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BOJ Decision To Cut Rates, Launch Latest QE Round Sends Gold To Fresh All Time Record Over $1,327
As Zero Hedge speculated yesterday, as a conclusion to its two-day meeting the BOJ has decided to aggressively engage in competitive devaluation of the Yen (for the nth time in a row). Specifically, Shirakawa's impotent henchmen cut interest rates and pledged to keep rates at zero until prices are seen stable in what Reuters cited was "a surprise move showing its concern that a strong yen and slowing growth are undermining a fragile economic recovery." Luckily this move was not at all surprising to ZH readers. And, as we further expected, "the central bank also decided to set up, as a temporary measure, a 35 trillion yen ($419 billion) pool of funds to buy or accept as collateral assets such as government bonds, commercial paper and asset-backed securities." And to those who think Bernanke will allow Japan to engage in QE1002 without the US doing a little dollar debauchery of its own, we have some California real estate with just modestly fake title deeds to sell. Of course, none of this matter on a relative basis, as it will be followed merely by more devaluations elsewhere, but on an absolute basis it merely sent gold to a fresh all time high over $1,327. We hope that even gold's staunchest critics start seeing the pattern at this point...
More from Reuters
The decision to cut interest interest rates was made by a unanimous vote,
But board member Miyako Suda opposed including government bonds among the type of assets the BOJ could buy using its pool of funds.
Governor Masaaki Shirakawa will hold an embargoed news conference, with his comments expected to come out sometime after 4:15 p.m. (0715 GMT).
The BOJ had kept interest rates at 0.1 percent since late 2008. In the wake of sharp gains in the yen it eased monetary policy last December by setting up a facility offering cheap funds to banks, which was expanded in March and in August.
Here is how the market accepted the decision - note the all time high.
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Gold, bitchez...had to do it
Silver was up more % wise... Just sayin'
+1..i heart Ag
Silver HO's
Frankly, I'm hoping "gold's staunchest critics" will remain in the dark all the way to $5,000/oz, and then panic their herd into driving it to $10,000/oz. In which case they will have adequately compensated me for my trouble :-)
++
In all seriousness, I think Bernanke had to wait for Japan to come on board the devaluation train before he could commit to QEx. Unless all the major players are on board the train they can't the station. The Chinese will either have to be dragged down into the abyss with the US *_OR_* their products will not sell overseas.
The Eurozone hasn't committed yet, overtly at least. The BoE... well, it's just a question of time, isn't it? They openly discuss it.
When will the penny drop, anyway. They've played this broken old record for a while now, and we're still in the hole.
Any major economy or region must join the parade, and will do so in order to wash the debt out with worthless money. IMO, Europe will QE hand in hand with US-England-Japan and eventually everyone else. How it happens is another story, yet it will happen.
This is the psychology I am seeing. Right now
There is fear to buy Gold. Then greed will set in.
The Indians are still buying for the same currency amount
but they are getting smaller amounts of gold and I guess they
are doing this only due to social customs & marriage.
Looks like the golden years of 1999-2002 are gone.
Important points, thank you. As long as the fear element is driving gold it can't be in the proverbial bubble. When greed gets the upper hand the mania mode is not far behind. Then decisions must be made about holding gold for the long run or selling into the shark infested markets. What most of the folks who are mischaracterizing gold are missing is that only the greedy will get their heads handed to them. I suspect that most ZH folks will know when a good time arrives for them to sell. Therein lies the problem: Only the slaughter will be reported by the media and that will stain the gold trade for many years -- again.
That assumes some sort of dollar recovery. I can't see that happening.
This time it will be a switch to a gold standard, either official, or de facto.
Mosley, you will be very interested in the entirety of this article:
http://www.netdania.com/Products/live-streaming-currency-exchange-rates/...|comstock_lite&name=Gold,%20spot
Oh great a cut from 0.1 to 0-0.1. I'm sure that is going to fix things.
you are a bitchez junkie ;-)
Next thing will be "best before 20.." printed on boj banknotes
Hilarious.
All fiat currency should display a "If you know what's good for you, use before....." date so you don't get stuck with "stale" notes. Sort of like strawberries or bananas. Use them or lose them.
It would be hilarious, if Zimbabwe didn't already do it.
http://mostlyeconomics.wordpress.com/2008/07/10/zimbabwe-currency-carrie...
What is the best way to buy gold? How does one go about purchasing it? Thanks guys.
Midas Resources, Kitco, APMEX (where I got my silver)
Physical only.
these two have good reviews.
http://silvergoldbull.com/s/
http://www.apmex.com/Category/502/Gold.aspx?AID=10807028&PID=3796718&utm_content=3796718&utm_medium=affiliate&ref=cj&utm_campaign=10807028&utm_source=CJ
Agreed, the majority of my purchases have been APMEX.com.
it gets here in a few days, no bullshit.
You can shop around looking for lower spots, they are generally pretty good, with large selections.
other avenue if you wish to be a little more adventureous would be long calls/leaps on GDX (gold miners ETF), or specific companies, GG, NEM, ABX.
For silver I;ve been a big fan of SLW, Canadian silver miner (silver miner etf is SIL- still fairly new).
But the obviously if the market tanks 500 points, these stocks and etfs will take hits too. but I think milder than say an AAPL, AMZN, IBM.
Anyone disagree?
Best of Luck.
SMR on the TSX for the bold.
No don't disagree. If I was in some paper or still in stocks I'd be holding SLW. Some oil, miners, and other such basic plays.
It will hold up and SLW has a good business model and it's a Canadian company. I forgot, is it an ADR where you might get currency kick?
Find a local coin shop and pay cash.
A word to he wise: When you buy via the internet you will leave a paper trail. I buy at local coin stores. I shove cash over the counter and they give me gold/silver and have never asked my name.
By the way, how is that cute little nephew of yours Caligula doing? I hope you leave the Empire to him.
He's going by Walter these days.
http://www.youtube.com/watch?v=cN9-y8CbjPI&feature=related
Oh, Caligula is going to get the empire. I've already gotten Germanicus. But I've gotta destroy the rest of his family first and imprison him on my island for a few years.
http://banksterreport.blogspot.com/2010/04/gold-and-silver-crash-course....
Try Gainesville Coins:
http://www.gainesvillecoins.com/
Great selection and customer service.
Like me some Gainesville Coins.
This is friggin nuts . Were other commodity prices infected as well (food/grains especially)
If the pattern of QE does also infect food these CB's are going to end up like Mussolini.
http://t1.gstatic.com/images?q=tbn:ANd9GcRWolSiLoRQiJt4XU5LeBIi74TU5DxVu...
"none of this matter on a relative basis, as it will be followed merely by more devaluations elsewhere"
Yes, the RBA keeps its target cash rate at 4.5%, in the face of rising swap & bank bill rates.
This smacks of collusion.
Unlimited check writing authority.
Must be nice(?)
Bubble heads in the media will be quacking again today.
Futures just took off like a rocket. Someone knows sumtin'.
frontrunning the pomo I guess. works great until it doesn't. so far, odds favor a ramp and camp.
Can somebody PLEASE EXPLAIN the concept of FINITE LIMITS, headroom, asymptotes, whatever to these economist CLOWNS?
How can one pretend to have respect for ANY of these idiots or their work product?
They are still trying to take the derivative at x=0;
The powers that be have already set policy and then implement it through the Fed and other CBs. It's up to everyone else to try and explain rationally why the policy makes sense. The Fed and other CBs basically make shit up, leaving the minion economists scurrying for answers.
We keep trying to either find a reason behind what they do or we call them misguided or crazy or thieves. What we don't wish to call them is brilliant. These are not stupid men. They are following orders. But the orders allow for some leeway and improvisation, which enables Ben, Timmy etc the latitude to believe they are in charge, thus keeping them on task.
Of one thing I'm certain. These men have huge egos and the way to control them is to feed their egos.
bullshit. They're clueless.
Yeah... all the way to the fukkin bank.
I'd say it's projection on your part but I don't know you all that well.
http://en.wikipedia.org/wiki/Projection_bias
The FED is bailing out thier owners - simple rational and EVIL.
How do you believe in a NWO and say they are clueless at the same time?
Take EURJPY, go to a weekly chart, draw a trendline from Jul 2008 to this weeks high....
The BoJ just fired their last bullet and we will have a major "risk off" event very soon...
ASX:LYC Lynas Corp (rare earth miner) rose over 7% on the news, now making a 1,000% gain in 18 months.
Thanks for the tip! Been looking for rare earth metal play and not familiar with any. Any others that are good?
Got in on Lynas last night at AUD 1.41 after missing it at 1.35 (Grrrr)....up today to 1.51 now, so I am quickly forgetting the 7% missed the day before!!
Seach for Lynas on here and plenty of articles come up that mention some other RE companies. Molycorp seems to be the main US RE company.
Complete lunacy.
Looks like FX traders are frontrunning BB on this news, as the dollar is actually down against the Yen this morning.
Looks like gold really is the only safe haven, and now the market knows it.
Surprised there has not been any grand JPM-style shenanigans yet to push PMs down. Unless they are already held down of course...
I just saw Dennis Gartman or Bob Prechter on Main Street. It was hard to be sure which one, they were dressed in filthy rags and holding a sign that said 'Will prognosticate for food'.
funny.
Looks like a blow off in gold to the upside. I own but will not buy more now. I'm still accumulating silver. More room to run I suspect.
Waved adyos by placing my final order when gold traded around $1050 in early Feb. after that correction from the Jan. high.I've been accumulating since 2003.I recently exchanged some paper for a quantity of 1oz 2011 Canadian Silver Wolves.
Funny you should mention the Wolves....I just received some in the mail yesterday. Nice coins. I figure w silver I have a floor around $18, gold, maybe $1100.
When do you anticipate seeing those prices again? When the Fed announces "just kidding, no QE2!"?
Don't forget, not to be outdone by the land of the rising sun, the land of the sinking debt : Its POMO Tuesday.
Rather than waste all this tiime, lets have a made for tv special: Banker's Death Match. Who ever wins, wins.
It would save a lot of time
Yeah, and dont forget the sixth rule of Fight Club: The fights will go on as long as they have to.
No shit. To da moon Alice.
16:1 or Bust, come on Silver!
Holy shit - money is now worth Nothing. But it works Ben see how the land of the rising Sun does it and the results are outstanding - see it Ben! 20 years of pushing a string gets you ..........
Remember Ben they can afford it - you on the other hand could not afford a head job in a taxi in the Ginza.
I other news the Europeans are sucking and licking the Chinese finance Ministers loose appendages trying like Hell to get him to take them (and his new found Wealth) to the Alter. But like the desperate sexually infected creatures they are these Prostitutes will only Infect the host they so badly they will die curled up on a semen infused, lice infected mattress in a corner of an opium den run by Goldman. But how badly they need his money and what desperate 'Tricks' they will perform to be the first to swallow what ever emanates from his body.
But back to the story at hand - it is now possible to do the impossible - borrow from Japan at 0.01% and lend to Ben at no risk whatsoever buying the Worlds reserve currency, In Full faith Bonds, guaranteed by Ben.
Reminds me of the Zero Bird - a rare Bird indeed. Rumored to fly around in ever diminishing circles until eventually it flies up its fundamental Orifice, screaming at the last flap of of its wings before it disappears up its own shit chute........ Farrrrrrk Dis Shit.
LOL at your evocative prosody.
The Yen is actually HIGHER this morning. Wow.
This market will call EVERYONE's bluff, including Bernanke.
Mondays sell off gone thanks to the magic futures, they always rise before the open 90% of the time. All hale the magic futures.
I thought it was the magic conch shell? This is the spongebob market, remember?
Or perhaps Lord of the Flies.
I just saw the DXY drop from 78 to 77.10 three times!!
Was that real? Flash crash?
Bad data.
What is Atrial Fibrillation, or AFib?*
http://www.multaq.com/Consumer/about-atrial-fibrillation.aspx#?WT.mc_id=MTQWB0049&WT.srch=1&src=2&utm_source=google&utm_medium=cpc&utm_term=arrhythmia&utm_campaign=arrhythmiaconsumer
Your heart is all a flutter...can gold do that?
Low on Dow mini overnight 10,690, look for the high after the open to be near 10,790. Right now trading at 10,759.
Right smack on the money, high after I posted 10,790.
Its simple. Ben dont give a fuck about anything but the stock market. He will print money with out any regards to what is going on. Its that simple.
Ben on Bloomberg Business News saying "Fiscal Limits can improve Federal Budget Path" I think everybody can see the path Ben. Say it with Gold. This guy must get his snot rockets stuck in that beard.
PRESTO! all losses from yesterday now gone, just like magic. Think how hard and all the capital it would take to have to lift all the stocks in the index. Just get all the heavy lifting done before the cash open.
This Fridays payroll data will be " BETTER THAN EXPECTED " Yes folks its all rigged to the upside till the election. Then after the election seasonals will be on the side of the bulls.
Need to make what little people left in the market feel richer so they will shop during Christmas.
It seems to me they are all playing with a broken toy without realizing it is broken.
What does it mean "devaluate" if you change the price of something from 0,00001 to 0,000005? Does this still have any meaning? I don't want to sound too "keynesian" (aaargh! Get out of this body!), but if your interest rate is already somewhat like zero, what effect do you pretend to have anymore on the monetary policy? The only effect the interest rate could have at this point is if you were to rise it, which is debatable as a good move in the present situation. You have to find another way to make the people detaining liquidity invest it in the real economy instead on the planetary Las Vegas of finace...
Ben Davies on KWN discusses Japan v China currency battle, gold, etc.:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/10/4_B...
New price discovery in gold is imminent as there is no where for fiat to go...suggests revaluing gold to yen to 7000.
Keep in mind that nearly all gains in this run from the July lows have been made on Mondays and Tuesdays.
Probably get to 1335 or so later today or overnight and then a range back down to 1320 or so through Friday.
As many are aware, since June I've been saying 1350 by Halloween. Looks like we might beat that deadline with about 10 days to spare.
1335.20, as I type.
Looks like 1340 is where the EE has decided to try to blunt the rally. I'd be very surprised if they were overwhelmed.
Last throw of the dice,collapse getting nearer.Gold and Silver is the Barometer on "Confidence" and the performance of Governments and Central Banks,not doing very well are they?
"And to those who think Bernanke will allow Japan to engage in QE1002 without the US doing a little dollar debauchery of its own, we have some California real estate with just modestly fake title deeds to sell."
Gotta love ZH.