to lose from assuming the Fed actually knows what it is doing, are Eurodollar traders: those who traffic precisely in the asset where the Fed should be in control (instead of everything else now dominated by the Liberty 33 boys including the S&P, USDJPY, gold, etc.): the Fed Funds Futures.
And it is in the Eurodollar market where following today's latest jump across the various packs, at least one trader has finally had enough. From Bloomberg:
"Fed talk is losing its luster. Data is irrelevant unless it’s extremely weak or extremely strong,” says Todd Colvin, senior vice president at Ambrosino Brothers, a futures and options execution firm.
"This is the year the Fed is going to lose credibility when it gets to March or June and they announce why they’re not moving."
Of course, the market could have called the Fed's bluff years ago alongside Zero Hedge, spared itself decades of post-crash agony, and realized the Fed should have lost all credibility when it set off to centrally-plan every single asset price thanks to $3 trillion in reserves which have done nothing for the economy, and everything to make the rich, richer than they have ever been.
In any event, better late than ever, and we most sincerely hope that Todd Colvin is right: the failed monetarist central-planning experiment has gone on for far too long...
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Get to work Mr. Yellen !
Ambrosino Brothers do not have the inside connections that Goldstein, Silver, Ruby, Glassman, Diamond & Pearl, PLLC have.
These guys are JUST NOW figuring out the US banking industry has been bullshitting them? Fucking losers.
Uh Oh!! The Euros are on to you, FED.
FYI, you will never get a single page hit from me on any article, ever, for obnoxiously posting a link to your article at the top of every article. Why you haven't been banned is a mystery to me
Maybe not this year, but the Fed's approval rating has to be lower than Obama's. Maybe it has risen recently since Ben is gone and Grandma took over.
FED Statement March 2015
Although .gov statistics show that every person in the US has health insurance, employment is at all time highs, GDP at 8.25%, inflation at 2%, we will be launching QE 4.5 and cutting ZIRP to NIRP. If there is one thing we want ever person around the globe to know is ALL IS WELL!
Mr. Yellen.
Approval ratings? Surely you jest. Look at the approval ratings of Congress and what that has done to their job security.
"Credibility" is irrelevant. Only decisive, timely and concrete actions by the BRIICS matter now. While they're still standing as a block. United they act and stand, divided and indecisive they fall. One by one.
Gentlemen, start your engines! Keep your eyes on that Lad in the pole position, sponsored by Zero Bull.
It does ring a tad hollow, does it not?
Draghi has been getting away with idle chatter for what? 2-1/2 years now? Still no QE forthcoming for "whatever it takes". But they're going to string up poor little Treasure Troll, Janet Yellen, for NOT doing something when she never guaranteed she was going to do in the first place?
C'Mon, Eurotraders. Get real.
What are you going to do about it anyway, even if the Fed doesn't raise rates? Make the dollar even stronger? Make the interest rates on our sovereign debt go down another whole point to match Spain? What exactly are you threatening to do other than make things even easier on us?
lets take a different scenario, lets say, that the Germans and nordics say screw this and either leave or make a EU north... the south and the frogs could print to their hearts content.... euro to fifty cents or less. 2 dollars to a DM... hows that?
The has NIRP (negative interest rates) so why can't the Fed have NCRP (negative credibility rate)?
Why would everyone sit around for the inevitable and wait for June for them to lose control !!!!
DEATH TO THE MONEYCHANGERS...
and death to the New World Order
XLE margin calls Tuesday. UNG and USO same.....AAPL.....SAME
Only if people start making runs on physical gold and silver... it's like these people want to do something about it but not a single one of these Kenyesian trained dingleberries can see the solution right infront of them every trading day - sell everything and stack you fucktards you're holding up the show and giving the ass hole central bankers more time to steal from you while you wait!
Reset the system with your own capital! Vote with your currency people...
exactly.
When central bankers lose credibility (something they don't like), they start buying stocks unabashadely. BOJ lost credibility long ago, thus, it buys ETFs and JREITS.
Sort of the "oh, well...fuck it," response from CBs when market finally figures out they're fucking fools just like the rest of us.
edit dp
By stating that they are losing credibility is to imply that they had credibility to start with. They have had zero credibility in my view since their inception.
But, if your waiting for our limp wristed President to suddenly morph into Andrew Jackson you might be a little disappointed. The only Hickory that panty waist has ever been around was in a bottle of B-B-Q sauce on his chicken.
"This Is The Year The Fed Is Going To Lose Credibility" --- Said my father in 1971.
My grandfather said it in 1933.
This isn't your grand-daddies dollar anymore. Digital tech will further debase the dollar until theres nothing left literally and figuratively. On a long enough timeline of debasement... zero is the divisor.
Dirty Money... Bitchezz.
http://youtu.be/lqoXDYwRUpI
Banning cash and then happy ZIRPing!
Paper money is unfit for a world of high crime and low inflation
By Kenneth Rogoff
Abolishing physical currency would achieve two valuable objectives, writes Kenneth Rogoff
http://scholar.harvard.edu/files/rogoff/files/paper_money_is_unfit.pdf
They need to lose a lot more than their Credibility to see and feel a difference.
Dear Santa, please deliver pitchforks and backbones to all the too-good boys and girls.
For intellectual purposes and stimulating debate:
What would happen if Russia applied the scorched-earth policy of selling its oil at an equivalent of say $20-$30 a barrel, payable in gold, or yuan or ruble only.
Sure they would suffer from lower prices for a while, but what then?
Remember that they applied those scorched-earth policies against Napoleon and Hitler by destroying their OWN infrastructure so that they would not benefit the enemy...
Yep. Look, it's real simple. if you have possession of oil, other commodities and other resources then you can still have a real economy (build and DO real shit). If you do not have possession of such things, then you will be dependent upon those who do, period.
Looks to me like it's time for all those paper claims on real goods and services to get some or foever be silenced...
Oh, I'm 100% with you.
I think that Russia will have to pull something out of its hat soon. And they could, because, as you said, they do have all the natural resources to become autonomous if they wanted to.
So I'm trying to wrap my mind around world wide consequences if they applied the kind of scenario above in concert with say, Iran, Venezuala, Brazil and Syria?
Screw the Saudis (and their masters)!
America still imports more than half the oil it needs to maintain the status quo. If the BRICs really could get their shit together and get past their own massive corruption, yes, they could re-write the economic rules of this planet.
I know many Russians and Brazilians and have been doing business in both countries for 20+ years. The only thing I can tell you is that these people know how to live in a world of massive corruption and no welfare.
American doth protest too much methinks, it's their turn...
Are you kidding me? Russia is a massive welfare state (not in the sense of free money, but free services). Anyone can walk into a hospital or university and get in for free (university you need to pass a test). For what you can get in Russia from the state, vs what average person pays in taxes, the average Russian can do quite well. Only problem they have is how beurocracy get in the way. Seems that is changing though.
Real economy is going to happen to Russia, if average person in Russia likes it or not. Small businesses are now gonna get 2-3 year tax breaks and only 3 random audits, as well access to cheaper services. They dont expect oil to go back up so Putin is looking at the alternative: more sales in end products. Their biggest buyers will of course be third world countries. But in that same sense, Russia will face some GDP loss in the next couple of years till the manufacturing and production companies start churning out more goods. In the end, will mean they will have a stronger (maybe not richer) economy than others. Iran did quite well weathering sanctions with domestic consumption and production.
The "services" in Russia are garbage. Go ahead, drop any one of those american SNAP babies into that system and let's see how they do. My point is, Americans think that they understand what real poverty is. They have no fucking clue. Go visit a Russian slum or a Brazialian slum for perspective.
That's precisely what I told Putin to do about a week ago in one of these ZH messages. Further, Putin would not need to set a price as low as $20 or $30. Putin could offer Russian commodities for sale at a 20% premium to the current world price... with a 30% or 40% discount for payment in gold, silver, platinum, non-GMO foodstuffs or other commodity goods.
Think what this would do. Everyone would say to themselves, "I can buy oil and other energy and commodity goods for 10% to 20% discount, and all I need to do is run my fiat through a physical metal exchange first?". That's one enormous freaking savings when it comes to the enormous quantities these goods are regularly consumed. I mean, we're talking billions here, not sofa change!
Of course, that would be the end of fiat money... in quite short order.
Putin would eventually become quite the hero.
What would be funny is... to see what kind of unbelievably contorted lies the predators-that-be would concoct to convince regular folks that somehow offering discounts on energy products constitutes "an act of war" or even "not being a nice guy". Hahaha.
Fed Bernanke: " We had to Fuck some folks "
did Bernanke fuck Janet Yellen....ugh....the thought made me projectile vomit all over my computer...
Holy shit, I lost my lunch .
think you have if backwards
1913 - the year the Fed lost all credibility
20?? - the year the world realizes it
going to??
Yeah, what the hell is this even about?
More of this free floating angst stuff all the time.
A shot....and....a goal...!!!
Hockey sticks are for hockey, not the Fed.
The BOJ should have lost "credibility" a long time ago and "hasn't".
They are working on the credibility thing like the USSA. Who else can carry on the charade buying junk paper from the USSA.
Just one problem. Colvin et al believe they are the puppetmaster, when they are the PUPPET!
WTI down another 4%
i can smell the capex cutbacks / defaults coming
Quite an original thought, since this headline was posted 7 hours before you did:
Conoco Enters Confessional: Sees 2015 Capex Down by 20%
http://247wallst.com/energy-business/2014/12/08/conoco-enters-confession...
I feel I got sucker-punched by some folks. My index finger points at my right jaw. Give it to me. Central bankers are the dumbest people in the world. I just know it.
Thanks. I love this.
They may have had enough but that won't be enough to stop the dollar in the long term. In the short term, however, the dollar is in need of a rest...
http://www.globaldeflationnews.com/u-s-dollar-indexelliott-wave-update-f...
i can't argue with the FR losing cred arguement next year
FR can fake it as long as economy stumbles forward, but once recession sets in ... emperor has no clothes moment
sticking with my US recession starts no later than Q12015 (though might be summerish before bullz start throwing towel)
The Federal Reserve does not have the legal right to manipulate foreign exchange. The US Treasury does as Congress did not give this right to the Federal Reserve. And this makes perfect sense for in a democracy, the elected Govt should regulate its exchange rate.
But it does if it creates enough and it has.
I'll believe it when I wake up some money and the US dollar has been revalued. Until tghen it's more Federal Reserve BS.
Like the Zimbabwe market index hitting 50,000.
Pitchfork, please!
Yea, wait 'till then to come to the conclusion the Fed has no "credibility". WTF, are you kidding me; it's taken you clowns this long?
www.traderzoo.mobi
Yea, wait 'till then to come to the conclusion the Fed has no "credibility". WTF, are you kidding me; it's taken you clowns this long?
www.traderzoo.mobi
Are there any Eurodollar traders who aren't angry?
:)
who are these "eurodollar traders"? how stupid are they?
it's getting easier and easier to make money off of these fools.