Japan Megaquake And Tsunami - Gold Mixed As Yen Surges Against All Currencies

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Fri, 03/11/2011 - 09:34 | 1040186 Henry Chinaski
Henry Chinaski's picture

The financial earthquake hit in 2008.  Still waiting on the tsunami.

Fri, 03/11/2011 - 12:07 | 1040613 akak
akak's picture

Still waiting on the tsunami.

So you mean you have been riding the tsunami for three years, waiting for something?

I don't know about you, but I wait for people or things.  The only things I ever wait on would be a sofa or a chair.

"Waiting on" --- must be another weird West Coastism.

Fri, 03/11/2011 - 09:36 | 1040194 sudzee
sudzee's picture

Hey Bernank, the tide is going out. Your weenie weeni is about show.

Fri, 03/11/2011 - 09:40 | 1040198 NOTW777
NOTW777's picture

this raid on silver and attempt on gold is ridiculous

Fri, 03/11/2011 - 09:58 | 1040249 cossack55
cossack55's picture

Silver is dropping since it doesn't float.  Apparently The Bernank suspended laws of gravity along with FASB 157 so gold can now float.  Cool.

Fri, 03/11/2011 - 10:12 | 1040294 tmosley
tmosley's picture

I'll take it.  I will probably buy some more after I get back from my three day weekend holiday I'm taking.  If we can get below $34, down toward $33 or lower, I will be buying.

Fri, 03/11/2011 - 10:30 | 1040345 Kaiser Sousa
Kaiser Sousa's picture

dont know what moron junked u, of course without a rebuttal of ur analysis...

no matter, the phony paper price action is just that  - phony....

the entire week has been a study n cartel manipulation and fraud...aint no fucking correction taking place just a natural disaster providing cover for the enemies of real money...

Fri, 03/11/2011 - 09:39 | 1040200 SDRII
SDRII's picture

Kan has lost 3 ministers in 3 weeks - approval rating at 20% or so. The opposityion is united against his bloated budget. Maybe now he can force througha  massive rebuilding campaign. problem solved. That was easy

Fri, 03/11/2011 - 09:42 | 1040204 orca
orca's picture

Reason for JPY strength is carry unwind.

Fri, 03/11/2011 - 10:21 | 1040326 DonutBoy
DonutBoy's picture

Hmmm.  So I borrowed yen to invest in another currency.  If the yen goes to zero I make a boatload.  So why does the quake induce me to unwnd my yen carry?

Fri, 03/11/2011 - 11:24 | 1040477 orca
orca's picture

Quake = risk unwind.
Risk unwind = carry unwind.
Carry unwind = buying back the JPY.

Fri, 03/11/2011 - 09:44 | 1040206 duo
duo's picture

From the videos I saw, a good portion of Japan's farmland was flooded with salt water.  I'm long ags after the selloff today.  Maybe limit down today and Monday on the grains, then reality comes back.

Fri, 03/11/2011 - 09:53 | 1040230 NOTW777
NOTW777's picture

wheat getting whacked again - 650 up?

Fri, 03/11/2011 - 09:52 | 1040228 Handle with care
Handle with care's picture

The strength of the yen is to be expected if the damage is extensive as Japan will be selling foreign assets to bring money home to rebuild

Fri, 03/11/2011 - 09:56 | 1040237 hamurobby
hamurobby's picture

Im suprised the 10yr hasnt tumbled, to cash only for a moment?

Fri, 03/11/2011 - 10:00 | 1040253 Handle with care
Handle with care's picture

I'm surprised all the treasuries haven't fallen.  Japan will be buying a lot less as they use money to rebuild instead.

 

Interest rates and commodity prices should be up on Japanese rebuilding

Fri, 03/11/2011 - 12:52 | 1040838 Kobe Beef
Kobe Beef's picture

Rebuild what? There's nothing in Sendai except subsidized farmers & fishermen.The insurers will get hit with some claims & the elderly welfare queens will get another hit of government cheese.

The Kan gov't was going to fall this year anyway. It will be replaced with yet another ineffectual government with yet another degenerate Son of Privilege at the helm, & they will have no new ideas either.

I've been getting panicked emails & calls from friends and family all over the world today. Please stop panicking, people. This is nothing. It missed Tokyo. Imagine if the boonies of Northern Oregon was hit with a quake.. How would it affect you? it wouldn't-- thats how.

Cheers,

Beef

Fri, 03/11/2011 - 09:56 | 1040240 fragrantdingleberry
fragrantdingleberry's picture

Tora, Tora, Tora bitchez.

Fri, 03/11/2011 - 09:58 | 1040245 velobabe
velobabe's picture

great summation post. i like the angle.

g o l d , bitchez!

Fri, 03/11/2011 - 10:10 | 1040286 Yen Cross
Yen Cross's picture

If it ain't xau then it's xag. I have a hunch the commodity run is about over.

Fri, 03/11/2011 - 09:58 | 1040248 Flakmeister
Flakmeister's picture

Oil selling off.... This is literally Demand-Destruction..

Fri, 03/11/2011 - 10:01 | 1040254 cossack55
cossack55's picture

Well, if you believe the HAARP theories, would it not be Destruction on Demand?

Fri, 03/11/2011 - 10:13 | 1040291 Flakmeister
Flakmeister's picture

  I do not subscribe to HAARP theories....A cursory look at the history of quakes in Japan:

http://en.wikipedia.org/wiki/List_of_earthquakes_in_Japan

Suggests that for the modern era where we have reliable data, 1 major quake about every 10 years or so.

Fri, 03/11/2011 - 10:16 | 1040306 chubbar
chubbar's picture

Of course one might also subscribe to this new theory as well.

http://halfpasthuman.com/aintwhatitusedtobe.html

Fri, 03/11/2011 - 10:05 | 1040263 London Banker
London Banker's picture

Yen will continue to outperform for the next few months as Japanese insurers are forced to liquidate global investments and repatriate the proceeds to make good on claims.  The same effect of a strengthening Yen followed the Kobe earthquake in 1995.

The Japanese central bank would be unlikely to intervene to strengthen the yen, as it will be concerned about disruptions to production enough without undermining export competitiveness.

Fri, 03/11/2011 - 10:28 | 1040340 DonutBoy
DonutBoy's picture

That is interesting.  Do you think the insurance companies moved to sell assets already, in real-time, or is the FX market front-running the insurance companies?

Fri, 03/11/2011 - 10:09 | 1040271 Yen Cross
Yen Cross's picture

Uh ohh my friend in South Maui said the waves are bigger than expected. So, So.Cal. could have coastal flooding

Fri, 03/11/2011 - 10:09 | 1040273 Temporalist
Temporalist's picture

Got gold?

BOJ Sets Up Disaster Task Force, Some Trouble Seen With ATMs

"Automated teller machine services of the Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking were suspended in 78 locations and 35 locations, respectively. Operations of about 3,000 Japan Post Bank's ATMs in the Tohoku and Kanto regions also stopped."

http://e.nikkei.com/e/fr/tnks/Nni20110311D11JF327.htm

Fri, 03/11/2011 - 10:08 | 1040274 bunkermeatheadp...
bunkermeatheadprogeny's picture

Mideast turmoil, Euro collapse, Japanese eartquake, Australian floods, and yet the USD remains low.

Fri, 03/11/2011 - 10:11 | 1040282 Temporalist
Temporalist's picture

Actually down so far today...

Fri, 03/11/2011 - 10:18 | 1040310 falak pema
falak pema's picture

thanks to chairsatan and QE...

Fri, 03/11/2011 - 10:18 | 1040316 Yen Cross
Yen Cross's picture

Have you looked @ a dxy chart H-5 over the last 3 days?

Fri, 03/11/2011 - 10:41 | 1040372 PY-129-20
PY-129-20's picture

If this works for the Yen, so it works for the Dollar. Mr. Ben Bernanke, creator of the 9.5 mega-earthquake of California.

Fri, 03/11/2011 - 10:10 | 1040277 Jason T
Jason T's picture

I have never checked up on earthquake data before, but over the past month now, I tend to google: earthquake to see what and where the latest quakes are.

Something is up in Arkansas and for some reason, I think the oil spill in the gulf has something to do with it.  oil slicking up the plates or something.

 

regardless, quakes are freaking everywhere now. 

Fri, 03/11/2011 - 10:16 | 1040308 Yen Cross
Yen Cross's picture

So are ocean buoys(tsunami) and shark sensors! Feel any safer? When it's your time, you have no choice. My teenage years can attest to that!

Fri, 03/11/2011 - 10:21 | 1040321 Flakmeister
Flakmeister's picture

Some geologists are hypothesizing that large (M>7) quakes tend to cluster;  a major plate movement produces waves can induce stresses elsewhere

Wiki has some great animations:

http://en.wikipedia.org/wiki/P-waves

http://en.wikipedia.org/wiki/S-wave

http://en.wikipedia.org/wiki/Seismic_wave

Fri, 03/11/2011 - 12:23 | 1040689 Cow
Cow's picture

Arkansas earthquakes may be related to gas exploration and fracking

http://cleantechnica.com/2011/03/10/are-arkansas-earthquakes-related-to-...

 

Fri, 03/11/2011 - 10:14 | 1040292 AldoHux_IV
AldoHux_IV's picture

Right now Dudley's saying that QE2 won't lead to inflation-- what a fucking joke this guy is.  Never ceases to amaze me how low these fed fucks will go using a time when risk aversion is the mainstay to further the propaganda.

Fri, 03/11/2011 - 10:13 | 1040297 falak pema
falak pema's picture

Roubini sees a black swan in the quake aftermath. He must be related to ORI, believer in supernova- star N/S track and 33° parallel, evil axes. Maybe Ori gets next year's Nobel Prize for being Gandalf of middle-earth...(whats left of the actual world after the twin-axes sunder our globalization to radioactive gold dust).

Fri, 03/11/2011 - 10:23 | 1040329 Grand Supercycle
Grand Supercycle's picture

Gold bearish monthly chart warned of a sell off.

As mentioned earlier - substantial downside possible.

http://stockmarket618.wordpress.com

Fri, 03/11/2011 - 10:26 | 1040337 GeneH3
GeneH3's picture

Natural disasters, such as hurricanes, earthquakes and tsunamis, and wars create economic black holes into which otherwise productive wealth is sucked and disappears. It is hard to imagine the effect the earthquake and tsunami will have on Japan's already fragile economy but it likely be huge.

Fri, 03/11/2011 - 10:27 | 1040341 luk427
luk427's picture

QE3 here we come.

Fri, 03/11/2011 - 10:34 | 1040360 Kaiser Sousa
Kaiser Sousa's picture

dow recovers alomost all losses n the pre-market open heading n 2 NY and Gold & Silver for some "perfectly market justifiable reason" continue to fall....yeah, ok...

Fri, 03/11/2011 - 10:42 | 1040380 floydian slip
floydian slip's picture

floyds friday special

the mint already suspended sales of the quarters silver proof sets because the melt value was highr than the retail price

still avail is..

2010 United States Mint Proof set = $57 (retail)(I just bought 10)
(based on sliver @ $34.56)
5 silver quarters = 31.25(.9042 oz)
1 half dollar = $12.50(.3617 oz)
1 dime = $2.50 (.0723 oz)
=
46.25 (1.33 oz)

there is also the 4 pres dollars and 1 sacagawea dollar = $5

so if you spend those 5 golden dollars the set would cost $52
also a shiny proof penny and nickle left (ebay)(dollar each)

$50 divided by 1.33 oz worth of silver = $37.59 /oz  and that is just the melt value

its a cheaper premium than apmex, you can pay with a cc and no matter how many sets you buy the shipping is the same. 

 

 

have a good weekend

Fri, 03/11/2011 - 11:08 | 1040442 mraubin
mraubin's picture

the strength of the yen has nothing to do with intervention, it's all about repatriation. If the BofJ were to intervene at all it would be to curb the strength of the yen if it approaches 80 vs USD

Fri, 03/11/2011 - 11:24 | 1040481 HedgeFundLIVE
HedgeFundLIVE's picture

i swear one of our guys called the earthquake last night before it happened!!!: http://www.hedgefundlive.com/blog/earthquakes-and-flash-crashes-the-coming-mini-flash-crash

Fri, 03/11/2011 - 11:57 | 1040595 Lone Mad Minute...
Lone Mad Minute Medic's picture

So the only Tsunami to hit the U.S. is the Yen?

Fri, 03/11/2011 - 12:02 | 1040611 sharkbait
sharkbait's picture

Yen rally isn't counterintuitive.  The Japanese insurers et al will need to repatriate a lot of foreign investments to raise yen to pay claims.  ergo yen rally

Fri, 03/11/2011 - 12:13 | 1040646 Broomer
Broomer's picture

Of course it isn't a surprise, Oriental magic is powerful.

Fri, 03/11/2011 - 12:03 | 1040612 99er
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