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European Bloodbath: Freefalling EUR Plummets On Broad Liquidation Puke
Down over 200 pips in the past 3 hours...
... and down over 500 pips in less than 24 hours...
... and any hedge funds that had an even modestly long EUR position are being FXCMed on this epic liquidation puke.
In other news, nothing brings prosperity quite like absolutely destroying your currency. In the meantime, Chinese exports to Europe grind to a halt, while CFO at half of the S&P500's companies which have exposure to Europe are already busy coming up with new non-GAAP terms to represent "Net Income excluding the impact of central bank lunacy."
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and the snb decoupled why?? lol
I got nothing over here.
When the $ got crushed vs the Euro towards 1.40 due to FED QE I didn't hear a single complaint from corporate America. Now the chicken come home to roost. When this all ends, gold will likely be the only currency left standing.
Gold isn't a currency. Gold is money.
It is an important distinction.
The Central Bank moves makes Bitcoin blush in terms of volatility.
Dear central banks: please stop helping us.
Yep... This is how it goes just before the whole pile of shit collapses on itself.
Now watch for a "fat lady" to appear in the news soon as the final omen for it all hitting the end.
Will she sing?
When the Hillary sings
The mighty Ruble is outperforming the Euro this year.
Will she sing?
No, she be yellin!!
When my charts are telling me -- if Denmark decouples then 0.98* is the target.
*This anticipates no QE and no rate hike
If? What choice do they have?
I guess they could buy shit on a stick forever like Bernanke did.
Well see what happens on Sunday and thereafter. The models I have access to are not accounting for a Syriza win, which would push this materialy lower.
My thiking excatly, the Eur will be seeking parity with Zimbabwe Dollars if/when Syriza wins. Not good for me as an Euro expat, luckily I managed to buy my condo + move a neat sum of eur out to my new asian home country last summer.
This just NUKED IBM's quarter and year... how many billions are they holding in eurotrash that they haven't repatriated?
When u say "fat lady" do u mean ol pantsuit
herself, and our next POTUS, godzillary?
As long as we accept their IOU's the banks will continue "helping" us.
Bitcoin is just a little volatile?
...Loonie dropped 3 Handles.
Oil prices and Canada Bank lowered interest rate; don't worry about it; Canadian Banks are the best in the world.
Fuck the EU, Sincerely -Nuland
i expect a the big avalanche
china export to ez stop - what? why?
in my local pm dealer will be open over wekend- never hapend beffore
euro fall real fast
90000 us army expande in ez
Could the SNB have been trading on insider info, ie tipped off by their bankster buddies? Never happen, LOL>
This is because the SNB stopped buying billions of Euros.
No takers?
Goodbye EU, the dream is over. It'll be worth it just to see that smug twat Van Rompuy out of a job.
Van Rompuy isn't the prez of the EU Council anymore. The new prez is Donald Tusk. Former Polish Prime Minister
Ah, quite right, slipped my mind with all the excitement of watching the EU falling over.
Sort of feels like when you find a cold beer right at the back of the fridge when you thought you were out.
Hooray!
Exactly! Now cheers to Donald .. err Donald who?
Whatever..
And how do you drive a former polish prime minister crazy? Put him in a round room and tell him there is a printing press in the corner.
latina insider info, it's the only way to make real $$..ask mr Ibet the house greene of davos "eat your peas fame."
Does this mean that Porsche will be lowering their USA prices soon? Will it affect cars bought with European delivery?
The price is already lowered; what part of currency exchange is it that you don't understand ?
No it's not. P will decide how much of this they want in new unit sales, at a lower price to US consumer, and how much they want in corp profits (change in fxrate drops to the bottom line, on current unit sales.) It's the same with the airlines...despite drop in oil prices, the price of seats hasn't changed. But those profit numbers....kaboom. Too bad actually because Europe could use the auto jobs, and the tourists. Draghi can lower the exchange rate, but he can't foce the companies to expand. It's like Bernanke and the banks actually lending into the economy...oh never mind.
He didn't ask about Airlines. "price drops on current unit sales"--his point of concern; current unit sales. ? okay.
Thomas Jordan had the affect and articulateness of a guy
with a gunman's waiting in his office.
"and the snb decoupled why?? lol"
...to restock all the gold they just melted down. [CHF:$GOLD]
Anyway ~ just for the lulz
http://stockcharts.com/freecharts/perf.php?%24CHFEUR
And yesterday I read opinions that said the ECB announcement had already been priced in, hence the limited 250 pip drop.
110 by Monday?
Yeah, really. I bought back my shorts on the S&P just now for 2050.5; put on at 2050.0 earlier today; or yesterday or whatever time it was. I forgot the euro creatures were going to panaic. So I'm clear for now.
me again
"bought back my shorts"
sold to someone who hadn't digested the news, no doubt.
I have given up thinking it cant get any worse.
It can.
It will.....
Well.....I've noticed no one even talks about paying anything back anymore.....probably a reason for that.
Well, they do talk about bail-ins, which is a way of claiming outright theft is an effort to blah blah blah
I remember a year or 2 ago when everyone was saying the euro was what you wanted to be in, that it would be the safest currency.
now they think that about the dollar.
I remember 2011, when everyone was declaring the Euro dead and the EU would break apart....my how things haven't changed.
IMO ~ What that suggests is 'infighting'.
TPTB are not a singular unit acting together. Believe me ~ If there were profit to be made and everyone was in agreement, it would be done in an instant.
Instead ~ What this suggests is that there are separate little groups of greedy motherfuckers who all want the whole enchilada.
Researchers actually did a study on the human mind. They played a game which pitted two complete strangers against each other. They were playing for a suitcase full of cash. Each contestant was given 2 cards.
- one said SPLIT
- the other said STEAL
Both were given the choice to play either of the cards simultaneously.
- if both chose SPLIT [then they got to split the suitcase full of cash]
- if one chose SPLIT & the other chose STEAL [then the STEAL person got the whole suitcase]
- if both chose STEAL, neither got anything
As it turns out, MOST ordinary people chose the SPLIT path [with a few STEALERS]
I reckon if you played this game with bankers, you'd get a bunch of STEAL/STEAL verdicts. Which is why this stupid game never seems to end.
When bankers and companies go bust, the rube populace will fall over themselves doing anything to bailout the bankers and companies. It makes the little person feel important.
Romney Wordsworth
It's called the Prisoner's Dilemma, knuckelhead
http://en.wikipedia.org/wiki/Prisoner%27s_dilemma
Not sure with the banksters, though...they will only play when they know the other side will use the SPLIT card, then they will always play the STEAL card and will always win- And they always have someone standing in your back, watching you cards...its Muppets against Predators...
hey first - I said it was 'mostly dead' - which is not the same thing as 'all dead.'
counterpunch
Have fun stormin' the castle!
Because they think the FEDury won't reignite QE?
right.
Dollar will get Nuked after the Chinese have ravaged their currency some more.
ZH Snob: "I remember a year or 2 ago when everyone was saying the euro was what you wanted to be in, that it would be the safest currency. "
that's not how I remember ZH's articles and comments of one or two years ago. or three years ago, when I joined the fray here with this avatar
one message I somehow never could bring across is that the EUR is a reaction to the USD. it is working as designed, and it was designed not with "political unity in mind" (that's what the EU federalists never understood) but with currency wars in mind
with the express purpose of avoiding intra-european currency wars, and coping with global currency wars. it's a simple "improvement" of the old currency grids, which too had the same thing in mind: how to cope with the mighty tides of the global reserve currency
safe? if you want safety, buy gold. the EUR is not for safety, it is for price stability inside the eurozone. that's all
Ghordius seems right, but today is this stabilty??
excellent question, young warrior. yes, it is stability... as defined. by the CPIs that include energy and food. It is stability for the "little people of the eurozone"
financial markets stability... was never in scope. (as a reminder, half of the eurozone's economy is completely devoid of "market financing" through stocks and bonds)
I hear you G, but I am less sure about food.
Not that I'm a nutrition expert, but I know a bit about it - as you likely know, America has gotten fatter in the past 30 years, but especially the poor have.
Carbs are cheap, but it is incredibly expensive to eat healthy - fresh fruits and vegetables, whole foods, etc.
When good food is expensive, bad food is consumed more. We more than pay for that on the back end in health and therefore administration costs.
All the trends look bad, and the ones that don't look temporary.
Counterpunch, from the perspective of the executives of the Big Food multinationals, aka AgriBiz, we Europeans are something like the Indians in the plains, or the rebels, engaging in something like statism/communism with our many little farms and "free farmers". in short, hateful little rascals that are hiding behind the EU regulations. US AgriBiz hates the EU
we have very little of that "cheap bad food", with obesity only starting to take some hold. though the UK is the worst hit
food, like gasoline, was always quite expensive. the typical eurozoner devotes 15% of his income for food, that's twice the typical American with 6.7% (from memory)
as a comparison, the average Earthling spends slightly less then 30%
Ghordius,
Not sure how the euro currency which protects price stability will not have as UNINTENDED consequence an enfeebling of the nation states of Europe.
In the face of Pax Americana and new rival China/Asia (of Pax Americana's own creation but that also unintended consequence seeing how it now commands global power) and changing global balance.
My point is that your perception of Euro as a currency tool-- as a larger projection of past C-market-- to fight $ monetary hegemony-- has enfeebled the political architecture of european nation states in this asymmetric war(s) now raging; both economic and militarist ( essentially around oil and RM).
If a confederate Europe is stronger to defend the whole in currency wars, is it stronger to defend the whole in geo-political wars?
We are now in EU like the city states of medieval Italy, impotent in the imperial wars of the Renaissance waged between Ottomans, Habsurgs and Valois.
It didn't work out well for Italy, neither did it before in ancient times for city states of Greece; against Imperial Rome in its Mare Nostrum wars against both Carthage and Corinth.
To save the Euro horse-shoe is Europe going to lose the geo-political war of coming age? we were supposed to learn our lessons from the past and create a continental culture for all europeans. That was the mission statement of EU.
BTW : As I have repeatedly pointed out this question of global dominaton by a unilateral hegemonic America was visible ever since the neo-liberal order began under Reagan.
And the Europeans didn't "get it" after the USSR menace had disappeared and NWO was there to say it loud and clear !
Hey Presto the Europeans then woke up but it was too late to federate!
"If a confederate Europe is stronger to defend the whole in currency wars, is it stronger to defend the whole in geo-political wars? "
how about keeping out of most of the geo-political fray? we don't have a real problem in defending this continent. note the last German "peace & trade" offer to Russia
lol, we will see if the political fray will not walk into Europe on its own.
Reality is what it is. The consequences to Pax Americana and Euro associated plays in ME/AFrica/Russia will be inevitable. France is now on full alert on that front.
We see the beginnings in Greece...of the political conflict spilling over from outside Eu into the Eu countries, as a result of economic (not military this time) fractures.
How will EU react if we have a new Balkan type war like in Sarajevo?
Do we call in the Yanks again ?
I repeat, your whole analysis here has been to defend the Euro as a TOOL, a monetary tool, in a "business as usual" world.
But if the game widens, as it is doing, to cinemascope, that becomes a small angle lens on the reality of the world scene.
well I think we can wait a bit before declaring no impact on cpi, mr gold seems to have a disagreement with you.
gold isn't part of the CPIs. it's money, not a necessity
I don't mean the zero hedge position of a couple of years ago. I was referring to the cnbc and mainstream opinion.
CNBC? does anybody watch that? I can assure you that British mainstream opinion and media had a completely different tune
I'm afraid Ghordius that your avatar is sliding into worthlessness.
Must be time to change to a new one. How about this: £
thanks, but no, thanks!
More wishful thinking by Ghordius...
it is working as designed
Yes, against achieving real unity in the EU, and therefore a (potential) powerful counterbalance to US uni-polarity,
the monstrosity that was born with the mix of "currency union without political union" is working as designed!
Or in other words the EU has lost the currency wars before they even started.
The EUR was designed for the trash heap of history, from the start.
That was hilarious. There was a lot of that talk too; didn't peter Schiff get into that ? not sure. lotta people did; I just laughed.
EURO/USD targeting the lower trend line at 105.
If it moves below may be say on a Grexit type event then we may just see a hearse running on 20inch barberous relic gold rims parked outside the ECB headquarters.
But doesn't this have the same effect as a 20% decrease in the price of assets?
If only they can get a greater fool to take those assets off their hands?
Lord.
What is going on?
Hell breaking lose?
No, just the Euro on it's way to parity with the Greenback.
sir it's your account agent on the phone, Yes ?, he says you must liquidate your american dollar equity to cover the euro margin account....noooooooooo
The currency will lose value but the markets will soar.
Europe will become the new China or Africa maybe.
Zimbabwe style!!
Don't worry, Belgium can turn this all around.
Waffles and Cherry flavored beer; we're saved !!
Love it! New highs this year for sure (gold in eur)
but but but... MOAR printing! It's Krugman-approved!
Is Schiff right? Will China unpeg?
It would be a good time to do it for sure...
Can you imagine the chaos?
Everybody: "Dollar is king"
1 second later: "Sell the Dollar! SELL THE DOLLAR!!!!"
"Waaaaahhhh!!!!"
(Dark alley outside of bar near wall st.)
"Pssst! Hey! Buddy! Want some Yuans? Rubles?"
What would China gain by having the PBOC remove the peg? They could just change the RMB peg rate to 7 or 8 and be done with it for a bit.
a solid point, but I have to think they're dreaming of the day they will unpeg...
They have a lot of dollar-denominated cash and bonds. Why dump them at once and get stuck with a quickly cheapened currency when you can lever down, and buy a LOT of solid assets using those dollars while they are riding high? Then, when they reach whatever goal they have set (and probably informed Russia), they dump the greenback like a used tissue! But, right now, the buck is so strong against other currencies, if I were the PRC, I would be buying up hard assets in those countries where the dollar has gained (using my stash of dollars).
"You don't want me anymore, Xi?
"No, you Hoe! You shameressly print for anyone! I want a girl who is True!"
"So, it's that bitch of yours, the Yuan. She is trash, all glamour and allure!"
"Ha, dorrar, you slut! Go now!"
Popcorn event in the wing...
He's wrong. They're a huge economy with no pressure to unpeg like the Swiss. A slow controlled revaluation has always been their style.
I tend to think you're right. Too disruptive and chaotic.
Chinese Proverb: "Taking an enemy by Stealth is easier than risking your entire Army."
Borrow euro and buy danish krone!!!
In which we will learn that international trade and banking are less important than healthy domestic economies. Cue the street demonstrations in Euroland.
Flee, flee, flee for your lives to the illusionary safety of the US buck.
Whew ! I am so HAPPY that I sold all my euros when the exchange rate was still 1Euro to $1.50USD.
Timing, timing, timing.
CFR prediction a common currency for NATO "horizon 2015", they may not be that off... if 1 Euro = 1Dollars and there are no commercial borders any longer...
Damned it gets scary I read that forecast (from the CFR) years ago.
We are approaching the Event Horizon, Captain Yellen. All currencies are approaching 1:1!
Prepare to issue our new 1 currency, the EURopean ANd US note, the Euranus!
Leonard, here's that 10 I owe you.
Hold on, let me drop my pants. OK
Feel better?
You bet yer anus!
***
Honey, we can Party Tonight!
You got paid, dear?
My ass if full o' cash baby! We're doin' the town!
Can I get that new stove?
You bet your anus, baby!
Hmm. Gonna be tough trading FX if that happens, I'll have to trade stawks with all of the other muppets.
I have picked a good FX code: "ASS"
"The ASS gained against the Zimbabwe dollar today..."
ZIM/ASS=1.8675
Hello, Fed trouble desk?
Yes.
This is Hans, at SNB Printing. Can you send some help? CHF demand is thru the roof.
OK, you are on the list. The tech teams are tied up in Euros right now.
Please, hurry!
the new thing is to declare "adjusted revenues", which exclude "currency expense".
why not just say our results surpassed estimates, based on our adjusted accounting number which excludes one time non-recurring items such as revenues, expenses and liabilities.
Don't worry, Belgium will buy all those euros with 'merkin dollars. We are on the hook.
Not to worry it's the invisible....uh....giant penis at work.
Its going to 1 to 1......where I think it should be.....but we are watching the begining of a currency war....just like in the 30s....history is repeating
Euro needs to be in the $0.55 to $0.65 range for parity if we're using the international measure of value ... The McD Big Mac or quarter pounder with cheese...
Attention, the punch bowl has been moved to the Brussels party and has been re-filled...
The US devalues soon by offering next round of QE. This time the QE will be larger.
Time to get out of the US dollar (at a high) before the next QE and the rest of the fiats.
Out of the USD and into..... Gold and Bitcoin, bitchez!
If the EUR keeps going down, it might be a good time for Americans to plan a European trip.
So, what countries in the Eurozone have the best hookers?
If Germany leave because of a too weak (Crashing) Euro, then time to go full gold or a new Deutsch Mark.
The German will never accept a crashing currency like this.
Please bring back the strong Mark Germany !
germany LIVES via exports..they LURVE a weak tEURO. come on you fat americans, with all these cheaps deals get a no $ down benz, BMW , VW, Opel or Mini.
sure it'll be repo'd in 3 months but the debt will flow to your robust economy instead of ours. do it for the poor greeks.
its a good thing that the baltic dry index is pointing towards recovery...oh..wait a sec, my screen's upside down
Historical chart of EUR/USD:
http://fxtop.com/en/historical-exchange-rates-graph-zoom.php?C1=EUR&C2=U...
Jughead to Archie: "Say, Arch can you lend me $20...? BUT-only give me $10 of that now, so that you'll owe me $10, and i'll owe you $10 and we'll be even!"