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BOJ Checks FX Intervention To SNB As EURCHF Plunges To Fresh Lows
Last night's lack of intervention by the BOJ is finally being appreciate for the strategic bluff it was. When even an incremental QE dosage is unable to put a dent in your currency, and has in fact strengthened the JPY ever since the announcement, investors are now flocking to all safe currencies, first and foremost the CHF, which has just breached the critical 1.3000 barrier and immediately took down all stops all the way down to 1.2980. This means that the BOJ very strategically left the intervention card to the next currency debaser down the road, i.e. the Swiss National Bank, whose boss Phillip Hildebrand is now staring at his Bloomberg terminal in shock knowing full well he has no choice now but to intervene yet again. Once again, Shirakawa shows how it's done.
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Is this a build up to a coordinated global debasement/stimulus push?
Wow. This is some heavy duty poker now being played. The next G-20 meeting promises to be very interesting.
But this is precisely what you can expect with a fiat system and is as predictable as the sun rising in the East. This is outright currency war to a great extent because the unthinkable is happening: the guy with the hands at the control of the world's reserve currency is trashing his currency.
Eventually, his hand is going to be taken off the control lever-one way or the other.
Banzai...er, gaijins!
Negative interest on all foreign holdings of CHF should alleviate the problem.
If everybody is weakening their currency then nobody is weakening their currency.
Except against real goods and sound money.
so then how do you leap frog to the front of the pack? what will Bennie Boy do?
Staring into the abyssssss....The slap in the face to Jackson Hole:
This is what US has to look forward to as a result of gonzo, "shock n awe", globally coordinated money printing: small potatoes QE_lite like what BOJ and Bernanke are proposing are reaching terminal velocity, with no further incremental stimulative value and only currency risk to the downside.
Really interesting read. So basically what do we have here? Japan passing the buck this time, letting someone else debase so perhaps they can do some printing down the raod or what? Seems like the SNB could risk blowing itself up again but what choice do they have.
It's been mentioned here and there but a currency disaster just could be the next explosion. I am amazed on a daily basis when I look around at all the potential financial landmines literring the playing field. It's now a matter of which one gets stepped on first. We have Euro soverign debt, China bubbles, pension nightmares, derivatives smoldering time bomb, municiple meltdowns, bankrupt states and I haven't even gotten to the good stuff. Just so many things that can go wrong and set off the eventual chain reaction.
+1
Just curious, but what is the good stuff ?
Hildebrand will have the right answer for this mess. "Brazilian tax" on all incoming foreign funds should "do it"...
gotta debase against debt, only thing the currency is based on.
This confidence game is losing its luster. Any bets on how ugly it's gonna be when it ultimately fails?
OMG!! we're all doomed! Not the 30 pip sell-off!
30 pips in that time frame is a shitload of pips.
bah, i can't delete my comment
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