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You Do Not Get Moves Like This Unless Stuff is Hitting the Fan
The world carry trade for US Dollars is over $9 trillion.
In today’s world of monetary insanity, investors seem to forget that $1 trillion is a staggering amount of money. So to put that $9 trillion carry trade into perspective, if it were a country instead of a carry trade, it would be roughly equal in size to the economy of China, the second largest economy in the world.
Suffice to say, we’re talking about a truly staggering amount of borrowed US Dollars that have been invested into other assets/ investments.
Carry trades only work if the currency you are borrowing in doesn’t rally. As soon as it does, your trade very quickly goes into the red.
This is particularly true if you’re talking about a corporation that has borrowed in US Dollars to fund projects in countries where sales are denominated in other currencies (Europe, Asia, etc.)
The reason for this is that many multi-nationals do not hedge their currency risk. So if, for instance, they are borrowing in US Dollars without a hedge to invest in Europe and the US Dollar rallies, their projects very quickly begin to lose their appeal… and a LOT of money.
Ka-Boom:
To put that move into perspective, it’s nearly on par with the US Dollar rally that occurred during the 2008 CRASH!
This tells us point blank that something MAJOR is happening in the financial system right now. You DO NOT get 20+% moves in the US Dollar during normal, healthy environments.
As usual, stocks are the last to “get it.” But this won’t last for long. The S&P 500 is sitting on the ledge of a massive cliff. And when it finally tumbles, the move will be both fast and violent.
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How do you say, "DUMP THAT DOLLAH!!" in Cherman, Rusky, Chink, Jap, etc...
Stairway up, elevator down...
are you saying the stock market goes down too?
Short now @2054.50 X4, (200$/pt.); contract ES on the "CME basis march '15. this trade is now 2 minutes old. This does not constitute, nor should it be construed as investment advice; it is merely a record of my deviant and foolish behaviour, so you can laugh at me when I'm proven wrong. Okay ?
Going quad short on the Emini is bad mmmmmmkay? I think its a brilliant call man. +1
Yes, he's saying the Stawks are going in the tank, and so am I saying that the stocks are going in the tank; I;'ll be going short again on the S&P500 index on the CME; and adding to my profits that I have already realized. you can also. No one is stopping you. I will post my new short position here within an hour of putting it on; if it's a price order I'll post it when I get the order number, ( the serial number of your properly entered trade, which you must always get before you hang up the phone to your broker; never trade by computer).
And you don't get divergent moves like the SPX up 4% in 6 months, and the BKX banks down 4%, without some large impending market adjustment:
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=SPX&insttype=Index&freq=1&show=
yeah its called PANIC ...... running into the least burning house or the slowest sinking boat ...... dollar tulip mania .... he haw he haw
https://www.intellihub.com/rothschilds-satanic-global-power-play/
:-)
Tyler's need to make a thread just for this. Would love to see all the comments that would generate! Take a look at the ghost (grim reaper?) holding the (Hawaiian?) holiday brochure. And then look at the bottom of Obammy's pants. They're wet ! Crazy stuff.
Kudos for the link, dexter.
I gave this site a little money once, and they sent me a cool bumper sticker (this was back when they were named 'INTELHUB'). Sent me a Christmas card, too.
The freaks have a THING about the 11th of the month. 3/11, 5/11, 9/11...
"One arrow is boldly painted with 11.5 and the other with 11.3. That’s easy enough. In European format, these are the dates March 11 and May 11.
One of my e-pals who is a top drawer, former professional astrologer tells me that:
“3/11 has some of the most violent astro I have ever seen. PLUS has a signature of something like a nuke accident. 5/11 has something similar but not quite as violent. I see things as scripted and is intended to give the fundies the Armageddon they so desire.”
Fukushima blew up on 3/11/11. I payed no attention to the theory that it was blown up on purpose, possibly through cameras with nuclear weapons installed, but I don't believe in coincidences like this as random.
This is pure Evil.
An Astrologer. I see. an astrologer. sometimes it's a bit discouraging reading these comment sections.
Gotta speak the language to know what they are talking about.
It isn't what 'we' believe. I think it's all crap, too. The point is, and a big point it is, it's what 'they' believe. And they believe in astrology, and far, far worse.
I hate to rerun the Greatest Hits, but here it is:
'Occult Message in Speech by Christine Lagarde of IMF'https://www.youtube.com/watch?v=QYmViPTndxw
It's like learning a foreign language. If you move to Bolivia, it would be smart to learn to speak Bolivian. You might not like speaking Bolivian, but you need to speak it to get by, or read a local newspaper to see what's coming your way.
When dealing with the .01%, the language of 'Luciferian Occult' is what they speak, and if you want to see what's coming our way . . .
Bolivians speak mainly Spanish, and either Aymara or Quechua. Both are native Indian languages.
Why did they need to, and why do they still, take taxes from us when they can simply print the money?
Actually, printing currency is a form of taxation - i.e. inflation. The government can confiscate your wealth while your money is sitting in a bank - especially when they get to "use" the freshly counterfeited money first. Increasing the money supply "dillutes" the value of what you've "saved" - but that doesn't matter, again, because they get to use the money (currency) first.
The other thing to keep in mind is that they don't "print money out of thin air" - they create DEBT out of thin air. Every piece of currency has debt attached to it - and if all this (manufactured) debt was paid off .... there would be no more currency. You don't have to worry about that, though - since they never create the extra currency to pay off the interest that the scumbags at the Federal Reserve charge, the debt can never be eliminated. It's a great deal for the parasitic pieces of shit of the world - not so good for you or me.
I also agree that taxes are a form of control - a way they can keep their parasitic tentacles wrapped around your throat. You don't pay your "taxes" and they come and take your property, liberty, and/or life. Taxes are a gun barrel wrapped in a flag and pointed at your head.
It's like the end of 1984. The government is a boot on the face of humanity,
Yes. Orwell is one of the most worthwhile authors available to us.
Because it's the only way to be sure that there's huge demand (and artificial value) for it.
on the Bottom Line of your IRS form, where it says Amount Due... Just write in Red Ink.. Please Have Treasury Print this Amount...
I loved all the comments, but you win first place..lol.
Control...
your comment held the most truth...
much love to you all.
The 2008-2009 dollar increase was the recovery phase. To compare lines we should be looking at the decrease in the dollar from 2006 through 2007. It would be exact opposite what we are experiencing now. It is different this time. Certainly not predictable via drawing lines. We all know it will end and that ZH needs to keep the data coming. Accept it for what it is....infotainment.
It's a lot more serious than infotainment.
There were 106 Million people in the 1920 census leading up to the 1929 stock market crash and depression.
Lot's lived on farms and could at least survive on what they grew.
Now 330 Million living in huge cities with no access to food or water if shit hits the fan.
Oh and many more gangs.
Stock up on ammo now. Hide your assets because Dear Leader Obama wants them to give to his EBT voters. ESPECIALLY if you get to eat based on your work and Obama voter's EBT cards don't cover beer and dessert.
What are you trying to say ? I don't get it. the present dollar rally has no meaningful relation to the last dollar rally; as another "flight to quality", (so called). ? What is your counter-theory ? Nothing means anything? is that your theory. that's not much of a theory. Please explain your position.
How bout NOT a flight to quality, necessarilly in 2008/2009 but rather a squeeze due to liquidity constraints of the USD in Europe. Hence the swaps with the FED to relieve that pressure. Perhaps swaps are coming due?
Even a broken clock is "right" twice a day...
S&P 1400 seems optimistic....I'd draw that line horizontal from the 2009 lows. Almost nothing happened until QE and with no more QE I think that will be the relevant reference point.....but what do I know, I don't draw lines for a living.
Nothing to see here, just move along.....
How about 20%+ moves becasue everyone is printing faster than the US?
Did you even bother reading the article? This is basically US dollars getting D.U.M.P.E.D. Your scenerio doesn't even make any sense in this context, lol.
so you lend out 7 trillion at a low dollar index rate then you raise in 20 points and the loans go KABOOM . gotta wonder if the tbtf banks gonna get nationalized as the car companies and health insurance companies have . does it take a rocket scientist to figure this out??
Or, ECB / BOE / others have to cough up USD for payments on swap lines with FED, maybe even principal if maturity has been reached, and they don't have it laying around because it was all given / lent to Euro financial institutions having a USD liquidity squeeze in 2008 - 2010
Well I just want to know, from what source you get the aggregate size of the carry trades?
The dude has no credibility at all; but ironically enough; he's pointing at something real. Does it really matter if it's 6T$ or 9T$ ??
POOHA figure like all estimates on Zero Hedge.