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The G7 Turns On Itself: BOK Sells Its Share Of Japan Rescue Dollars, Sends Greenback Plunging

Tyler Durden's picture


Remember when the G7 stepped in to valiantly sell yen when the Japanese currency was threatening to take out all of Wall Street with its hundreds of billions in wrong way carry trades? Well, it seems that today's bizarre sell off in the dollar was due to that particular plan crashing and burning, with Korea defecting from the pact first, and selling its $7 billion in USD acquired in the process of bailing out Japan. It seems it is fair game to buy the Yen once again. From a trading desk:

USD getting spanked today is Bank of Korea selling $7Bn USD it bought during the coordinated USDJPY intervention, and buying GBP and EUR with it. I can understand why they would get rid of the USD, but why buy GBP and EUR with it???? Either way, goes to show how useful it is to do an intervention, they drop the reserves 2 weeks after... we'll be back to square 1 in no time if everybody follows suit!

Remember - he who defects first and all that jazz...

(and yes, if $7 billion can move the EURUSD by 180 pips, we dread to see what the actual carry unwind instead of just impairment would look like).


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Fri, 04/01/2011 - 16:27 | 1126450 Zero Govt
Zero Govt's picture

in fact the only reason the Dollar is plunging is because the clowns at Elliott Wave have been predicting it would rally for 14 months

nobody and i mean nobody is better at calling it wrong than Rob Prechter and his EW team of loons

Fri, 04/01/2011 - 16:27 | 1126463 Roy Bush
Roy Bush's picture

Anybody heard from Martin Armstrong since his release?  I know he can't write but any info?

Fri, 04/01/2011 - 16:33 | 1126489 Zero Govt
Zero Govt's picture

he's still writing at

Fri, 04/01/2011 - 16:38 | 1126518 Pladizow
Pladizow's picture

Dont know when he was released, but his last writing is dated 3/11.

Anybody have any details?

Fri, 04/01/2011 - 16:57 | 1126573 Atomizer
Atomizer's picture

The hints are contained in his last posting.

Fri, 04/01/2011 - 20:04 | 1127029 Translational Lift
Translational Lift's picture

I believe he was released around 3/13/11

Fri, 04/01/2011 - 21:13 | 1127134 Rahm
Rahm's picture

Can't write until Sept 2, 2011

Fri, 04/01/2011 - 16:49 | 1126545 SheepDog-One
SheepDog-One's picture

Funny how again all the bad news comes out after Friday market close. 1/2 Trillion worth of fake UST's seized in Europe...wonder how that would have effected the close?

Fri, 04/01/2011 - 16:56 | 1126574 curbyourrisk
curbyourrisk's picture

One of his requirements is NO PUBLISHING while under house arrest.  The items appearing on his web sites are not new items, or they are being written by someone else.  Lot of old stuff, that is pertinent is being re-issued.

Fri, 04/01/2011 - 16:58 | 1126578 tmosley
tmosley's picture

What the fuck kind of requirement is that?

I guess we will all be under similar restrictions before long.  Christ.

Fri, 04/01/2011 - 17:16 | 1126634 chubbar
chubbar's picture

You gotta be fucking kidding me? They couldn't shut him up in prison but let him out and all of a sudden they can restrict his right to communicate? What the fuck are the PTB worried about him telling us? This isn't a restriction about writing to his aunt, this is about keeping the public from knowing what is on his mind. I clearly don't understand how this passes muster with the justice system. What a bunch of absolute assholes running this system.

Fri, 04/01/2011 - 17:21 | 1126648 SilverIsKing
SilverIsKing's picture

Wasn't he incarcerated for contempt?  What does restricting him from writing have to do with his "crime"?  He was actually allowed to publish his newsletter while in the clink but now that he's out, he can't?

I know why they don't want him writing but to link his ability to publish his writings to his probation is ridiculous (but consistent with everything else the PTB does.)

Fri, 04/01/2011 - 17:43 | 1126693 linrom
linrom's picture

He stashed about $14.5 million in gold coins that the judge wanted him to turn over. That's a small fortune now, probably worth $70 million or more. He is most likely going to end up working as an advisor for some hedge fund(banker) or perhaps even Goldman Sachs. Unlike most people, he admires bankers--he's une of them!

We're about to hit Martin's low in June on his Economic Confidence Model after hitting peak in Feb 2007. Yeah, a low.

Fri, 04/01/2011 - 22:23 | 1127246 gosseyn
gosseyn's picture

Get with the program, please.  You don't know whether or not he stashed anything.  More importantly with regards to lumping him with bankers, it was a lying sack of sh** from  GS who was responsible for his incarceration.

Fri, 04/01/2011 - 19:33 | 1126961 I think I need ...
I think I need to buy a gun's picture

once gold is revalued he'll be able to write again

Fri, 04/01/2011 - 21:14 | 1127136 Yardfarmer
Yardfarmer's picture

Armstrong has another dandy with "How and When". He sees the possibility of gold consolidating to $1100 by June 13/14

Fri, 04/01/2011 - 23:38 | 1127331 Campagnolo
Campagnolo's picture

only if the mayor uptrend between 1971-1999 of $1372 is not held in a monthly closing in 2011. So far, 1372 hold pretty good between end of January and end of March. The low for 2011 was on January, $1320 (low for the uptrend) then start a dramatic rally into 2015-16. Gold need to hold the $1372 1971-99 long-uptrend support in order to start a new rally only after things shake a little bit once QE ends in June...right after that, is a "to the moon" scenario.

Sat, 04/02/2011 - 00:08 | 1127382 Oh regional Indian
Oh regional Indian's picture

Me and Martin, we agree on that. I'd go even lower. much lower.


Back when...oct 18th 2010

Sat, 04/02/2011 - 09:57 | 1127721 Infinite QE
Infinite QE's picture

Funny how the guy who's been right was jailed yet the ones who've have been epically wrong, think Pr***er amongst countless others are allowed to be free. All part of the game. Suck the newbies in to be fleeced.

Fri, 04/01/2011 - 16:43 | 1126532 Pladizow
Fri, 04/01/2011 - 16:51 | 1126557 Dr. Richard Head
Dr. Richard Head's picture

Not soon enough.

Fri, 04/01/2011 - 16:55 | 1126572 Temporis
Temporis's picture

Hey Pladizow...

I like my job and don't want to add to the unemployment numbers... can you drop the boob picture so people at work can continue to view this site please.

Fri, 04/01/2011 - 17:04 | 1126603 Votewithabullet
Votewithabullet's picture

Fuck that, that fucking photo is the coolest thing ive ever seen. What the fuck job do you have that you wanna keep whilst you spend your time reading the news? Are you @the SEC?

Fri, 04/01/2011 - 17:09 | 1126617 MachoMan
MachoMan's picture

That and, practically speaking, what kind of fucking hawk can see the tiny avatar tits on your screen?  You can't alt + tab out of here like a pro before the secretary walks in?  Do you work for the SEC or italian legislators or something?

Fri, 04/01/2011 - 17:56 | 1126716 Strider52
Strider52's picture

I resemble that.

Fri, 04/01/2011 - 17:10 | 1126611 Pladizow
Pladizow's picture

You obviously dont like it enough to spend your time doing what your paid to do!

And I did'nt junk you - I junk no one.

Fri, 04/01/2011 - 17:35 | 1126677 falak pema
falak pema's picture

You won't have many people junking your avatar either. Its the best thing after good black chocolate 

Fri, 04/01/2011 - 16:57 | 1126580 SheepDog-One
SheepDog-One's picture

Likely its happening right now! How do they get out of THIS--->

YouTube - 1/2 trillion $$$ worth Fake Bonds get ready for hyperinflation!!!!!

Sat, 04/02/2011 - 11:02 | 1127810 Bananamerican
Bananamerican's picture

sheep dog is that you talking in the video?

..and that seized fake u.s. bond story's been out fa' evah...

Fri, 04/01/2011 - 17:58 | 1126722 SparkyvonBellagio
SparkyvonBellagio's picture

USD is backed by Warheads and Alien Technology.

End of Story.

PS I'm sure that the US will turn their backs if the Crazy Bastards in North Korea start to make a move South.

Oh we're out of money to help you. LOL

Sat, 04/02/2011 - 05:49 | 1127604 Phat Stax
Phat Stax's picture

+1   remember now (for the 48th time) silver is topping and its next move is down.  Also the market looks exhausted, blah blah blah.  The short call since July has been spot on, just like the previous one from Sept. '09.

Fri, 04/01/2011 - 16:32 | 1126474 cossack55
cossack55's picture

What do Iceland and Korea have in common?

It appears they are both fed up with the BS and they are both cold as hell in the winter.

Fri, 04/01/2011 - 16:36 | 1126492 Sudden Debt
Sudden Debt's picture

that I don't care about any of them?


Fri, 04/01/2011 - 17:19 | 1126640 T0mmy
T0mmy's picture

at wintertimes it gets much colder in chicago than in reykjavik

that means something too?

Fri, 04/01/2011 - 18:05 | 1126740 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

But, consider this:

Chicago snack = chicago-dogs or deepdish

Iceland snack = fermented shark

Fri, 04/01/2011 - 18:37 | 1126841 Fred Hayek
Fred Hayek's picture

No.  Consider this:

Chicago women look like Dan Hampton and Refrigerator Perry.

Icelandic women look like blond versions of Natalie Portman. 

Fri, 04/01/2011 - 20:09 | 1127039 Translational Lift
Translational Lift's picture

Yea but our f'ed up military will send everyone from Chitown to Iraq and everyone from Houston to the Artic............

Fri, 04/01/2011 - 16:31 | 1126478 werealldoomed
werealldoomed's picture

Looks like we have a new member of the axis of evil..

Fri, 04/01/2011 - 16:34 | 1126482 Sudden Debt
Sudden Debt's picture

I have a theory about all this. It's not 100%, so if somebody disagrees, please step in.

The theory is this:


I know it's a radical idea, but after watching this market for years it always seems to come in pairs.


Fri, 04/01/2011 - 16:32 | 1126485 truont
truont's picture

the Nash Equilibrium falters...

Fri, 04/01/2011 - 16:34 | 1126493 tmosley
tmosley's picture

Huh?  I have the Yen DOWN >1% on the day?  If they are selling dollars, they aren't buying Yen, unless the BoJ is printing 3 Yen for every one those guys buy.

Fri, 04/01/2011 - 16:43 | 1126537 Tyler Durden
Tyler Durden's picture

Reread the post

Fri, 04/01/2011 - 16:55 | 1126542 SheepDog-One
SheepDog-One's picture

Hey Tyler how is the 1/2 Trillion worth of fake UST's going to effect the tail?

YouTube - 1/2 trillion $$$ worth Fake Bonds get ready for hyperinflation!!!!!

Fri, 04/01/2011 - 17:01 | 1126591 tmosley
tmosley's picture

Why doesn't he just post the link to the story on a blog rather than read it with that dumb voice?

Fri, 04/01/2011 - 17:08 | 1126604 Bill D. Cat
Fri, 04/01/2011 - 17:17 | 1126628 tmosley
tmosley's picture

Wow, that looks incredibly incredible as in not credible.

Where are the primary sources?

Fri, 04/01/2011 - 17:19 | 1126636 Bill D. Cat
Bill D. Cat's picture

Thinking the same thing , can't find anything else though .

Fri, 04/01/2011 - 17:29 | 1126667 magpie
magpie's picture

Does Lyndon enjoy April Fools like the rest of us ?

Fri, 04/01/2011 - 17:07 | 1126606 frippy
frippy's picture

What??? Did this happen again? I can't find anything about it. Got link?

Fri, 04/01/2011 - 17:39 | 1126681 falak pema
falak pema's picture

you do know what day we are? April where are your smelling salts?

Fri, 04/01/2011 - 16:49 | 1126550 tmosley
tmosley's picture

Right there in black and white, thanks.

It's been so long since I have seen a market behave in a logical manner.  Kind of refreshing.

Still don't understand why it is "fair game to buy the Yen" now.  Seems more like a dollar dump, which is a lot scarier than any of the last few week's worth of crap from my perspective.


Fri, 04/01/2011 - 16:55 | 1126568 BlackThought
BlackThought's picture

the article says they dumped the dollar and bought the euro and other currencies. the euro makes up 57% of the dollar index, so it makes sense.

Fri, 04/01/2011 - 16:35 | 1126500 Quinvarius
Quinvarius's picture

Won, Dong, Silver, what won't they screw us with next?

Fri, 04/01/2011 - 18:02 | 1126735 WonderDawg
WonderDawg's picture

Won Dong Silver? Wasn't he an Asian porn star?

Fri, 04/01/2011 - 16:37 | 1126502 astartes09
astartes09's picture

ruh roh

Fri, 04/01/2011 - 16:37 | 1126504 flaxpin
flaxpin's picture

Can someone educate me?  Why will Yen carry trade unwind result in a drop in the dollar?  Isn't the dollar a carry currency also?

Fri, 04/01/2011 - 16:43 | 1126538 Zero Govt
Zero Govt's picture

the US Dollar will be a carry currency if it tanks any further (ie. you'll need wheelbarrows)

Fri, 04/01/2011 - 17:09 | 1126614 Long-John-Silver
Long-John-Silver's picture

I was going to buy a cord of firewood for this coming winter but I think I'll wait and buy a cord of US Dollars....

Fri, 04/01/2011 - 17:22 | 1126645 MSimon
MSimon's picture

I like watching the silk threads burn. Real innarestin on cold night.

Fri, 04/01/2011 - 17:27 | 1126659 Zero Govt
Zero Govt's picture

Benny Bucks are made of cotton, think he'd prefer them used as curtains than firewood! the idea of The Fed as the nations utility store banging out cheap-as-chips items useful around the house  

Fri, 04/01/2011 - 16:36 | 1126505 jkruffin
jkruffin's picture

All in all, it was still a huge net positive trade for the day alone on USD/JPY.  Monday will be key as it needs to close above the 84.42 level to continue to uptrend started last week. It broke through that level today taking out stops to the 84.75 range top.  I think the dollar will continue to make gains, especially knowing the FED has to pull $2 trillion out of the ponzi and a big 1% rate hike is forthcoming real soon.  The FED will have to act fast, because inflation is going to get out of hand quick, and already has started.

Fri, 04/01/2011 - 16:37 | 1126509 gwar5
gwar5's picture

That sucks. I guess all is fair in love and currency wars.

Fri, 04/01/2011 - 16:41 | 1126522 snowball777
snowball777's picture

And you thought they were only good at StarCraft.

Fri, 04/01/2011 - 16:41 | 1126529 sodbuster
sodbuster's picture

No honor among thieves.

Fri, 04/01/2011 - 16:45 | 1126531 falak pema
falak pema's picture

Benocide will have to reprint with a vengeance if the far east holders of USD start dumping hard. QE-3 will become mandatory. No way you go the other increase interest rates..that kills objective n° 1 : WS levitation. So, let her rip, let the USD fall... It will hurt Japan more in the short term...Yen go up...Japan will cry...Too many balls in the air... Benocide...But...this makes carry trade in USD attack Euro on the roundabouts...risky, risky as you never know where the bottom is, when you leverage up to make a bond raid on a PIIGS!!!...The currency speculation war goes on...

Fri, 04/01/2011 - 16:45 | 1126536 traderjoe
traderjoe's picture

Point of Order: the current dollar is NOT a Greenback, even though that is a popular slang term for our current currency. The true Greenback was printed directly from the Treasury by Lincoln - without debt and without interest. It was the people's money. Our current currency is the Federal Reserve Note - borrowed from and counter-feited by private corporations including the banker-owned Federal Reserve.

Fri, 04/01/2011 - 16:44 | 1126540 SheepDog-One
SheepDog-One's picture

Right TraderJoe, correct name for our present currency is 'Fiatsco'.

Fri, 04/01/2011 - 16:49 | 1126548 falak pema
falak pema's picture

How come that TPTB have given these Bankstas more and more liberties with this phony green back? FDR reigned them in with Gl-St. Reagan/GB/CL/GWB let them rip-off the people and nobody said a word. At least Nixon had a good reason for running away from gold standard. But he didn't have to allow the petro-dollar rip-off that started the bankers global roll...Now we're in the place where its impossible to go back...without a mega fall and humble pie...for twenty years...

Fri, 04/01/2011 - 16:53 | 1126556 SheepDog-One
SheepDog-One's picture

Why do they rip us off? Because they can! Theyre certainly not worried about the american people doing anything to stop them, not yet anyway. Im sure theyve run this thru the wargamming W.H.O.P.E.R. many times and seen that 99.8% of the americans people when faced with any real danger are compliant quivering blobs of jello.

Fri, 04/01/2011 - 20:23 | 1127055 Translational Lift
Translational Lift's picture

The last one that was going to try to reign them in was JFK and you know what happened to him ....and....Bobby.

Fri, 04/01/2011 - 17:21 | 1126643 Quinvarius
Quinvarius's picture

Greenbacks also lost value at a steady rate.

Fri, 04/01/2011 - 17:47 | 1126699 traderjoe
traderjoe's picture

As has the FRN. But in the current Fed/fractional reserve banking system, banks create money out of thin air and then lend it to the government at interest - essentially earning an infinite gross margin in the process. An unnecessary 'tribute' to private corporations.

Fri, 04/01/2011 - 18:18 | 1126780 snowball777
snowball777's picture


Fri, 04/01/2011 - 16:54 | 1126539 SheepDog-One
SheepDog-One's picture

HEY wheres the story about the 1/2 TRILLION worth of fake UST's seized in Europe??

YouTube - 1/2 trillion $$$ worth Fake Bonds get ready for hyperinflation!!!!!

Anyone want to weigh in on what THIS breaking news will do to the finely tuned HFT trading bots?

Fri, 04/01/2011 - 16:55 | 1126570 magpie
magpie's picture

Gotta get those M-Fund bonds out of the radiation zone quick...

Fri, 04/01/2011 - 16:58 | 1126583 SheepDog-One
SheepDog-One's picture

'M' for 'maginary'?

Fri, 04/01/2011 - 17:13 | 1126621 magpie
magpie's picture

heh, no Japanese or US ex-Ambassadors involved in these.

Only JPM doing its patriotic duty, carry on citizen and ignore the Mafia posting funny money with Grover Cleveland as collateral.

Fri, 04/01/2011 - 17:31 | 1126665 falak pema
falak pema's picture

Half trillion phony USD bond is now known as the Fukushima blanket fund. Totally irradiated...

Fri, 04/01/2011 - 17:42 | 1126688 magpie
magpie's picture

updated for 2011 - Bondfinger irradiates all UST reserves across the globe.

Sat, 04/02/2011 - 02:10 | 1127506 Yen Cross
Yen Cross's picture

Hey Magpie Paint your tail feathers. I'm going to pellet your ass!

Fri, 04/01/2011 - 18:24 | 1126798 snowball777
snowball777's picture

IBOEs are not treasury bonds; you basically linked to a Mafia check kiting scheme.

Fri, 04/01/2011 - 19:11 | 1126930 Yen Cross
Yen Cross's picture


Fri, 04/01/2011 - 16:53 | 1126563 magpie
magpie's picture

Don't have any proof, but this confirms my gut feeling that the strong bid for the Euro came from wealthy oriental gentleman and those gnomes in the Alps.

Fri, 04/01/2011 - 17:31 | 1126668 falak pema
falak pema's picture

mark faber and the Zug brigade?

Sat, 04/02/2011 - 02:10 | 1127508 Yen Cross
Yen Cross's picture

I have a (GUT) feeling. My finger is going up your VENT!

Sat, 04/02/2011 - 02:32 | 1127532 Yen Cross
Yen Cross's picture

Wicked garden GNOMES?

Fri, 04/01/2011 - 16:53 | 1126564 anonnn
anonnn's picture

Korea is included in G7?


Fri, 04/01/2011 - 16:58 | 1126577 Dr. Porkchop
Dr. Porkchop's picture



Sat, 04/02/2011 - 00:57 | 1127447 onarga74
onarga74's picture

Yes...they were told that if they invaded North Korea and won then they would make the the G8. It's not a suprise for Korea to sell so soon. That qualified as a long term investment for them and Im sure they're relieved their currency held together for so long.  Time for a parade!

Sat, 04/02/2011 - 02:32 | 1127530 Yen Cross
Yen Cross's picture

Sarah wish you the best. Stay on the porch!

Sat, 04/02/2011 - 02:34 | 1127536 Yen Cross
Yen Cross's picture

Global court Bitch.

Fri, 04/01/2011 - 16:58 | 1126584 lieutenantjohnchard
lieutenantjohnchard's picture

life is so much easier just owning the physical. true, it's fun to buy the paper dips. but for the life of me i can't see a way out this economic mess without a serious dollar drop to get the attention of tptb in which case having the physical will relieve a lot of stress.

Fri, 04/01/2011 - 17:08 | 1126607 Dr. Porkchop
Dr. Porkchop's picture

I wake up in the morning and my physical PMs are still there where I put them.

Fri, 04/01/2011 - 17:08 | 1126609 Spigot
Spigot's picture

We all know how TPTB detest "unruly market conditions". Seems like a very odd thing for Korea to dump $$$ into the market rather than to go to the FED. What's the point? $7 billion is utter peanuts.

Do we have a public, real time, real money flash crash test being run to determine whose been swimming naked (the USA)??

I suppose we are in for some interesting times.

If $7 billion can punch such a hole in the charts, what in h3ll is someone planning?

Fri, 04/01/2011 - 18:37 | 1126843 Al Gorerhythm
Al Gorerhythm's picture

The three most important things about currencies are: Perception, Perception, Perception.

Fri, 04/01/2011 - 17:15 | 1126630 MachoMan
MachoMan's picture

Why is it that this couldn't have been OK'd by the chairsatan prior to firing away?

Fri, 04/01/2011 - 17:18 | 1126633 CheapKUNGFU
CheapKUNGFU's picture


All your 'G's are belong to us, make your time!


Fri, 04/01/2011 - 18:08 | 1126747 Itsalie
Itsalie's picture

BoK shud be directly buying yen if they are worried abt a rapidly weakening yen robbing the hyundais and samsungs of their new-found competitiveness when the USD/JPY plunged after the quake. At at one point after the NFP, USD/JPY was touching 85 (well above level before quake! and above the pain threshold of Jap exporters for 2011). The koreans were always reluctant player to weaken the yen for fear the won/yen would favour the japs at a time when DRAM makers were expected to lose big money in 2011.See when dollar rises, yen falls, aha, so when dollar falls, yen rise. And the korean who are the worst interveners (far more than the CCP, but hey, uncle sam won't scream at its allies like the saudi oilmen and little south koreans so vulnerable to Kim Jong Un's artillery or puny nuke toy) together with the taiwanese and malaysians, figured it would be a diplomatically more acceptable trade to strengthen the yen vis a vis the won thru the euro buyingl. Anyway if you look at the retail sentiment (overwhelming short euro and short AUD), a sell dollar trade today be very timely for the big boys and invite them to to join in big time, no way they would let the retail make money at this stage when noises to raise rates are strong.

Fri, 04/01/2011 - 19:27 | 1126954 Verstehen
Verstehen's picture

Remember the last G7/20 meeting in South Korea. After another round of shrill calls about China's currency the US was completely ignored (not reported in US MSM). It smells like a conspiracy behind closed doors.

Fri, 04/01/2011 - 20:12 | 1127044 Zero Govt
Zero Govt's picture

all G7/20 meetings are memorable for 1 reason alone... they are forgettably worthless

....not just for what the wining, dining blubber-mouthed windbags disagreed on but what they agreed on too... not a single G7/20 Agreement is worth the paper it's written on. As soon as the jawboning politicos have jetted out of the airports every worthless word of the agreements are long forgotten and never in-acted

Sat, 04/02/2011 - 11:38 | 1127854 DosZap
DosZap's picture

ChiComs  and several other nations met this week in Nanjing, to figure out how to LOSE the USD w/out totally upsetting the globe.

Problem is NO one(including IMF) wants to hold the USD's when they start pouring in.

PS: The US was not invited to this closed door Nanjing meeting.

Fri, 04/01/2011 - 20:11 | 1127041 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

No one is considering that the Koreans bought GBP and EUR because they were told to buy, because of the mounting shite that is getting ready to hit the fan?

Keep the Europeans afloat boys while we see how well the hawks do in talking up the USD ...

This entire market for years now can be read as one big massage. Are you waiting for the happy ending?

Fri, 04/01/2011 - 21:00 | 1127125 johngaltfla
johngaltfla's picture

Sounds like the BOK has created a new sport:


Sat, 04/02/2011 - 02:36 | 1127542 Yen Cross
Yen Cross's picture

It's payback. The Koreans got hit hard 60 years ago.

Sat, 04/02/2011 - 00:21 | 1127401 Oh regional Indian
Oh regional Indian's picture

It's all co-ordinated. Anyone who thinks little SK, so dependent on Big, beefy Uncle Sam will take such a step without prior approval or direct orering needs to understand how the world REALLY works.

As folks above pointed out, something big is coming again. The freak-out headlines have become passe now, but the trend is only going hard-down. George Sorrows has something planned shortly, One World Currency stuff.

April 7th is another date to watch for and then bang bang after april 15th. We are back to GOM/Church Crisis time last year. 

I watch with bated breath.


Sat, 04/02/2011 - 02:40 | 1127545 Yen Cross
Yen Cross's picture

If some one killed my Mother, I would be hunting that down.

Sat, 04/02/2011 - 03:31 | 1127568 Fíréan
Fíréan's picture

The $7 billion doesn't have to punch the hole in the charts, it's the starter which gets all the others runing for the door.The accumulative effect is the hole in the charts.

Sat, 04/02/2011 - 05:08 | 1127595 GFORCE
GFORCE's picture

Unloading dollars for GBP and EUR? What a joke.

Britain will slip into recession again soon, bringing gravity to its property market and the euro; well let's face it. That's going down.

To add to a post above- bonds won't lead to hyperinflation. See Japan circa last 20 years.

Sat, 04/02/2011 - 05:25 | 1127600 equity_momo
equity_momo's picture

In the World of the FX Ugly competition , i honestly dont see why the other Fiat clusterfks are any more attractive than the USD.   I think the most crowded trades since crowded trades began is being bearish USD.  I'll take gold , food and oil over the USD but if we are talking GBP,EUR,YEN,USD relative , i dont see whats so compelling about the other 3.

Sat, 04/02/2011 - 11:52 | 1127868 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Imagine a language where black can mean black, or it can mean white, or it can mean both at the same time. And then it can also mean gray.

That's what it is like now listening to the FED or trying to figure out whether the future is inflationary or deflationary.

Happily for the algos, they don't live within contradiction, it's either buy or sell and apparently it is much more the former than the latter.

Sat, 04/02/2011 - 12:58 | 1127986 Jack Sheet
Jack Sheet's picture

Assimilate This:


"...when the EUR/USD rallies 30 pips on air you can be assured this is a Middle Eastern reserve manager diversifying out of the USD they have received from the higher oil price.  Note that OPEC will receive a record 1 Trillion USD this year.  Middle Eastern reserve managers have little interest in staying long these USDs given the current state of the US economy and the Fed's continuation of QE2.  

The Middle East has changed the game because they are forcing Asian reserve managers to question their passive strategy. If Asian Central Banks are passive, they miss buying the EUR/USD at 1.4040, because the Middle East is front-running their orders.  This has caused a number of Asian reserve managers to raise their bids in the EUR/USD as the market rises.  In effect, through frustration, Asian reserve managers are moving from set bids to rolling bids...i.e. set a bid 50 pips below today's high...  This strategy could see faster moves to the topside in the EUR/USD in the months ahead.  It could certainly steepen the slope....."


Sat, 04/02/2011 - 13:49 | 1128096 foxman
foxman's picture

Isn't this what Armstrong was talking about?

Sun, 04/03/2011 - 00:32 | 1129212 Grand Supercycle
Grand Supercycle's picture


USD/JPY bullish basing on daily and weekly chart continues.

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