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Taper Tantrum 2.0: Emerging Currencies Are Crashing
More bloodbathery. Wherever we look today, things are not going well. While we have become used to day after day of Oil Producers' FX collapsing, today we see the tumble in Emerging Market FX rates begin to accelerate in a very Taper-Tantrum-esque manner. While the Ruble at 64 is grabbing headlines, Turkish Lira is utterly collapsing along with Indonesia and India overnight.
Here is 2013's taper tanrtum tumble inb EM FX...
and now Taper Tantrum 2.0 as FX collapses everywhere...
BTFD though... nothing has changed fundamentally right? "cash on the sidelines" "US only place left to invest in the world..."
Charts: Bloomberg
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Ruble down 8% today alone.
This does not end well...
["Sir, it's your broker on line 2. He said something about a payment on your margin account..."]
It's the cash on the sidelines going for a flight to safety..... or sumpin' long them lines.
PONZI is falling apart. The USD will rally hard before it crashes, as all failed fiat experiments have done so in the past. Is this it?
I think so. I have been predicting Dec. for six months now, so many geopolitical
indicators were pointing at it.
We may get another couple of dead cat bounces, before a total collapse.
Get the hell out of the 'markets' while you still can is my advice, better safe than sorry..
Fuck Janet, print. We are 4% off mutherfucking all time highs!
Not enough fingers for the holes in that dyke.
Update:
Ruble now down 10.26% on the day.
That's gonna leave a mark...
Updated Update:
Down 11.4%
Updated Updated Update:
Down 13.14%
I tried to stick my finger in a dyke once, but she beat me up.
Ahhhaaaah....well done Hey... :-)
So if the dollar rallies hard, the silver and gold will get cheaper-er right nope? so we should load up on the shiney stuff before the dollar pukes too?
If you can find it, buy it.
Did this happen in the lead up to the 2007-2008 crash?
Colombia peso dropping again.....good for me..the price of beer just dropped..
Not if you drink imported.
So if I send mi novia an extra Franklin we might get that summer villa in our retirement plan (40 years from now if we are lucky!!)?
Quick ... somebody cook up a QE4 rumor !
amazing how quickly everything "else" goes to shit when the fed stops printing money. and soon, stocks will join the party to the downside.
10-yr Spanish bonds considered less risky that UK or US equivalents. 1.79 vs 1.83 and 2.12.
In spite of not having any control over monetary policy, high levels of debt, and unemployment galore.
Higher rates in USUK is based on the strength and resiliency of their completely financialized economies. LOL.
This. LOL is right.
No doubt this is all down to ECB QE rumours, which would obviously favour Club Med, but still. I agree the US as well as the UK are basket cases, but Spain is just crazy territory.
crazy, perhaps. but with little debt, remember?
"Only" 120 or so pct of GDP according to credible unofficial estimates
There is control over monetary policy... Germany has it
Gold/oil ratio hitting record highs but unfortmuttley goldminers still weak.
My O'My..........ruble -9%!!!
Dammit muttley do something.
http://m.youtube.com/watch?v=FdghRwWfaOQ
Oops, -10.8%
Oh-Oh..............-13% Yikes and double Yikes.
if after that they keep borrowing in USD I don't get it...all those countries should have dedollarized a long time ago using billaterla swap. What are they gonna do now? now they're all stuck, in the hand of the neocons and the fed.
Read tails of an Economic Hitman, good book and explians why they haven't.
I thought with time they had finally learned the lesson....
It's not "the countries" most of the time, it's the leaders...who (if they weren't installed puppets already) found out quickly they would be dead if they tried to do it. Nail gun accidents galore...
It's time for all the BRICS and other 2nd/3rd world nations to default on all dollar debt and make a new non-Zionist economy excluding all US involvement.
We need to break up the big banks, and then break up Jamie Dimon into smaller, more manageable pieces.
I have a meat cuber and some spare time in January.
Here is the real solution to too big to fail...
http://incapp.org/blog/?p=1861
End of year rally.
But i think this year they got the direction wrong.
is that a 9/11 omen?
I went to buy Taiwan central bank gold bars today. I have a feeling they're going to be a collector's item one day. (China will invade Taiwan). I went to one branch, and they said they were all out, but that their main branch had some. I went there. They said they had 4 left. I bought all four. I hazard to think I just bought the last ones that will ever be sold.
I think if the stock market starts dropping, and gold starts dropping, you'll rush out to buy it, and it won't even be there. That's fucking scary.
When everybody's buying, nobody's selling.
Not just the EM currencies. Ruble trouble will be world trouble:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=usdrub&insttype=&freq=1&show=&time=5
if most EM currencies tank, couldn't that result in EM trading with each other, which may result in less need to trade dollars but their currencies or gold. the result would benefit russia, allowing them to trade less in dollars, and could isolate EU and US rather than damage russia further?
that is what no one has addressed. how much and how fast is the world de dollarizing? if you don't trade in dollars then the dollar value doesn't matter insofar that there is a mechanism to determine value without the dollar.
exactly. as the US pushed russia and china together, it seems the bankers are determined to bring the EM's together and further into russia and china's trading circle. it makes little sense unless the bankers really do want to take down the EU and US?
Makes little sense unless you think of it like a Indian chief moving his tribe after they polluted their surroundings.
Or you could say bankers work just like The Crystalline Entity destroy all living things and move on
The concept of "store of value"comes into play here. You want to sell your collapsing currency in order to get rid of it and obtain something of value in return. Exchanging it for something that is also collapsing in value doesn't sound like a good idea to me.
These currencies are not just collapsing relative to th USD/EUR but also in absolute terms.
Sure you want to pay your help and suppliers in a crashing currency, but you want the real thing from your buyers.
Also,US/Western Europe is where all the customers with money are. Chinese peasants- no money. Indian peasants - no money. Brazilian peasants- no money. Russian peasants - no money.
China, Japan et al did not rise by selling stuff to themselves.
"China, Japan et al did not rise by selling stuff to themselves."
If the US can do it, so can they. It just takes longer. Once the US is no longer there, it will become the only option.
Ruble - 11% Daily from 58.6 to 65 !
The algo are unleashed, George Soros shorting RUB at 20X leverage bitchez.
Russia have her own (financial) terrorist attack today !
How the bear will react ? Have you ever seen a pissed off bear ? Well maybe the last thing that we will see...
.
Brevity is the soul of wit. Especially at the top of the list.
Now say something nice about Russia and you will really get rewarded.
Turkey's president today after shutting down journalists suspected of being U.S. spies: "They cry press freedom, but [the raids] have nothing to do with it. We have no concern about what the EU might say, whether the EU accepts us as members or not, we have no such concern.”
Turkey's currency plunging today. Hmmmm.
Russian pipeline deal=Erdogan out, by hook or by crook.
The strengthening dollar may be sending a signal that the whole system is unstable. 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. The change in currency values may be dramatic and using history as a guide markets often show no mercy when this shift occurs.
For months the major world currencies had traded in a narrow range as if held in limbo by some great force. This has allowed people to think we were on sound footing as central banks across the world continued to print and pump out money chasing the "ever elusive growth" that always appears to be just around the corner. Recently the major currencies have made multi-year highs or lows depending on the match-up.
John Maynard Keynes said By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. While there are not many Bond Vigilantes there are a slew of Currency Vigilantes and they are ready to make their presence known. Weakness in the value of the Yen, Pound, and Euro must not go unnoticed. The article below looks at why this trend may accelerate and cause the stock market to drop like a stone.
http://brucewilds.blogspot.com/2014/10/fed-concerned-that-stong-dollar.h...