Is Someone Betting Furiously That The Chinese Currency Collapses By The End Of 2014?

Is Someone Betting Furiously That The Chinese Currency Collapses By The End Of 2014? (ZeroHedge, April 26, 2014):

Last week, USDCNY began to accelerate lower and break across the “real pain” threshold that we have been discussing for many of the world’s so-called “hedgers” who have been riding the one-way strengthening trend of the CNY for years and piled in with leveraged trades on what had been a one-way bet. The collapse this week, to levels not seen since pre-BoJ QQE and pre-Fed QE3 appeared to trigger an avalanche of unwinds or hedges of the exposures we have been worrying about. As the chart below shows, billions of dollars of upside calls on USDCNY were purchased on Friday with serious size out to 6.65 strikes (levels not seen since 2009) by the end of 2014.

1 thought on “Is Someone Betting Furiously That The Chinese Currency Collapses By The End Of 2014?

  1. The problem is the fact most of the stock and currency players are high frequency and faceless. High frequency transactions are controlled by a very few individuals handling hundreds of millions in big funds (at least on paper, not sure about fact) who buy and sell large amounts of securities, or trades in the blink of an eye. The bastards have been given information before the bell more than once so they could benefit by it, while the rest of us could not………it is so crooked, so rigged, so dirty that none of us can believe any of it.
    The markets are so crooked, we cannot believe a word of it. If the Chinese currency is planned to collapse, it is being caused by a very few greedy guts, and the entire system needs to be cleaned up, and these people need to show themselves.
    The US dollar is the one I am concerned about. Riding on its status as the world reserve currency since WW2, the crooks over the past 15 years have printed money nonstop without regard to the fact there was nothing behind it but ink. Iraq and Libya were destroyed for openly calling for a return to the gold standard for a world reserve currency.

    Hugo Chavez found an easier and quieter way. In Summer of 2010, he introduced the Sucre, the first electronic currency for the South American Trade Alliance, made up of 12 tiny South American nations and Cuba. For the first time, member nations could trade with each other using their own currencies, leaving the US dollar out. The Sucre simply translates the value of each currency, making conversion to any world reserve currency obsolete. It was tiny, less than $500 million GDP, and it flew under the US radar.

    Russia and China, seeing the success of the Sucre, established their own trade agreement with each other, using their own currencies, leaving the dollar out. Establishing an electronic currency made it easy, and China went on to recruit Turkey, and many South American and emerging African nations to their trade circle.

    Iran had been accepting most currencies for years, so they were happy to join as well. Despite US media lies, Iran has prospered thanks to the Iraq war, they are a very rich country, and much of the world values them as a rich and fruitful trading partner. They are not going to stop on a petulant demand from the despised US.

    The US, seemingly oblivious to what was happening, put more sanctions on Iran, so India and Japan joined with Russia and China as well, dropping the US dollar. Obama gave Japan a “pass” whatever that means, months after they acted. New Zealand and Australia have also dropped the dollar, as have many of the nations of South America.
    Less than half the world uses the dollar now, and as the US does everything in its power to start a war with Putin, that number will grow as most of the world backs Putin, not the US. The US has no reason to start this war, and most of the world, including Germany, has told the US to butt out.

    The US has become a rogue nation in the eyes of most of the world. Its last remaining two allies, the UK and Israel, refuse to get involved in Obama’s latest mad attempt at a war with Russia, using the Ukraine as a battle ground. His CIA backed puppet government in the Ukraine is not fooling anyone, especially Putin. Putin headed up the KGB for years, and there isn’t a trick he doesn’t know.

    The US will lose this war, and Putin will take it to US shores, he won’t allow his own homeland to be destroyed by Obama’s mad drive to prevent Russia from becoming a world power…….it won’t work. The US is run by fools, and it is no accident that history has been made by men, not groups of fools, such as we have in power. It will cost the US world standing as a leader, and the dollar will collapse as the rest of the world will abandon it.

    Putin is the closest to a Napoleon I have seen. He is making all the right moves. He let the Russian central bank fail instead of printing money with nothing behind it to carry it. He raised interest rates, making Russia more attractive to investors seeking better returns on their money.

    The US stupidly continues to put sanctions on Russia, motivating Russians and Crimean’s living abroad, to move their money back to Russia to protect it from being stolen by the Obama administration. Money is pouring into Russia as a result of US sanctions, and the inviting interest rates.

    Letting the bank fail, and raising interest rates now are the hard choices Putin is making to stabilize Russian currency and economy. Pity the US didn’t do the same in 2007, we would be discussing very different things now.

    China is indeed in deep trouble because it followed the FED example of running an endless printing press of their money…..and they are not a world reserve currency, and they have nothing behind their money, either. Their economy depended on exports. When the US crashed in 2007, and stopped buying their junk, the EU became the #1 customer. When the EU started sliding, they stopped buying, and China started lying about how much they were exporting…….and they were easily caught and busted. It didn’t stop them, they base their GDP on what they spend, not what they earn. As a result, they have less credibility than the US. Nobody believes a word they say. Unemployment is over the top, riots happen by the hundreds every day, they shut down the Internet and TV when they occur. They have hundreds of ghost towns their own people cannot afford to live in, they built the world’s biggest building, complete with artificial seashore over 100 miles from the water. It is nearly empty, nobody can afford it.

    The truth is skies so filthy that nobody can see if it is day or night, much like London in 1850 when coal dust filled their skies. The rich are leaving in droves for cleaner vistas and healthier breathing. The poor stay, and buy oxygen in bags and machines, the air is no longer clean enough to breathe.

    This has caused a huge social/economic problem, the medical problems can only be resolved for those who can afford it. China used to have national health care, but adopted the west’s system, so health care is only for those with money. The poor are allowed to die on the streets, and anger and unrest are growing.

    China denies all of this, but the truth is pretty obvious. I don’t think the greedy guts need to plan the collapse of Chinese currency. I think it is unraveling because their economy is falling apart, and when that truth comes out, it will affect the entire world economy that is already sliding.

    We are at the beginning of a world economic collapse. Higher interest rates have finally hit the US, and now, it is downhill all the way. The wannabe greedy guts are the next Americans to fall, and when they do……..an entire layer of the US economy will collapse.

    Foreclosures and unemployment will rise even higher and millions more will lose their homes and livelihoods. The wannabe greedy guts are the last vulnerable group the banks can soak for more millions…..and they are starting the process right now. Most mortgages are ARMS, and interest rates have doubled in the last few months, and jumbo mortgages are just shy of 6%. These rates are for those who never were late or missed a payment. For others, the rates are already higher. Going from 1-2% to 5-6%+ is draconian. For every point, the monthly payment rises 13%. Do the math.

    The greedy gut bankers are moving in for the kill. They don’t care how many nations are destroyed, it is all about profit. They are going to make themselves targets such as has never been seen……..it will be really bad.

    Hang on folk, we are in for one hell of a ride.

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