Short Humanity – Long Interplanetary Travel

If you haven’t ripped most of the hair from your head “yet” today…..there’s still plenty of time left. Hey! I hear that we even get a chance to see “OBomba” on the T.V! But of course we do as…..you just can’t have a couple “down days in row” without the President of the United States getting out there and sticking his nose in it. Ridiculous.

Does anyone here remember a time when “financial markets where financial markets” and the government was the government?

Weren’t those the days.

So I’ve put off the “analysis of all things relevant” as……seriously  – what’s the point?

What can one possibly consider “analyzing” in an environment / market this far off the rails?

I’ll be up on the rooftop “tinkering with my spaceship” with little “short-term” information to share.

If you’re interested in some of my long-term ideas….the title says it all.

 

Forex Kong: currently holding – short humanity – long interplanetary travel.

When Central Banks Become Circus Acts

Look, I’ve been watching these markets longer than most of you have been breathing, and what we’re witnessing now isn’t trading – it’s governmental theater with your portfolio as the stage. Every time the Dow drops 200 points, suddenly we’ve got emergency press conferences, Fed officials making the rounds on CNBC, and politicians pretending they understand the difference between a basis point and a basketball. The whole charade would be laughable if it weren’t so damaging to actual price discovery.

The dollar’s strength isn’t coming from economic fundamentals anymore – it’s coming from pure manipulation and intervention fear. EUR/USD should be trading based on German manufacturing data and ECB policy, not on whether some bureaucrat in Washington decides to open his mouth after lunch. GBP/USD moves are dictated more by political tweets than actual UK economic performance. This is what happens when you let politicians play central banker and central bankers play politician.

The Fed’s Credibility Crisis

Jerome Powell and his merry band of money printers have painted themselves into a corner so tight, they need a presidential escort just to find the exit. Every statement they make gets walked back within 48 hours. Every “data-dependent” decision becomes “market-dependent” the moment the S&P 500 sneezes. You want to know why I’m shorting humanity? Because we’ve created a system where the people controlling our currency don’t even trust their own policies long enough to let them work.

The yen carry trade unwinding we saw recently? That wasn’t market forces – that was panic because traders realized central banks have zero credibility left. When USD/JPY can swing 400 pips on a single Fed official’s casual comment about “monitoring conditions,” you know we’re not dealing with a real market anymore. We’re dealing with a rigged casino where the house keeps changing the rules mid-game.

Currency Wars Disguised as Policy

Don’t kid yourself – what we’re seeing isn’t monetary policy, it’s economic warfare. The Chinese yuan manipulation everyone screamed about for years? Amateur hour compared to what the Fed and ECB are pulling now. At least China was honest about managing their currency for competitive advantage. Our central banks pretend they’re managing for “price stability” while deliberately crushing their currencies to boost exports and inflate away debt.

The Swiss National Bank’s balance sheet is larger than Switzerland’s GDP. The ECB is buying corporate bonds like they’re collecting trading cards. The Bank of Japan makes purchases that would make a drunken sailor blush. And somehow, we’re supposed to analyze EUR/CHF or USD/JPY like these are legitimate exchange rates reflecting economic reality? Please. These are artificial constructs maintained by intervention and manipulation.

The Real Trade: Shorting Fiat Credibility

Here’s what every serious trader needs to understand: we’re not trading currencies anymore, we’re trading government promises. And those promises are worth about as much as a campaign pledge. The dollar’s reserve status isn’t guaranteed by economic strength – it’s maintained by military power and political pressure. The euro exists because German taxpayers subsidize Mediterranean vacations. The yen survives because Japan keeps buying its own debt with printed money.

Smart money isn’t trying to pick winners between these disasters. Smart money is looking for alternatives – whether that’s precious metals, real assets, or yes, even cryptocurrencies for those brave enough to stomach the volatility. Because when every major currency is being debased simultaneously, the only winning move is not to play their game.

Preparing for the Inevitable

The spaceship reference isn’t just humor – it’s preparation. When this house of cards finally collapses, and it will, the traders who survive will be the ones who saw it coming and positioned accordingly. Not the ones trying to day-trade EUR/USD based on whether Mario Draghi had coffee or tea with his morning manipulation session.

Stop pretending this market makes sense. Stop trying to apply traditional technical analysis to prices that are artificially supported by infinite money printing. Start thinking about what happens when the music stops and there aren’t enough chairs for all these overleveraged positions. That’s where the real money will be made – or lost, depending on which side of reality you choose to stand.

4 Responses

  1. JSkogs October 2, 2013 / 7:28 pm

    I am sort of feeling like the face ripper might be upon us. Perhaps tonight. Some of the set-ups are hinting at it. Man your stations! Tedious trading of late. Still making gains but hard earned man…hard earned.

    • Forex Kong October 2, 2013 / 7:33 pm

      When will it end???

      This “market on fumes” is exhausting to say the least. The day to day is outright painful!

      Then of course…it’s usually “right around the time you’re starting to get a little cranky” and BAM!

      There it is!

      Patience…..man o man…..and yes – face ripper can’t be far off now.

      • JSkogs October 2, 2013 / 7:37 pm

        Yup so true. I have missed the moment before by getting frustrated and pulling the positions. I feel pretty good about this one but c’mon ITS A GRIND BRO! Good luck!

  2. schmederling October 2, 2013 / 11:02 pm

    Should have a confirmation signal by 3am London open in the DXY which is hinting that a NEG fire is right on the door-step. How this reflects in other currency pairs is a different story but should impacts Oil & PM’s higher while stocks should continue lower….. Thursdays are great days to get things going as Dr. Kong has mentioned below……

    I have also taken short position in Tesla & FB – we will see how these work-out have been on the radar for a while…..

    Cheers Schmed,

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