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China Exclaims "We Were Wronged" - Demands Fed Delay Rate Hike, Reiterates Blame For Market Rout

Tyler Durden's picture




 

With all mainstream media blame fingers pointing at China - because a market crash could never be America's fault - Chinese authorities are not best pleased with the rhetoric. As we noted earlier in the week, China's central bank blames The Fed for the market rout, and now, as Reuters reports, The PBOC has reiterated that a Fed rate hike will push EM into crisis and Yuan devaluation is not responsible for global market turmoil.

As Reuters reports,

  • CHINA CENTRAL BANK OFFICIAL SAYS CAN'T BLAME YUAN DEVALUATION FOR GLOBAL MARKET TURMOIL
  • U.S. FEDERAL RESERVE SHOULD DELAY RATE HIKE, COULD PUSH SOME EMERGING MARKETS INTO CRISIS - CHINA OFFICIAL

 

"China's exchange rate reform had nothing to do with the global stock market volatility, it was mainly due to the upcoming U.S. Federal Reserve monetary policy move," Yao said. "We were wronged."

*  *  *

They may have a point...

 

Of course, now if The Fed delays, it will be seen a yielding to Chinese demands (perhaps for fear of more Treasury selling).

As a reminder, in addition to China, the Fed is now being bombarded with demands from the IMF, Larry Summers and of course the petulant market - not to hike!

 

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Thu, 08/27/2015 - 09:55 | 6477125 This is it
This is it's picture

Sum Ting Wong!

 

First!

Thu, 08/27/2015 - 10:01 | 6477159 kralizec
kralizec's picture

Wonged?

Tu Fu Yu!

We be wonged every day, bitch!

Thu, 08/27/2015 - 10:19 | 6477260 NoDebt
NoDebt's picture

Dear China,

First off, let's get this part of the discussion out of the way right from the start so there are no misunderstandings: FUCK YOU.

We are not going to take responsibility for your fuck-ups.  We have plenty of our own fuck-ups to deal with.  Like sitting at 0% interest for 6 years and facing the probability we will be at zero for another 6 years, minimum.  Jawboning is all we have left.  If that's all it takes to wreck you economy and your "market" maybe you might think seriously about cleaning up your side of the street before you chuck your garbage on our front lawn.

If you don't like this, may we suggest that you stop pegging your fucking currency to our fucking currency.  Then you could do whatever the fuck you want.  You want to be a "big boy" on the world economic stage?  Then take off the training wheels and go skin your knees up.  Eventually you'll learn how to ride on your own.  

I should mention that the tide is already turning against you in the US.  God help you if Donald Trump wins in 2016.  Then you'll know what problems really look like for you.

Thu, 08/27/2015 - 10:29 | 6477297 FL_Conservative
FL_Conservative's picture

Send China a big middle finger by hiking rates 100bps.  A little more deval to go with your flied lice.

Thu, 08/27/2015 - 10:32 | 6477320 froze25
froze25's picture

That alone makes me think we will see a September rate hike.  Rember the NWO's motto "Order from Chaos", that being said EM assets will be able to be picked up for pennies on the so called "dollar".  The banksters are the Financial arm of the NWO so they will do their part to bring the Chaos.

Thu, 08/27/2015 - 10:45 | 6477378 MalteseFalcon
MalteseFalcon's picture

Trying to sort out the blame between two co-dependents like USA and China is a fool's errand.

Thu, 08/27/2015 - 10:51 | 6477403 MalteseFalcon
MalteseFalcon's picture

"tastes great"

"less filling"

Thu, 08/27/2015 - 11:14 | 6477495 NihilistZero
NihilistZero's picture

China and the FED are 2 Tweekers arguing over who smoked the last bowl of Meth. China's getting money (selling Treasuries) to buy another sack while yelling at the FED not to smoke it all this time. As soon as they show up with a fresh bag of dope the FED is going to steal it (rate raise).

FYI, almost all forms of criminal and irrational behavior can be analogised with Meth addiction.

Thu, 08/27/2015 - 12:39 | 6477892 Implied Violins
Implied Violins's picture

Makes sense. I bet Tianjin and all those other disasters lately were giant meth lab explosions.

Thu, 08/27/2015 - 10:31 | 6477301 ThroxxOfVron
ThroxxOfVron's picture

 

 

"We are not going to take responsibility for your fuck-ups.  We have plenty of our own fuck-ups to deal with.

.   .   .

If you don't like this, may we suggest that you stop pegging your fucking currency to our fucking currency.  Then you could do whatever the fuck you want. "

 

LULZ

 

They can barely handle dealing with the interest rate pressures generated by selling the Treasuries they need to liquidate to bail out their overleveraged faux shell corporations.

Thu, 08/27/2015 - 10:32 | 6477319 HonkyShogun
HonkyShogun's picture

Sorry Chang, there is no such thing as a flea runch.

Thu, 08/27/2015 - 10:47 | 6477384 KnuckleDragger-X
KnuckleDragger-X's picture

Coming to cable TV: Banker Wars...

Thu, 08/27/2015 - 11:38 | 6477586 Whodathunkit
Whodathunkit's picture

Long duc dong, wonged

Thu, 08/27/2015 - 10:09 | 6477218 klayton biggs bee
klayton biggs bee's picture

Dude that jokes as old as your Mom's underwear!

Thu, 08/27/2015 - 10:15 | 6477242 StychoKiller
Thu, 08/27/2015 - 10:33 | 6477322 ThirteenthFloor
ThirteenthFloor's picture

Glad to see someone's upset - China that is.

Thu, 08/27/2015 - 10:32 | 6477305 Maplehood
Maplehood's picture

Bitch please.  PM investors are the ones who have been wronged

Thu, 08/27/2015 - 10:38 | 6477342 Arnold
Arnold's picture

Bitch please.  PM investors are the ones who have been "wonged"

 

 

Fixed it for you. Billing net 180 days.

Thu, 08/27/2015 - 10:48 | 6477388 KnuckleDragger-X
KnuckleDragger-X's picture

My Wong is bigger than your Wong......

Thu, 08/27/2015 - 12:46 | 6477926 Implied Violins
Implied Violins's picture

Two wongs don't make a white.

Thu, 08/27/2015 - 09:56 | 6477128 pods
pods's picture

Well that is fortunate.

The altruistic FED could stave off raising rates (which it really really was going to do) to help out a trade partner.

They were wronged, and savers get wonged, again.

pods

Thu, 08/27/2015 - 10:04 | 6477181 Chump
Chump's picture

How the hell can you be wronged by something that hasn't happened yet?

What a farce.

Thu, 08/27/2015 - 10:08 | 6477210 pods
pods's picture

I think if your capital market cannot absorb the contemplation of a 0.25 point raise in interest rates halfway around the world, it MIGHT be a BIT bubbly.

But, I am not an economist.

pods

Thu, 08/27/2015 - 10:11 | 6477222 jcaz
jcaz's picture

Tough shit, Chang-  guess you shouldn't have leveraged out to where .25% was gonna break your economy,   but eh- live and learn....

Thu, 08/27/2015 - 10:36 | 6477335 conscious being
conscious being's picture

You people are so funny. I predict the Chinese will survive this much much better than the out to lunch Americans. The Fed has destroyed world markets. The Chinese, who actually produce stuff, don't want to get pulled under the waves with the Titanic. They are working their escape maneuver.

Thu, 08/27/2015 - 10:39 | 6477348 pods
pods's picture

Yeah, China is always thinking long term.

They are true stewards of the land.

They have the utmost respect for property, mainly intellectual.

They have the most original thinking people ever.

Shall I go on?

pods

Thu, 08/27/2015 - 11:00 | 6477439 cordial savage
cordial savage's picture

I like your style and would like to subscribe to your newsletter.

Thu, 08/27/2015 - 12:54 | 6477953 Implied Violins
Implied Violins's picture

You are right, but that doesn't make Conscious Being wrong. They DO have the ability to make stuff, and we don't. In the short term, they will be far, FAR more viable than the US. And with all that undeclared gold that they hold, they will be able to pay their bills when they depeg from the dollar. Were I an American female, I'd be advertising my body on Chinese singles sites...

Thu, 08/27/2015 - 13:06 | 6478019 Obama LaForge
Obama LaForge's picture

Hey, if you create something new, and someone instantly steals it and makes money off it, who's going to win? The copy will beat the original.

For just an example, Rock n Roll. Remember that art form?

Thu, 08/27/2015 - 14:33 | 6478383 NihilistZero
NihilistZero's picture

@pods

Isn't the dumping of treasuries going to put upward pressure on the 10 year which then forces the FED's hand to raise???  I think someone pointed out the other day that the FED always raises just behind a certain percentage increase in the 10 year...

Thu, 08/27/2015 - 09:58 | 6477130 Bank_sters
Bank_sters's picture

The average American has learned to love sports, tee vee and titties and beer, more than getting a return on their savings.   THen the banksters turn around and give them a 22.9 percent interest credit card to make 'ends meet.'

Vaya con dios.

Thu, 08/27/2015 - 10:05 | 6477192 cordial savage
cordial savage's picture

That "average American" makes up a huge portion of the population!  They also hate thinking as much as they love what you pointed out.

Thu, 08/27/2015 - 10:20 | 6477269 gmrpeabody
gmrpeabody's picture

"...and give them a 22.9 percent interest credit card to make 'ends meet.'"

And that's if you have a credit score of 740 or above. Meanwhile you get less than 1% on your savings.

What confuses me is why the sheep still put up with this. Americans are dumber than stumps...

Thu, 08/27/2015 - 10:27 | 6477295 pods
pods's picture

I wouldn't use the term dumb.  More like willfully ignorant.  

I've told people how things work, and you know what, it fucking bugs the shit outta them.  So much so that it destroys their personal Matrix.

They certainly have the capacity for understanding how fucked they are, they just lack the will to accept it.

Thus, everyone is depressed now and gets to play DJ on all their neurotransmitter levels until everything is awesome, and they cannot chance a moment alone with their thoughts because maybe that fucked feeling will enter into their thoughts.

pods

Thu, 08/27/2015 - 10:29 | 6477306 gmrpeabody
gmrpeabody's picture

Pods..., I want some of what you're putting in your coffee...

Thu, 08/27/2015 - 11:05 | 6477458 pods
pods's picture

I like my coffee like I like my women.

Hot, black and sweet.

pods

Thu, 08/27/2015 - 11:28 | 6477545 MSimon
MSimon's picture

I HATE sugar in my coffee.

Thu, 08/27/2015 - 12:57 | 6477987 Implied Violins
Implied Violins's picture

I went black once.

I ain't EVER going back.

Didn't affect my feelings for black coffee, though.

Thu, 08/27/2015 - 10:39 | 6477347 froze25
froze25's picture

Some people get straight up angry at you when you point the shit out to them.  But I have found that is the best reaction you can get cus from the anger sometimes gets action in my experience the action is a change in their prospective and life style/purchasing choices.  Once someone is awake I have never seen them go back to sleep.

Thu, 08/27/2015 - 13:09 | 6478026 Obama LaForge
Obama LaForge's picture

That's great. You got better results than me. My mom still has 40% of her money in the stock market! I keep hammering her every time I see her, though.

Thu, 08/27/2015 - 11:33 | 6477572 Okienomics
Okienomics's picture

"They certainly have the capacity for understanding how fucked they are, they just lack the will to accept it."

What if the conversation changed from "we're fucked" to "we're blessed?"  On the whole we have it pretty damn good compared to much of the world and certaintly prior generations of human beings. Sure there's room for improvement, but if you were to admit, okay, I do enjoy clean water, a reliable telecommunication and transportation infrastructure, relative peace and freedom, and a world still full of opportunity... would that mean you "lack the will" to accept you're fucked?  Fine, be the change, live debt free and build the capacity for self-reliance.  But until a meteor is bearing down on us or the sun explodes, we're far from all being fucked.  

Don't forget to smell a rose or two, my friend, while shouting from the rooftops how awful the world is.

Thu, 08/27/2015 - 12:05 | 6477716 pods
pods's picture

I rarely engage people in this type of conversation anymore. You go through phases.  After you accept how things are, as opposed to how you thought they were, you get angry.  You tend to tell everyone around you how messed up the systems are, etc.

Eventually you come to an understanding (as opposed to acceptance) and you just do what you can to insulate yourself and your loved ones and go about life.

It is a process.

I do spend lots of time soaking in life.  Salt air is more calming than roses for me, but maybe that is cause everytime I plant roses, every Japanese Beetle within miles ends up on them.

I have found I only work on the things I can control, and don't worry about the ones I do not. Debt being key, as that one influences some of the ones I cannot control.

I only get angry with respect to the burden my kids might face due to this system.

pods

Thu, 08/27/2015 - 12:26 | 6477844 Okienomics
Okienomics's picture

Appreciate you engaging just the same, and your thoughtful comments.  I share your concern for my children (and a new grandchild).  We do what we can, but I truly, heart of hearts, believe that one of the things that will ultimately cause the most harm is a deep and growing pessimism and sense that things are "bad, getting worse, and out of our control."  A mass of people who believe "we're getting fucked and the system is stacked against us" is a recipe for horrific times.  A mass who believes, "things aren't perfect, but we're very blessed just the same and working on making things even better" is a recipe for hope.

Peace to you and blessings to your progeny.

Okie

Thu, 08/27/2015 - 13:05 | 6478012 Implied Violins
Implied Violins's picture

Yeah, you're right. Lately my happy thoughts have all gravitated around Banksters + ropes + guillotines + wood chippers, and that ain't healthy.

Time to change to Banksters + fish hooks + bamboo shoots + pliers.

Not much of a change, but baby steps, right?

Thu, 08/27/2015 - 12:21 | 6477772 general ambivalent
general ambivalent's picture

Yep, that is what the zombie myth is really about. Worse than willful ignorance is that if you speak the truth to the point that the zombie's eyes open he will gather the horde and chase you into exile. The passivity of the soulless and dead wins out.

They love watching the goyim run about in fear, knowing there is no salvation, and at a safe distance they are the fourth wall of the zombies.

Thu, 08/27/2015 - 10:59 | 6477427 cordial savage
cordial savage's picture

Pull back on the reins there, son.  In general, "Americans are dumber than stumps", but that's an extreme blanket term.  Not all of us love Kardashians, TLC and country music.  There are those who see through the clouds of bullshit and know what's lurking.

Thu, 08/27/2015 - 10:08 | 6477208 ejmoosa
ejmoosa's picture

I hope those are listed in increasing order of importance...except for the savings.

Thu, 08/27/2015 - 09:56 | 6477131 DavidC
DavidC's picture

Fufuxsayk...

DavidC

Thu, 08/27/2015 - 09:57 | 6477137 Keltner Channel Surf
Keltner Channel Surf's picture

Sounds like something from the Lawrence Welk show:  "I say tomato, and you say 'tomahto', I say deflation, you say inflation, let's call the whole thing off . . ."

Thu, 08/27/2015 - 09:59 | 6477145 jump_mutha_fukah
jump_mutha_fukah's picture

Sold this weeks 68 TNA calls for 1.05 this morning. I think we are overdone on the upside here. What are you up to? This is my first trade this week.

Thu, 08/27/2015 - 10:08 | 6477179 Keltner Channel Surf
Keltner Channel Surf's picture

I actually thought they might try to bounce from the overnight RUT futures low and spike up to the Daily Keltner bottom, but they started with that up touch early, so the key will be if that 1127 overnight level breaks to confirm your theory.  No trades yet.

Thu, 08/27/2015 - 10:10 | 6477220 jump_mutha_fukah
jump_mutha_fukah's picture

I'm actually hoping for more upside...still have those 75's long 3 weeks out and would like to sell a couple more times against it at better premiums with this elevated VIX. A close on Friday around 70-71 would make my day.

Thu, 08/27/2015 - 10:28 | 6477254 Keltner Channel Surf
Keltner Channel Surf's picture

If I got long today, I was thinking 70 was the intraday profit target and likely high, but the volatility still causes mixed technicals, and the QQQs look very suspicious to me, like they're either gonna spike like hell within 30 min., or roll over like a sonofabitch, and RUT upside can often be influenced by its older brother's actions.  Hopefully by Mon 'normal' trading will return, by which I mean standard annoying day session algos.

Thu, 08/27/2015 - 10:03 | 6477176 Wild Theories
Wild Theories's picture

it's "tomayto"!

Thu, 08/27/2015 - 09:59 | 6477143 Quinvarius
Quinvarius's picture

He is half right.  China moving their exchange rate from 6.2 to 6.4 is meaningless.  The USD index crashed bigger than that this week.  But a rate hike is also meaningless.  At a minimum, the Fed just took their hands off the wheel for a few days to see what would happen.  They didn't like the obvious and only possible result of not constantly intervening.  So now a defeated Fed and Treasury are forced back into the markets.

Thu, 08/27/2015 - 10:06 | 6477197 headhunt
headhunt's picture

How much is .2 of a trillion+ dollars?

Thu, 08/27/2015 - 10:27 | 6477228 Quinvarius
Quinvarius's picture

Did you get to refinanace your home at 0%?  The Fed rates barely even apply to the real economy.  And lets be serious.  They can raise rates and keep buying Treasuries until they yield negative.  There is no law of nature prohibiting that, despite what CNBC dumbasses think.  Make the leap of understanding to the place where the real markets completely ceased to exist in 2009, if not prior.  Leave logic behind.  There are only endless clowncars full of stupid clown ideas to try.  Just add printing press and military force...and clown.

Thu, 08/27/2015 - 10:43 | 6477344 ThroxxOfVron
ThroxxOfVron's picture

"... Just add printing press and military force...and clown. "

 

Yep.

In the spring of 2009 the Banks got ZIRP and the Citizenry got their CCards jacked to what had previously been the max penalty/default rates.

They can do this as long as they like -because they can...

 

Those lying welfare queen dirtbags Dimon and Blankfein are BILLIONARIES non, and millions of people who played by the rules got wiped out.

Elderly that worked their whole lives, young people with bright ideas and futures...  FUCKED.

Almost no body gives a shit in in the State Capitols or up in Washington D.C. -and those that do are the ones that made damned sure that things ARE just the way they are..

Thu, 08/27/2015 - 10:15 | 6477247 Pliskin
Pliskin's picture

2 Billion, pocket change, Dimon loses more than that running for the bus...

Thu, 08/27/2015 - 10:55 | 6477417 headhunt
headhunt's picture

A billion is only $999,999,999 + 1.00, so not much use at all....

Thu, 08/27/2015 - 10:24 | 6477287 FreeMoney
FreeMoney's picture

All things reported in the media are Kabuki.  If the FED stayed out of the market for a few days, it was intentional and they had a really good idea what the result would be.

Thu, 08/27/2015 - 09:59 | 6477146 Stroke
Stroke's picture

What a big shit a quarter point makes....Sheeeesh

 

Thu, 08/27/2015 - 10:00 | 6477150 behind the curtain
behind the curtain's picture

Smells of coordination ;)

Thu, 08/27/2015 - 10:01 | 6477151 Ignatius
Ignatius's picture

"PBOC Demands Fed Delay Rate Hike..."

PBOC and Fed working together?  Fed is not gonna hike rates and China knows this.

Thu, 08/27/2015 - 10:04 | 6477182 cordial savage
cordial savage's picture

The Fed just sent a big thank you fruit basket to China.  Maybe Yellen is skipping Jackson Hole to go pay a visit to her friends across the Pacific.

Thu, 08/27/2015 - 10:00 | 6477155 Shibumi2
Shibumi2's picture

Vaya con douche bag

Thu, 08/27/2015 - 11:28 | 6477501 Fukushima Fricassee
Fukushima Fricassee's picture

Vaya con pinga in el culo de Obama el gran maricon

 

Thu, 08/27/2015 - 10:00 | 6477157 headhunt
headhunt's picture

Rate hike coming soon - fuck you commies

Thu, 08/27/2015 - 10:11 | 6477223 Dr. Engali
Dr. Engali's picture

How are we any different from those "commies" if we have central planners managing our eCONomy?

Thu, 08/27/2015 - 10:46 | 6477373 Arnold
Arnold's picture

They don't seem to be executed on allegations.

Dissappear and reappear, sometimes.

Scott free? too often.

Thu, 08/27/2015 - 10:46 | 6477381 ThroxxOfVron
ThroxxOfVron's picture

China and the US are just two Oligarchies that happen to be cooperating more than less recently.

Concepts of Capitalism and Communism have fuck all to do with managing the extraction of productivity from the peasants in either realm.

Thu, 08/27/2015 - 10:47 | 6477383 headhunt
headhunt's picture

The US is attempting to flip to 'commie land' but we are not there yet.

Believe me we are in heaven compared to communist China.

Thu, 08/27/2015 - 10:01 | 6477160 MFL8240
MFL8240's picture

They think we are buying this bullshit?

Thu, 08/27/2015 - 10:02 | 6477162 ThroxxOfVron
ThroxxOfVron's picture

FUCK YOU PBOC.

 

THE FED CARTEL BANKS ARE GETTING 6% ON THEIR RESERVES.

-WHY DO I DESERVE ANYTHING LESS?

 

HOW ABOUT YOU TELL THE FED TO PAY ME INTEREST ON MY SAVED CAPITAL, THEN STFU & CONFINE YOUR BELLYACHING TO ISSUES CONCERNING SHIT DENOMINATED IN RMB.

Thu, 08/27/2015 - 10:14 | 6477241 Shibumi2
Shibumi2's picture

It aint capital biotch...its fiat

Whaffo they be payin you interest fo' sumpthin they be makin' plentiful of theysellfs fo' free?

 

You stupid?

 

Sho nuff!

Thu, 08/27/2015 - 10:54 | 6477414 Arnold
Arnold's picture

Like mutual funds, they are going to have to liquidate some sort of equity on a monthly/quarterly or annual basis to meet that 6% goal.

They are not getting it on their T bill loans to the .gov.

That means a PM or Exchange holdings, which they should own approximately 1/2 of by now.

Life is Ok for the Fed, don't you be worrying about them now.

Thu, 08/27/2015 - 10:02 | 6477166 JustObserving
JustObserving's picture

The complete manipulation of financial and commodity markets by the Fed has created severe imbalances and dislocations causing severe economic stress around the globe.

Economic conflict with US will lead to domestic strife in China and then military conflict with Japan or USA to focus on external enemies. Perhaps, Vietnam may be the whipping boy

This is not going to end well

Thu, 08/27/2015 - 10:13 | 6477235 jcaz
jcaz's picture

Never does, Sparky- that's the idea.

Thu, 08/27/2015 - 10:26 | 6477292 FreeMoney
FreeMoney's picture

It doesnt end well for the muppets/sheeple.  It always ends well for the bankers.

Thu, 08/27/2015 - 10:02 | 6477169 Moonrajah
Moonrajah's picture

To serve Fed.

It's a cooked book! It's a cooked book!

Thu, 08/27/2015 - 10:02 | 6477170 jakesdad
jakesdad's picture

aw, snap!  shnizze just got real...

Thu, 08/27/2015 - 10:02 | 6477172 Infinite QE
Infinite QE's picture

Who's the Chinese version of Rita Katz?

Thu, 08/27/2015 - 10:02 | 6477173 aliki
aliki's picture

lol - anything else we can do for you guys? would think building a bunch of stockmarket/property bubbles, railways, military, and ghost cities was enough. some people are never happy.

Thu, 08/27/2015 - 10:03 | 6477180 Jersey_Mountaineer
Jersey_Mountaineer's picture

Buyer beware.

Thu, 08/27/2015 - 10:04 | 6477185 Racer
Racer's picture

A QUARTER of a percent interest rate rise is tooooo much after how many YEARS?? FFS,

Thu, 08/27/2015 - 10:17 | 6477252 divingengineer
divingengineer's picture

Incredible, eh?

Thu, 08/27/2015 - 10:06 | 6477188 fooshorter
fooshorter's picture

Fuck the PBOC.

 They wrong their people by creating the greatest debt bubble in history (since the tulip bubble), ghost cities, blantent trademark and patent infringement, the worst enviromental violations in human history, restrictive human rights, oversaturated indurities, geo political instability starting with the islands and on and on. 

 

I'd like them to say that to the TRUMP administration. Then I can watch our elties and theirs shit themselves.

 

Thu, 08/27/2015 - 10:05 | 6477190 youngman
youngman's picture

Never Wong a Wong

Thu, 08/27/2015 - 10:08 | 6477206 Pliskin
Pliskin's picture

If this is true (After all it is Reuters) it could be a good ploy by the PBOC.

It's like a boxer before a fight saying, "I just hope he doesn't hit me in the body, I'm really weak there!"

The opponent thinks, 'Ah-ha!' spends all night throwing body shots to no avail, gets knocked the fuck out, the boxer (PBOC) after the fight says "Yeh, well, he kept throwing those body shots and that's where I'm strongest."

Could be that.  Might not be.  What the fuck do I know.

Thu, 08/27/2015 - 10:08 | 6477207 undercover brother
undercover brother's picture

"we were wronged"  no you weren't.  you idiots pegged the Yuan to the dollar and the dollar ramped by 20% last year, so you got monkey hammered, and you deserved it.  

Thu, 08/27/2015 - 10:14 | 6477209 Dr. Engali
Dr. Engali's picture

The whole world was wronged when the fed came into existence in the first place. 

Thu, 08/27/2015 - 10:20 | 6477272 Pliskin
Pliskin's picture

+1000 Dr. 

Never a truer word been posted on this site.

Thu, 08/27/2015 - 10:38 | 6477343 falak pema
falak pema's picture

as a PRIVATE Bank. Canada with a public, central bank never had financial crises like the US.

Thu, 08/27/2015 - 10:09 | 6477213 youngman
youngman's picture

When you look at the history of the Great depression you ask why did they start a trade war....and then you see this in real time...and you realize that everyone blames everyone else for starting it....and it happens

Thu, 08/27/2015 - 10:44 | 6477366 Seasmoke
Seasmoke's picture

Fuck FDR and Fuck Obama. However The winners write history.

Thu, 08/27/2015 - 10:13 | 6477234 outlaw.guru
outlaw.guru's picture

Well I certainly hope so. Just got long CAD, NOK and RUB. Short USD. Let's see the madafakas do their worst. I call fed liftoff anounced for December, dolar sellof, oil and gold high. Ofcourse with fed losing credibility nobody will actualy expect December liftoff. Otherwise fed lifts to prove a point, credit markets destroyed, I lose some money, QE4, rate cut, back to winnings. Only thing that can really screw me is if fed decides to go 1937 route. But then it doesn't matter, I'll take my army boots and wait for the call.

Thu, 08/27/2015 - 10:14 | 6477239 Omega_Man
Omega_Man's picture

China just dump UST - exchange it for GOLD! 

US money is garbage....

Thu, 08/27/2015 - 10:26 | 6477293 BurningFuld
BurningFuld's picture

But but...if they bankrupt the US who will they sell all their crap to?

Thu, 08/27/2015 - 10:15 | 6477244 Thisisbullishright
Thisisbullishright's picture

Two Wongs don't make a right....

 

Thu, 08/27/2015 - 13:02 | 6478001 Clowns on Acid
Clowns on Acid's picture

Two Wongs can't make a White.

Thu, 08/27/2015 - 10:15 | 6477245 RealityCheque
RealityCheque's picture

How's the job going for you now Mr Yellen?

What a hilarious clusterfuck. The Fed has to hike now or risk being seen as China's bitch. And when they do, they'll get the blame for the crash that follows and their credibilty will be fucked forever.

Thu, 08/27/2015 - 10:20 | 6477273 twerkerworker
twerkerworker's picture

Mr Yellen, meet Mr Mao. You two have a lot in common!

Thu, 08/27/2015 - 10:22 | 6477277 FPearl602
FPearl602's picture

Sell the shit out of this bounce...1100 Dow points off the lows all on hopium. It will be lower on the week by tomorrow night.

Thu, 08/27/2015 - 10:32 | 6477317 NaiLib
NaiLib's picture

you forget market is short now, and that some have to make month end look good...

Thu, 08/27/2015 - 10:23 | 6477283 FPearl602
FPearl602's picture

VIX to zero...

Thu, 08/27/2015 - 10:27 | 6477294 conscious being
conscious being's picture

How do you say "Brilliant!", in Chinese? Move the focus to where it belongs.

Thu, 08/27/2015 - 10:31 | 6477315 falak pema
falak pema's picture

So you were wronged and the treasury gets bonged.

Dalio says QE coming and one FED bighat says : rate hike necessary; while the other says : NO WAY it'll be mayhem in WS.

I think that Yellen will want to hide under her bed in Jackson Hole.

We should now call it Yellen Hole. Until she swings one way or the other!

Thu, 08/27/2015 - 10:34 | 6477325 NaiLib
NaiLib's picture

Next round of Chinese selling when EUR/USD reaches 1.10 or below

Thu, 08/27/2015 - 10:42 | 6477350 Dre4dwolf
Dre4dwolf's picture

The entire problem is that rates are not set by market conditions.

Although I would add that with a FIAT currency that isnt backed by anything, charging money to borrow money that never existed in the first place is quite idiotic because simply paying back what wasnt borrowed results in a profit.

 

so in anycase if china falls apart they are looking to blame the mess on the USA and Fed because if the Chinese govt admits it was their fault for manipulating their markets you would have angry mobs ready to linch them outside govt buildings.

Thu, 08/27/2015 - 10:42 | 6477359 dr.charlemagne
dr.charlemagne's picture

anything to avoid admitting there is a massive capital outflow>>>>

Thu, 08/27/2015 - 10:44 | 6477370 NoWayJose
NoWayJose's picture

As the last bastion of capitalism on the planet, China was happy when everything was going up - from stocks to empty housing - but China has abandoned the 'you can lose money too' part of capitalism and shown the same central bank intervention as everyone else. The main difference with Chinese intervention is that they have much more control, and many more assets, than other central banks. And they are learning that 'talking' moves markets as much as 'doing'.

Thu, 08/27/2015 - 10:57 | 6477429 Vinividivinci
Vinividivinci's picture

More kabuki theater.

Thu, 08/27/2015 - 10:58 | 6477433 polo007
polo007's picture

According to Guggenheim Partners:

http://www.guggenheimpartners.com/perspectives/media/the-monetary-illusion

As economic growth returns again to Europe and Japan, the prospect of a synchronous global expansion is taking hold. Or, then again, maybe not. In a recent research piece published by Bank of America Merrill Lynch, global economic growth, as measured in nominal U.S. dollars, is projected to decline in 2015 for the first time since 2009, the height of the financial crisis.

In fact, the prospect of improvement in economic growth is largely a monetary illusion. No one needs to explain how policymakers have made painfully little progress on the structural reforms necessary to increase global productive capacity and stimulate employment and demand. Lacking the political will necessary to address the issues, central bankers have been left to paper over the global malaise with reams of fiat currency.

With politicians lacking the willingness or ability to implement labor and tax reforms, monetary policy has perversely morphed into a new orthodoxy where even central bankers admittedly view it as their job to use their balance sheets as a tool to implement fiscal policy.

One argument is that if central banks were not created to execute fiscal policy, then why require them to maintain any capital at all? Capital is that which is held in reserve to absorb losses. If losses are to be anticipated, then a reasonable inference is that a certain expectation of risk must exist. Therefore, central banks must be expected to take on some risk for policy purposes, which implies a function beyond the creation of a monetary base to maintain price stability.

What kinds of risk are appropriate for a central bank? Well, the maintenance of a nation’s banking system would plainly be in scope, given the central bank’s role as lender of last resort. The defense of the currency as a store of value and medium of exchange is another appropriate risk. This was the apparent motivation of Mario Draghi, European Central Bank president, for his famous promise to defend the euro at all costs in the summer of 2012. The central bank balance sheet has proven a flexible tool limited in use only by the creativity of central bankers themselves.

In response to those who argue against the metamorphosis of monetary policy into fiscal policy, one need only point toward the impact of quantitative easing (QE) on interest rates. The depressed returns available on fixed-income securities, largely as a result of QE, are acting as a tax on investors, including individual savers, pension funds, and insurance companies.

Essentially, monetary authorities around the globe are levying a tax on investors and providing a subsidy to borrowers. Taxation and subsidies, as well as other wealth transfer payment schemes, have historically fallen within the realm of fiscal policy under the control of the electorate. Under the new monetary orthodoxy, the responsibility for critical aspects of fiscal policy has been surrendered into the hands of appointed officials who have been left to salvage their economies, often under the guise of pursuing monetary order.

The consequences of the new monetary orthodoxy are yet to be fully understood. For the time being, the latest rounds of QE should support continued U.S. dollar strength and limit increases in interest rates. Additionally, risk assets such as high-yield debt and global equities should continue to perform strongly.

In the long run, however, classical economics would tell us that the pricing distortions created by the current global regimes of QE will lead to a suboptimal allocation of capital and investment, which will result in lower output and lower standards of living over time. In fact, although U.S. equity prices are setting record highs, real median household incomes are 9 percent lower than 1999 highs. The report from Bank of America Merrill Lynch plainly supports the conclusion that QE and the associated currency depreciation is not leading to higher global output.

The cost of QE is greater than the income lost to savers and investors. The long-term consequence of the new monetary orthodoxy is likely to permanently impair living standards for generations to come while creating a false illusion of reviving prosperity.

Thu, 08/27/2015 - 11:01 | 6477442 writingsonthewall
writingsonthewall's picture

You have to stand back and see the absurdity of this whole mess.

 

All this from the FED taking about possibly raising rates by the smallest amount they can

 

It doesn't bode well for and ACTUAL hike, I mean it's laughable that any central bank thought it could 'get out of this cleanly'.

 

In the 30's they blamed Mellon for rasing rates to early - and CAUSING the depression, the truth is that really the depression was coming regardless, and just as today, low rates (and now QE) merely puts off the inevitable.

 

The only question is whether there is a 'point to far' and whether it's been crossed already. Most Cb's providing 'liquidity' and yet commodities are collapsing - mmmmm seems like the drugs are having less and less effect.

Thu, 08/27/2015 - 11:30 | 6477524 xcehn
xcehn's picture

To China, from FED:

ipad fail

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........('(...´(..´......,~/'...')
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Thu, 08/27/2015 - 11:23 | 6477530 Chuck Knoblauch
Chuck Knoblauch's picture

Expect the cost of eggs, bread, butter, and milk to climb soon.

Even with some help from our friends.

China and Russia used to be good trading partners, but no more.

 

Thu, 08/27/2015 - 12:07 | 6477727 U4 eee aaa
U4 eee aaa's picture

Problem gamblers are the ones that blame the cards

Thu, 08/27/2015 - 12:11 | 6477746 Joe A
Joe A's picture

Currency wars lead to trade wars lead to real wars.

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