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Citi On The Two Latest European Deus Ex Machinas: The Improbable Swiss Franc Peg Rumor And The Impossible Eurobond Initiative

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Mon, 08/15/2011 - 11:22 | 1561593 hungarianboy
hungarianboy's picture

lol. I just checked the CitiFX newsletter and they're Long USDCHF since July 14th with options.

0.84 Call Option expiry 16 August 2011.

Mon, 08/15/2011 - 11:23 | 1561598 Catullus
Catullus's picture

Dei ex machinae?

Whatever.

Doesn't matter. Plunge 2.1 just started.

Mon, 08/15/2011 - 11:27 | 1561615 hackettlad
hackettlad's picture

Deus inflects to reflect the plural but not machina which remains singular (Gods out of the machine, not machines)

Mon, 08/15/2011 - 11:37 | 1561650 Catullus
Catullus's picture

I would have been great at Latin if I only knew English grammar.

Attorneys generals? Men of Wars? Or Man of Wars? Ha

Mon, 08/15/2011 - 11:28 | 1561618 Waffen
Waffen's picture

And yet like a Stuka, the dive breaks will be engaged and it will pull back up from the plunge after the real investors have blacked out.

Mon, 08/15/2011 - 11:23 | 1561599 pendragon
pendragon's picture

surely the larger than expected spain, italy govvie purchases are euro negative or did i spectacularly miss something?

Mon, 08/15/2011 - 11:26 | 1561607 hackettlad
hackettlad's picture

Plural of deus ex machina is dei ex machina

Mon, 08/15/2011 - 11:37 | 1561651 Jack Sheet
Jack Sheet's picture

You're assuming there is only one machine.

Mon, 08/15/2011 - 12:48 | 1561898 Grimbert
Grimbert's picture


Dei ex machinis

Mon, 08/15/2011 - 12:02 | 1561734 Doña K
Doña K's picture

When you reference ancient Greek theatre, you must use:

"apo mihanis theos) (sing.) or "apo mihanis thei" (pl.)

Just saying..

Mon, 08/15/2011 - 11:28 | 1561617 CrashisOptimistic
CrashisOptimistic's picture

To Eurobond or not to Eurobond.

This would be like the Fed sending California money when revenue doesn't equal spending.

Why would spending ever be cut?  To force spending to be cut, the California state government would have to cede to the Federal Reserve all budgetary authority.  The Fed would run the state gov'ts nationwide.

That's what this Eurobond thing would be.  Issue Eurobonds, take the proceeds and give it to Italy and Greece.  They don't cut spending, and then ask for more.

It can't work.

Mon, 08/15/2011 - 11:38 | 1561656 oogs66
oogs66's picture

the eurobond idea has been less well thought out than even the efsf was originally...basically not at all!

Mon, 08/15/2011 - 11:42 | 1561671 Jack Sheet
Jack Sheet's picture

Right on. Essentially the only purchaser of PIIGS govt. bonds currently is Monsieur Tricheur and his printing press. How the hell could the printing press distinguish between the PIIGs and the rest when there is only one Eurobond?

Mon, 08/15/2011 - 12:48 | 1561897 Keri at Bankste...
Keri at Bankster Report's picture

There is a way that eurobonds could "work" (if by "work" we mean "totally destroy the little remaining soveriegnty of all EU nations"), and that way is to make the EU what the ancient EU framers (read: 1957 Treaty of Rome signatories) were actually envisioning when laying the foundation for a supra-national, supra-continental economic union.  Basically, the plan would be to make Europe a single political unit, and thus freely collect and redistrubute "from each according to his ability, and to each according to his need," after, of course, the banks get their fill, twice.  The unelected EU bureaucrats and their bureaucracies already claim superiority over national interests on many domestic matters; why not fiscal matters as well?  Could we not see this coming?

Mind you, I am NOT endorsing any of this.  I'm just saying that the plan has been transparent since 1957, which is why "crazy" anti-NWO types (amongst whom I would be honored to stand) have been yelling about the true goal of the EU for decades.  Some here on ZH no doubt know of the "currency snake," which was basically an attempt to "stablise" the various European currencies by linking circulation and interest rates to encourage  intra-European "non-competitiveness."  (Remember the given reasons why Treaty was signed in the first place, then consider the ostensible reasons, then consider the real reasons.) The plan was re-tried perennially for the better part of two decades, implemented by the various central banks and coordinated, of course, by the BIS.  At the time, the US banks were controlling the BIS, though only because the US banks were themselves controlled by the same international faces; the US banks had to, as the dollar the WRC.  Effectively, it was the first attempt at a euro-currency.

In fact, some on ZH also probably know what happened weeks after Nixon de-pegged USD in 1971: the BIS created the Euro-Currency Standing Committee----and there wasn't even a "euro-currency" in 1971!  This is the same committee that was renamed 3 weeks after the e-launch of the euro as an interbank currency in 1999: the new name?  Commitee on the Global Financial System.  You can't make this stuff up, and it really is transparent.  The goal is total centralized control of money: they'll keep the same little faces and  colors and national symbols on the various notes, but the purchasing power of all monetary units will be centrally controlled.  It therefore makes sense (if you're an evil bankster) to "harmonise" the euro bond market by eliminating discrepancies (especially valid discrepancies!) between member nations' debt prices.  Doing so VASTLY increases the centralization of power.

Personally, I wouldn't be surprised if sooner or later monetary devaluation was resurrected as the most effective form of taxation (as it has been capable of in the past).  To do this, there could be no legal monetary alternatives (ie, there would have to be only one legal currency, or a bunch of differently looking "national" currencies that were actually the same and thus each equally subject to devaluation).  There is no shortage of evildoers who would love to see exactly thing.

Mon, 08/15/2011 - 11:28 | 1561619 PY-129-20
PY-129-20's picture

http://www.spiegel.de/politik/ausland/0,1518,780260,00.html

Just two days after the Spiegel commentator Fleischhauer wrote a critical article about Barroso and the recent EU debacle, the Spiegel received a letter from Brussels. The letter claimed that Fleischhauer had damaged the reputation of Barroso and that it was full of errors.

Fleischhauer now draws a connection to Hugo Chavez and other non-western "democracies" where leaders only accept appraisal of their work.

lol - the EU should write a protest note to Mr. Durden...

XD

Mon, 08/15/2011 - 11:54 | 1561714 Curtis LeMay
Curtis LeMay's picture

Twice disgraced NuLabour bigshot and ex-EU Commissioner, Mandelson, said all we need to know about "Europe":

"We are now entering the post-democratic age."

http://blogs.telegraph.co.uk/news/janetdaley/4489419/EU_enters_the_postd...

= = = ==

Welcome to the future, euroland: oligarchy and tyranny

After all, "they" know what's best for you...

Mon, 08/15/2011 - 13:07 | 1561995 Lord Welligton
Lord Welligton's picture

From July 1st 2008.

Not exactly news that.

Mon, 08/15/2011 - 11:31 | 1561628 MoneyWise
MoneyWise's picture

SNB peg to the EUR, should be bullish for GOLD. IMHO.

Mon, 08/15/2011 - 12:41 | 1561874 Mountainview
Mountainview's picture

Yes, and it would be unintelligent as well! Hildebrand should look at Hong Kong or Brazil to look for active currency management ideas!

Mon, 08/15/2011 - 11:41 | 1561666 Curtis LeMay
Curtis LeMay's picture

Another expectation is that the SNB will announce any.second.now that it will peg the SNB, an event made virtually impossible as the whole purpose of the recent media PR campaign was to telegraph to the market what the SNB would like to happen, but what will actually not happen in reality (contrary to popular opinion, central banks, when actually doing instead of manipulating, act in total surprise, not in confirmation of leaked rumors).

Today I heard a new one: "verbal interventionist strategy"...

Is that like "double secret probation"?? ;)

 

Mon, 08/15/2011 - 12:23 | 1561821 SAJ
SAJ's picture

Men of war, actually.

 

Derived by the same rule as "Dei ex machina".

Mon, 08/15/2011 - 13:01 | 1561962 carbonmutant
carbonmutant's picture

More French fantasies of trading on German credit....

Mon, 08/15/2011 - 14:39 | 1562457 janus
janus's picture

all of this to say that the eur/chf peg will effectively punt this dog that was never bred to hunt down the road; with the only change being that the swiss will be hopelessly appended to the gigantic euro-turd, left spiral along with it into the sewer of dead fiat.

Mon, 08/15/2011 - 15:58 | 1562754 Dick Darlington
Dick Darlington's picture

44% of Germans wants their country out from EMU, 59% oppose ALL further bailouts.

http://www.telegraph.co.uk/finance/financialcrisis/8703147/Germanys-Ange...

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