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The "Price Stability"

Tyler Durden's picture


With bankers and politicians arguing over their mandates and who should move first fiscally or monetarily, we thought a look at the success of 'price stability' as the 'backbone' of European central bankers day-to-day work would be useful.

Without comment - the week-over-week change in EURCHF:

Chart courtesy of Bloomberg

For context, this latest spike is another 8 standard deviation move on a weekly basis - nothing to see here, move along.


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Tue, 09/06/2011 - 09:24 | 1638001 Snidley Whipsnae
Snidley Whipsnae's picture

Fiat = Disaster

Gold Bitcheeeezzz ... had to say it

Tue, 09/06/2011 - 09:26 | 1638007 LawsofPhysics
LawsofPhysics's picture

Winning!  We need more "mandates" < sarc off >

Tue, 09/06/2011 - 09:27 | 1638009 Silverhog
Silverhog's picture

2008-2009 looks like turbulence, 2011 looks like a tornado.

Tue, 09/06/2011 - 09:29 | 1638017 Snidley Whipsnae
Snidley Whipsnae's picture

...Or, Katrina + SE Asian tsunami

Tue, 09/06/2011 - 09:32 | 1638031 flacon
flacon's picture

But.. but... how can anybody make a profit without rocking the boat? Stability = no ability to rape, pillage, and plunder by taking the opposite side of the swing. /sarc

Tue, 09/06/2011 - 09:37 | 1638046 Snidley Whipsnae
Snidley Whipsnae's picture

Correct flacon... Stir the pot vigorously and when the chicken breast is visible, grab it!

Tue, 09/06/2011 - 09:44 | 1638068 flacon
flacon's picture

LOL! That's right! Nice analogy. 

Tue, 09/06/2011 - 09:28 | 1638012 sunny
sunny's picture

Price stability my ass, even the price of a new Porsche has gone through the roof!!!


Tue, 09/06/2011 - 10:07 | 1638148 TradingJoe
TradingJoe's picture

In a deflationary crash the price of your porsche will be cut in half, be patient!

Tue, 09/06/2011 - 11:08 | 1638334 Durrr
Durrr's picture

I thought the crash were going to be a inflationary explosion given all this built-up printer-pressure... Because that's better for the rich and it wouldn't do to make them angry if you're a policymaker.

Tue, 09/06/2011 - 09:29 | 1638013 THE DORK OF CORK
THE DORK OF CORK's picture

Is the monetarist system over ? - until now we have had a system of freefloating currency pairs - now the SNB is taking the first steps towards a Gold standard system...... I think.

Unlike the BOE / Soros thingy - it is not trying to peserve the value of its currency - it is trying to destroy it by pushing fiat into Gold.

CBs can do this in their sleep.

Tue, 09/06/2011 - 09:31 | 1638014 THE DORK OF CORK
THE DORK OF CORK's picture

Double post............. I am getting greedy............. my precious my precious.

Tue, 09/06/2011 - 09:29 | 1638018 LeonardoFibonacci
LeonardoFibonacci's picture

a mathematical disaster even for Fibonacci.  He would throw in the towel lol.

Tue, 09/06/2011 - 09:33 | 1638033 Snidley Whipsnae
Snidley Whipsnae's picture

My answer to Fibonacci = Reading goat entrails + throwing chicken bones + checking the crystal ball purchased at 'the magic store'...

Works about as well...

Tue, 09/06/2011 - 09:35 | 1638041 Global Hunter
Global Hunter's picture

full marks for consistency this morning, you're sticking to that chicken bones method.  Central bankers/planners could learn a thing or two from you.

Tue, 09/06/2011 - 09:44 | 1638069 Snidley Whipsnae
Snidley Whipsnae's picture

"Central bankers/planners could learn a thing or two from you."

Before those bastards can learn anything from anyone they need to unlearn what they thought they knew but didn't.

Feel free to quote me...

Tue, 09/06/2011 - 09:40 | 1638054 SheepDog-One
SheepDog-One's picture

Fibonacci like all other indicators works great in hindsight....when it worked. When its not working, we're still forming 'wave 4'.

Tue, 09/06/2011 - 09:30 | 1638019 Fips_OnTheSpot
Fips_OnTheSpot's picture

DAX was impressed - not for long. Intraday high after the announcement: 5328, low afterwards: 5155

Tue, 09/06/2011 - 09:30 | 1638023 adr
adr's picture

Did someone turn on Tesla's Earthquake machine? You know the fabled one that start with small movemens that keep amplifying on themselves and eventually hits critical mass destroying everthing. That is what the chart looks like.

We are at the endgame people. There is only confiscation and the creation of the one world currency left in the central planning book.

Tue, 09/06/2011 - 09:31 | 1638024 Temporalist
Temporalist's picture

Today has the feeling that the holiday weekend hasn't ended; it's as if people are rubbing sleep from their eyes and haven't fully digested the global selloff 2 days ongoing.

Tue, 09/06/2011 - 09:33 | 1638035 Global Hunter
Global Hunter's picture

Granted I'm "out of the game" but this morning is one of those mornings I put CNBC on because I like to watch them squirm but today they were quite giddy, they have no clue.

Tue, 09/06/2011 - 12:56 | 1638677 jerry_theking_lawler
jerry_theking_lawler's picture

nah, they are just waiting for the PPT and low volume melt up to correct all things. let me know where we end up at the end of the day....

Tue, 09/06/2011 - 09:31 | 1638027 Global Hunter
Global Hunter's picture

10 standard deviations = green shoots 

Tue, 09/06/2011 - 09:37 | 1638044 lolmao500
lolmao500's picture

It's all good.

Price stability should be INFLATION 0%... not 1% not 2%. 0%. Inflation is destroying the middle-class.

Tue, 09/06/2011 - 09:37 | 1638045 Pool Shark
Pool Shark's picture



Speaking of price stability; looks like uncle Warren is taking a (real) bath on BAC...

Tue, 09/06/2011 - 09:57 | 1638102 Fish Gone Bad
Fish Gone Bad's picture

Fuck Warren Buffett.  BAC can't go to zero fast enough for me.  It can take him with it.

Tue, 09/06/2011 - 12:49 | 1638653 DosZap
DosZap's picture

< Pool Shark >

You can bet your last dime, Unca Warren, has not lost one nickel off this deal........................he just sold his name for a hopeful runup,w/a guaranteed backing by Unca Sugar.

Bank it.

Tue, 09/06/2011 - 09:39 | 1638048 SheepDog-One
SheepDog-One's picture

Looks like we're gonna need a lot more fingers for this here dyke.

Tue, 09/06/2011 - 09:44 | 1638070 Iriestx
Iriestx's picture

Dyke?  Merkel?

Tue, 09/06/2011 - 09:58 | 1638122 Vergeltung
Vergeltung's picture

Rachel Maddow?


Tue, 09/06/2011 - 10:19 | 1638181 snowball777
snowball777's picture


Tue, 09/06/2011 - 09:48 | 1638059 adr
adr's picture

And the Insanity of the Year award ges to Sodastream up $2.10 this morning!!!

I guess currency crisis is good for home made soda machines. Is Green Mountain up? I'll check that.

Remember ISM data comes out at 10. Do we get a triple digit algo buy swing again? You can't rule it out. All the doom for 15 minutes at the open hasn't worked out well so far. Already off the lows.

Uh oh Netflix has flipped from down $2 to up $2 and International Paper is way up after the buyout now. Something BS tis way comes. The algos are stirring and the reversion may come. If it doesn't then all bets are off and we'll get a mass selloff but the reversion is a big possibility if the ISM report headline is positive.

Tue, 09/06/2011 - 10:06 | 1638146 Mitzibitzi
Mitzibitzi's picture

Stoopid one over here in't UK, too. Whitbread? Who thinks there's gonna be a massive upsurge in gastro-pubs, coffee shops and hotel bookings, for fuck's sake? I can just about a fford to go for a couple of pints after work most weeks. Eating out? once a month maybe.

And I'm reasonably well off / debt free for a working stiff.

Tue, 09/06/2011 - 09:43 | 1638066 Temporalist
Temporalist's picture

Gold up over $1900 again...whoopsie.

Tue, 09/06/2011 - 09:47 | 1638075 Snidley Whipsnae
Snidley Whipsnae's picture

DJ down 275... S&P down 29...

nothing to see here...

Tue, 09/06/2011 - 09:48 | 1638081 SheepDog-One
SheepDog-One's picture

Their knee-jerk margin hikes daily are now having no effect.

Tue, 09/06/2011 - 09:51 | 1638090 Snidley Whipsnae
Snidley Whipsnae's picture

Correct SDone... Shanghai hiked overnight with minimal effect...

Soon they will reach into the ammo pouch, only to find it empty.

Tue, 09/06/2011 - 09:47 | 1638076 scratch_and_sniff
scratch_and_sniff's picture

Yeah, what a move, im in awe. Kicking myself really, was just pondering a position in EUR/CHF last night at the 50% fib from the aug lows, decided against it, bummer. Im glad i didnt see the move happening, i would have been tempted to scalp it on the short side after 500!! pips in a my luck evened out in a funny way.

Tue, 09/06/2011 - 09:48 | 1638080 FranSix
FranSix's picture

Consider if you will the timing of the CHF intervention with the Euro.  Its as if they reversed their prior decision 180 degrees.  What this does in effect floods the Eurozone banking sector with quasi-euros.  Money printing but called intervention.

Tue, 09/06/2011 - 09:52 | 1638096 Motley Fool
Motley Fool's picture

EURCHF? Seriously? lol

Tue, 09/06/2011 - 10:00 | 1638128 FranSix
FranSix's picture

Its interesting to say the least, because the Japanese have nowhere to go.  The Yuan is already pegged to the dollar and the U.S. isn't making any noises about depegging any longer.

Tue, 09/06/2011 - 10:12 | 1638161 Motley Fool
Motley Fool's picture

The Japanese situation is interesting. I just find faulting the ECB for their policy of price stability on the EURCHF pair this last while ( given larger market considerations) laughable. :)

Tue, 09/06/2011 - 10:20 | 1638184 FranSix
FranSix's picture

The outcome will have to be devaluation against gold, but its as if they have to use every last policy excuse to print money first.

Tue, 09/06/2011 - 09:57 | 1638113 Quinvarius
Quinvarius's picture

As soon as people realize Japan is a radioactive wasteland where no one will ever want to live, much less buy products from, the Yen will suffer an even worse fate.

Tue, 09/06/2011 - 10:01 | 1638121 eurusdog
eurusdog's picture

Did my ears just deceive me? Cramer just said "this is not a place to buy, this is not the bottom!"

Tue, 09/06/2011 - 10:03 | 1638137 firstdivision
firstdivision's picture

Welp!  Time to buy hand over fist then.

Tue, 09/06/2011 - 10:04 | 1638140 DefiantSurf
DefiantSurf's picture

I can't believe anyone watches that drivel

Tue, 09/06/2011 - 10:05 | 1638143 HelluvaEngineer
HelluvaEngineer's picture

Strange.  Appears the buy the dippers are out in full force today, and taking advantage of shorts that are late to the party.

Tue, 09/06/2011 - 10:04 | 1638142 Soap
Soap's picture

Rocking the global boat is fun.






Tue, 09/06/2011 - 10:06 | 1638147 Caviar Emptor
Caviar Emptor's picture

Propaganda group think machine intact, sir!!! Non-Man is "Ro_bust!"

Tue, 09/06/2011 - 10:09 | 1638154 Belarus
Belarus's picture

The S + P 500 opens down on larger volume, as expected, and then immediately retreats higher on low volume. The machines have been turned on now. All is good. 

Tue, 09/06/2011 - 10:11 | 1638157 adr
adr's picture

So ISM services was massaged into a better than expected read but employment was down to the lowest level since 2009. That was good for a 70 point bounce.

This is not a down day wth the Dow still above 11,000. The talking heads are still all about insider buying and saying the makret has already priced in a recession. Unfuckinbelieveable.

Yeah Dow 11k is a recessionary level, sure right.

Tue, 09/06/2011 - 10:16 | 1638163 SheepDog-One
SheepDog-One's picture

Economic collapse priced in, so that means green light for DOW 15,000!

Tue, 09/06/2011 - 10:17 | 1638170 Temporalist
Temporalist's picture

"Millions" striking in Italy protesting austerity cuts.  Major transportation is inoperative including flights.


Italian Union Members Strike to Protest Government's Austerity Cuts

"Trade union members in Italy have turned out by the millions in a general strike to protest the government’s latest raft of austerity measures, which call for up to 45.5 billion euros ($64.1 billion) in spending cuts."


Italy braces for strikes amid crisis

"Italy's president is warning the country's leaders to heed what he calls the "alarming' signals of worsening financial crisis and urgently enact austerity measures.

President Giorgio Napolitano's appeal to government and parliament was prompted Monday evening by the widening spread between interest rates on Italian debt and benchmark German rates."

Tue, 09/06/2011 - 10:18 | 1638177 Catullus
Catullus's picture

Buffet in the red on BAC yet? Just post the chart. Haha.

Tue, 09/06/2011 - 10:56 | 1638183 firstdivision
firstdivision's picture

*wrong thread*

Tue, 09/06/2011 - 10:35 | 1638228 Kina
Kina's picture

Wow this total fucking idiot doesn't have a clue about what is driving gold nor does he refer to global economy, fiat wars....actually nothing at all.

Pelople who follow his advice will vomit when the shit hits the fan good and proper and go bankrupt because of this fuckwit.


Dump your gold in favour of shares Morgan Housel

Read more:


Tue, 09/06/2011 - 11:03 | 1638316 Mediocritas
Mediocritas's picture

So what are we going to call the coming European version of the Fed's QE1? Any takers?

Tue, 09/06/2011 - 11:50 | 1638448 DefiantSurf
DefiantSurf's picture


Tue, 09/06/2011 - 11:26 | 1638383 tocointhephrase
tocointhephrase's picture

JPM at a 52 week low. Sell you bitches. Silver Bitchez!

Tue, 09/06/2011 - 11:27 | 1638385 LawsofPhysics
LawsofPhysics's picture

This is not the price stability you were looking for, move along, move along.

Tue, 09/06/2011 - 12:43 | 1638605 DosZap
DosZap's picture

When this takes off we will FIND out the thu value  of PM's.

LMBA, will/is staining their Depends over this,as well as the CME......or they better be.

This is where the RUBBER meets the Road.

Get ready for a MASS exodus of capital.

Tue, 09/06/2011 - 13:09 | 1638712 Fuh Querada
Fuh Querada's picture

Standard deviations unfortunatley mean Fuhq All with this data structure.

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