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Danish Krone Collapses After Hints Of Capital Controls
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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Blame the jihadists!
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
Sooo, which domino will be THE domino? Stay tuned.
After Hints Of Capital Controls
It's like kidding about a bomb at an airport.....you just don't want to go there.
It's all starting to feel like my neighbor who has Tourettes and irritable bowel syndrome
Run. Forest, Run !
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.
Why print when you can jawbone, and people fall for it?
Tylers have a flair for chart drama.
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.
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.
picked the wrong morning to quit sniffing glue.
Reminds me of a joke:
"What do we want?"
"A cure for tourettes!"
"When do we want it?"
"FUCK!"
Just give me some leverage and I'll double your money
Are the attacks on the peg getting so serious that they're threatening to blow up Denmark? Holy crap.
EU president Junker just said Grexit will not take place.. Is it getting serious....is he lying...hhhmmmm
It gets cold in Canada, right?
Does this make the hookers more expensive there? Fed Banksters need to know before their spring trip...
Jihadists don't pay for hookers .... they marry them ! JE SUIS JUIF
Fed Banksters prefer 'Boystown' in Omaha, Nebraska for their field trips. [every bankster deserves a happy ending]
Here we go!
Europe starting to implode from loss of faith in the Almighty ECB failing to save Greece and the Euro!
Socialism FAILING around the globe. Coming soon...
On the flip side, Fascism is soaring worldwide.
They are one and the same !
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.
Same shit .... different toilet ? OK, I'm good with that !
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).
banksterism has ruled since 1694 (BOE).........Humanity needs a vacine for banksters......
You've been hurt by "Usury" .... stop banking at pawn shops !
name one person who hasnt been hurt by USURY
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.
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
Who is Warren Buffet
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
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.
Yep
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.
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
Well ~ It's the YEAR OF THE SHEEP after all.
Wouldn't that be, "Year of the Sheeple"??
Every year is the "Year of the Sheeple."
When all you have to solve problems is sheep, every solution looks like sheep
or mint sauce
Stop watching TV. His name was FREDDY
DAMN YOU GLOBAL WARMING ! !
Damn you beat me to it.
Otherwise it must be the Russians
Denmark, probably the best capital controls in the world
Apologies to Carlsberg
You sir, have my respect
double - double post..
meh, double post..
postas duplicTATA's
Race to the center of the earth!
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.
"Hoarders have more fun !"
Nice a 2 cent "collapse". hysterical much?
... and the award for the most hyperbolic headline goes to...
"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...
Have we redefined the definition of collapse to mean any move over 1%?
Is this the price stability those jokers were referring to? Very double plus good.
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.
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.
they got their gold. allegedly.
Denmark and Norway are both part of "Nine Eyes"; Sweden is part of "14 eyes".
This is not a collapse. I liek ZG but this is a rubbish article - slow morning ?
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.
pretty much saw it coming.
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!
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.
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".
On the other hand, if such a move is all it takes to create panic, then we're doomed.
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. ;-)
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?
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.
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.
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.
Dear Mossad,Denmark needs a flase flag Muzzie attck.