This page has been archived and commenting is disabled.
The Euro Crashes To 12 Year Lows And Now The US Commerce Secretary Starts To Grumble About A Strong Dollar
A crashing Yen failed to help Japan or fix its economy, but while Japan may now be a lost cause, the Keynesian masterminds of the world will give it another try, and following today's Draghi's announcement, the EURUSD has crashed to the lowest level since 2003, tumbling over 200 pips, and printing below 1.14 moments ago.
And since it is a zero-trade sum world, now that the exports of Europe - the single largest economic block in the world - are cheap enough to compete with Japan's just as cheap, thanks to currency debasement, goods and services in the global arena, it means that the biggest loser is obvious: the United States, whose currency has soared to nosebleed levels on expectations that the Fed will hike and that the US will somehow decouple from a world that is drowning in economic malaise.
However, in a clear indication that the party for the USD-bulls may be ending, none other than the US commerce secretary moments ago said the impact of a rising dollar on exports and economic growth bears monitoring.
According to Bloomberg, asked at the World Economic Forum’s annual meeting in Davos, Switzerland, whether a climbing greenback could drag down U.S. trade and economic expansion, Pritzker said “it’s a factor and something to keep an eye on.”
Pritzker said the challenge was to ensure U.S. businesses could be innovative and productive enough to attract demand regardless of the vagaries of currencies or the world economy.
Yes: it is a challenge when increasingly troubled importers could care less about innovation when the only thing that matters is the local currency denominated bottom line.
And this is something Pritzker knows too well. So the question is - how long until she speaks to none other than Jack Lew, who in turn convews a message to Janet Yellen, forcing her to "patiently" remind the market that the US never has, and never will, decouple from the rest of the world, and that unless the US wants to go straight from 5% Obamacare-boosted "growth" to recession, it too will have to join the devaluation party.
Lastly, considering the everyone is now long the dollar, the macro devastation that would result if the Fed also pulls an SNB and surprises the market, will be one for the generations.
- 18908 reads
- Printer-friendly version
- Send to friend
- advertisements -



However, in a clear indication that the party for the USD-bulls may be ending, none other than the US commerce secretary moments ago said the impact of a rising dollar on exports and economic growth bears monitoring.
lol, "bears monitoring."
KING DOLLAR. THE MIGHTEST OF CURRENCIES.
Tick tock, tick tock, BOOM! Motherfuckers!
Tooo fkn funny....this is a total clown act ..........Queue Joe Kiernen licking another bankers boot
Strong $??
No problem.
Solution?
Raise interest rates!!
Interesting - the size of this thing; to wit: Print a trillion Euros (a Trillion!), and things change by just a couple cents. Although I understand this adds up over time, still ... just doesn't seem very significant. I mean, does it really (really) make a difference if gas is $1.99 a gallon instead of $1.97?
yes, it makes a huge difference. Imaging you are a distributor that buys in Euros and sells in USD. You have a project payment due for 400k Euros. The project was started 4 months ago. You are now 40k+ richer. I know.. I use to do this.. I was usually taking hits in the other direction. I usually only gave myself about a 5% buffer before my margin started taking a hit. When it went in my favor, paydays got big.
IF they dont like the /DX @ 94.5 they are gonna hate it @ 160!
Go ahead... Weaken the Dollah.. I dare ya..
Cause China will dump it in a heartbeat and then good luck selling US Treasuries again!
you got it backwards
china will be forced to dump peg if usd continues to STRENGTHEN
china's exports are being priced out of the competition
hi ho the derry-o, a printing we must go!
Wouldn't a strong dollar buy more Chinese shit? When did the US start exporting stuff?
They already dumped the 'peg'. Its not like they were going to make an official announcement.
American car makers will also get a serious hit.
Maybe time to put some skin into it and buy a put on ford and gm
To weaken the dollar back to 1.35 to the euro they need a QE4 of 2 to 3 trillion... the pase of printing just keeps getting bigger and bigger.
I bet the US will go all in before may
Here in the U.S., today's incremental rise in the price of gold/silver is masked by today's USD strengthening. Otherwise, it would be twice as large as it is.
Come May, when the FED's next round of QE is announced, the PM's should soar (in USD, that is).
If the 'fix' isn't in, of course.....cough cough....ahem.
cool video..Thanks for that.
Video is a good analogy. We are at that point very shortly before the explosion. No telling for sure when... until.... BOOM!!!!
Our new Motto: We print more, because it's worth more....
Currency Limbo - Race to the Bottom. Next Contestent - How Low Can You Go?
What is the Euro in gold?
Bullion is over 17% higher and deliverytime is over 3 weeks besides the numis gold but those are even more expensive.
I’m waiting now already for 4 weeks after my silver over here...
but my german and french orders did already arrive.
have no fear, mr prick, the strong dollar problem will resolve itself, never to return again.
What an upsidedown, backwards, cluster-fuck of a world we have where a strong currency is frowned upon. Orwelian double talk for sure.
Fuck this place, this is bullshit, I'm outta here - Me.
Everything is just peachy here on the sun deck of the Titanic......
Yep, the music is dreamy and the Martinis are very dry...
Wait...What the hell was that noise? Did we hit something?
Naw, keep dancing.
vagaries? vagaries my ass.
Buy Krone !!!
If you don't like a strong dollar just wait a while. Old Yeller has a bone buried for that problem.
Actually, a strong dollar like this will destroy the tourisme from europe.
America is now almost 20% more expensive and just as the west america trips where getting very popular in europe.
And for a lot of small towns in west America, tourisme is all they have!
Meh. Whiny industrialists. Do they come any other way? First they get free energy, then they get free gold...and now they want a worthless dollar.
Oh, wait. That's Kelly Pritzker. She's in the media business. "Got a media empire to unload.". You would think she would want a STRONG dollar to do that. Very confusing.
High oil prices are horrible for the poor consumer who will just go buy fuel inefficient autos, he must be protected, and of course the strong dollar is just as bad, we have to make our goods and services cheaper for the world market. Race to the bottom it is. As Yoda would say. Bullshit and economics go hand in had, and can only be spearated with hot lead.
Europeans, you are all being led to the ECB slaughterhouse where your EUROs no longer buy anything. Leave your gold at the door before you are zapped in the head by the man with the resemblance to Count Dracula.
Yep, I've been saying it for years. Europe is just the USSA bitch. Fully confirmed when Belgium was caught buying UST en masse. When push comes to shove, Europe will be sacrificed by the USSA FED, just like Japan has been. The USSA FED is run by the biggest sociopaths in the world and will sacrifice everything and everyone else to remain on top, even if its only an illusion in their sick minds.
Remember, when it happens, Peter Schiff has been calling for the dollar collapse for 3 years.
Don't downplay this. He has been calling for a dollar collapse since at least 2008.
Its a process, like jumping from the 100th floor.
Terminal velocity has been achieved, and we are just waiting on the sudden stop.
No I am not going long the British Pound either.
The EZ is a TRADING BLOC. All of their business is internal. How this relates to the value of the dollar in any way is beyond me.
At least Britain is a Commonwealth...and would appear to be a better one than the Russian variant.
"The EZ is a TRADING BLOC. All of their business is internal " more like roughly 50%, actually
This "Fiat collapse" is like being at at party and guessing when the drunk guy finally falls down. You are all suprised he lasted as long as he did before he finially fell.
Euro trading more like a stock than a currency. Don't know when this monetary disaster will begin, but begin it will. Tick Tock!
I think most currencies these days are trading much like a bet against one country or another. The weak Euro is merely the sign that the people are starting to stop believing in the Union...now if only "Americans" could do the same.
When everyone finally realizes that the full faith and credit of the US Dollar is just more smoke and mirrors and is backed by nada, maybe then everyone will realize how conned they have been.
Most of the people will refuse to believe right until the last second. Then they will look around the room at each other and say "What just happened"?
is this a soft announcement of QE4?
if the Fed also pulls an SNB
Help me here:
How would that even be imaginable? By the Fed announcing it will "cap" the US Dollar at 40 RUB and 5 CNY?
More great news for US wages.
Yuan devaluation in 3, 2, 1...
Bang Dae-Ho
+1 for Bang
" US commerce secretary moments ago said the impact of a rising dollar on exports and economic growth bears monitoring. "
translation:
WE THE CORPORATIONS DEMAND MOAR PRINTING/INFLATION/DEBASEMENT NOW!!!
Lets cap the dollar at Euro parity and make the squid happy.
billionaire greene at davos said Americans need to reduce expectations and living standards..of course he flew to davos in his private jet with family and 2 nanies, those jobs are never coming back he said..why do I feel like the rag tag starving kid looking in the upscale restaurant's window watching greene and family feast..the sickness of elite wealth can only be cured with blood.
Home Depot has a sale on nail guns
.....and rope, car batteries, nice conductive wire.....
You know he can be an ass and correct at the same time.
The productive jobs will not return until the $ dies, and we should reduce our standard of living.
...but he is still an ass.
I am productive and work my ass off.
I am NOT reducing my standard of living.
Let the FSA, and the pampered, lazy and unproductive in Academia and government reduce THEIRS.
And they know that the blood may flow when TSHTF!! That's why they are coordinating with the powers that be to enact martial law when the masses have had enough of this shit!
Greene should reduce his life expectancy.
I know...lets weaken the dollar buy printing a bunch of dollars and...oh...wait....never mind.
You mean like SNB did with CSF? SNB sold plenty of CSF to private EU citizens as low interest CSF based loans! A bad deal?
LOL
Hey I know. Wait until the euro and dollar are at parity, then we'll just use Euros.
Alternatively, devalue the USD. It's way to expensive anyway. That'll make all those holders of Treasuries realllll happy. Could we get the ECB to buy some?
"That'll be 10 dollars or 10 euros, sir. We take both."
Everything the currency manipulators do now will just strengthen the all mighty safe haven.
fuck it, i will buy gold tomorrow.
Moran!! Why buy a barbaric asset when you can buy shares in productive companies like:
Spotify
Surveymonkey (whose ceo is married to Sheryl Sandberg--bonus!!)
LinkedIn
Zillow
Facebook
Netflix
Twitter
Square
Zynga
Livingsocial
coupons.com
I'm ready for Hillary/Sandberg 2016
And, why not? I bought some Ag today myself.
As Putin correctly points out, everything is interconnected.
It takes morons, such as the idiots currently in charge, to indulge in other fantasies.
As I type this they are all busy enjoying Davos apres ski toddies and titties...
This is just the blow-off top of the 8 month $usd move up. . Watch and see where the usdx is in 12 hours.
usd not going up, all currencies are going down.
Mostly you're correct. The $ has gained in strength to a degree though. Watch what happens when London opens later.
Asia will probably follow through, if the emerging markets can hold it together. The borrowing terms of the emerging markets that are $usd based are getting destroyed by the stronger $usd.
de-dollarization.
Forced reallocation. :-)
you've been pitching USD will weaken since i've been here
you'll be right ... some day
Yes, he will be right. And in spades. The US is adding another $1 trillion in national debt every year. Add that to the trillions in unfunded liabilities and you have a complete disaster coming.
So what's your point?
I think the CHF won the game as world reserve currency if everyone's ditching devalued currencies to hedge global purchasing power. :)
China tried. Damm that Triffin Dilemma.
The swiss have always had gold. Or worked in Gold.
Long Live the CHF!
nice how the placed the phony paper of Gold right at 1299.50 in the last hour of rigged trading on the CRIMEX...
fucking joke.
"However, in a clear indication that the party for the USD-bulls may be ending, none other than the US commerce secretary moments ago said the impact of a rising dollar on exports and economic growth bears monitoring."
Hardly
King Dollar: Haha ... there isn't a damn thing you can do about it
really?
Like Stanley Fischer didn't know that in February 2014 when he allowed to the dollar to 'jump over the moon'.
But an expensive dollar did not take the EU's economy off of life support and a year later the ECB is embracing QE while the Secretary of Commerce complains the dollar is too high. If Europe is going to get QE, they don't need bargain basement exports any more. It's as simple as that. The only question now is whether QE in the European markets will cause a sell-off in the American ones, and a flight of capital looking for a repeat of the NYSE in Frankfurt.Pritzker, from the Hyatt dynasty, yeah she works for the .1% i think
+1000!
Huh.
As another indicator...
Fuck you Pritzker, you fucking subprime queen cunt.
http://www.gregpalast.com/billionaire-bankster-breaks-into-obamas-cabinet/
http://blogs.suntimes.com/sweet/2008/04/obamas_billionaire_finance_cha.html
http://moneymorning.com/2013/06/28/another-obama-outrage-why-did-billion...
"Yes we can !"
The dollar went up for absolutely no reason.
It will come down for the same reason.
(With an assist from Sir Isaac Newton.)
I've seen this scenario played out so many times in the past. All the rats are on the same side of the ship and there's only one life raft.
$ went from 93.38 to 94.08 since this morning
The $ went to 94.45. It was expected, as the euro makes up over 25% of the DXY currency basket, and also dragged Cable with it.
Correction: 57%
Dollars are a major export and they just got a lot more expensive. Unless Russia succeeds - we'll be importing all that EU inflation so they can buy oil.
Welcome to WWIII in the era of currency bombing raids.
I just wonder how long before the Fed starts printing it’s own versions of the CHF and CNY, fully backed by the U.S. Treasury Department.
Everything is going to go along pretty much just fine.....until it DOESN'T!
How will this aggression be answered?
Outrageous! I was assured ECB QE was priced in. And EURUSD down 2% on the announcement?
Oh well. At least Syriza's victory this weekend is priced in.
A strong dollar does not hurt our exports, a government full of shitheads regulating and taxing us to death does.
Gov-Co should just go ahead and raise interest rates in the US and nuke the "emerging market" economies from orbit. Its the only way to be sure ...
The currency markets are pricing in both the open-ended nature of Draghi's statement and the consensus belief the Fed will start raising interest rates by June. If that consensus belief continues, the dollar will continue on an upward trajectory, and we should all plan on a European vacation this Summer.
We should announce our own peg to the Euro. Say 1.30 ish, then Blame all the world's problems on europe
Well the US has been trying to get all the other countries to devalue their currencies ether voluntarily (EU,Japan, Swiss) or by force (eg. Russia) to make the $US look stronger when it's lost 97% of it's value in the past 100 years. The US economy is failing, so this is an effort to keep the cheap imports coming when their QE printing press is taking a short break.
I want to see global deflation, I am sick of this debt driven perma-growth rubbish which is trashing our planet.
So don't be surprised if you get a check in the mail from Uncle Sam for 100k dollars?
Could we see some quantification of the prospective losses to speculators who are currently long the US dollar? Who are these people and with whose money are they speculating?