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Developing: Bank Of Japan Announces Special Monetary Policy Meeting At 05:00 GMT, Likely QE Announcement Pending
Yen drops, Dollar, Euro surge. Yen - The Carry Currency, the sequel coming to a theater near you.
TOKYO (Dow Jones)--The Bank of Japan policy board will hold an unscheduled
monetary policy meeting from 0500 GMT "to discuss monetary control matters
based on recent economic and financial developments," the central bank said
Tuesday.
BOJ Gov. Masaaki Shirakawa will also meet the press from 0730 GMT.
One assumes the narcolpetics at the ECB will be next with comparable "spotaneous announcements," once they understand they are about to get crucified if the citizens of the Eurozone wake up and realize the US and Japan have both had their way with them all night any which way, after the most recent G20 roofie session.
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Benzirrah!
Ben vs BOJ: http://www.youtube.com/watch?v=wuj_LMy0VIQ
Oh wow..... now it gets to a whole new world of interesting, Central banks are now fighting each other as they fall through a global liquidity looking glass.
You can envision it like Gandalf and the Balrog in LotR.... question is who is who.
Currency wars are just heating up.
PMs are going to go through the roof (well, really, they won't change in value, it will just take more fiatcos to buy them).
In simple terms shouldn't the Japanese stock market take off then with QE starting up, just like the US market did from March until now ?
Yup, just did.
INdeed, the BOJ goons went on a wild yen selling spree. It would be nice to know ahead of time, eh uncle Hiro.
first dollar roasting
now yen roasting
what else is on the menu?
i hope a few of the senate banking committee critters roast Bernanke's balls in the upcoming hearing.
In the spirit of the bustmas season, some revisionist lyrics sung to the tune of "chestnuts roasting on an open fire"
Ben's nuts roasting in the Senate room
Chuck Schumer kissing up his ass
Yuletide sales being pumped up our ass
and ABA lobbyists dressed up like crack hos
Everybody knows a turkey and some mistletoe
help to make the dollar look like shit
tiny tots in their beds, with their faces all aglow
merry christmas, you're broke.
SPX to earth: LOOK OUT BELOW!!!
Play your little games Central Banks. I price my gold in US dollars.
"I price my gold in US dollars."
I think this is the problem with the PM trade.
You take me too literally. My point is that it doesn't matter which currency is most debased, as long as you own gold.
Gold is at $1296 this a.m.
The U.S. futures are up despite this move, I dont understand this. And gold is slightly down. Why is Australia the only country that prefers a more valuable currency?
The world is becoming an insane asylum.
my poker face is better than yours,
that's right, it's better than....
duck & cover !
I wanna sink to the bottom with you
I wanna sink to the bottom with you
The ocean is big and blue
I just wanna sink to the bottom with you
FRN: "Hey, yen, race ya to the bottom!"
Yen: "Wheeeee!"
Yuan: "I am right there with you, worthless brothers."
see the nikkei just take off? like a rocket.
....looks like the usual pomo job or 3:00 p.m. ramp up in the US equity markets.
we should all take our money and start trading the nikkei for the next 8 months or so if they are going to get on the QE path to fame, fortune, riches, and more!!!
If you think BOJ is going to buy equities like ours did in march and april (may, june, etc) that could be a good idea. Probably should buy calls on EWJ?
Yep. Here comes "Operation Delay the Inevitable for Another 3 Months". In the meantime we'll be packing our bags and taking the 3:10 out of Yuma so you suckers take good care and hope we didn't leave too much shit for you to clean up.
Not to be too picky DH, but Nikkei takes a long lunch break - and during that time the BOJ presser was announced. So when it resumed trading with a lot weaker Yen...
This is how Pearl Habor got going. Where is our
sixth fleet?
I doubt BOJ will actually do anything material - they'll likely mumble something like "we are going to closely monitor the situation in the coming weeks". The yen has already been weakened by the very threat of an intervention, i.e. it is likely largely priced in at this point.
This is neither dollar roasting nor yen roasting; it is a raw, Kaiseki-style meal, the Hassun and Mukozuke courses. It's a hot day, the sun is burning, and the fish is beginning to go rancid. Hold your nose.
While it remains to be seen what madness the Japanese will apply to this method, history reminds that they are not averse to the direct purchase of equities. In 1992-1994 they dumped several hundred billion dollars of Postal Savings (Yucho) and Postal Insurance (Kampo) funds into a host of trust banks with the command to "lift offers". Of course, that loaded the system with a pile of Nikkei 20000+ average cost which has yet to be dealt with, but since short term thinking remains the order of the day, we might see this again. In addition, they hardly need to take out the abacus to realize the impossibility of paying/refinancing their massive debt in any way other than through the inflationary impact of money printing. Has the time come for those long dated yen puts?
Gold is going vertical.
Perhaps.
As we see all this play out-- and again, for those not paying attention-- we are seeing a global competitive devalution game our lifetimes-- what do you think the Fed will try to avoid at all costs?
If your answer is "deflation", then go ahead and go all in-- because the money printing will go unabated, damned the unintended consequences. And there will be many. It seems like we're headed in that direction, and the antes are getting high.
But if your answer is "a collapse in the dollar", be very careful over these next several weeks/months, as the Fed may likely take actions that seem unfathomable right now. The result will be some serious unwinding.
I'll repeat... some risk assets are way too overvalued if the Fed is forced to save the dollar from going down the drain. This doesn't necessarily include gold, but gold won't be totally spared in dollar terms.
Just sayin'... there are no absolutes here.
Climategate, Dubai, more QE Oh My GODDDDDDDDDD!
How does one trade the Nikkei? Is there an ap for that? I tend to agree, if QE is on for the yen, the risk assets should rise to reflect the devaluation.
@ Assetman
on Tue, 12/01/2009 - 04:07 #147430
"But if your answer is "a collapse in the dollar", be very careful over these next several weeks/months, as the Fed may likely take actions that seem unfathomable right now. The result will be some serious unwinding."
Like what? What other potential things can they do? What more can they do? I'm just a novice but I wonder how much more damage?
Think about what the Fed has done to this point to influence a weaker dollar to ths point, and then think about them stopping-- or reversing it. This could range from halting MBS purchases, to taking out banking reserves (including the silly MBS reverse repos), to selling Treasuries from their own balance sheet (upping interest rates), to reversing fx swaps. There are a lot of strings that the Fed can pull to influence a stronger $... all of them will have a market impact.
Again, I realize this stuff is totally off the radar. But I do think the Fed is very concerned about the dollar decline getting out of control. We are not there yet... but the environment is setting up for it. I think it's the primary reason gold just continues to go up, despite what we see intraday on the DXY.
What's dangerous about a dollar collapse? Think of all the fx and interest rate derivative contracts out there and what a huge spike in volatility for both would mean for the global financial markets-- talk about a potential "fission-type" nightmare. Conceding a brief period of deflation to keep your currency in check, while unpleasant, might become a much more palatable alternative. People just need to realize the Fed may be faced with such a scenario, and sometime soon.
It's not like it would be hard. All they have to do is pick from 2000 banks and just open up the books and go LOOK!! And stuff starts getting sold right and left. I mean thats like engineering a halloween spook house out of Michael Jacksons never never land. Doesn't take alot of redecorating.
Thanks for the answer, Assetman!
I have been trying to think of what to do to help prepare but I can't even guess a time range, so it's almost futile.
All I read is that "this isn't going to end well..." and it's got me concerned.