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Danish Krone Collapses After Hints Of Capital Controls

Tyler Durden's picture




 

Following numerous rate cuts and backdoor QE (halting government bond issuance), Denmark's Krone is collapsing this morning following the head of Denmark's Economic Council, Hans Jorgen Whitta-Jacobsen said:

  • DENMARK'S CENTRAL BANK WILLING TO USE CAPITAL CONTROLS IF NECESSARY TO DEFEND DKK PEG

This has sparked the biggest drop in DKK against EUR since 2001 and as SEB chief strategist Carl Hammer exclaimed, "currency markets are extremely nervous."

 

The Krone collapses...

 

With its biggest dump against the EUR since 2001...

 

As bets continue on whether Denmark will be force SNB-like to break the peg.

Damage control is beginning:

  • *DANSKE: VERY, VERY UNLIKELY DENMARK WOULD IMPOSE FX CONTROLS
  • *DANSKE BANK SENIOR ANALYST JENS NAERVIG PEDERSEN SPOKE BY PHONE

Charts: Bloomberg

 

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Fri, 02/20/2015 - 09:40 | 5807485 Thirst Mutilator
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Blame the jihadists!

Fri, 02/20/2015 - 09:44 | 5807493 Pool Shark
Pool Shark's picture

 

 

And, in other 'cheerful' news (that the algos will completely ignore) Canadian Retail sales just fell off a cliff (lowest since Feb. '09):

http://www.forexfactory.com/#graph=58596

Fri, 02/20/2015 - 09:52 | 5807522 SoilMyselfRotten
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Sooo, which domino will be THE domino? Stay tuned.

Fri, 02/20/2015 - 09:56 | 5807534 GetZeeGold
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After Hints Of Capital Controls

 

It's like kidding about a bomb at an airport.....you just don't want to go there.

Fri, 02/20/2015 - 10:03 | 5807565 knukles
knukles's picture

It's all starting to feel like my neighbor who has Tourettes and irritable bowel syndrome

Fri, 02/20/2015 - 10:04 | 5807570 847328_3527
847328_3527's picture

Run. Forest, Run !

Fri, 02/20/2015 - 10:09 | 5807591 NoDebt
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Collapse.  7.44 -> 7.46

The Euro's "collaspe" against the USD the last few months has been a bit more dramatic than that.  The instantaneous inverse-collapse of the Swiss Franc a few weeks ago when the SNB unpegged, even more so.

Fri, 02/20/2015 - 10:39 | 5807700 SWRichmond
SWRichmond's picture

Why print when you can jawbone, and people fall for it?

Fri, 02/20/2015 - 11:43 | 5807944 PTR
PTR's picture

Collapse.  7.44 -> 7.46

The Euro's "collaspe" against the USD the last few months has been a bit more dramatic than that.  The instantaneous inverse-collapse of the Swiss Franc a few weeks ago when the SNB unpegged, even more so.

 

Tylers have a flair for chart drama.

Fri, 02/20/2015 - 11:48 | 5807967 shouldvekilledthem
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It's quite pathetic when silver and gold go up by a cent, ZH immediately posts "soaring" posts, however when GOLD crashed 35 in a single day, they didn't even mention it.

Fri, 02/20/2015 - 12:00 | 5808041 Tekrunner
Tekrunner's picture

Just like mainstream financial media always wants you to think that everything is gonna be alright, ZH always wants you to think that everything is really bad and the endgame is happening tomorrow.

Fri, 02/20/2015 - 10:25 | 5807644 astoriajoe
astoriajoe's picture

picked the wrong morning to quit sniffing glue.

Fri, 02/20/2015 - 11:42 | 5807941 PTR
PTR's picture

Reminds me of a joke:

"What do we want?"

"A cure for tourettes!"

 

"When do we want it?"

"FUCK!"

Fri, 02/20/2015 - 10:04 | 5807571 max2205
max2205's picture

Just give me some leverage and I'll double your money 

Fri, 02/20/2015 - 10:05 | 5807578 Alberich
Alberich's picture

Are the attacks on the peg getting so serious that they're threatening to blow up Denmark? Holy crap.

Fri, 02/20/2015 - 10:08 | 5807590 Groundhog Day
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EU president Junker just said Grexit will not take place..   Is it getting serious....is he lying...hhhmmmm

Fri, 02/20/2015 - 10:10 | 5807596 TrumpXVI
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It gets cold in Canada, right?

Fri, 02/20/2015 - 09:44 | 5807494 johngaltfla
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Does this make the hookers more expensive there? Fed Banksters need to know before their spring trip...

Fri, 02/20/2015 - 09:48 | 5807507 Monetas
Monetas's picture

Jihadists don't pay for hookers .... they marry them ! JE SUIS JUIF

Fri, 02/20/2015 - 09:51 | 5807516 Thirst Mutilator
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Fed Banksters prefer 'Boystown' in Omaha, Nebraska for their field trips. [every bankster deserves a happy ending]

Fri, 02/20/2015 - 09:44 | 5807496 Headbanger
Headbanger's picture

Here we go!

Europe starting to implode from loss of faith in the Almighty ECB failing to save Greece and the Euro!

 

Fri, 02/20/2015 - 09:44 | 5807497 IronShield
IronShield's picture

Socialism FAILING around the globe.  Coming soon...

Fri, 02/20/2015 - 09:46 | 5807504 cossack55
cossack55's picture

On the flip side, Fascism is soaring worldwide.  

Fri, 02/20/2015 - 09:50 | 5807515 Monetas
Monetas's picture

They are one and the same !

Fri, 02/20/2015 - 09:59 | 5807553 brooklynlou
brooklynlou's picture

They're not actually. Same statist father, different emotional mothers. Socialism is triumphalist. It emerges from a feeling of control. It grinds things under its weight. Fascism is anxious and fearful and vicious as it grasps at what it can. It kills face to face.

Fri, 02/20/2015 - 10:04 | 5807575 Monetas
Monetas's picture

Same shit .... different toilet ? OK, I'm good with that ! 

Fri, 02/20/2015 - 10:39 | 5807701 NotApplicable
NotApplicable's picture

That's got to be the strangest compartmentalization of enslavement that I've ever seen. IMO, they are identical in nature. What you're describing is the changing perception of it over time, much like a wild party where the euphoria wears off, and the hangover starts. Regardless of which part you focus on, it's all based upon the same thing, alcohol (or in your case, power).

Fri, 02/20/2015 - 09:51 | 5807517 Usurious
Usurious's picture

 

 

banksterism has ruled since 1694 (BOE).........Humanity needs a vacine for banksters......

Fri, 02/20/2015 - 10:01 | 5807560 Monetas
Monetas's picture

You've been hurt by "Usury" .... stop banking at pawn shops !

Fri, 02/20/2015 - 10:21 | 5807629 Usurious
Usurious's picture

 

 

name one person who hasnt been hurt by USURY

Fri, 02/20/2015 - 10:42 | 5807710 NotApplicable
NotApplicable's picture

Me. But that's because I choose not to prostrate myself to it. What does hurt everyone though, is unbridled "sovereign debt," every last bit of which is odious. As long as you can enslave populations with 3rd party debt in their name, usury is but a symptomatic footnote.

Fri, 02/20/2015 - 10:59 | 5807766 Usurious
Usurious's picture

 

 

everything you purchase has USURY (interest) attached to it and that usury gets paid to a Bankster for doing nothing but being a parasite on Humanity

Fri, 02/20/2015 - 10:43 | 5807712 strangeglove
strangeglove's picture

Who is Warren Buffet

Fri, 02/20/2015 - 09:57 | 5807545 Grimaldus
Grimaldus's picture

Progressives are in charge in the land of the Danes.....gonna squeeze the shit out of their people for the sake of criminal bankers who screwed up......it's the bloody progressive way, the way of criminality and murder.

The progressive end game is always death, death of millions. Power kills, and government kills more than any other.

http://www.hawaii.edu/powerkills/MURDER.HTM

FOAD progressive murdering scum.

We are truly fucked, not a goddamn constitutional conservative in sight.

Grimaldus

Fri, 02/20/2015 - 10:32 | 5807680 NotApplicable
NotApplicable's picture

I'll remind you that constitutions set the stage we stand upon today. It's not a lack of conservatives causing these problems, but the belief that words on paper can provide proper safeguards from society's madmen.

Any abstraction that empowers one person over another will always devolve into pure chaos over time, as there is no escaping the entropy affecting any higher-level state.

Fri, 02/20/2015 - 09:50 | 5807513 stant
stant's picture

Yep

Fri, 02/20/2015 - 09:46 | 5807502 Quinvarius
Quinvarius's picture

The Bankers should sell more sovereign gold...before the market runs out.  Subsidized cheap gold is all I am getting out of this whole shitshow.

Fri, 02/20/2015 - 09:47 | 5807506 Arius
Arius's picture

watching a Kevin Costner movie as baseball player, yesterday a 70s movie with someone running for President ... the good old days ...

 

now is NICS, some doom and gloom either about end of the world or terrorist etc ... crisis everyday ... before, if a bomb went off somewhere was going to be a big reaction in the market, nowdays we got used to wars among major players,revolutions etc. etc....

 

strange times indeed ... the chinese curse comes to mind

Fri, 02/20/2015 - 09:53 | 5807530 Thirst Mutilator
Thirst Mutilator's picture

Well ~ It's the YEAR OF THE SHEEP after all.

Fri, 02/20/2015 - 10:10 | 5807600 TrumpXVI
TrumpXVI's picture

Wouldn't that be, "Year of the Sheeple"??

Fri, 02/20/2015 - 10:32 | 5807675 Lanka
Lanka's picture

Every year is the "Year of the Sheeple."

Fri, 02/20/2015 - 11:04 | 5807785 SubjectivObject
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When all you have to solve problems is sheep, every solution looks like sheep

Fri, 02/20/2015 - 11:56 | 5808010 Bananamerican
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or mint sauce

Fri, 02/20/2015 - 10:56 | 5807754 Calmyourself
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Stop watching TV.  His name was FREDDY

Fri, 02/20/2015 - 09:49 | 5807509 Dead Canary
Dead Canary's picture

DAMN YOU GLOBAL WARMING ! !

Sat, 02/21/2015 - 00:58 | 5811199 Rabbitnexus
Rabbitnexus's picture

Damn you beat me to it.

 

Otherwise it must be the Russians

Fri, 02/20/2015 - 09:50 | 5807512 Cacete de Ouro
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Denmark, probably the best capital controls in the world

Apologies to Carlsberg

Fri, 02/20/2015 - 09:53 | 5807525 Senduko
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You sir, have my respect

Fri, 02/20/2015 - 09:54 | 5807523 O Tempora O Morons
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double - double post..

Fri, 02/20/2015 - 09:53 | 5807524 O Tempora O Morons
O Tempora O Morons's picture

meh, double post..

Fri, 02/20/2015 - 09:54 | 5807531 Thirst Mutilator
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postas duplicTATA's

Fri, 02/20/2015 - 09:53 | 5807528 Soul Glow
Soul Glow's picture

Race to the center of the earth!

Fri, 02/20/2015 - 09:55 | 5807533 yogibear
yogibear's picture

Can't keep the bankster deception game going on forever. 

Someone in the pack is going to get greedy, break ranks, and take all the money sitting on the table.

There is no honor among thieves.

 

Fri, 02/20/2015 - 09:55 | 5807536 Monetas
Monetas's picture

"Hoarders have more fun !" 

Fri, 02/20/2015 - 09:56 | 5807540 peggleball
peggleball's picture

Nice a 2 cent "collapse". hysterical much?

Fri, 02/20/2015 - 10:00 | 5807558 EscapeKey
EscapeKey's picture

... and the award for the most hyperbolic headline goes to...

Fri, 02/20/2015 - 10:58 | 5807762 Calmyourself
Calmyourself's picture

"Collapse" as I have stated before is quite popular around here..  Whoever writes this stuff does from their banker perspective my idea of a collapse is no EBT cards and nothing to buy anyway...

Fri, 02/20/2015 - 10:05 | 5807577 Mitch Comestein
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Have we redefined the definition of collapse to mean any move over 1%?

Fri, 02/20/2015 - 10:06 | 5807580 holdbuysell
holdbuysell's picture

Is this the price stability those jokers were referring to? Very double plus good.

Fri, 02/20/2015 - 10:34 | 5807582 BrosephStiglitz
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More Central Bank jawboning. 

Edit: If they are so in love with Europe, why not just cede monetary policy to the ECB and be done with it?  Join the Euro or release the peg.  Talk of capital controls is nonsense, probably propagated through Brussels holding a gun to their heads. 

Fri, 02/20/2015 - 10:16 | 5807619 WTFUD
WTFUD's picture

You don't hear much about these middle-order countries like Denmark, Sweden, Norway until the SHTF or some geopolitical tempest.

They're ALL captured as witness Sweden's desire to participate in the J.Assange FIASCO with VICHY DC.
Norway has the BUNKERS.

Amazing that the DUTCH BOARS are NOT ALL OVER UK for the BLACK BOX STUFF as if it was Russia who had committed the atrocity of bringing the plane down the FUCKING SCUMMY ELITE POLITICOS in Holland would be SCREAMING FROM THE ROOFTOPS.

Filthy captured bastards ONE AND ALL.

Fri, 02/20/2015 - 10:29 | 5807664 astoriajoe
astoriajoe's picture

they got their gold. allegedly.

Fri, 02/20/2015 - 10:37 | 5807693 EscapeKey
EscapeKey's picture

Denmark and Norway are both part of "Nine Eyes"; Sweden is part of "14 eyes".

Fri, 02/20/2015 - 10:29 | 5807666 ohcanada
ohcanada's picture

This is not a collapse. I liek ZG but this is a rubbish article - slow morning ?

Fri, 02/20/2015 - 10:37 | 5807695 BrosephStiglitz
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Coming on ZH and complaining about the alarmist overtones of articles is hilarious.  Every day is a market crash, or someone losing their shirt according to ZH.  Doesn't invalidate some of the market information (or conjecture) within the articles.  But I would not take it as gospel.

Also, the comments are awesome. 

Sat, 02/21/2015 - 05:00 | 5811442 Citium
Citium's picture

pretty much saw it coming. 

Fri, 02/20/2015 - 10:58 | 5807761 Typing Typer
Typing Typer's picture

I think a -10% interest rate would be a better move than capital controls. That way you make some money and nobody wants to buy your currency at the same time!

Fri, 02/20/2015 - 12:26 | 5808141 DarthVaderMentor
DarthVaderMentor's picture

You betcha! Maybe the Euro countries can just pay for the Danish socialist state. The ultimate Keynesian small sovereign state paid for by fiat money from other nations who couldn't control their lust for economic and political power.

Fri, 02/20/2015 - 11:04 | 5807787 Yttrium Gold Ni...
Yttrium Gold Nitrogen's picture

So, it went from 7.445 to 7.4628, a change of (rounded) 0.02 DKK, or 0.24%. That's not collapse, that's what engineers call "tolerance".

Fri, 02/20/2015 - 11:07 | 5807796 Yttrium Gold Ni...
Yttrium Gold Nitrogen's picture

On the other hand, if such a move is all it takes to create panic, then we're doomed.

Fri, 02/20/2015 - 11:27 | 5807845 Typing Typer
Typing Typer's picture

I agree with some other posters that sometimes the shrillness of ZeroHedge is a bit over the top.

Imagine if some way to deflate and regulate a decrease in global debt and standard of living, while keeping the majority of the population reasonably employed and otherwise provided for, is found! Then the entire doomsday meme of ZH may never even happen at all! Ever!

And remember that the converse of ZH's slogan is also true, that on a short enough timeline everyone's survivability increases to infinity! Balance in perspective, my friends, balance!

Still, I do like the analysis here, I just take it with a big grain of salt most days. ;-)

Fri, 02/20/2015 - 11:44 | 5807945 2muchtax
2muchtax's picture

You lost me at imagine. Why don't you hop on your unicorn fart powered interweb machine and post about your imagined world over at MSNBC?

Fri, 02/20/2015 - 17:29 | 5809629 Typing Typer
Typing Typer's picture

Ok, how's "think about" then? The point being fiat is fiat, and infinite subdivisions and arrangements can be made regarding distributing the losses, so this incessant ZH wish to see the one big fall is rather naive, sort of like posting about unicorns!

Really if you have no imagination then I can see why you expect a singular monolithic "collapse" to present itself to you some day, but given modern methods and technology, such a monolithic event is unlikely ever to be seen.

Like I said, I enjoy ZH's analysis, it's just that the denouement obsession does get a bit tedious, imho.

Fri, 02/20/2015 - 12:22 | 5808128 DarthVaderMentor
DarthVaderMentor's picture

Being part Danish, I know the Danes aren't too far in thinking from the Icelandic people. The also hate the Germans and won't tolerate their intrusion into the Danish economy. If the are imposing controls, it's to stop the money flowing INTO Krona from the Euro. I doubt that will stop its rise.

Fri, 02/20/2015 - 13:19 | 5808318 BrosephStiglitz
BrosephStiglitz's picture

That would be the purpose of the controls, yes.  The currency peg is under assault, which means either ceding monetary policy (essentially joining the Euro/losing monetary policy tools), or putting capital controls in place to avoid problems.

The only other course (according to conventional macroeconomic logic, if you adhere to such) would be to keep monetary policy autonomy and keep capital freely-moving, but release the peg as the Swiss did.

This relationship is known as the "policy trilemma".  Only two out of three of these objectives can be maintained in the long-term. 

There is some evidence in previous crises that the policy trilemma does indeed exist.  Of course many things are not proven scientifically, especially in the macro world.

Fri, 02/20/2015 - 13:35 | 5808403 Iwanttoknow
Iwanttoknow's picture

Dear Mossad,Denmark needs a flase flag Muzzie attck.

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