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BOJ Intervenes For Second Time In A Week, Fails
The half-life of central bank interventions is getting shorter and shorter. After Shirakawa decided to show the Fed who is boss, only to be met with the biggest beatdown the dollar has experienced since March, tonight the BOJ decided to show Bernanke how it's done. Too bad the idiots at the BOJ have learned nothing from the SNB's Hildebrand, who was last seen cowering in a fetal positions, underneath his desk. After surging by 100 pips post the second intervention in a row, the "wolfpack" is back, and the yen has retraced more than half it losses in under 2 hours. This pathetic attempt to weaken its currency has just cost the BOJ another few trillions yen, while the end result is the same: a Japan whose export economy is about to be crushed, and a central bank president who will now be forced to join the ranks of the unemployed within a month.
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Long JPY. China is happily buying into every dip JGB´s. Long live China and their currency reserves.
+10
Wow! Shirakawa isn't to bright is he?
Saw this on ransquawk:
http://www.vancouversun.com/news/North+South+Korea+brink+Russian+diploma...
More stirrings in the world lately?
Well gee. The UN nations speeches were all a bunch of horseshit. I'm sure everyone left there pissed as hell.
Sayonara Shirakawa! (this will happen soon)
Central Banker=Impotent Ass Hat
this truth knows no borders...
Where is BHO or Geithner yelling at Japan for currency manipulation like they do with China? Or the Swiss who have manipulated their currency? Or how about lambasting Bernanke for manipulating the USD value and US debit interest rates? It is time the US treasury charges the Federal Reserve with a tax of a small 0.5% tax on their International transactions, as trillions have gone to foreign banks for the profit of the Federal Reserve yet the US citizens only stand to LOSE from this. It is time the Federal Reserve pays their taxes too!
Can't stop a black blizzard with a bucket of water.
Another Analogy:
The Japanese are peeing while standing downwind.
through the patio door... with golf shoes on
Man, I was wondering what the 100+ spike in the Nikkei was. Thought someone had a melt-up algo go wild. Hell, it is almost the same thing I guess. Didn't last long either.
Guess it is going to be a sad-face opening for U.S. Equities tomorrow. (If you are on the wrong side, that is.)
Con someone explain, in simple terms, where all that money went?
In the pockets of banks, funds and individual traders.
and Japanese manufacturing firms that hedged currency risks in this opportunity.
To offset losses in other pointless capital market endeavours ?
"money" has failed.
The world want's to go green. It's going to be a bunch of work. So everybody has to lose their jobs so they can get the labor cheaper.
See news about the release of Chinese boat captain.
Once again Zero hedge speculates and speculates endlessly. If you check out MoF, there is still no confirmation. And an intervention will yield a lot more than 50 bps.
So once again requesting you to verify facts before pulling the plug!!!
By the way, it was closer to 100 bps. And regardless of the source, we are all grateful that this was a reminder about gold - pushed it to new highs now (and silver past the '08 peak).
fine. 100 bps. That is intervention? It may be but BoJ does not intervene w/o confirming.
Gold technicals look strong for the time being but the entire PM package is ignoring the fact that there is one currency that is not in a race to bottom and when it does realise, Gold will crash. For the time being though technicals in Gold are strong and stochastics still not showing any signs of a slow down.
88 bps. Must have been the PBoC ...
that is a real possibility.
cmon, which currency?
Most central banks interventions are not publicly announced, or many days after, when no one's looking.
Not BoJ.
And one more myth that is evident around zerohedge is Swiss guys shaking in fear. You guys are absolutely funny when it comes to analysis. Swiss guys do not intervene for their own sake. They are an extended arm of ECB. The only reason why they intervene last time was to stabilise EURO. So they bought EURO and sold CHFs. This time around they are not worried as EURO is now well on its way ascendancy to where it belongs not withstanding the little debt problem of the PIIGS. So CHF guys will not intervene and nor are they worried. They may only if EURO weakens below 1.24 to the dollar.
You guys speculate to the point of madness.
... the Swiss Franc is mostly considered as the 'safe-haven' currency, partly because the Swiss National Bank keeps a large part of its reserves in gold. When gold price appreciates and/or during geopolitical challenges the swissie usually rises as investors look to safer grounds.
lot more than safe haven that is aiding CHF. swiss and japan are both recovering fast and sustanably. While investing community is being fed about Japan double dip and deflation, the economy is recovering faster than ever before. Swiss was always strong.
Dreamer you're nothing but a dreamer.
Well can you put your hands in your head - oh No !
ur name fits ur style. too phat for ur own head.
Yup, definitely just a LITTLE debt problem when 1/5 of your direct partners are experiencing such troubles which will force the strong countries hands in a matter of years.
Happy those bond auctions went off fine? Thats great...except a few years down the line they wont be able to pay the interest on the debt owed. What then? Germany to the rescue? No too selfish. Someone in East EU? Nope!
The EURs best possible range from an economic standpoint is 1/2 the GBP and about 3/4 the USD.
guess thats what Ambrose Evans said: PIIGS will revolt against budget cuts. They did. But in the end. Budget cuts are being stringently implemented. And my bet is that the PIIGS will payback as opposed to the US which will never never payback.
And you forget the role of China. They are here to stay and trade with PIIGS. Infact 1% of EURO bulls have nice saying: "China will trade away PIIGS debt problems."
Wait till the time when ECB raises its rates as inflation will bite and only then will folks like you will understand that EURO is a far more resillient currency than u think it is.
March 2011 is my bet for ECB 25 bps hike and EURO/USD to 1.7 atleast. EUR/GBP=1.1 atleast. Infact Against GBP it can be more like 1.3 or 1.4 also.
It is strange how you are so confident your European friends will indeed 'payback' but you are equally sure the USA never will. While i agree the States are in a dire state, the PIIGS are not better off - if anything, they are worse off since their fiscal policies are all intertwined.
How can you possibly think a country like Greece or Spain (20% unemployment, officially!) can service its future debt.
As for the role of China, complete disagree that China will help the EUR. Yes, China wants to keep trading with many EU nations, and it will. But whats favorable for the Chinese, a strong or a weak EUR. Ponder those questions for a minute, maybe do some research, and then perhaps you can change your biased viewpoint. EURGBP of 1.3 or higher has absolutely no merit - its never been higher than .95, and while history isnt necessarily the best indicator of future performance, you can agree the Brits will not be threatened by their neighbors, hence why they still have their precious pound.
Fiatsco(s) race to the bottom & beggar thy neighbor gathers momentum.
PMs juiced on paper volatility ... Gold $1297.00 Silver $21.33
Gold is seriously flirting with $1,300 now, like a middle aged divorcee after a bottle of wine... C'mon, you god damned tease, deliver!
Ooh, and she did!
Sweet baby jesus!
1298.60 - yowzer.
ES/GC 0.865 ... give it a week and i think the ratio breaks south in a big way
It's gonna be funny as hell when they fail every intervention until the dollar eventually rises by itself...
That's gotta hurt. Maybe someone should translate the law of diminishing returns and send it to them.
Of course this won't be the last central bank to throw money into the fire.
With this sort of bloodbath (japanese restaurant scene), someone better look for Beatrix Kiddo and her Hattori Hanzo. I think she was entombed for longer than value of the intervention held up.
Sliced in half as quick as a Hanzo.
Is Goldman out with another note saying sell the EUR to 1.27? (watching it spike to 1.34 tonight)
The BOJ have already said they aren't going to sterilize their yen sales.
Print Yen. Sell Yen. Repeat.
I'm not sure how that can fail so long as they do it enough?
The chinese are buying it all, and whenever they think they have enough to destroy the japanese economy, they'll just dump it for 1cent on the dollar.
I might cost a few 10's of billion of $ but it's cheaper then a war an much more effective in destroying the japanese spirit and economy. And that's where it's all about in war.
Japan should start to send out people to the chinese who can really kiss ass before it's to late.
Thank you.
I don't know why the author is assuming it's the FED propping up the Yen; the Chinese are a much more likely culprit.
Now these mother fuckers are intervening on Euro or whatever fuck their acting because eur_usd just went to the moon... fuck this bitchs and fuck central bankers...
Got physical gold?
Physical Gold is the dumbest idea I have ever heard in all my life and I work for $35bn hedge fund. 15-20% holding cost, taxes and other charges as and when you try to monetise.
The argument for Physical Gold is that the world will end and hence you will be able to buy food with Gold. Imagine how dumb that idea is for a minute. Physical Gold is suggested by the absolute losers in the investing world. Men who cant find trends and patterns and cant make absolute returns.
You might as well buy some coal mines and cattle and lakes(water) for such times. May just give better returns that Gold.
Gold is best traded thru futures and try catching the trends and patterns. Right now it has broken its channel at 1263 and closed above 1263 for 3 days continous which meant it was going well over 1300. Physical guys whld discount the holding cost from that Gold profit return.
JohnnyJizz - is that you?!
Enjoy your exponentially increasing counterparty risk and failed business model, moron.
You know NOTHING of gold, if you think it has a 20% carrying cost. Spreads are generally less than 3% on physical at reputable dealers. Unless you are buying a safe for every two oz of gold, your carrying costs should be about 3%.
yep. am not talking of spreads dumbo.
Go figure out.
fresbee:
"Men who cant find trends and patterns and cant make absolute returns."
You morons are all alike
You promote genius like chart and trend reading like you are Gods.
You are simply following the charts and trends that the money changers are drawing through trading with our money.
"Genius" ??????????????????????????
ROTFLMAO !
Makes "You" a follower Dude !
Is it just me, or is the Whole World trying to commit Hari kari with a vane attempt to to the "cheapest exporter on the Block". OK say it is so. Lets think this through. USD - Reserve Currency but a country that does not export much except local workers jobs. If they win there is no industry to fill the gap. Japan is a great exporter that has followed the same path for cheaper costs and has ended up in the same place. Canada and Australia, strong diggers but in the end are price takers. (You no buy em we no sell um). Europe = one currency no brains and no hope (Irish and Germany mini boom just went Kaboom). England is a frigging mess and held together by ugly wallpaper. Russia is frequently Drunk. The French are to busy buggering Boys(well they could be girls with small Tits) Greece knows how to Bugger everything. Iceland just loves to show the Finger. Norway has made the biggest investment blunder of it career. India can't Build, host, clean or engineer its way out of anything (and the Cows are still shitting in the streets.) China is still hanging on to the play ground Bully and is at the bullies mercy. Taiwan is a Nuke away from as desert island
That leaves Antarctica - It has penguins, seals and Ice - none of which give a Fuck whether the rest of the World lives or dies.
OR
Alaska - and it had Sarah Palin - and she don't care whether the rest of the world lives or Dies.
Beam me up Scotty - no intelligent life is on this Planet.
W A S F = we are so fucked
The battle of 84.2
Beautiful.
Soooo- the Japanese can do what they have always done at times like this - print about $500 Billion worth of Yen , Sell the Yen, Buy Dollars abd use the Dollars to buy Treasuries ( ie. Finance the US). In which case the Yen will weaken and they will continue to have a thriving industrial base.
Or - they can say, screw it - we're done with this syupid game of selling cars to dedbeats and let the chips fall where they may.
What do you think they do? Do you really think their beuraucrats have the bals to rethink their ecological niche - starting Monday? No way.
Oops - apologies - I meant "balls" NOT "bals"!! Although I am pretty sure they aint got those either!!!
Et tu Roberto?...LOL.
http://robertreich.org/post/1163051320
This pathetic attempt to weaken its currency has just cost the BOJ another few trillions yen...
Or not...remember, these guys can just print up some more, since central bankers are the counterfeiters of last resort. So, a genuine balls-to-the-walls currency debasement costs the central bank precisely nothing. And, we DO seem to be entering into the formal regime of sequential and widely recognized currency debasement. Next up, ECB, then Fed....
I smell dollar blood. That's what's going on. Chickens coming home to roost.
These prophetic but cryptic lyrics may give an insight:
The ocean is a desert with its life underground/And a perfect disguise above/Under the cities lies a heart made of stone/Because the humans will give no love
I love that song.....
If they keep this up they won't have the time to build Mechagodzilla.
This was just so predictable...
China is the new gangsters much like Hitler and crew only much more bolder. These tyrannts have been given a free hand by everyone lead by US and we've only ourselves to blame. Reagan won the cold war becauase he understood the economics of Freedom. Since then we've suffered under leadership (and I use that word lightly) that has done its best to distance itself from the Reagan experience. It is because we have been being ruled by tyrannts. Tyrannts who are pussy's compared to China's. This country needs to wake up quick as this coming war we've allowed is going to get away from US. The economy, our politics.... America has no choice but to overthrow its Tyrannts (ie. Federal Reserve, 2B2Jail, and the political leadership), get back to the realities of Freedom and force it upon the earth. Its the best way to stay out of war because it is impossible to economically compete against Freedom with tyranny. You want Peace? You want a return to economic Prosperity? Rid America of its Tyrannts. We have 2 elections in order to do that and if we fail we WILL BE IN A WORLD OF HURT. That I guarantee you.
It sort of looked like a duck, but it didn't quack like a duck.
Well, the main stream lame duck media picked up on this, BOJ bascially won't say a word, which confirms they are behind it. What else is going create that elevator straight up on the chart, that we've witnessed so many times? Looks like they got their asses kicked and shame alone will keep them from admitting it.
To the poster who says we speculate too much on ZH......thats what we do pal.
With jolly Swiss ministers becoming online hits, how can we even think that Swissies are "cowering in fetal position" ?
This video will prove you wrong :-)
SwissMin
Wow, this really is remarkable.
Back in the day, the BOJ could make or break traders. Now they are just beaten down like a two-bit meth whore. What amazing times we live in.
This is just a prelude - some nutty shit coming down the pipe ...
So how does it play out? Is the thinking that Japan's private sector will get killed with Yen strength (since the argument I've read is that they'll come to the gov't rescue somehow) and as corporate Japan drains equity over time they'll be unable to subsidize a bankrupt government through taxation or any other means.
Ding, dong, the wicked witch is DEAD!
I think Japan's investment in the USD will pay off handsomely for them in the end.
Japanese penis ... so small... so small...
http://www.youtube.com/watch?v=S6jGEHE2P04
I'll be watching USD/JPY on Thursday with much interest.
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