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Fed Confirms First FX Market Intervention In 11 Years As Effects Start To Fizzle
And just as the Fed confirms its first direct currency intervention since 2000 (who knew NYU interns could multi-task so well between stocks, bonds and FX, incidentally today's POMO is a lethargic $1-2 billoin monetization of TIPS), the USDJPY takes its first dip below 81 since the "Honda" Accord announcement last night. According to several sources the Fed spent 50 million in USDJPY purchases. Alas that will not be enough. And with the USDJPY continuing to leak lower, take back what we said about the multi-tasking efficiency of 25 year old FRBNY interns-cum-world tyrants in waiting.
The attached charts shows why the Honda Accord (as it has now been tentatively named) will need many more steroid injections, which according to Nomura have already cost the ECB at least $5 billion.
Perhaps it is time to ask why Japan (and the central banking cartel) has spent almost half a trillion dollars to preserve capital markets instead of giving that money to the millions of earthquake disaster victims...
From AP:
The New York Federal Reserve Bank is confirming that it has intervened in currency markets for the first time in more than a decade.
The disclosure by the U.S. came a day after the Group of Seven major industrialized nations pledged in a statement to join in a coordinated effort to weaken the Japanese yen. The yen has surged in the last week to post-war record levels following the Japanese earthquake and tsunami.
A spokesman at the New York Fed, which operates as the agent of the U.S. Treasury in currency operations, confirmed that it had intervened. The last time the U.S. government intervened in currency markets was the fall of 2000 when it sold dollars and bought euros to bolster the fledgling European currency.
The spokesman, who spoke on condition of anonymity because of the sensitivity of the operation, refused to provide any details on the amounts of the intervention or what currencies were involved.
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In all seriousness...is this even in-line with US law? Not that laws matter anymore...but...???
Wow! one hell off a spike! Are you telling me BCE, and EU people contributed 5 billion to this shark bite by the surrogates of the mega-rich???
The Fed and the Primary Dealers ARE the law.
Off with their FED! Off with their FED!
Ha! I never laughed so hard. Was the sarcasm intended Tyler?
He missed two words in that sentence I believe.
First OPENLY ANNOUNCED FX Intervention in 11 Years.
There, better.
It is painfully clear that the current economic system does not jive with human needs. Markets are no longer free to operate. Earthquake and tsunami victims are not given direct aid, rather, the global elites are given rate resets above a "certain level" so they can unwind their carry trade.
This "system" we operate in, run by selfish elites and paid off gov't schills, is so far removed from reality that you can see basic human needs go unmet even in the middle of a disaster.
Indeed. Hopefully the FED protest will gather some steam on the 28th. I'll be decked out in protective clothing at the Cleveland FED, expecting retaliation by the guards. Mind you, I will be peaceful, but will resist arrest with force. Wife has me bail money ready and a number to a good funeral director (in the case of police brutality causing my death - bad heart and all). Chances are this protest will be ignored, as has been the case in the past, but I am willing to try one more time.
It was considered inarticulate to state:
"Our inventory of kitchen sinks has been exhausted"
+ 81.5800 Japanese yen
You understand the reality - why are you asking? I mean, after Obama recently went 180 on his campaign promise to end Gitmo and abolish military tribunals - the same ones he had labeled as blatantly unconstitutional while campaigning - did you mistakenly think that the rule of law was making a comeback?
The US is going full banana.
Never go full banana.
Full bananard?
Ignorant about this but what would be the Fed's mechanism to strengthen the USD versus the Yen ? And I guess would it not be to the Fed's disliking anyways ?
Excellent article
Why is the www.enviroreporter.com site run by the freelancer not working >
Too many hits today ?
The Bankers only save their friends and family not the citizens. If you don't own financial assets you do not exist.
Would voting out all Incumbents help?
Wouldn't it be more appropriate to call it the Fukushima Accord, or a slightly different spelling?
The FU Accord would be appropriate
+/- 81
Fuk U I'm eating.
Brought to you by Carl's Jr.
Can we rename the Fed FEDCO in honor of the second most dishonest entity on planet earth.
Second. All in favor?????
I.
What's the most dishonest entity? Are you considering Obama an entity?
Steve liesman says this good policy
Its only good for the re-pat orders that need to be triggered @ 81 or better ;-)
Exactly, an escape route for the big money...as usual.
Fizzle my bizzelz!
People are expendible - assets must be preserved.
wtf, I remember ZH saying OMG "very troubling" that BOJ hadnt intervened etc
Very troubling as the carry trade, good ol' Mrs. Watanabe, would have spelled yet another marshal law threat against the US?
oh
And the US moan and complain about China intervening in currency?????
"Honda" accords...
lol, the gallows humor on this site second to none.
good to see the german taxpayer is picking up the tab for this one as well...
I am sure that was the 1st one in ten years. LOL.
these are not the droids you are looking for....................
Perhaps it is time to ask why Japan (and the central banking cartel) has spent almost half a trillion dollars to preserve capital markets instead of giving that money to the millions of earthquake disaster victims...
This is the one point I never understand about the entire financial system.
because the elite want to reduce the population! the more that die , the better. those tsa scanners are not for security reasons. it's there to radiate you!
Ah yes, of course the short answer is; "they are not kosher"
Your doing well if it's just one point.
If I point out that the entire system is a collection of criminal cartels, does that help clear things up?
Dimon is in Tokyo.. twisting arms.
And faking concern / sympathy.
5 billion is Chump Change. That's Goldman Sachs' (tax subsidized) bonus pool for what?...1 1/2 months?
Ahh yes our friends at GS...rated Netflix a screaming buy 'To Da Moon', sucked in the unwitting, and there has been non-stop dumping since.
http://www.businessweek.com/ap/financialnews/D9LVPMPG1.htm
start folding up ur India PUTS:
http://markettechnicals-jonak.blogspot.com/
"The spokesman, who spoke on condition of anonymity because of the sensitivity of the operation, refused to provide any details on the amounts of the intervention or what currencies were involved."
Bernie Madoff rule number 1, "you can't operate an effective ponzi scheme if every knows it a ponzi scheme."
Bernie Madoff, watching news coverage of The Honda Accord and all of The Bernank's tactics from his prison recreation area, was overheard by fellow inmates as saying:
They oughta stick Madoff in with Martin Armstrong. That'd be some kind of interesting prison cell banter.
Word has it that Armstrong has actually been released.
so the fed is doing eveything in its power to weaken the dollar via qe and then theyre intervening in the fx mkts buying usd.
Just another example of why paper is, and will always be, bad for your soul.
the fed does what the squid tells it to do.
'Perhaps it is time to ask why Japan (and the central banking cartel) has spent almost half a trillion dollars to preserve capital markets instead of giving that money to the millions of earthquake disaster victims...'
ZH asks this question every day, which is why I am so drawn to this site. Long live ZH, down with the global banking cartel. It is only a matter of time now...
Gas prices are up..gasoline that is.
Yes, and why?
What percentage of gasoline is comprised of tax?
Who needs tax revenues? Badly.
Gas tax rates are set per gallon, not a percentage of market price like normal sales tax.
So much for peace in Libya:
http://ca.news.yahoo.com/government-attack-libyas-misrata-kills-25-docto...
"25 DEAD IN BOMBARDMENT BY GADDAFI FORCES"
Tyler,
Indeed "Perhaps it is time to ask why Japan (and the central banking cartel) has spent almost half a trillion dollars to preserve capital markets instead of giving that money to the millions of earthquake disaster victims..."
Yes, that is the exact question that must be asked.
My mind boggles at these numbers. It also boggles for knowing that the cartel was allowed to dump whatever risk they were / are still holding into the central bank of Japan.
This is absolutely criminal.
Yet again we see the cartel taking in inordinate risk, only to see it fail, and then dumping the outcome on to the people.
According to wikipedia, Japan has about 120 mn inhabitants. Divide those 500 BN US$ by the number of inhabitants and you get the bill: 4.1 Million US$ per inhabitant is what the Central Bank of Japan gave the cartel.
Furthermore, think about what will happen with that cash - in the hands of the cartel, it wil be used to start new bubbles elsewhere, and a relatively small part of it will end up being consumed / invested.
However, if each Japanese inhabitant would be given 4.1 Million US$, think of all the savings, investment, consumption and reconstruction that would come of that.
This is beyond criminal, it is insane.
Check your math retard, 500,000,000,000 (U.S. dollars) divided by 120,000,000 (inhabitants) equals $4,166 dollars per inhabitant. For that matter, if you can't do math how did you get to post in the first place?
Abacus bitchez!
im afraid your maths looks a bit off... your sentiment is right though. paying all that cash to the soro's of this world. some lesseons are never learned
Check your math.
500 billion/120 million=4166
You seem to have a problem of magnitude.
Try $4,167 and see if that works better -- still not insignifcant.
Fuck it....I'm buying silver. I have no idea why...but just know that when people start buying silver, it goes ape shit nuts into Blythe Masters [BM]. I'm sorry...I suck at the silver trade...so you guys should look out.
Considering just how insane everything is right now, with competing devaluations, professional government lying, radiation, desert tyrants...and on and on.
There...my solution...long silver, short Apple [which is breaking down BTW].
Stopped out yesterday at 1.400 on my EUR/USD short ; back in today at 1.4112 at 9;15 CDT; feeling stubborn. It's a market that loves to reverse off of spikes; and it;s about time; may be completely wrong, of course.
glutton for punishment. looks like the ecb are going to hike next month regardless.
Soon they won't have any 'sheeple' to borrow from. The Trilateral will be bone dry and China hocked in banking/commodity/ investment bubble.But it won't stop them from printing all the way to kingdom come...brave new world.
markets? what markets?
The fookuz accord
I am opting for the restrained trade, as painful as that may be, for I am not a gambler, and to invest in anything so hopelessy (Hopiumlessly?) rigged as these markets, a gambler one must be.
All G7 currencies spinning round the bowl. The big flush beginning.
...and I confirm that I am officially calling bullshit.
In all seriousness though, who the fuck do these guys think they're fooling? Yeah yeah, I know...
It's just a giant game of monopoly - whereby the opponent has a copier - so he never runs out of money. He'll never lose, and you'll never win...so the only sane response is to get up and walk away as the next chump sits down to play. BTW - he also copies his 'get out of jail' cards too.
Seems that ECB is doing some multitasking also. Hearing they started to monetize Portuguese govt bonds today and judging by the price action in spanish bonds I wouldn't be surprised if ECB is buying those too. After all, Bank of Spain reported today that bad loans in banking sector rose again in Q4 and are on the highest level since 1995. They also reported that debt of Spain's regions rose again to 115,5 billion from 87,7 billion year earlier. That's not positive at all and it should put pressure on spanish debt but the price action is exactly the opposite...
Very very strange Yen movements. Now that a floor has kinda been supplied by the CBs ( fairly infrequent occurance this coordinated interv.) - at , say 80.
Yen will continue to be the low yielding currency even as other CBs start to tighten. A natural carry currency. Admittedly the carry trades are probably quite wounded and wont get back on the field easily.
On the fundamental side there is nothing I can think of that is Yen positive. BOJ likely to monetize huge amounts of debt to rebuild etc. private savings are already spoken for.
Central bankers are scum because they seek only to protect the scum that are bankers. It's quite clear that they waste fake currency only to preserve a false sense of reality while the rest of the world is falling apart-- forget that this so called 'money' could've done some good, these assholes have done nothing but made things worse.
The time is now to end the madness and dissolve these cancerous institutions.
central bankers care only about protecting the very wealthy.
Always worth repeating.
"I realized from a very early stage that the market is a whole rigged job. There's no chance that investors have in this market."
"The whole government is a Ponzi scheme."
--B Madoff
You must know by now,without banks,we would all die instantly.
Bullshit. My family and our like minded neighbors would be just fine. Of course, we have land, precious metals and the ability to feed and clothe ourselves for quite some time. Someone please hit the reset button already. If you were a poor sucker in L.A. county, well that might be a different story.
as if injecting bank reserves with trillions is not considered FX intervention
Perhaps according to your definition.
The Fed? Well... let's just say they have a way with words.
So .. game on?.. pound the Yen down under 80 during the day. Position for an intervention overnight.
I wonder if this might be the new and improved "Pledge of Allegiance"? I pledge allegiance to the flag of the united Socialist States of America, and to the oligarchy, for which it stands, one nation, under the Federal Reserve, with serfdom and injustice for all.
They must be worried about inflation.
If the Yen strenthens then a whole bunch of dollar/euro positions would have to be cashed in to repay the carry trade Yen. This would be very deflationary. So the carry trade is really just another word for the Dole.
Interesting link: tying the dots together:
http://www.leap2020.eu/geab-n-53-is-available-global-systemic-crisis-sec...
Wow, great link. Thx...
How to unwind a carry trade for fun and proft..think the Boj would have woken up by now. They are being used as a Holding Co.. for WS spec profits. Going on decade 3 of zero Growth in Japan. The land that time forgot..will probably see Mothra flying soon.
That was their peak.. when the Great Godzilla vs Mothra movies were made.!