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Niels Jensen Recalls His Lunch Conversation With John Paulson, Shares Andy Xie's Plan For Destroying Yen Shorts
The Absolute Return Letter November 2010: Four Rather Sick Patients, by Absolute Return Partners LP (pdf)
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"Short Pants is in on this too?" lol
FTFY!
all hail a trade war.. or (dirty) dozen:
http://www.project-syndicate.org/commentary/rogoff74/English
Gold and precious metals are the only answer.
Bring it. Bring on the trade war. Let protestors fill the street in front of Ben Bernanke's office window. Set tires ablaze. Civil disobedience. Whatever. Tax revolution. Leaving the entire income tax system...and raising goats. Anything. ANYTHING.
Literally...ANYTHING but this nonsense, day-to-day drivel of Wall Street Criminal Syndicate PMs pushing price action AS THE STORY OF THE DAY!
And as for the political class all in a great big scrum around the idea that somehow the Rs are going to fix things....LOL! Get a grip and fix your eyes upon the prize, dammit!
It is the Federal Reserve Bank. It, and its primary dealers, are looting the f'n treasury. And until enough folk get that, We Are Freakin' Doomed!
amen, particularly your last paragraph.
Cdad, what caused the French peasantry to revolt? Hunger? Right you are!
As long as the Fed can continue to sell treasuries (destroying the purchasing power of the dollar) to fund the government dole, as well as fund the US military, state tax shortfalls, etc, the American public will do nothing or very little. The public will at most listen to L/R wing media, bicker about Red/Blue is best, watch tv, eat lots of junk food, make no attempt to figure out what is going on in the real world of macro economics, etc.
Hunger is an extrodinary motivator.
The problem with "Andy Xie's Plan for Destroying Yen Shorts" (yen longs actually) is that many players who are short USD/JPY engage in a ratcheting action where they reset stops as the price falls. They would only suffer a fraction of the rise in USD/JPY. What he's suggesting would need to be done in many smaller steps (playing both ways by using order book data and computer simulation software). That would involve a relentless day-in day-out predation by someone who knew what they were doing.
But it's about time the BoJ lost the occasional stupid shock and awe thing and took a steady predatory tack against speculator's and this idea is aimed in the right direction.
Also on the subject of excessive Yen appreciation, there is a recent article by Marc Chandler which suggests that a large part of the recent Yen's rise can be blamed on JPY bill purchases by yield seekers who are forbidden to take naked currency positions. (a good read at: http://www.creditwritedowns.com/2010/10/another-piece-of-the-yen-puzzle....) He has some interesting suggestions on what could be done about it.
I agree completely with your assessment of how the Japanese would have to pull it off. I have a feeling the Swiss have taken this tack to their advantage over the past few weeks.
The tactic would be to buy into dollar strength and support the gains, especially near long-term Fibonacci levels. You have to take ground back a bit at a time. This must be more like encroaching trench warfare than a blitzkreig.
What I don't understand is if the yen was 75 then how do you come in and announce an unlimited supply at 120? Who are the buyers ? How does it jump from 75 to 120 on this announcement?
Andy Xie's Plan is too simple-minded. Japan would wipe out it's export industries by that action. Would you allow Japanese exports into your market after a stunt like that?
Instead of Yen Kari you get Andy Kari, or Hari-Kari.
Andy should take a penalty shot of saki for his idea. More ideas like that and he'll have to deal with alcohol poisioning.
So what are they supposed to do, nothing? We can sit around two years from now talking about how the speculative shorts brought the USDJPY to the brink of an enormous global catastrophe?
Comes a time when you gotta do something.
If there was a simple answer to your question, Japan wouldn't be in the position it now finds itself. Read Gillian Tett's book: Saving The Sun. I suspect many of those chapters will repeat themselves. This time around, Japan will find raw material & energy price shocks have metastasized.
There is no chance this idea of Andy's would work.
The speculative shorts are profiting from Japanese stupidity. Once that stupidity has been properly harvested, they will move on to other low hanging fruit. The US has no need to worry for some time as many other currencies will fall before the US dollar is truly threatened (if ever).
For example, there is no talk about the inflationary experiences China had in the 40's.
Watch what Germany does and how they position themselves.
Do not delude yourself. We are entering a zero-sum game.
Govern yourselves accordingly.
Hire Ben Bernanke. BTW good call on the EUR/CHF.
They can't all fall, but they can rotate turns in the dunk tank indefinitely.
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Anyone notice what Andy wanted to do with the profits from the trade?!? Profit of 312T JPY at 120 is about $2.6T. He wants to give HALF of that, or $1,300,000,000,000 to Bill Gates to kill black people in Africa. When Gates says help Africa he means population reduction on the Bilderberg model. Only 500,000,000 to be left alive on the earth with finance oligarchs ruling the ruins of humanity like neo-feudal barrons etc. Bill Gates talks about making airborne anti-fertility vaccines to sterilize people enmasse. He is an ultra-Hitlerian character. Its fitting that a Morgan Stanley banker type would support a racist facsist type like Gates.
Who in their right mind would want to give $1.3 trillion dollars to the world richest man to play eugenics games on poor people?
Here is one source for the information about Gates: http://www.naturalnews.com/028887_vaccines_Bill_Gates.html anyone can also just use google to search for terms like "Bill Gates Airborne Vaccine"
This article has the video imbedded
http://www.prisonplanet.com/bill-gates-use-vaccines-to-lower-population....
Here is a direct link to a video where Gates says get the carbon footprint down to near zero through using vaccines. It is a TED talk, and you can go to about minute 4 to hear him calmly say that their vaccines will reduce the population. He is kinda sad when he admits that their program can only kill 10%-15% of a projected world population of 9,000,000,000 by 2050. Thats only killing 1,000,000,000-1,500,000,000 people so more needs to be done. These Malthusian monsters need to be stopped from doing more harm to the world than they already are.
http://www.ted.com/talks/lang/eng/bill_gates.html
Africa has long been a laboratory for the pharmaceutical companies and other companies as well. Any travesty can be committed against them, their governments are easily bought off.
Foundations are another abomination. Read about the Reed Commission investigation into foundations (Norman Dodd) and this was in 1954 imagine what they are doing 60+ yrs. later.
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