{"id":18787,"date":"2016-03-13T11:35:51","date_gmt":"2016-03-13T16:35:51","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18787"},"modified":"2016-03-13T11:35:51","modified_gmt":"2016-03-13T16:35:51","slug":"draghobert-the-terrible-strikes-again","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18787","title":{"rendered":"Draghobert the Terrible Strikes Again"},"content":{"rendered":"
\n

Draghobert the Terrible Strikes Again\u00a0<\/a><\/h3>\n<\/div>\n
A Whiff of Panic\u00a0<\/strong><\/div>\n
\n

Ahead of Thursday\u2019s ECB meeting, there was a widespread consensus that Europe\u2019s chief printing press supervisor would make up for the alleged \u201cmistake\u201d of under-delivering on\u00a0monetary lunacy last time around<\/a>. Therefore, a sizable dose of fresh absurdities had to be expected, with only small disagreements on the details. It is fair to say the man didn\u2019t disappoint.<\/p>\n

\"DraghobertDraghobert the Terrible, trying to assault the euro again \u00a0\u00a0Photo credit: Michael Probst \/ AP Photo<\/p>\n

There was an even greater consensus that the punters populating the casino were eagerly awaiting such news, and that they stood ready to deploy wagon-loads of money (mostly other people\u2019s) in the direction wished for by the central planning puppeteers. This particular detail didn\u2019t quite work out as expected, at least not at first. For instance, after an initial swoon, the ECB\u2019s very own confetti became more rather than less expensive.<\/p>\n

\"1-Euro<\/a>June euro futures, 20 minute candles. At first, the euro did what it was \u201csupposed\u201d to do \u2013 and then it went \u201cyen\u201d on the Dragon and his minions \u2013 click to enlarge.<\/p>\n

Similar scenes played out elsewhere. Here is for instance a 20 minute chart of the\u00a0 June Bund futures contract, which was subject to a similar sudden change in market opinion:<\/p>\n

\"2-german<\/a>Instant hangover in Bund futures \u00a0\u2013 click to enlarge.<\/p>\n

Other playthings were similarly impacted, from the DAX to gold. All the stuff that used to habitually react in a certain manner to more ECB largesse essentially did the opposite of what it was \u201csupposed\u201d to do.<\/p>\n

Readers may recall the last time when a similar thing happened. That was on occasion of Kamikaze Kuroda\u2019s attempt to smite putative yen bulls by cutting the BoJ\u2019s deposit rate into negative territory.<\/p>\n

\"3-June<\/a>That didn\u2019t quite work out as planned either\u2026 \u2013 click to enlarge.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Draghobert the Terrible Strikes Again\u00a0 A Whiff of Panic\u00a0 Ahead of Thursday\u2019s ECB meeting, there was a widespread consensus that Europe\u2019s chief printing press supervisor would make up for the alleged \u201cmistake\u201d of under-delivering on\u00a0monetary lunacy last time around. Therefore, a sizable dose of fresh absurdities had to be expected, with only small disagreements on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5728,57,233,282,2854,431,1044,534,6170,1138],"class_list":["post-18787","post","type-post","status-publish","format-standard","hentry","category-economics","tag-acting-man","tag-bank-of-japan","tag-ecb","tag-european-central-bank","tag-haruhiko-kuroda","tag-interest-rates","tag-mario-draghi","tag-monetary-policy","tag-pater-tenebrarum","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18787"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18787\/revisions"}],"predecessor-version":[{"id":18788,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18787\/revisions\/18788"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}