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Total Chaos: Massive Market Moves Spark Selling-Panic Into Close

Tyler Durden's picture




 

Perhaps this sums up the day for many FX, bond, equity, and oil traders today...

 

Incredible Volatility today - 100 point roundtrip in the S&P, and 800 points in the Dow - all driven by a halt in Ruble Trading, the European close, and Kuwait pissing on the US market's fireworks...

 

Today's melt-up into the European close was the biggst of the year...

And the volatility was incredible across the entire US equity market - as the S&P ramp ran stops to yesterday's highs then gave it all back...again around the EU close

 

Close-up on S&P 500 e-minis... the machines ran all the stops everywhere today...

 

A massive roundtrip in cash markets...

 

Leaving most of the major indices down over 5% from all-time-highs...

 

Financials starting to show some risk...

 

The Russian markets dominated headlines...

 

but the US credit markets were more worrisome as it appears the risk has finally started to appear in the investment-grade credit market.

High yield bond yields hit 2-year highs... and spreads to 18 month wides...

 

And Investment Grade credit has become infected...

 

Longer-term...

 

Every asset class underwent a roller-coaster...

Treasury yields fell 10ps, rose 10bps then fell 8bps...

 

and the Treasury yield curve is following the exact smae trajectory as it did into the last recession/tightening..

 

Silver and Gold pumped and dumped.. as oil dumped and pumped and dumped...

 

FX markets turmoiled leasving the USD lower on the day but USDJPY wa sin charge of stocks - and major unwinds into the close - which is very unusual ahead of FOMC tomorrow and Japan tonioght

 

Across the asset classes today - these were the events..

 

Finally we wonder... who was this mysterious $3.7 billion trader today...

But don;t forget...

 

Charts: Bloomberg

 

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Tue, 12/16/2014 - 18:13 | 5560324 Grinder74
Grinder74's picture

Most. Transparent. President. Ever.

Tue, 12/16/2014 - 17:17 | 5560035 pragmatic hobo
pragmatic hobo's picture

... your tax dollars at work.

Tue, 12/16/2014 - 17:17 | 5560036 JustObserving
JustObserving's picture

After an 11% fall in Thanksgiving sales, this volatility will cause Christmas sales to fall even more.  The E-trade baby will get a lump of coal unless Yellen levitates markets tomorrow.

Tue, 12/16/2014 - 19:34 | 5560670 mt paul
mt paul's picture

long coal...

Tue, 12/16/2014 - 21:00 | 5560989 supermaxedout
supermaxedout's picture

long peanut butter ,,,,

Tue, 12/16/2014 - 17:17 | 5560037 FrankieGoesToHo...
FrankieGoesToHollywood's picture

The great thing about the market is you dont have to fly to Vegas.  The bad part is no free drinks.

Grabbed som BAC puts.  See where it goes.

Tue, 12/16/2014 - 17:18 | 5560039 Rainman
Rainman's picture

Dude blowing chow really fukked up my enjoyment of the chart porn.

Tue, 12/16/2014 - 17:21 | 5560060 IridiumRebel
IridiumRebel's picture

"chunk porn"

Econ WWIII is on. 

Tue, 12/16/2014 - 17:26 | 5560077 lakecity55
lakecity55's picture

Vlad: "Say hello to my little friend!"

Tue, 12/16/2014 - 17:27 | 5560091 McMolotov
McMolotov's picture

Epic Barf Face FTW.

Tue, 12/16/2014 - 17:57 | 5560248 IridiumRebel
IridiumRebel's picture

That's why you never ride behind the guy that just polished off a 12 pack of Milwaukee's Beast....

Tue, 12/16/2014 - 18:00 | 5560257 fuu
fuu's picture

Is that Joe Rogan?

Tue, 12/16/2014 - 17:20 | 5560042 ejmoosa
ejmoosa's picture

Well, it isn't as if they saved for the day that things may have turned sour.

For they believed their own rhetoric, that they had things under control.

They can state the ends, the goal, the objectives, that they strive for.

Unfortunately, then have absolutely no grasp of the means to accomplish that.

We shall see that more clearly than ever very soon now.

Tue, 12/16/2014 - 17:23 | 5560045 LawsofPhysics
LawsofPhysics's picture

If only they were selling treasuries.... < sigh >

Go ahead Janet, "raise rates", I triple dog dare you.

My Guess is that the Fed will "remain accomodative on rates"...  LOL!!!

Tue, 12/16/2014 - 17:31 | 5560104 Bold Eagle
Bold Eagle's picture

It's almost 2015 and they are still discussing dropping "considerable time", LOL!

Tue, 12/16/2014 - 17:20 | 5560047 DOGGONE
Tue, 12/16/2014 - 17:21 | 5560050 Bell's 2 hearted
Bell&#039;s 2 hearted's picture

I love the smell of napalm at market close

Tue, 12/16/2014 - 17:44 | 5560178 mayhem_korner
mayhem_korner's picture

 

 

When the Dow was +230 around mid-day, CNBC had this nice shot of the eight-red bull-a-day traders fist pumping and high-fiving.  For some inexplicable reason, that pic is nowhere to be found now.

Wonder how many big, celebratory meals bought at lunchtime are making their unceremonious way to the toity this evening...

Tue, 12/16/2014 - 17:20 | 5560051 Gunga
Gunga's picture

None of this will interfere with my plans to go to my alma maters football bowl game will it ? I just need everything to hold together for two more weeks. Then I'll be back home with my guns and wood stove.

Tue, 12/16/2014 - 17:33 | 5560126 Clueless Economist
Clueless Economist's picture

Unless said Bowl Game is the one in the South Bronx where you will be killed by the Hands Up Crowd, you should be fine.

Tue, 12/16/2014 - 18:18 | 5560339 RaceToTheBottom
RaceToTheBottom's picture

FSA franchise going national....

Maybe international.

Tue, 12/16/2014 - 17:42 | 5560175 Ruffmuff
Ruffmuff's picture

Just stay home and watch the 38 other games on teevee.  Then you can chop some wood at half time.

Tue, 12/16/2014 - 18:06 | 5560286 SeattleBruce
SeattleBruce's picture

LOL - that's funny.

Tue, 12/16/2014 - 18:14 | 5560330 The Most Intere...
The Most Interesting Frog in the World's picture

And foam finger.  Sell out.

Tue, 12/16/2014 - 17:22 | 5560056 Goldenballs
Goldenballs's picture

Always darkest before the dawn.

 

Buy Silver and put another nail in the scum that have destroyed our economies and nations.

Tue, 12/16/2014 - 17:41 | 5560168 SmallerGovNow2
SmallerGovNow2's picture

Good day to buy at 5% discount...

Tue, 12/16/2014 - 22:03 | 5561194 mt paul
mt paul's picture

any day

is a good day

 

to buy silver...

and eat seals..

 

helpful hint......

best to buy silver first

or you get blubber and seal slime

all over your keyboard...

Tue, 12/16/2014 - 17:21 | 5560058 Frank N. Beans
Frank N. Beans's picture

roller coaster day.  I left my stomach...in San Francisco...

Tue, 12/16/2014 - 18:16 | 5560337 Winston Churchill
Winston Churchill's picture

In my luggage prolly.

Tue, 12/16/2014 - 19:01 | 5560527 americanspirit
americanspirit's picture

I think we're going to see Silver at $5 before we see it over $20 again. But once it is finished being manipulated lower it will act like a coiled spring and all of us who have dreamed of silver at $100 won't be disappointed.

Then of course the only challenge will be that $100 won't be worth that much in buying power.

Keep your powder dry, and keep some cash at home. But most of all tell those you love that you love them - often.

Tue, 12/16/2014 - 22:10 | 5561244 mt paul
mt paul's picture

silver and gold

are low temperature melting metals

 

easy to cast into idols...

Tue, 12/16/2014 - 17:21 | 5560059 Peter Pan
Peter Pan's picture

Panic will in the end outrun manipulation.

Tue, 12/16/2014 - 18:08 | 5560294 SeattleBruce
SeattleBruce's picture

That and counterparty risk - which happens to be nation's opposing agendas oft times.

Tue, 12/16/2014 - 19:14 | 5560591 Bernoulli
Bernoulli's picture

So true. Maybe already tomorrow.

Tue, 12/16/2014 - 17:24 | 5560061 VegasBob
VegasBob's picture

<- New mantra: STFR - sell the fucking rally...

<- Old mantra: BTFD - buy the fucking dip...

Tue, 12/16/2014 - 17:25 | 5560070 Silver Bullet
Silver Bullet's picture

Sell The Fucking Ruble

Tue, 12/16/2014 - 17:36 | 5560142 FieldingMellish
FieldingMellish's picture

Norwegian Kroner now. Tomorrow its another one. Something Middle Eastern, I think.

Tue, 12/16/2014 - 18:44 | 5560464 Jack Burton
Jack Burton's picture

Let me tell you, this shocked the fuck out of Oslo! These folks are used to stability, prosperity, peace and all that goes with it. Oil rich has turned to oil poor, and this hits the very core of Norway's wealth and social existence. Believe me, if the mass of oil money, to subsidize much of Norway's working class paper pushers in government and contractor jobs, starts to dry up, a major shock will be felt across the entire nation. They are not used to shocks, it has been stable for generations.

Tue, 12/16/2014 - 18:56 | 5560515 DetectiveStern
DetectiveStern's picture

Plenty of cash saved up for exactly this situation though. Norway were the only country to be clever with their oil money.

 

This works on the assumption the fund will still be worth something in a few weeks of course.

Tue, 12/16/2014 - 20:54 | 5560973 supermaxedout
supermaxedout's picture

That is nothing for the Vikings,

Tue, 12/16/2014 - 22:12 | 5561251 mt paul
mt paul's picture

Barny Rubble..

Tue, 12/16/2014 - 17:23 | 5560062 gsh1976
gsh1976's picture

Kevin Henry was the mysterious trader.

Tue, 12/16/2014 - 17:22 | 5560063 Miss Expectations
Miss Expectations's picture

E Trade Chimp on a horse commercial:

https://www.youtube.com/watch?v=ONZFkqzuMjI

Tue, 12/16/2014 - 17:27 | 5560066 FieldingMellish
FieldingMellish's picture

Tomorrow's FOMC is now baked in. If they really are serious about taking away the punchbowl, tomorrow is the day Yellen shows us her hairy scroat or any meagre CONfidence  anyone has left in the Fed is gone.

Tue, 12/16/2014 - 18:11 | 5560315 The Most Intere...
The Most Interesting Frog in the World's picture

I bet anyone $100 Yellen lifts up her granny skirt and pulls out 8" of Bernanke love sausage tomorrow.  And CNBC won't even cover it.

Tue, 12/16/2014 - 17:23 | 5560068 lakecity55
lakecity55's picture

"Something's gonna blow men! Get yer hardhats! Run!"
"Where???"
"I don't know! Hide under your desks!"

Tue, 12/16/2014 - 17:39 | 5560144 Squid Viscous
Squid Viscous's picture

LOL, bunch of pussies ... I shared an apt. with "Wall St. boxing champion" back in the day, if he was the best they have, they better hope the NYPD has their back when SHTF

Tue, 12/16/2014 - 17:26 | 5560071 Squid Viscous
Squid Viscous's picture

Got massively long at the close ... overnight algos work your magic!!

they can't let this mkt really take a dump until 2015... 

Tue, 12/16/2014 - 17:29 | 5560093 yogibear
yogibear's picture

That's right. Wait until it's hacked into and the Russians and Chinese toy with the algos.

Tue, 12/16/2014 - 17:47 | 5560205 Ruffmuff
Ruffmuff's picture

Chiner is dialed in already. The laggard is the ruskies. The globalists' are losing their patience. At least you can gas up on the cheaps this week, save enuff money to buy a hot and ready pizza with fake cheese.

Tue, 12/16/2014 - 18:08 | 5560296 The Most Intere...
The Most Interesting Frog in the World's picture

I just heard a squirt.  Clench ass cheeks NOW!!!

Tue, 12/16/2014 - 17:26 | 5560074 Motorhead
Motorhead's picture

Charts, bitchez (and Ralph)!

Tue, 12/16/2014 - 17:25 | 5560078 insanelysane
insanelysane's picture

Hackers switched the buy button and the sell button at the end of the day.

Tue, 12/16/2014 - 17:27 | 5560081 yogibear
yogibear's picture

Obama and the Federal Reserve Banksters f 'd everything up.

Nice job!

All we need know is WWIII to complete the destruction.

Tue, 12/16/2014 - 17:53 | 5560232 saints51
saints51's picture

Thats giving obama wayyyyyy to much credit. Now the Fed,yeah they fucked some folks.

Tue, 12/16/2014 - 17:27 | 5560085 wmbz
wmbz's picture

Only one way to sum this up.... Bullish!

'Ol J.Yellen is gonna have to be twerking all over her/his keyboard to get this mutha turnt around!

Please sir may I have some MOAR!

Tue, 12/16/2014 - 17:27 | 5560089 jubber
jubber's picture

Time for panic in babylon lee scratch perry https://www.youtube.com/watch?v=F8cXSqB5j0M

Tue, 12/16/2014 - 17:27 | 5560090 Squid Viscous
Squid Viscous's picture

Turn those machines back on!

Tue, 12/16/2014 - 17:30 | 5560103 Eagle Keeper
Eagle Keeper's picture

Maybe the Saudis knew there was a new source of cheap, clean energy being developed and wanted to squash it's development. Maybe the Russians knew this too. Malaysian airliners were carrying lots of scientists....

Tue, 12/16/2014 - 17:33 | 5560117 Ginsengbull
Ginsengbull's picture

If any cheap clean source of energy were invented or discovered, it would be "priced competitively".

 

They want ALL of the money.

Tue, 12/16/2014 - 17:51 | 5560222 Ruffmuff
Ruffmuff's picture

Cars can run off of hydrogen. Honda has it, but oil lobby cartel is much too powerful.   

Tue, 12/16/2014 - 18:01 | 5560264 Duc888
Duc888's picture

 

 

Actually you can build one yourself.

https://www.youtube.com/watch?v=rfBdPKxk35k

 

Tue, 12/16/2014 - 19:47 | 5560725 tarabel
tarabel's picture

 

 

Dang, and I just sold my last surplus particle accelerator yesterday. Still interesting.

Tue, 12/16/2014 - 18:04 | 5560272 Overfed
Overfed's picture

Not only that, but hydrogen production is negative in energy terms. Takes a lot more energy to make hydrogen than you get out of burning it.

Tue, 12/16/2014 - 19:06 | 5560553 CoastalCowboy
CoastalCowboy's picture

True, but 2H2 + O2 => 2H2O is a hell of an efficient way to store energy until you need to unleash it at least until we figger' out what powers them UFOs.....

Tue, 12/16/2014 - 20:02 | 5560775 Duc888
Duc888's picture

....depends on what power source you use to break water apart.  They haven't figured out a way to "charge" you for sunlight as of yet.

Tue, 12/16/2014 - 18:03 | 5560278 Ginsengbull
Ginsengbull's picture

It's expensive.

Tue, 12/16/2014 - 18:18 | 5560348 delacroix
delacroix's picture

the hydrogen comes from natural gas

Tue, 12/16/2014 - 20:02 | 5560777 Duc888
Duc888's picture

 

 

please elaborate.

Tue, 12/16/2014 - 20:11 | 5560820 Ginsengbull
Ginsengbull's picture

They crack natural gas over an iron oxide catalyst at high temperature.

 

Then they compress it to cool it, because it has a negative joules thompson coefficient above 40 degrees kelvin.

 

At 40K, they expand it to cool it further, like any other cryogenic gas.

 

During the cooldown, various impurities liquefy and drop from the gas stream at various temperatures, mostly co2.

 

This process is cheaper than electrolysis of water on a large scale.

Tue, 12/16/2014 - 18:57 | 5560517 sleigher
sleigher's picture

Boeing admits to antigravity tech...  Article written by guy from Janes Defense Weekly.  Nick Cook.

http://www.ufoevidence.org/documents/doc1064.htm

So there is definitely some new clean source of energy, it just isn't hydrogen...  I think we may be sitting in it right now.

 

Tue, 12/16/2014 - 18:43 | 5560459 Dapper Dan
Dapper Dan's picture
Wednesday, April 17, 2013
Petroleum Price and Clathrates Petroleum Price and Clathrates Andre Willers 17 Apr 2013 Synopsis: A fierce price-war between Clathrate and Fracking energy production will drive the Petroleum price down to the $36-$72 per barrel range much sooner than previously estimated .  
Discussion : 1.Natural gas production by fracking is already a boom industry . Natural gas prices in the US is about 25% of that in Japan or China . 2.Japan is totally dependant on imported energy , except nuclear . And that is being scaled down . But it has large clathrate reserves .So no wonder it has force-developed the technology to extract methane from clathrates . See Appendix A . 2.They estimate large-scale production by 2018 , but they are in a race , both price-wise and strategically with shale-gas produced by fracking . Humans can actually get a move on in situations like these . So , expect production within about 1/3 x(2018 – 2013) =  1.6 years  ie  2014. http://andreswhy.blogspot.com/2013/04/petroleum-price-and-clathrates.html
Tue, 12/16/2014 - 17:30 | 5560105 Ginsengbull
Ginsengbull's picture

I would have gladly invested 10k in Rubles to get 17%.

 

Nowhere else can you get that return.

 

The Ruble can't fall much further.

 

But noooo. They have to stop trading them.

 

Sons of bitches want to get them all for themselves.

Tue, 12/16/2014 - 17:53 | 5560221 The Most Intere...
The Most Interesting Frog in the World's picture

Goldman is backing up the truck right now.

Tue, 12/16/2014 - 17:31 | 5560108 Zymurguy
Zymurguy's picture

Problem with someone getting sick in the front car... everyone's gonna get a mouthful.

Tue, 12/16/2014 - 17:31 | 5560109 Arthur Schopenhauer
Arthur Schopenhauer's picture

Nowadays when we hear the word "fool" we think it means someone who is stupid.

According to the holy bible, the word "fool" refers to someone who is morally deficient.

But then, the word used in Matthew 5:22 is the hapax legomenon rhaka, which comes from the Aramaic word reyq. That word, in turn, comes from the Hebrew ruwq which has a primary meaning of: to make empty, to empty out.

Tue, 12/16/2014 - 17:33 | 5560119 lovemesomeZH
Tue, 12/16/2014 - 17:45 | 5560185 SilverIsMoney
SilverIsMoney's picture

Too many are awake now for this to work.

Tue, 12/16/2014 - 18:34 | 5560413 NotApplicable
NotApplicable's picture

Yeah, riiiiiight. Go out on any street and start asking people about "WTC 7" and see how many blank stares you get.

They fuckin' assasinated JFK in broad daylight and got away with it.

"Go back to sleep!"

Tue, 12/16/2014 - 17:33 | 5560121 spinone
spinone's picture

When they finally pull it, it will be no accident.  Maybe now, maybe later. 

Tue, 12/16/2014 - 17:32 | 5560123 yogibear
yogibear's picture

Russian, Chinese, Iranian and North Korean hackers,

Get ready to mess with Wall Street.

It's the ultimate challenge.

Tue, 12/16/2014 - 17:34 | 5560127 falak pema
falak pema's picture

Is Zeus pissing on the planet?

Is Poseidon sending his tsunami ? 

Mortals now facing the coming big one?

Tue, 12/16/2014 - 17:36 | 5560135 U4 eee aaa
U4 eee aaa's picture

It looks like they picked on the wrong market to poke

Tue, 12/16/2014 - 17:38 | 5560152 FieldingMellish
FieldingMellish's picture

Looks like I picked the wrong day to ride a rollercoaster.

Tue, 12/16/2014 - 17:35 | 5560129 U4 eee aaa
U4 eee aaa's picture

With all that banging and crashing in the small dark room and the blood seeping out under the door. How long before the door opens and dead bodies start emerging? When do the Lehmans of 2014/15 start showing up? That's when this game is really going to get serious and the gears really start to bite

Tue, 12/16/2014 - 17:34 | 5560130 jubber
jubber's picture

LOL WTI just woke up and is dumping

Tue, 12/16/2014 - 17:36 | 5560133 Q-Q-Q
Q-Q-Q's picture

QE tsunami outa the blue as equities falling will not be tolerated??

 

We need more central bank speak, simply not enough currently and the junkies need their fix.

Tue, 12/16/2014 - 17:37 | 5560141 Cannon Fodder
Cannon Fodder's picture

So who ever it is that has been propping up the market over the last several years - the Fed (?) - what happens when the market starts going down? Do they just sit on their losses? Or do they start selling as well causing a full on route?

Tue, 12/16/2014 - 17:54 | 5560234 U4 eee aaa
U4 eee aaa's picture

Just know that they have been planning for this. Bubbles never pop unless there is some prick around

Tue, 12/16/2014 - 18:04 | 5560275 The Most Intere...
The Most Interesting Frog in the World's picture

Shit the Fed holds $4 trillion in tresuries, MBS and GSEs, where rates are going to where?  Zero?  They are rebating the vast majority of the interest back to the Treasury, but what about the gains?  At some point they could probably easily unload most of that, and may need to as things go illiquid.  Monstor appreciation for the Feds holdings while the stock market dives in to oblivion.  Hmmmm....

Tue, 12/16/2014 - 18:07 | 5560295 Fun Facts
Fun Facts's picture

We haven't seen a real "correction" since 1987.

After that, they started dabbling in the PPT. This has caused a PE expansion over decades as the risk of owning shares has become mispriced.

After 2008, it became full time all the time market management, to the point that there is nothing but air in the market today. Air and open market operations.

On fundamental business ratios [funnymental ratios today], DJIA is buy at 3600. I make that point to illustrate how far from reality we are.

Tue, 12/16/2014 - 18:22 | 5560370 Winston Churchill
Winston Churchill's picture

How much did you discount for outright fraud in the accounting ?

Tue, 12/16/2014 - 18:14 | 5560331 dexter_morgan
dexter_morgan's picture

whichever it is, they no doubt have gamed it out.

Tue, 12/16/2014 - 17:39 | 5560145 Peter Pan
Peter Pan's picture

The fans are spinning at almost top speed, so the shit is sure to travel far and wide. A gold suit with a silver lining is recommended.

Tue, 12/16/2014 - 17:41 | 5560166 Ghordius
Ghordius's picture

poetic, +1

Tue, 12/16/2014 - 17:38 | 5560150 anonnn
anonnn's picture

Posts on remedies for Russian Financial system

 

Bring on the Rentenruble. Kill speculation.

 

Hjalmar Schacht stopped the foreign speculators attack on the German Mark by substituting the Rentenmark which was only accepted in Germany and not Legal Tender for foreign transactions by pure speculators. He also stopped too-easy credit/money creation.

 

The Rentenmark was backed by land and other industrial hard assets , so was accepted for use by the German people. That ended the Weimar inflation and caused speculator losses among the foreign speculators because the Reichsbank refused to convert their "profits" of US Dollars bought with promise to pay in Marks, instead issuing only Rentenmarks for the USD. [The sellers of USD demanded payment in Marks, which were Legal Tender so good for international trade. The specs expected to pay by waiting until the Mark weakened, using some of their hi-valued USD to payoff their borrowings with cheapened Marks. Instead, the Reichsbank gave them 1 Rentenmarks per BILLION Marks ratio for their profferred USD.]

 

 

Thusly was the "carry-trade" smashed.

 

 

[Note: actually the ratio was 1 Trillion [1,000,000,000,000] in US number system in which US Billion = Thousand-Million. In European system, in which Billion = Million-Million, that same 1,000,000,000,000 is called Billion.]

 

 

 

 

========

 

Re: using a Rentenruble to stop foreign speculative attack on the Ruble:

 

Also, to prevent the abuse of using the central bank to discount notes [a form of abuse of excessive credits], thereby gaining foreign exchange to increase hoarding of foreign currencies, Schacht put a full stop to central bank discounting. Thus for example, corporations who were hoarding valuable foreign currency were forced to spend it as working capital. {Even though the bank would apply a discount rate to supposedly discourage too-easy credits, the devaluation rate of the Mark was far greater than any discount and too-easy credit the result.]

 

==============================

 

 

 

re Hjalmar Schacht and Germany's hyperinflation remedy:

 

Clearly I am not a scholar nor do I have any first-hand knowledge of events.

 

I do have a crude, working knowledge of what transpired which, however mild and incomplete, seems useful and instructive.

 

Schacht later wrote that the Rentenmark itself did not stop the inflation. Rather, it was his "credit bar" that ended it.

 

That "credit bar" was the Reichsbank total refusal [on Schacht's order] to discount bills which it had been doing excessively and causing the flood of credit/excess money creation. Hence, the inflation. Foreign interests that benefited from a weakened Germany were active in the scheme.

 

The Reichsbank was a complicated private-central-bank affair that begs clarification to help understanding. It had the flavor of the modern US Federal Reserve. Because it was wrongly seen as simply a government-controlled bank that caused the hyperinflation, it was later often used an example of why a central bank must be private and independent of the government.

 

If there is interest, I will explain further in some detail.

 

=====================================

 

 

A ban on naked short-sales [selling what is not actually owned] to stop attacks on the Ruble may be impractical as it lacks any controls over foreign transactions and Currency Exchanges. A "Rentenruble" or 2nd currency for domestic use only, would permit easier control of foreign Ruble transactions. A "'Rentenruble " backed by hard assets would be quickly accepted by Russians internally. It would "temporally" replace the Ruble [legal tender], so Rubles would not be available at any central-bank mechanism for Ruble covertability, only the Rentenruble would be availble [which because it would not be legal tender, would be useless for trade outside Russia and thus stop foreign speculation attacks.

 

 

From Account Settled, Hjalmar Schacht 1949
". . . By the autumn of 1923 the unrestricted depreciation of the currency had reached such a pitch that it threatened to break up the whole structure of Germany’s national life. Wage-earners’ wives were in despair. Whenever they went out to buy food they were involved in a hopeless struggle against the depreciation of the mark. The wages of their menfolk ran through their fingers like water even when, as was finally the case, they were paid daily, In this extraordinarily difficult situation the authorities called upon me to put a stop to the depreciation of the mark and stabilize the currency. . . .

 

All in all, this struggle with the speculators over the rate of exchange lasted eight months. It was waged with vigour and determination, and private interests were ruthlessly ignored in the interests of the community as a whole. My victory did not make me popular . . . Even the experts did not always grasp my methods, which contradicted every classical theory, and the great mass of the people naturally failed to understand the significance of what was taking place. . . It was in this period that the press first dubbed me a ‘Financial Wizard’, because in money matters in particular the simple and the natural is the most difficult to grasp.

...But everything depends on initiative, on the ability to seize an opportunity, on vigorous action. All those currency projects which embody new ideas and suggestions for establishing automatically functioning principles are fruitless. It is not a question of the percentage of gold or bills behind the notes in circulation, or of note control, or the discount rate, but simply and solely a matter of the temperature and the pulse of economic life. In monetary policy, just as in medical therapy, correct diagnosis is the secret of successful treatment. All that is required after that is vigour and determination in carrying out the recovery plan. "

 

So a remedy should be boldly clear and thus easy to implement.

 

That is guidance for all who hope to remedy a problem.

 

 

 

Tue, 12/16/2014 - 18:48 | 5560483 RMolineaux
RMolineaux's picture

Very well said. I hope they are reading this in Moscow.  Putin will have to crack heads on some of his oligarch friends.

Tue, 12/16/2014 - 17:38 | 5560151 SheepDog-One
SheepDog-One's picture

Wow an entire years worth of 'normal' market volatility in 1 day! I'm sure all the retail sheeple are feeling really confident to shop big time on credit here.

Tue, 12/16/2014 - 18:21 | 5560360 RaceToTheBottom
RaceToTheBottom's picture

Imagine how bad it would have been in a Gold backed financial system....   Whheww

Tue, 12/16/2014 - 17:39 | 5560154 f16hoser
f16hoser's picture

I wouldn't touch the S&P 500 until I see at least 700 to 800... Shit, it might go lower than that. The IMF has all but told the Treasury to go fuck themselves. Add-in a Gold backed Rouble and you got a falling stock market. I don't give a Flying Fuck what Harry Dent has to say...

Tue, 12/16/2014 - 17:40 | 5560162 SheepDog-One
SheepDog-One's picture

Ha Ha take THAT Putin!
Oh wait....

Tue, 12/16/2014 - 18:13 | 5560319 dexter_morgan
dexter_morgan's picture

we outmaneuvered some Zionists..... at least temporarily

Tue, 12/16/2014 - 17:45 | 5560181 Al Huxley
Al Huxley's picture

Just fade whatever action their is at the open, book your profit and then go long into the Fed speak, and short gold miners on any rally, especially if it's a reflex response to Fed speak.

Tue, 12/16/2014 - 17:47 | 5560199 IridiumRebel
IridiumRebel's picture

....you got this, Al.

Tue, 12/16/2014 - 17:53 | 5560225 Squid Viscous
Squid Viscous's picture

exactly whenever these filthy fed kikes say anything stawks love it, they are backed in a corner and the only option is to be more dovish,  

Tue, 12/16/2014 - 17:47 | 5560191 buzzsaw99
Tue, 12/16/2014 - 17:46 | 5560192 yogibear
yogibear's picture

"The IMF has all but told the Treasury to go fuck themselves. "

 

LOL, Christine Lagarde said she wanted Chinese takeout in the future.

The International Monetary Fund’s headquarters may one day shift to Beijing from Washington"

 

- Christine Lagarde

http://www.bloomberg.com/news/2014-06-06/beijing-based-imf-lagarde-ponde...


Tue, 12/16/2014 - 17:50 | 5560216 lakecity55
lakecity55's picture

Christine: "If you solve my numbers puzzle, you will all be in for a big shock!"

Tue, 12/16/2014 - 19:11 | 5560583 sleigher
sleigher's picture

So it's true then that Citibank is moving their corporate headquarters to the floor of the House of Representatives?

Tue, 12/16/2014 - 17:48 | 5560197 SparticusUK
SparticusUK's picture

Watch that collar boys - don't chance gold shorts 

 

FFS - Do not BTD

Tue, 12/16/2014 - 17:48 | 5560200 LeftyGoldblatt
LeftyGoldblatt's picture

What is "Investment Grade Credit" ?

Is it not all garbage now after the rating agencies shown themselves to be useless?

Tue, 12/16/2014 - 17:48 | 5560202 himaroid
himaroid's picture

I feel like Lorena Bobbit talking to Janet Reno.....

"Get it up bastard, so I can cut it off!"

Tue, 12/16/2014 - 17:49 | 5560207 franzpick
franzpick's picture

Worst market reversal in years: we're talking possible circuit breaker moves here, led by techs and PMs doing the heavy lifting in the downside price discovery.  Six months ago I said it was time to start stacking cash, and the monthly AG chart tells me it will pay off when silver bottoms at $10, and AU at $999, when prepper-stackers are demoralized, and the cash has all been used up buying on the way down. Look at the $7 silver collapse during Jul-Sep. '08 to get a picture of how it could happen again during world defaults after citizens worldwide have given control of their 'monetary systems' to the bankers and politicians:

http://www.investing.com/commodities/silver-advanced-chart  Look at the Monthly.

Tue, 12/16/2014 - 17:54 | 5560228 SilverIsMoney
SilverIsMoney's picture

You are completely right... I stopped my monthly PM purchases in October when the deflation became obvious in September. I'm waiting for that Lehman moment when PMs die with everything else.

Just remember when silver is $10 and Gold is sub $1000 you won't find a single OZ of Silver on sale for less than $15 and not a single OZ of gold less than $1100. The premiums in 2008 were insane. Silver was at $9 if I recall correctly but there wasn't an OZ to be found under $15.

Last month GOFO went all-time negative with gold at $1130... nothing would please me more than to see them lose control of the PM price to the downside only for it to cause a major delivery failure in the mix of a total equity collapse.

Please Santa... that's all I want for Christmas... cheaper PM prices, a total equity collapse, and a major delivery failure. Is that so much to ask? ;)

Tue, 12/16/2014 - 18:15 | 5560338 Pareto
Pareto's picture

+1 thats funny - cause i can actually here the sincerity! he he heee

Tue, 12/16/2014 - 19:57 | 5560764 franzpick
franzpick's picture

Thanks SIM for your serious honesty about your view of the probable impending collapse. Too bad such a majority aren't ready for the truth, or more likely are trying to obscure perception of what's about to happen.

Wed, 12/17/2014 - 00:01 | 5561650 Harry Dong
Harry Dong's picture

Ahh, not alone there. I've canceled my monster box at 15 order-replaced it with an order at 12. No need to waste fiat yet.

Next move is to get as many 30 yr mortgages and buy as many points as possible.

Wed, 12/17/2014 - 03:27 | 5561967 joego1
joego1's picture

It's all relative to toilet paper.

Tue, 12/16/2014 - 19:42 | 5560701 ghostzapper
ghostzapper's picture

Generally with you conceptually.  My analysis says Silver at 13ish may be the bottom finally and if not 8ish unfortunately.  Gold at 950-1050 (I know an absurd range but you get my drift).

I kept saying wait here for many, many months most people here probably don't care for me.  I said 1150ish and we got that.  Then I said 1272ish and to be honest I'm completely flummoxed here.  This cocksucker is not showing as much juice as I would like to see to get there before the final leg down. 

Something is brewing in a very big way says my idiotic, useless brain. 

Of course intervention could change everything and I can't project the timing on that.  I'm thinking the game over, reset is quite possible as the next big event. 

Tue, 12/16/2014 - 17:50 | 5560212 buzzardsluck
buzzardsluck's picture

Reminds me of when I puked into some kid's hooded jacket (Starter jackets? whatever was popular at the time) at the UT/a&M game back in the 90's.  Life lesson learned, never try to apoligize while still needing to vomit.  Whole thing was surreal and I still remember his families faces.  

I laugh about it now, him probably not so much.

Tue, 12/16/2014 - 18:02 | 5560266 Ginsengbull
Ginsengbull's picture

You son of a bitch.

 

That kid was ME!

 

I've gone through decades of therapy, hypnosis, and mind altering drugs to block that out, and NOW, when the financial world is falling apart, you HAD to bring that terrible memory back to haunt me AGAIN!

 

I can still smell it like it was yesterday.

Tue, 12/16/2014 - 17:52 | 5560223 will ling
will ling's picture

eu close real suspicious.

Tue, 12/16/2014 - 17:53 | 5560233 The Most Intere...
The Most Interesting Frog in the World's picture

We soiled some folks.

Tue, 12/16/2014 - 18:09 | 5560309 IridiumRebel
IridiumRebel's picture

Fuckin shit never gets old.....

Tue, 12/16/2014 - 18:01 | 5560256 Gringo Viejo
Gringo Viejo's picture

Nice pic. Beer can be a bitch in the wrong body.

Tue, 12/16/2014 - 18:09 | 5560307 1stepcloser
1stepcloser's picture

so can sperm... 

Tue, 12/16/2014 - 18:12 | 5560326 bid the soldier...
bid the soldiers shoot's picture

and plutonium

Wed, 12/17/2014 - 03:46 | 5561984 MolotovCockhead
MolotovCockhead's picture

New advertisement for selling Obamacare after Grubergate?

Tue, 12/16/2014 - 18:05 | 5560289 eddiebe
eddiebe's picture

Pretty sad when we have to wish for a total melt-down in the markets for the holidays.

Wed, 12/17/2014 - 03:25 | 5561966 joego1
joego1's picture

I know, Merry Vixmas brother.

Tue, 12/16/2014 - 18:07 | 5560297 MemoryPrintBoutique
MemoryPrintBoutique's picture

isn't the market suppose to crash every seven years, looks like perfect timing, them  testing us with a little panic nudge before the big one

Wed, 12/17/2014 - 03:09 | 5561951 bid the soldier...
bid the soldiers shoot's picture

 

That was before they started manipulating markets in 4107 B.C.

Tue, 12/16/2014 - 18:12 | 5560308 bid the soldier...
bid the soldiers shoot's picture

 

'Twas the volatility before Christmas and all through the net

The traders were sweating, their panties were wet

Their heads hung down low, tears ran from their eyes.

None had expected the ruble's sudden demise.


Sugar in her thong and me in my sheath,

 Had started to tumble (with me underneath.)

When out in the car port I heard such a racket

I reached for my roscoe with full metal jacket

When what to my wondering eyes should appear.

But eight tiny tylers in spandex tres sheer.

With a middle-aged editor so chubby and bald

I had to look away, I was really appalled.


More rapid than HFT, his monkeys they came

He hooted and hollered and called them by name

Now, Jimbo! now, Jumbo! now Doofus and Fumble!

On, Bimbo! on, Dumbo! on Snake Eyes and Mumble!

That's all I remember, on my face came a grin

Sugar was on it.  My Viagra had kicked in.

Tue, 12/16/2014 - 18:12 | 5560313 Shed Boy
Shed Boy's picture

I bought me some more Gold miners...real cheap like.

Wed, 12/17/2014 - 03:29 | 5561964 joego1
joego1's picture

I bought some as a final fuck you to the market when I took out my 401k and made it self administered. I still have them, they are my canary in a squid mine.

Tue, 12/16/2014 - 18:12 | 5560314 Hagen
Hagen's picture

Did the mysterious trader, it buy or sold? If it bought it is good sign

Tue, 12/16/2014 - 18:11 | 5560316 gdogus erectus
gdogus erectus's picture

Why are their mouths all open?

Tue, 12/16/2014 - 18:14 | 5560328 1stepcloser
1stepcloser's picture

they are saying ooooooohhhhhh fuuuuuuuuckkkkkkk

Tue, 12/16/2014 - 18:45 | 5560342 MemoryPrintBoutique
MemoryPrintBoutique's picture

looks like bad finacial shit coming out of their mouths

 

 

Tue, 12/16/2014 - 18:12 | 5560325 Wahooo
Wahooo's picture

The market's twitching body just before death.

Tue, 12/16/2014 - 18:16 | 5560333 bitterwolf
bitterwolf's picture

I LOVE THAT PIC

Tue, 12/16/2014 - 18:17 | 5560344 HardlyZero
HardlyZero's picture

Let us all remember that today was ***> TUESDAY <***

The most levitated day for the last few years.
How many Tuesdays have been up during all the QE's...many.

If this is the BEST day this week (with the week high?) then watch out the next 3 days !!!

Today may have been the weekly high.

Tue, 12/16/2014 - 19:05 | 5560550 Dapper Dan
Dapper Dan's picture

and friday is

'Quadruple Witching day'

http://mam.econoday.com/

 

or 'Scotch and Popcorn day'

Tue, 12/16/2014 - 18:18 | 5560350 The Most Intere...
The Most Interesting Frog in the World's picture

https://www.youtube.com/watch?v=A_sY2rjxq6M

 

Dudes were some bad mothers!

Tue, 12/16/2014 - 18:40 | 5560361 Fuku Ben
Fuku Ben's picture

The Winter Solstice is almost upon us and the satanists are going all in for a big day

http://www.zerohedge.com/news/2014-12-11/what-do-they-know-cme-implement... *

*Effective date 1221

Tue, 12/16/2014 - 18:24 | 5560379 WorkingPawn
WorkingPawn's picture

A lot of us predict a period of deflation in the next crash before the inflation kicks in.  Cash will be king during this period as all of the players sell everything that isn't nailed down to cover their bad bets and bad loans in the market.

Once the panic selling ends and people wake up to the bank derivatives disaster and Fed's latest bubble popping, then I think the gold/silver stackers will not be sorry.  Unfortunately I'm also betting the governments and banks will demand even more radical intervention at this point.

On the positive side, there is a glut in the centerfire ammunition market at the moment after the shortages the last few years, so some great discounts can be found this holiday season ;)

Tue, 12/16/2014 - 21:53 | 5561152 Borrow Owl
Borrow Owl's picture

"..there is a glut in the centerfire ammunition market.."

Fuck that.

I handload all of my centerfire stuff.

What I want is a glut (or at least a wee bit of waterboarding for the gougers/hoarders) in the rimfire market.

It's truly a sad day in the history of our (now defunct) republic when my 10/22's have become safe queens due to the fact that it's now cheaper to pop gophers & jackrabbits with my .444 Marlin(s) than it is to dip into my meager supply of .22LR.

 

 

 

Wed, 12/17/2014 - 03:22 | 5561960 joego1
joego1's picture

Ever since Obolarang came to office you can buy pallets of .233 nato green tips but can't buy a box of .22s? Wat up?

Wed, 12/17/2014 - 02:02 | 5561875 OhNo
OhNo's picture

Yeah all yr cash can go towards the bail in when the penny drops gold wont be going down this time.

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