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Currency Intervention, Bitches
After a six year wait, the BoJ has finally had enough of the Federal Reserve's endless manipulation and has itself intervened in the currency market. The USDJPY jumps over 150 bps, the Nikkei surges 250 pts (that ES-Nikkei convergence or whatever the hell it was is closing soon) as the BOJ sells between 200 and 300 billion worth of yen. Yes, this is the time to short, short, short because if the now useless SNB interventions have taught is anything it is that central banks are populated by pompous morons who believe they can control the world, when the best thing they can do is hope for the last Viagra shot to result in priapism. For those who have taken Psych 101 - look up learned helplessnes. Next up - the SNB, and after that the Fed once again, and after that, the slow but sure end of fiat. The race to the currency devaluation bottom is now in the third and last lap. And incidentally, for all those who missed it, the BOJ's intervention is a symbolic capitulation, and the beginning of the end for the Keynesian system. Rejoice.
And here is what can only be classified as the funniest self-propagating, feedback-looping, confused fractal tick chart seen in a long, long time:
And here is the thingy from Reuters, confirming the BoJ's penis envy:
Japan intervened in the currency market on Wednesday for the first time in six years, selling yen to stem a rise in the currency that is threatening a fragile economic recovery.
Finance Minister Yoshihiko Noda confirmed the intervention in a news conference, saying Tokyo was also communicating with authorities overseas but indicating that Japan acted alone.
Noda declined to comment on whether the intervention, the first since March 2004, was to buy dollars for yen, but two traders said the Bank of Japan appeared to have bought dollars around 83 yen.
"We will take decisive steps if necessary, including intervention, while continuing to closely watch currency market moves from now on," Noda told reporters at a hastily arranged news conference.
The dollar, which had hit a 15-year-low at 82.87 yen <JPY=> earlier in the day, spiked one yen higher and was trading up 1.6 percent on the day at 84.50 yen.
Prime Minister Naoto Kan's government has been trying to talk down the yen but until Wednesday had stopped short of intervening in the markets, apparently worried that acting without Group of Seven partners would not be very effective.
Kan was re-elected ruling party leader on Tuesday, decisively fending off a challenge from powerbroker Ichiro Ozawa, an outspoken advocate of intervention.
15-YEAR HIGH
"There were views in the market that Kan was more tolerant of a higher yen and the yen rose after he won the ruling party leadership vote yesterday," said Yasuo Yamamoto, senior economist at Mizuho Research Institute.
"The government probably wanted to stamp out those views. But the question is: Will the yen stop rising from here? It's not clear."
Japan has not intervened in the foreign exchange market since March 2004 after a 15-month, 35 trillion yen ($421.7 billion) selling spree aimed at preventing a strong yen from snuffing out an economic recovery.
But the yen has surged to its highest against the dollar since 1995, as low U.S. interest rates have made the dollar cheap to borrow and sell for higher-yielding assets, bringing the Japanese currency closer and closer to its record peak of 79.75 per dollar set in 1995.
The yen's rise has weighed on the Tokyo stock market's Nikkei average, which climbed 1.8 percent on the day as news of the intervention spread.
The euro rose 1.5 percent to 109.65 yen.
The Bank of Japan acts on behalf of the Ministry of Finance in currency intervention.
Japan is not the only developed economy to have intervened to weaken its currency in the past year.
And amusingly, here is what BofA had to say on the topic of the USDYEN and intervention in the hours just before the BOJ threw in the towel. In a nutshell, BofA see USDJPY below 80 by year end even with FX intervention, when factoring in QE2. Oh yes, and note on Chart 13 how BOJ interventions have failed pretty much every single time.
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Love it Bitchez
Intervention...BITCHEZZzzzsssss
Banzai (bitches)!!!
strong yen has really been hurtng japanese banks lately. Bonzai bank has cut back some of its branches. kamkaze bank has nose dived on the stronger yen. Some staff at karate bank have got the chop and karaoke bank is offloading some of its assets for a song!
Dumping US bonds would be a sure way to raise rates in the US and raise the value of the dollar vs yen.
I heard Sumo bank is being forced out of some of their traditional investment circles.
...and something fishy is going on at Sushi bank
Yeah, but Harikiri bank is going to surpass expectations.
They'll be eviscerated in the market before that hapens.
Fuji Bank shares are climbing today.
http://stocks.finance.yahoo.co.jp/stocks/chart/?code=8411.T
Fuji Bank aka Mizuho is only climbing by 0.76%.
Their fundamentals are screwed.
you guys are awesome
Unfortunately, no amount of intervention's going to save people from poorly managed Fugu funds.
Strong Yen has also been hurting Japanese bearing manufacturers.
But, Peru's Sol is near its all time high vs. the US$, so net-net, our business benefits from this particular turmoil.
Still for reasons of business greed, we would like to see the Yen go down vs. the US$, it would benefit our business...
So, that's not just your name? You really are in the bearing business?
.
He rolls the ball bearings himself, some type of crossed palm technique...
Exactly.
From my analysis, most Japanese bearing manufacturers would be very close to zero profits even if USDJPY is at 85.
Japanese manufacturing firms aren't in the good shape most people here think it is in.
When does the U.S. government label them "currency manipulators"? Or does this not count, and China is the only one up for that honor because they took our jobs?
http://www.youtube.com/watch?v=KLni3wbndls
Enough with the "serial junking" bitchez..
"Bitches "is more than overdone. We need a new word
"Roast"
Currency Roast, Fiat Roast
Thats the new term.
Cuntz?
Poontaz
(That of course being the phonetic Cockney pronounciation of 'punter')
"Cocksuckers"
Deadwood
Given the 'cocksucker count' that might explain how the town got it's name.
"go fuck yourself, cat piss smelling cocksucker"
Deadwood
Scum
"Suave...Goddamn you're one suave fucker"
http://www.youtube.com/watch?v=aH8FEZvaiAI
Treasure
priapism
funny
I like it better too. +1
bastards
applies 2 all of U
Currency wars, m'fers
http://www.theaustralian.com.au/business/opinion/currency-wars-set-to-break-out/story-e6frg9qo-1225919825846
I vote m'fers new meme!
Me, three. I'm all for motherfuckers.
I also like "93-octane shrimp" but "gold, 93-octane shrimp" doesn't sound right.
93-octane gold shrimp!
I'm using it!
"toad lovers"...
http://www.youtube.com/watch?v=qVE60zwXx1k
Bah. 93-octane gold shrimp BITCHAZ!1!
I'm for Bad Muthafuckaz!
http://www.youtube.com/watch?v=QxD7bMYoA04
yeah, m'fers
mah-fuckas
"comrades"
+1
"knobgobblers" or just "gobblers"
"pussyboogers"
Dingle Berries?
ho's
^-- That's my vote.
Course for all of us Spanish speakers: putaz!
+1
A better translation and my new personal:
Oro, Perrazzz!!!
Double True.
Beeatches
"Hamburger Time"
"Droogs" gets my vote.
I miss the irrepressible chumba! If he see this...best wishes friend!!!
I think Chumba = liberal Sodomy with disturbing avatar. I could be wrong.
I could be right? LS, who are you?
no need to answer. /sarc off
@ Cistercian,
Yeah I wish the Chumbawamba was back among us.
I liked his attitude.
+1
Ah yes, Chumba.
Pseudo-Quote r.e. maxing out his credit cards:
Funniest guy ever.
"I miss the irrepressible chumba!"
I enjoyed the "old" Chumba too. /sarc off.
"suckerz !!!"
OK then....Beeeeotchezzz!!
How about wenches ?
'Bitches' is overdone, bitches.
How about one of the following:
Slutz
Hoez
Trickz
"Sucka Emcees"
Gold, Ninja's!!
It's bitchezzzz, suckerzzzz
How about:
"5 body sword"
(as in a samurai sword that can cleave that much flesh)
?
cuntmotherfuckingshitasslickerpricksaladtossingfucknippleassholeshitpusherzzz?
Bitchez is better.
Not a deployer of 'Bitches'/'Bitchezz' (originally a Dave Chappelle-ism?) myself but at this point I think it's safe to say that it's taken on a life of it's own and is, dammit, part of the very fabric of ZeroHedge...so I say it stays.
Sooner or later CNBC or someone will be forced to reference a crater making article on ZH and may not be able to avoid saying something like: "Sovereign default Bitchezz!" And that would be funny.
Besides, this is one of the wonderful fruits of multi-cultural acceptance at work here (see how it's informed our very language and dialogue!). So...Hoo-ray.
Thanks for the morning laugh! I just visualized Becky reading the headline on ZH.
Laydeez...?
"Biotch" --- Snoop Doggy Dog, circa '94.
I'm always late to the party with my comments but "Bitchez" really is the best term.
We could try "Snatchez" or "Asshats" but its just not the same.
"And incidentally, for all those who missed it, the BOJ's intervention is a symbolic capitulation, and the beginning of the end for the Keynesian system. Rejoice"
Hey, this sounds familiar.
The end of the Great Keynesian Experiment is upon us. Prepare accordingly.
I liked this quote:
Yep, that was sure some strong recovery. I blinked and missed it.
Do not give the blue pills to Priapus .
Don't despair, priapus can be licked!
The fun is going to see how many hours it takes for the yen to reach a new high, after the bitches blew some serious national treasure...
Someway, somehow this "news" will surely be spun as a reason to sell gold. But, who cares? Fiat is nearly dead and the Crimex is broken. Buy gold with both hands.
well said turd,
heres jeff on the subject...
http://www.bullionbullscanada.com/index.php?option=com_content&view=article&id=15318:time-for-gold-miners-to-decouple&catid=48:gold-commentary&Itemid=131
To loosely quote Priapus "grab your wheelbarrows
boys, yer gonna need 'em."
"Our generation has had no Great Depression, no Great War.
Our war is spiritual. Our depression is our lives."
~Tyler~
United States and the Great Depression"During the 1920s, the U.S. government "sterilized" gold in-flows from Europe used to purchase products, in an effort to prevent the U.S. dollar from strengthening and hurting the export economy. This set the stage for the Great Depression, as it caused the money supply of gold in Europe to shrink (deflation)."[6]
http://en.wikipedia.org/wiki/Currency_intervention
insted bitches, how about santorum suckers? google it bitches...
Wish they would do this every night.
Tick tock tick tock. The explosion is going to be exciting when it comes. Got Amo?
No, I've got Amero's...
Shit! I must have misheard :(
They need the "Fed" to help them in nuevo york tomorrow. Considering todays move in the dolluh and gold, they just might.
So with this bullshit is the market up a duece tomorrow?
Where is Robo? 3, 2, 1 ...
Equities could rise a tad, but all the metrics suggest short-term downward pressure. This is predicated on carbon-based life forms participating. I assume Skynet is using similar mathematical algorithms. My 2-cents.
harold and kumar rise at 6 00 am EST to take advantage of the illiquid time zone after the am gold fix.
The gold futures just yawned...
Beggar thy neighbour is an expression in economics describing policy that seeks benefits for one country at the expense of others. Such policies attempt to remedy the economic problems in one country by means which tend to worsen the problems of other countries.
The term was originally devised to characterize policies of trying to cure domestic depression and unemployment by shifting effective demand away from imports onto domestically produced goods, either through tariffs and quotas on imports, or by competitive devaluation. The policy can be associated with mercantilism and the resultant barriers to pan-national single markets.
China is doing this two step with the Japan right now ...
So far every country has had its turn with currency devaluation. It's like a bunch of hung over drunks who find a discarded 1/4 bottle of whiskey... there isn't much left but they all pass it around in turn trying to their heads right.
Just wait till we take the dance floor to dance with the devil. Uncle Ben-Shalom is almost powerless at this point ...
What if a hedgefund just pulled a LTCM on thursday, hopium would vanish faster than Johnny Brovo after a bad S&P call ...
Johnny BraVado Braggadocio`s credibility: Now there`s a market with some serious deflationary pressures...
Ag milf'ers!
Now that is an interesting proposition: if a hedge fund was caught overnight, over-short USD/JPY, & over-leveraged by the BOJ...
...guess we'll know soon enough.
I'd look for forced liquidations in Corn or Cotton, if more than one hedgie got buggered.
Thanks again, SpaldingS!
Shit yeah.
A conspiracy theorist would suggest that today's dollar kill was in preparation for the Japanese buy. I read somewhere that BOJ contacted other (uspecified) nations prior to injection. Would that make sense, technically?
Yes. Otherwise I believe they would have gotten filled in at 78 and markets would have been roiled.
""Bitches "is more than overdone. We need a new word"
Currency Intervention, You Useless, Godless MotherFuckers.............And....that's right, USD surges and the futures actually go up on the news after the non-stop drip-drop meltup before the intervention.
Sooooooo, we are right back to the point. They are not going to stop jacking the market to oblivion.
Arrggg. How can we junk Tyler?
Hey, he had the decency not to use the 'zzzz' didn't he?
Hey ASSHOLES. It's just a joke.
Repeat after me:
"Hey BITCHES. It's just a joke."
Wow...really? I never made the connection.
Killing 2 birds with a hockey stick. Because the AUD/JPY cross is up too, so algos are buy buy buy the stock futures, just when the ES was about to test yesterday's day-low and the Nikkei futures turned around 300 points! A truly japanese hockey stick save. Rejoice, the Fed should like this too.
Nothing but winners; everyone gets a trophy.
Wheee.
Working in the auto industry, I just love it to fuck that the Japanese and Koreans manipulate the shit out their currency to sustain their exports to the US. You know, because it's in our best interest to let them ass fuck our own auto industry even further. Of course, we don't sell any cars in their market due to highly restrictive duties and barriers. But, hey, what the fuck, let's just let everyone work at Starbucks.
More people ar employed by Honda, Toyota and Nissan outside of Japan, including the US, than in Japan. On the other hand, more people are working part-time for McDonald's, Krispy Kreme, KFC, and Starbucks in Japan than ever before.
Somehow, trading manufacturing jobs for serving coffee and "TAMAGO Big-Macs" doesn't seem to be as beneficial as you indicate.
..."More people ar employed by Honda, Toyota and Nissan outside of Japan, including the US, than in Japan."
Uh, yea, to assemble the cars there and avoid transport and duties. And when I say assemble, I mean assemble with Japanese made parts. They have no intention of buying domestic parts and building the cars here.
If you think trading a major capital purchase versus a venti latte or QP with cheese is equivalent...well...not to mention that you are taking about franchises versus actual wholly owned enterprises.
If I'm not clear...fuck Japan and Korea. Frankly, only the EU plays 'somewhat' fair in the industry.
Just a hunch, but you drive a Japanese car and swear they are the best thing since cold milk and double ply shit paper, right?
Hunch, huh? Cadillac here.
The point is that, for the working stiff, it is no different in Japan than in the US. The guy on the Honda assembly plant in Japan doesn't buy the parts anymore than the guys in the GM plants. And that guy in Japan has worked just as hard as you and has all of the same problems that you have with no greater security than you. And he suffers from the same shitty government as you. Yet, go to any board in Japan on economic topics and you will not find people there that say "Fuck the US!"
CTS? Nice wheels; You're my kind of Joe.
You wouldn't find anyone saying "Fuck Japan" here either if we were selling 6,000,000 vehicles there. It sure tends to pacify the stress...you know? However, having to lay off several Engineers with families to feed generally amps it up a bit....you know, makes it all personal and shit.
That aside, I hope you enjoy your Caddy. I can assure you there are many people behind it that truly appreciate it...not to be sappy or nothin'. But seriously...thanks.
CTS
The thing is, the people of Japan are just like you for the most part. They are just as much at the mercy of the corporate ownership of the government as you are in the US. The Japanese people like things from the US. Wealthy people there drive BMW, Mercedes, and even Cadillacs.
To give you an example of how they will get screwed, the government is getting ready to cut corporate taxes by 5%. To pay for it, they are going to raise their consumption tax by...you guessed it...5%. SO the workers, 34% of whom work part-time jobs, will pay for the corporate tax cuts even at a time when corporate earnings there, like in the US, are high.
Rail at the Keidanren and I'll join you, but the poor slob that works for a living doesn't deserve it.
I don't hate the people; I hate the government. Of course, I understand that they want to sell their vehicles here. Same applies to the Chinese.
But, sorry to say, if it comes down to them or us...my vote is for us all day and twice on Sunday.
By the way, Japan imported less than 1,000 vehicle from the US all last year. Korea was even more distorted.
Like I said, the Euros at least play somewhat fair. But, the Japanese and Koreans don't...at least in automobiles.
I've also tried for years to penetrate the Japanese and Korean OEMs here to sell domestic part we make. Nothing...nada...zilch, even though I'm sure we are less expensive and equivalent quality wise. They protect their suppliers back in Japan / Korea at all costs. They only assemble here because it's a cost benefit.
Anyway, you have to have intimate knowledge of the industry and bullshit they play / extort to understand the anger and, to some degree, the downright hatred of the situation.
I defer to you on the auto industry. And I don't mean to come off as a Japanese apologist. But, after working with them, seeing how they live, and how the government squeezes the little guy....
For instance, they don't live in small places because they like it...it's all they can afford because of the way the government has screwed up the real estate business.
-
Don't think for a second that corporate taxes are paid by corporations. The cost is only passed on the the consumer. I think that the taxes should be in your face like on the receipt when you buy goods. Taxes are hidden from the people in so many ways. If they see it every time they purchase something I think things would start to look quite a bit different.
And, BTW...It is a very good car. The only problem I've had is a battery that dies when the car sits while I travel. Happened twice, but the dealership comes out and replaces it on thier dime, so no real complaints. I'm not one to let the neighbor drive it just to keep the battery charged. ;)
Disconnect the battery when you are gone for more than a week. Happens to a lot of modern cars with all these electronics. My Honda dies after 2 weeks. I have not had a battery last for more than 2 years yet. BMW makes a switch on some of theirs to turn off the power.
"Uh, yea, to assemble the cars there and avoid transport and duties. And when I say assemble, I mean assemble with Japanese made parts. They have no intention of buying domestic parts and building the cars here."
I'd say that's precisely why I want a Japanese car, but that's probably not really fair or accurate seeing how many "US" parts are made in Mexico.
If many US parts are made in Mexico (which is ridiculous and they are not marked "made in the USA"), then I would suggest that many many more US made parts are made in the US.
Boilermaker,
Your post is good, and people need to pay closer attention. Free trade is BS. I lived in Japan in 2007 & 2008, and there are NO, NADA, ZERO American cars on the road. There are a handful of luxury cars (BMW, Mercedes, Porche....I never saw one single Cadillac, though), but 99% of the cars on the road are Japanese cars. And not only that, they are all less than five years old. The Japanese inspection process costs too much, so there is no used car market. Used cars go to China or Russia, with a small market going to military bases (service members and their families can't bring their cars to Japan).
Korea is the same way. 99% of the cars on the road are Korean. Japan and Korea don't even trade with each other. They don't like each other.
How can we possibly compete with that sort of protectionism? We can't.
Ones older than 15 years come to Canada as well. Australia has similar, somewhat more permissive importation laws, but here the domestic stealerships are trying to get them banned altogether. The whole planet is protectionist.
The State, (we are it's) bitches.
Boilermaker,
Your comments show you believe American products should be bought regardless of quality, value or practicality. That US jobs are more important than the products offered. You complain about families being laid off and jobs moved out of country.
It is exactly this viewpoint that is at the crux of the problem. If we build a superior product at a reasonable cost, the world will beat down our doors to buy it. It is that simple. If we don't, they won't. Deal with it.
Thank your union for the job losses. Unions artificially inflate wages causing unemployment. They subsidize some workers while others agree to remain without jobs for "union solidarity". The Union is a private sector government bureaucracy with all the malallocation of wages inherent in such an institution. They cause products to be mispriced and therefore less competitive in the market place.
The people of the world, by and large, live at the mercy of a cruel and selfish elite. They are not particularly more intelligent or capable as others, but they have the ability to put their interests before all others- on a scale that few other than themselves can understand. Most people, on the other hand,would like to raise their families, feed their children, provide a better future through their hard work and savings.
These two motivations are always at war with each other. To the extent we provide a battlefield for them to play out, we nurture and enable this confrontation- which almost always plays into the hands of the elite-as they are better equipped, trained, and have more nerve.
This battlefield is government. Whether, monarchy, democracy, socialism or any variant- they all lead to the inevitable war of the elite versus the masses. If you want change, it will only come from the elimination of government with ultimate authority vested in the individual. Federalism is a mirage that offers hope while slipping chains upon our wrists and ankles. The Constitution is a weapon of slavery, with a few good ideas, when placed in the hands of a complicit judiciary. The laws that follow have been a slow and relentless crusade against liberty.
The Japanese and all others live and breathe with the same masters. Different faces, different voices and similar hopes and dreams beating flesh and blood fists against a wall of stone- a wall cemented and reinforced through federal government. You are fighting yourself and there is no better military strategy than divide and conquer.
Battle field is capital and labor, always has been. In the last 30 years, capital has kicked much ass with the HELP of "government". They have become the same thing.
Jobs moving out of the country has nothing to do with the quality of american products. Yor post is idiotic, reeking with false dichotomies, contradiction, and evangelistic nonsense.
<Boilermaker hands Sethco a virtual winning cigar>
You can go-off on the unions all you want. I'm not a union supporter and the large majority of persons working in the auto industry are not unionized. That's an undeniable reality and, unfortunately, something the public simply can't get their arms around. It's just easier to focus in on the UAW and use it as the sole reasons for the auto industry problems.
What I'm telling you is that, like it or not, manufacturing is the nerve center of any economy and not supporting it is suicide. It's the only organic creator of true wealth. Taking things from the earth and working them into items of value is what creates the service jobs. It's really pretty simple.
I also categorically dismiss the thought that American autos are inferior to the Japanese, Korean, and European makes. Period. The fact is that they ALL make incredibly great automobiles. But, this never-ending bullshit perception that round-eyes can't design and make great cars is laughable. As far ar pricing is concerned, they aren't even at a disparity.
At SOME POINT, the public is going to wise up and realize that those slobs carrying lunch boxes are actually the foundation for the guys carrying posh stainless steel briefcases.
As I said, I have no problem with the Europeans selling their products here. They are great products for sure. They also buy a fair share of Fords and Opels (GM) in Europe. It's free and FAIR trade. But, that simply doesn't exist with the Asians. Not at all...and it's blatant and needs to change and change quickly.
Empirically true in Japan now as well. I left Korea in '03, but this observation was also empirically true there, then. The car markets are Double-plus-mecha-closely protected in both countries.
I know from experience, The Koreans have a 100% import duty on foreign sunglasses. Their customs agents will also steal, eat, & then deny they ate your mom's homemade cookies as well.
I don't have the details on hand, but I can ask if anybody wants to know, exactly how high the import duty on a foreign car is in Japan.
Thanks for the debate!
how is this action a positive for US equities? is it? I'm serious. I don't know.
Who knows anymore? Futures say it is even though it isn't and even though it is. Honestly, it's all fucking garbage at this point and loosely based on nothingness.
The carry-trade. Pure, 100%, front-door, liquidity injection by way of distorting the gross market rate of interest.
I repeat.
Everytime I go to short a currency the problem is always "against what?".
Against gold. It is making new all-time highs against virtually every major currency.
Gold is the currency of the 21st century.
I hear thee........got tiring watching comex stick a knife in it every God damned day.
No, but gold may be what we use to represent the real currency... Net energy ;-)
What are the likely near term effects of this on US equities markets? Not asking what should happen, but what will happen.
skynet will be programmed to trade SPY tic for tic with usd/jpy.
So what's the over/under on the Emini's tomorrow?
Every currency went down and the dollar went up, still almighty, for now.
This has been an interesting day.
Hilarious.
Classic Kamakazi move.
First, they jawbone, and do nothing.
Then, they jawbone more, and still do nothing.
Then, emboldened speculators press their bets even further.
Then, the BoJ waits for markets to become way oversold, then they pull the trigger.
Any wonder why young Japanese girls dream of becoming currency speculators working from home?
You can't find some asian whore with skimpy clothes, tattoos, big boobs, the total package .. ?
Yea, but it's week porn with that damn pixel crap on the goodies.
OK i'll do it, look at this bombshell ' Unreal ....
http://www.google.com/imgres?imgurl=http://2.bp.blogspot.com/_EIYEpUb6Py...
Hai! Suki-creamcheese! Arrigato, Robo-san!