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Currency Devaluation 101: Japan Pumps Liquidity For First Time Since December To Punish Surging Yen
Japan takes a bold step toward moving away from second to last place in the currency devaluation game. Bloomberg reports:
The Bank of Japan said it will pump 2 trillion yen ($21.8 billion) into the financial system after the Greek debt crisis caused instability in financial markets in the U.S. and Europe.
The emergency measure represents the bank’s first same-day repurchase operations since December. The balance of current- account deposits held by financial institutions at the central bank will likely increase to 16.9 trillion yen, up 800 billion yen from yesterday, the central bank said.
Of course, right now Ben Bernanke an d the US dollar are dead last in the fiat bonfire. But not for long.
Luckily, the only real winner out of the Keynesian death rattle will be gold. Which is the LBMA is doing all it can to manipulate the price lower right this instant. All the better - entry points will be fewer and harder to come by as the time to the final Keynesian unwind draws nearer with each passing day.
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Well the balls in your court Ben, what's it gonna be??? OHHH OHHH pick me pick me, let's do 1 quadrillion and when everyone asks how much that is it will make a trillion look like chump change. Deficit problem solved.
Mr Zuhlu, set a course for Dow infinity, warp factor 9. :)
I can't decide...shouldn't commodities & agriculture do well with all this debasement. But then the market is completely melting and all correlations are 1, so look out below for everything except gold.
I quit trying to figure it out long ago. The one thing I do know is that everything is extremely overvalued, and I do mean everything and needs to reset to a lower level or else there will never be any growth. When the average income in the richest country on the planet is 50k and the average vehicle on the road here costs 20k plus something has to give and that's just one little tidbit. Look around tomorrow or over the weekend and count how many 40k plus cars are on the roads. Doesn't make any sense does it? Everything needs to reset lower and it will. Heaven forbid we dealt with that pain because it would lead to full employment and wealth creation and growth.
Just a thought.. My father use to tell me about his life in the big D. He'd get a dime and run down to the movie theater. Buy a ticket, bucket of popcorn and a drink and still have change. After the depression prices just went up never returning to the fabled dime index. So,my question, why must prices reset when it never has after a credit contraction?
Somebody out there agrees with you ... but I suspect they're readjusting valuations a bit too far in the opposite direction. Accenture at $0.01 at 14:48 today? OUCH!
http://www.google.com/finance?q=NYSE%3AACN
That chart looks like the alleged crevice on the Gulf of Mexico floor that's spewing (BP) crude.
BTW, I've always been curious who "owns" the crude they actually skim off the surface. Does somebody from BP show up with an empty one gallon milk jug for the days skimming?
"Just a little off the top boys".
Commodities & agriculture won't do well initially because they are a bubble, hoping for major econ improvement. Once we get back to the real values, correlations will change.
Ag does well cuz I can eat that NOMNOM
VIX correlation will be -1.
Get long volatility, bitches. Booyah!
When they decide to intervene they just do it, no shame.
Just watch the USD/JPY climbing and you know what is going on.
Shanghai suffered a fat-finger glitch just after the opening tonight. Same FLUBBER correction, too. Swelling of the digits must be contagious?
I don't understand why the yen went up so strong today.
Who is going long yen? Don't they know Japan INVENTETD Quant Easing?
That Japan will savagely protect their ability to export goods?
There's a reason there is a "yen carry trade" in the first place....because the Japan will have low rates for an indefinite period and will pound the yen into the ground to make their exports competitive.
Yen carry trade unwinding ldo
on the lighter side we just got that 10% pullback everyone has been waiting for to jump into SSO
I'm all in now.
Whoops forgot to turn off the sarcasm.
buy buy buy! eh Jim?
SSO? Who needs 2x leverage when you can get 3x?!?!?!
DAMN THE TORPEDOES! I AM GONNA DRINK THA RED BULL AND CRANK UP CNBC AND BUY 10,000 SHARES OF BGU ... ON MARGIN!
BOOYAH!!!!!!!!!!!!11!1!1!!!one!!1!one!one1!
new margin requirments kill leverage, buy all calls!
all kidding. shit gonna hit the fan, soon.
We have more in common with the Japanese than we thought.
Populations are different but we be headed that way.
Beheading was the last step in Seppuku... but was for people with honor and shame. That's no more.
Why do I get the feeling that everything, and I mean everything including Larry Kudlow's blow-up Goldilocks love doll is being sacrificed just to prop up the US dollar?
Orgiastic currency debauchery! Bernanke = Nero. Shirakawa = Caligula.
Electronic market makers are to "blame". Fat finger - bs. Comupter error - bs. Erroneous trade - bs. Significant distribution/shorting by market makers in mid-April has now been offset by lower prices, to the benefit of the market insiders. Trillion dollar loss for some equals trillion dollar gain for others.
The pound just tanked. If anyone's interested. Subsequently I still have a big grizzly bear woody. Non-Cialis induced.
Still buyin!
Let them manipulate it lower, it means more buying opportunities. Once the dollar falls it will be fast and breath-taking. Together, tens of millions in USD/CAD in physical are being bought with 'both hands' per se. Only a fool would be in GLD/SLV/etc.
PS: Silver @ 17.20 just 48 hours ago was a nice buy too.
MAY 1st:
"The weekly DOW chart shows an expanding wedge indicating a significant move is probable... this remains an overbought bear market rally and the uptrend could falter at any time.
http://www.zerohedge.com/forum/latest-market-outlook-0#comment-326767
I think I hear a helicopter over my house.
Posted May 1st - a week before the crash.
'11,250 / 300 is an area of significant resistance and if this level can’t be breached it should signal the end of the March 2009 bear market rally - the weekly DOW chart shows an expanding wedge indicating a significant move is probable - this remains an overbought bear market rally and the uptrend could falter at any time - the VIX index continues to give bullish warnings which is bearish for equities - long term charts of key equity indexes continue to give bearish warnings and the March 2009 lows will be breached in my opinion - USD Index bullish warnings since 2009 on the weekly and monthly chart have not changed and further USD strength and thus EURO weakness is still expected '
http://www.zerohedge.com/forum/latest-market-outlook-0
http://stockmarket618.wordpress.com