You Know It's Bad When a Snowstorm is the Dollar's Only Hope
Sad, sad, sad.
The dollar strengthened before Federal Reserve Chairman Ben S. Bernanke speaks to Congress about withdrawing stimulus funds and on speculation government reports will show the deficit narrowed and retail sales rose.
The Australian and New Zealand dollars weakened against the U.S. currency after a Chinese report showed exports and imports fell in January from the previous month. The pound was near a three-week low against the euro on speculation the Bank of England will cut its economic-growth forecast in its quarterly report today.
“Demand for the dollar will increase if Bernanke’s remarks indicate the U.S. is heading for the exit,” said Toshiya Yamauchi, manager of currency margin trading at Ueda Harlow Ltd. in Tokyo.
The dollar advanced to $1.3754 per euro as of 1:53 p.m. in Tokyo from $1.3797 in New York yesterday. The U.S. currency traded at 89.72 yen from 89.69 yen. The yen rose to 123.40 per euro from 123.75, after earlier falling to 124.27, the lowest level since Feb. 4.
Australia’s dollar fell 0.4 percent to 87.54 U.S. cents, and New Zealand’s currency 0.4 percent to 69.35 cents. The Dollar Index, which tracks the currency against those of six major U.S. trading partners, rose 0.2 percent to 79.939.
Bernanke’s testimony on the Fed’s exit strategy will be released at 10 a.m. in Washington. He was originally scheduled to speak before the House Financial Services Committee on “Unwinding Emergency Federal Liquidity Programs and Implications for Economic Recovery.” The hearing was postponed due to snow and hasn’t been rescheduled.
Keep that motherfucker tucked away for awhile and let the market digest the massive load it just took in the eye. Obviously that was the threat; Bernanke comes back or the easy money seizes up. And? They got him, the least they can do is hide him away for a bit. Even snow couldn't keep that fucker down in his Lair.
The Fed has sworn up and down it will be terribly transparent as it attempts to back out of the mess it is now in. That's funny; I don't see how that will work since it is trying to dump billions in crap assets onto the market. "Here, buy these" is not really a strategy, regardless of what they seem to believe, since we all saw them buying the crap assets in the first place. Part of the fun of the market (the demand side for the dumb Fed fucks who don't understand the concept) is gaming what you will get. The ride an asset will take you on. We already know you're pawning off crap, who is going to buy it?
Oops. Someone over there should really hire me as a consultant, it's all so fucking obvious. I have an Econ 101 textbook from Sophomore year in high school you guys can borrow, don't trip.
Am I the only one who noticed his initials are BS?