All In and Ready For Slaughter ~ The Risk Averse Alert

Friday, May 31, 2013

All In and Ready For Slaughter

Now that was an interesting close! Rebalancing? Maybe technically speaking. Fundamentally, prices were falling of their own weight. This is but an element of fate proceeding from the battle for hot money in a global currency war.
"The more analysts dig ... the less they like what they see. For the week, the South African rand dropped 5.1%. The Brazilian real sank 4.2%, the Chilean peso declined 2.5%, the Malaysian ringgit 2.0%, the Hungarian forint 2.0%, the Peruvian new sol 2.0%, the Mexican peso 2.1%, the Russian ruble 1.6%, the Philippine peso 1.6%, the Turkish lira 1.5% and the India rupee 1.5%.

"Despite a surprise 50 bps increase in rates, the Brazilian real traded to a four year low this week. It is worth nothing that Brazil’s local 10-year government yields jumped just over 100 bps during May to 10.48%. Mexico’s 10-year local yields rose almost 100 bps to 5.45%. Russian yields were up about 80 bps for the month to 7.28% and Turkey’s yields were up 70 bps to 6.71%."
—"It's Going to be Another Interesting Summer" (Credit Bubble Bulletin, 5/31/2013

There's just no escaping decimation in the London-New York Axis of Fraud war against the nation state. Inevitably devastation will visit the war's hyperinflationary hosts, as well. This at least is warning confirmed by today's second Hindenburg Omen of Q2 2013. As circumstance would have it, when the fateful spark ignites financial fuel more combustible than hydrogen garbage connoisseurs will be hard-pressed finding any place to hide... 

That's what you would call "all in." With the easy side of hyperinflationary bailout of illegitimate financial claims held by the hopelessly insolvent behemoths of the trans-Atlantic fast approaching its expiration date, the chaotic aftermath now pressing toward the core in a rising rate environment finds many a fattened pig ready for slaughter.

Yet it's probably the case this will not occur instantaneously. A period of some weeks spent topping appears the likely course from here. Both the lead up to the May 2010 "flash crash" and the Summer 2011 swoon rather substantiate this view.

Word on the Street
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