EURUSD Tumbles After ECB Accuses US Of Manipulating Currency

In a shocking moment of frankness, and perhaps desperation, European Central Bank Governing Council member Ewald Nowotny commented in an interview with Wiener Zeitung this morning that: (via Google Translate)

Q. Is US President Donald Trump with his idiosyncratic style of government and his tweets a danger or an uncertain factor for the international financial and economic world?

Ewald Nowotny: Yes, definitely. What surprises us very much are two things.

On the one hand, that the U.S. Treasury purposely pushes down the dollar and wants to keep it low;

and on the other hand, that there has been no one in the vicinity of Donald Trump, where there are a number of sensible people, who has had a positive influence on the President and his politics.

Nowotny's standing as a senior member of The ECB suggests this is worth paying attention to and EURUSD has extended its early losses - now down to near 3-week lows...

 

Pushing the Dollar Index back above Mnuchin Masscare highs...

Comments

hooligan2009 Justin Case Wed, 02/07/2018 - 16:31 Permalink

us debt clock says $63,000 per citizen (inlding children and retirees who can do fuck all about it).

http://www.usdebtclock.org/

eurozone pubic debt is supposedly euro29,235.

https://www.debtclocks.eu/public-debt-and-budget-deficit-of-the-eurozon…

eurozone national debt per citizen ranges from eur42,450 for ireland to eur 1,600 for estonia.

https://www.debtclocks.eu/eu-ranking-public-debt-per-citizen.html

and if you believe any of those debt numbers (which exclude state, city, mortgage, credit card debt etc AND all funding for future pensions and health care benefits) then china will partner with you to to finance a silk roard through a few country "stans".

let's face it. the debt numbers are bullshit. it should no longer be described as debt but rather should be described as "THEFT" with the interest bill equivalent to "detention in a padded cell with an i-phone and netflix, all meals provided".

there is no "my word is my bond" - there is only "my word is my debt - that i will never pay back".

 

In reply to by Justin Case

walküre Four Star Wed, 02/07/2018 - 12:15 Permalink

Germany has agreed to the next coalition government but the Socialists are running the show under Merkel.

The stability is gone and SPD Socialists will run amok with the printers. 

All losses and debt of the EU will be transferred to Germany. This is worse than Versailles. As German producer, I'm calling it quits. Watch the outflow of wealth from Germany to the US. 

In reply to by Four Star

Rubicon727 TBT or not TBT Wed, 02/07/2018 - 16:29 Permalink

"It’s worse than that.  Germany is eating what capital it has that it’s not mortgaging out.  The wealth of Germany is declining inwardly more than it flowing outwardly."

Nothing could be further from the truth. In fact what's eating at Germany is the Trump/Mnunchin de-evaluation of the $$$ which produces a lot of angst by the German elite because this currency manipulation causes the vast German export items to be much more expensive. Ditto for China. Ever heard of the One Belt One Road Initiative? It's beginning to eat into the US currency.

Now you can understand why General Mattis came out the other day, diverting US interests from "terrorism" to the Chinese economic threat. 

 

Of course ZH barely covers any of these monumental shifts.  

In reply to by TBT or not TBT

Aeonios Wed, 02/07/2018 - 11:50 Permalink

We no didan prant no monais. We progressive yooropeen society, do only good tings wit da social welfare and ta immigration. All US fault, market all US fault.

MK ULTRA Alpha Pandelis Wed, 02/07/2018 - 12:12 Permalink

The EU is on the verge of breaking up because of fiscal failure.  Added to EU mismanagement is the social unrest caused by the massive influx of 3rd worlders.

It will be interesting to see how Trump moves into position to extricate the US from NATO. Will Turkey's behavior unite NATO behind a US led emergency? Or will the NATO allies do nothing in support of the US, causing the eventual break up?

The US spends enormous amounts to ensure European defense, member nations like Germany, France, Italy and the UK spend much less than the 2% GDP, we've asked them to spend on their defense. Each individual members defense spending is the overall NATO contribution.

Germany's military is pathetic, it's more like disarmament, than a real defense force. Germany has turned the EU into a communist bloc. The East German communist are the main driver.(German leader Merkel was an East German commissar, a youth indoctrination commissar) Germany doesn't want to be a member of NATO and it's time the US reassessed NATO and Germany.

The NATO laggard allies also have a large trade surplus with the US, it has been reported Germany is covering up trade data to mask the German trade surplus. Without US trade, Germany would not be able to maintain financial support of the EU.

In the Cold War, there were over 500,000 US troops in NATO, combined with strong force structure from NATO members. Today, NATO is a token of it's former self. There is no reason the US should continue this charade, a US withdrawal from NATO would be a financial burden on the already wavering EU.

Anymore stress on the EU or NATO will cause a break up. Is Trump trying to end US membership in NATO? Lets dream like a DREAMER.

In reply to by Pandelis

Roger Ramjet Wed, 02/07/2018 - 11:58 Permalink

Let me understand this, the ECB is doing what-ever-it-takes by creating trillions in fiat EUR, yet this guy is accusing the U.S. of manipulating its currency.  I'm dumbstruck!

Ink Pusher Wed, 02/07/2018 - 11:59 Permalink

The ECB is currently on a buying spree of about $36 Billion per month in Bonds and is accusing another country of "manipulating" ???

This gets better every nano-second...

 

rejected Wed, 02/07/2018 - 12:01 Permalink

Bwahahahahahahahahahahahahahahahahahahhahahahahahahahahaha

EU manipulators calling US manipulators,,,, manipulators!  How dare they?

This freak show is getting better by the second.

REAL MONEY rejected Wed, 02/07/2018 - 12:26 Permalink

Hence why they call this a race to the bottom.  Every western country is trying to inflate their debt away before the silk road alliance pulls the plug.  This story ends this year once the Chinese fully implement the Petro Yuan.  Then there begins an accelerated rejection of western currencies which will set off Hyper-inflation.  This is why China just moved a massive amount of troops to the North Korean border in anticipation of a desperate move by the U.S. to protect its currency.

In reply to by rejected

wmbz Wed, 02/07/2018 - 12:01 Permalink

"in the vicinity of Donald Trump, where there are a number of sensible people, who has had a positive influence on the President and his politics"

~And by "positive influence" you mean "Status Quo", correct, Mr. Dickweed

Son of Captain Nemo ktown Wed, 02/07/2018 - 12:20 Permalink

Common knowledge at Fort Carson... You forgot Ft. Bragg (school of the America(s) fame) and Huachuca?...

Anyway this is how it all winds up going back to the "war machine" (https://www.rt.com/news/418141-lavrov-us-syria-division/) with your taxes only going up to pay for it!  Needless to say that stunt we pulled in Ukraine 4 years ago genuinely fucked to hell whatever hopes the Anglo-Zionist(s) had for total and complete oil domination with that One World Reserve currency continuing it's odyssey!!!

GO RUSSIA!... TILL YOU VAPORIZE EVERY SQUARE FUCKING INCH OF NORTH AMERICA with those RS-28(s) RSM-56(s) and Kaliper(s)!!!

Got my sun reflector and tanning oil at the ready in D.C. where I live which is already built directly over "Hell"! DRAW THE BEAD ON IT and let's "CALL IT A DAY"!!!

Cause the American people sure as fuck don't give a damn what's done in their own name(s) anywhere else let alone to themselves (http://www.ae911truth.org/)!

In reply to by ktown

Son of Captain Nemo Kefeer Wed, 02/07/2018 - 14:38 Permalink

You seem to be deliberately leaving out too much Kef...

You forgot the most important component that gave U.S. "the deck of cards" and the phony vial of "white powder" to loot them with that started it all...

None other then The Bush family!...

If you look closely enough at both "elder" and "younger" you will spot the "star of david" branding in both of their foreheads underneath the "makeup"!!!

"Red Team" "Blue Team"...

We are all one big happy family in North America feeding the "mass murder machine"!!!

In reply to by Kefeer

Yen Cross Wed, 02/07/2018 - 12:06 Permalink

 The eur/usd is also below the 20day sma for the first time since mid November '17.

  There's pretty good support bands down to 1.2165 and also the 200-h4 @ 1.2170.

  If those break the double top may be in?

  Ever notice how the banksters jawbone their currencies lower, while they're being pummeled?

neutrino3 Wed, 02/07/2018 - 12:26 Permalink

Is this balanced statement? Politically correct? Antisemitic free? Racist void?

Whore accuses hooker of wrong doing during fight for corner.

Last of the Mi… Wed, 02/07/2018 - 12:27 Permalink

Elephants dancing while their economies suffer day by day. It's been going on this way for decades now. I can devalue every token made by every citizen in our country faster than ou can. As long as economists worship at the alter of "cheaper dollar to build trade" without any eye towards what it's doing to their own country we're doomed. The units we use to measure inflation are simply "government numbers" now and mean nothing. This is the essence of how an economy is captured by the Fed and held ransom to fiat manipulation for multinationals/globalists. There has to be instituted some rules and regulations where these rations are allowed to free float without constant Fed intervention for the next quarter/POTUS speech or whatever feel good propaganda needs to be released. Government intervention of fiat value on an international scale drives it's citizenry into caves while giving a quick "juice" of the numbers for pr value.