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USDJPY Plunging, Drops To 16 Year Low
If this goes below 80, and it is about 10 pip away, it may get quite interesting, as a lot of derivative waterfall stops are located there. That the BOJ has still not intervened is very troubling. And the latest bad news from Japan: Tokyo Electric Power says water
temperature at No. 5, and No. 6 reactors rising, was double normal level
at 0500 GMT
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Again, keep eyes peeled on closest airport to Yucca Mountain for numerous Gulf Streams.
I was really perplexed by the flight to safety into the yen last week (at the onset of this crisis). If the current crisis escalates, the entire island may need to be evacuated. What's not being discussed in the MSM is the fact that one of the reactors (#3) at Fukushima uses MOX fuel (MOX fuel emits higher gamma radiation and much higher neutron radiation than uranium fuel).
"This power plant meltdown can be 2 MILLION times Worse than Chernobyl! This could make the whole country of Japan uninhabitable, besides being carried around the world!"
http://sherriequestioningall.blogspot.com/2011/03/japan-exploded-nuclear-plant-uses-mox.html
I Wonder why the US isn't getting its NEST agency involved in this super-critical emergency?
NEST is currently being deployed as bagboys and caddies.
Yes BO needs lots of caddies.
The financial markets are the least concerns of Japan's top decision makers now. 2012 baby. 2012...
zakennayo bizunichu!
The flight to the Yen is an expectation that Japan will cash in treasuries, and sell the USD for JPY.
I really hope (and change) you are correct.
What other explanation do you propose?
An explanation, in FX. None to offer, I just hope EK is right.
Why would you buy yen when you can print them?
Bank of Japan has been intervening in the market for the past 3 days... 35 Trillion and counting. and Yen has appreciated. Put the two together, they have been BUYING Yen! It is Absolutely ridiculous that Japan needs to sell USD in order to get JPY. You are right, they can print and already printed 35 Trillion.
Fundamentally, prior to this event risk, JPY NEVER got to this level (not in the last 14 years.) So... there is only one conclusion... JPY will depreciate, against USD, against EURO.
Eventually!
I was dead right. For those of you who followed my advice....
I'd kept an eye out for them closing the exchange as mooted yesterday...
Uh, why? The US is going to suddenly ship all its nuclear waste there by the most expensive method possible?
Or is this some tinfoil hattery?
BTW, the four closest airports to Yucca Mtn are all on either Nellis or the Nevada Test Site. Just look up a map of Nellis and you'll see them displayed.
The theory is that given Yucca will not be used for nuclear waste, it will be used as a shelter for the elite in the event of a sufficient disaster.
Further, it would seem Japan has just volunteered itself, presuming this thing gets much worse, to be the nuclear waste repository for the rest of the world, thus rendering Yucca worthless for its intended mission anyway...
I must not read infowars enough... haha.
I thought the underground base below Denver's new airport was the elite's hideout? Seems about 100 times more plausible to me.
I've been on a full DOE tour of the NTS. I don't think you could get enough potable water, or manage enough wastewater, to keep any significant number of people alive there. That's assuming you wanted to set up shop in a dull mountain in the middle of nowhere anyway.
Having been very close to Yucca Mountain, and through DIA a few times, I would put my money on DIA. If any such shelter exists at all.
Eitherway, it sits atop a fault line. Not to smart to build anything important there.
All of Nevada is near fault lines. So is most of the US, and most of the landmass on earth. The key question is whether the fault is ACTIVE. Yucca Mountain is not on an active fault, except in Harry Reid's mind.
Guys, guys. Please. Smart and gubmint planning are mutually exclusive. BTW, YM is for the rich but not rich enough crowd plus low level staffers waiting to become lobbyists. If TSHTF YM will look pretty good, plus it might become ocean front.
I, personally, always welcome a lack of intervention. It makes things much better in the long run.
Agreed.
Counter intuitive the surging JPY but time will tell how this plays out.
this surge in the Yen has me completely baffled.
Its easy to explain. Anyone who lent yen in the carrytrade needs it back now. So margin calls and short supply. Dumping dollars and everything to cover unwinding
Yes re carrytrade, but i wouldnt assume speculators lending out Yen for AUD or EUR are the same ones who need those Yen. Add the ridiculous amount of money being pumped in by the JCB, i feel like the scales should really be tipping towards a much much lower JPY here.
But again, interesting enough that we shall see.
Yes re carrytrade, but i wouldnt assume speculators lending out Yen for AUD or EUR are the same ones who need those Yen. Add the ridiculous amount of money being pumped in by the JCB, i feel like the scales should really be tipping towards a much much lower JPY here.
But again, interesting enough that we shall see.
Japanese are demanding physical cash above all other assets. The hordes still believe paper money is the safest asset, even the Japanese.
Time for a BOJob
It's like a woman, getting up steam and hot. It takes time for woman to reach full tops. Now is the time to be a Man and not stop what you are doing.
who says it takes time for a woman to get steamy and hot. i just press a buttom and it happens within minutes, and all by myself.
I thought sex was a race?
"That the BOJ has still not intervened is very troubling." Economic Triage??????????
perhaps all the member of the BoJ are "in transit"?
It would be the bankerly thing to do...
BOJ was waiting in ambush at 79.98
unwind carry ,,print,,unwind carry,,print,,unwind carry ,,print ..........
maybe lots of yen goes overseas in carry trade, and well theyre taking it all back cuz they have important things to do with it now.
Yen has to be repatriated, and everyone's carrytrade margin just got called in. They need the YEN back now!
As the dollar behaved when the overlevered dollar got the margin call in 2008.
Its a classic deflation- no matter how much the Japanese print- the assets and credit associated were wiped out in 3 days. And that is money supply vanishing
So what is the significance of the USD dropping below 80, or is it some sort of psychological number?? Thanks in advance.
Derivaitves as the article says.
Since no one understands that shit, expect a financial nuke to go off.
Thanks.
I see it hit 79.97 then took off like a rocket. Somebody was trying to defend 80.
People are throwing everything off the back of the boat- especially dollar and commodity positions to get Yen back to those who lent it out.
The dollars slump is a black swan event- just margin call for Yen on the carrytrade. Yen is deflationary on their economy. Run to cash, asset value destruction, hoarding, chronic short supply of cash
Insanity comes in many forms. The Japanese have lost control.
BOJ - Cash Exhaustion?
This is a very interesting observation. We are rapidly getting to the point where the market has been allowed to become so unstable because of interventions that now even the people who never approved of interventions know that chaos is around the corner if the interventions are stopped. So even the sane people are asking for more insanity.
This means we are near the knife's edge.
How are you able to distinguish the sane from the insane. Would love to know for future C-SPAN viewing.
Can't really. That's the beauty of being surrounded by insanity. My declaration of my sanity may simply be my own personal manifestation of the collective insanity. I've written before about the near impossibility of recognizing sanity when you are immersed within the insanity.
This is why God makes different flavors of ice cream. So we are all happy living within the insanity. I'll take the Rocky Road in a cone please.
The statistics on sanity are that one out of every four Americans is suffering from some form of mental illness. Think of your three best friends. If they are okay, then it's you.
It's like waiting in the theater for Freddy Krueger to pop out and cut something to ribbons. I want out of this movie.
The knife has made a few passes already. My wallet is much thinner.
CD, this is the fundamental argument of the inflationists... it's impossible to take the foot off the gas. [I disagree with the means/method, but I agree with its conclusion, hyperinflationary depression].
I understand the argument that once you have reached the point of no return on your way to the bridge abutment that the only "logical" thing to do is speed up even more in the hope that you can pulverize the abutment before it pulverizes you. At that point any discussion about why you even got to this point is effectively moot.....except for those writing the history books.
Then the only question is who gets to write that text book and if can they write it up like a Harlequin romance novel. :>)
Marc Faber put it best "if their is a melt down all bets are off".
He was very careful to carve out that contingency during his talk yesterday on CNBC.
Powee...spike up
Well, this ease the Illuminati's machinations surrounding their eugenics and population reduction program.
Would this be a bad time for the JPL predicted 8rs earthquake to show up.
Riddle me this one Batmen. How the hell does the Japanese Yen get stronger and more valuable now that Japan is in the middle of a 6 reactor meltdown process? I seriously cannot fathom that one at all.
I would say it's simple, but its not.
Japanese used their cheap YEN to borrow and buy shit like gold, oil, stocks and what have you. They have ZIRP a well.
But, none of that shit buys you necessities or helps rebuild the country. Now the Japanese need all their cash back for whatever reason. Toyota, for instance, will need cash to buy all those materials back that were destroyed in the flood.
Normal people need to buy clothes and rebuild.
You can't buy any of this stuff with "positions" in the market. You need fiat cash.
So, anyone levered out will have to return that YEN and dump everything to get it.
No matter how much they print, it's not enough right now. Classic deflation problem. Asset and value destruction=money supply destruction. No velocity of money anywhere in Japan-cash is stuck. the bank is slowing down runs, closing ATMS to prevent a run on them. The banks as well are levered and fractional reserved. So they are extended and cannot provide the principal back.
Its the same as 2008, except this was a unpredictable event unlike 2008.
The event is predictable, the timing isn't...
And CHF is set to break 1.1 USD barrier today.
Dominoes start falling int the Austro-Hungarian area...I see the reichstag burning again!
Wow, that was faster than I expected. CHF HAS ALREADY BROKEN THE 1.1 USD BARRIER!!
Angela Merkel must be having a sugar spike seizure right about...NOW!
Markets Will Crack: Why It Is Not Too Late to Short-http://www.hedgefundlive.com/blog/markets-will-crack-why-it-is-not-too-late-to-short
Some more details from Charles Nenner. Also a weaving together of Martin Armstrong and Nenner's forecasts.
http://goldandsilverlinings.com/?p=263
I think intuitively speaking this outcome wasn't too hard to foresee. If I were a Japanese insurer or the Japanese government I would be liquiditating dollar assets,i.e. Treasuries, under the expectation that I will need dollars to buy commodities. It's the only way to pay for this earthquake liquidating assets.
Of course this may be reflection of dollar weakness more than anything else. Maybe the dollar markets are so tight that perhaps even liquidation of a few tens of billions of dollars can have an adverse affect on the dollar's invalues.
All saying is that someone is probably selling dollar assets,hence the strength of the yen.