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We Are Off To The Races: BOJ Intervenes In FX Market, Sends Nikkei Surging As G7 Agree On Plaza Accord V2
And we are off. The JPYUSD is up nearly 200 pips as the Bank of Japan buys billions in dollars, using freshly printed Yen, following an agreement with the G7 which will likely see a new plaza accord to keep the Yen low despite ongoing repatriation. This follows earlier news that the BOJ will underwrite a ¥10 trillion in earthquake recovery bonds as Japan is now lurching from one monetization step to another. Keep an eye out for intervention aftershocks as the BOJ now can not allow the USDJPY to drop below 80 or it will be all over. This is what global reflation gone nuts looks like. On the other hand, if the BOJ fails to keep the USDJPY above 80 following this action, and the inflows of yen are far greater than anyone expected, most certainly the G7, then we have big problems.
And from Reuters:
The Group of Seven finance chiefs said authorities from the United States, Britain, Canada and the European Central Bank will join with Japan in joint foreign exchange intervention from Friday, at the request of the Japanese authorities.
The G7 finance leaders expressed their "readiness to provide any needed cooperation and our confidence in the resilience of the Japanese economy and financial sector", they said in a statement issued after a conference call.
The G7 finance chiefs held a teleconference around 7 a.m. Japan time on Friday (10:00 p.m. GMT on Thursday) to discuss the financial and economic impact of last week's massive earthquake and unfolding nuclear crisis.
Next up: Armageddon 2: the Sequel, in which the Chairsatan, Trichet, Shirikawa, King, and Hildebrand dig a deep hole in Haley's commet, in order to save the earth, only something goes horribly wrong and everyone blows up in a nuclear fireball. The end.
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6 seconds?!
I've long wondered how long it lasts
but how, exactly, do they prove it?
Last week, there was an educating exchange about this subject on ZH.
Some doctor called out the name of a freshly decapitated victim of the French Revolution, and he opened his eyes and stared at him for 6 seconds, apparently aware of the caller.
What's more, someone must have checked the correctness of this observation by contacting the Talking Heads.
You got me curious, so I went looking. Here is an interesting first hand account at the bottom 3 paragraphs of this link:
http://www.straightdope.com/columns/read/1172/does-the-head-remain-brief...
Cue Brad Dourif as the Gemini Killer in Exorcist 3:
After the entire island is nuked they can move in with sack and frost.
Does anyone fine it suspicious that while BOJ, G-7 and the Japanese Gov't wash the Yen, all the news on "the plant" appears promising?? One false move and we "will" see sub 80 USD/JPY, right????
++++
Yup...licking my lips, looking at some YCS early manana. BTFD...no, not that one...that one.
Wow, all currencies up vs the yen, and also the US stock market? this should be interesting.
With all due respect to all the posters, does this really surprise you? C'mon! How many times have we seen this shit. It's about time we start profiting instead of whining. We all know this is bullshit and the music will eventually stop but in the mean time, stop acting like this is just shocking!
'bout time somebody said it. Shock my hairy fat ass. +1
Of course, the good news is that this will help prevent deflation in housing. Print hard and fast enough, for long enough, and there won't be anything that's falling in fiat terms.
#biwhining
would someone please explain this to me, as I don't understand the economic implications of the whole thing, and the reasons tyler says what he says.
ditto that... the "FX for dummies" version please.
Let me sum up; Buttercup is marrying Humperdinck in little less than half an hour. So all we have to do is get in, break up the wedding, steal the princess, make our escape - after I kill Count Rugen.
An improving worldwide economy is inevitable!
Basically all of the major nations agreed to sell/stop buying yen for the near future to keep the carry trade from biting the dust. If the carry trade bites the dust, billions (if not trillions) of dollars of credit will be erased in the unwind of these trades. The countries are trying to keep this massively deflationary event from bankrupting the global financial system.
All the governments of the world had a meeting and decided you lose. No I am not being snarky.
To put it simply, dollars are not money--they are debt! Everyone is buying everyone else's debt with more debt. All created out of thin air! It's a grand illusion. The debts are so huge that they cannot ever possibly be paid. You are the collateral. When debts cannot be paid the collateral is confiscated. And there is enough military hardware in existence to force the confiscation, or at least attemt to. It depends on how it all plays out.
If the world put even 1 microsievert's worth the effort in solving Fukushima Dai-ichi as it puts trying to ramp stock markets and banker bonuses, this radiation crisis might have ended last Friday evening.
WRONG !!!
There's NO effort put into this. That's ALL they know. PRINT.
How much effort does that take?
Perhaps the Japanese are willing to Kamikaze themselves in an effort to clean this mess up, but it's extremely unlikely that any other nation is willing to do so.
'Cradle to Grave' responsibility. The Japanese government assumes ultimate responsibility towards mitigating this disaster. The Japanese citizen will be expected to clean it up.
Reiterating this from The Matrix, definitely appropriate right now:
Spoon boy: Do not try and analyze the market. That's impossible. Instead... only try to realize the truth.
Neo: What truth?
Spoon boy: There is no market.
Neo: There is no market?
Spoon boy: Then you'll see, that it is not the market that moves, it is only The Bernank.
That was actually fucking great. I lol'd.
Lol... funny and true.
Robbing Japanese tax payers = bullish.
Robbing US tax payers = bullish.
War = bullish.
Rising dollar = bullish.
Falling dollar = bullish.
Inflation = bullish.
Nuclear meltdown = bullish.
Still can't believe how fucking stupid I am for being bearish. I guess it only comes to those w/ a conscience.
....All the indices broke hard with massive volume last few days, they go kiss the bull trendlines form below now and likely turn out the lights for a while.
Breakout areas from July 2009 are likely retracement areas for world markets.... Japan ( EWJ ) "the leader" got into that weekly candle at the open on Tues March 15. India and China are not far above those same areas already.
You gotta know when to hold 'em....
i guess it's Buy-The--Fucking-Black-Swan now BTFBS
Somethingelse...
BTFBS . very apt.
Buy the orange fucking flying monkey...buy the fucked up two headed purple snake...just buy some shit
+1
What's the half life?
DavidC
Half life of what, the fiat?
The stimulus itself - generally becoming less each time...
DavidC
A negative exponential value?
Say it ain't so!
http://politicsandfinance.blogspot.com/2011/03/major-california-earthquake-predicted.html
comment?
Yes --- I believe it ..... all bad things happen in 3's. Unless there is hyperinflation, then it's 3,000,000,000,000,000,000,000 (or thereabouts)
I see any Humpbacks laying on the beach here in Maui, I'll give you a heads up.
Crossed my mind. We had Chile, N-Zealand, now Japan. Connecting the dots in a square fashion, where's the next big one to be expected?
"Mirrors on the ceiling,
The pink champagne on ice
And she said ’we are all just prisoners here, of our own device’
And in the master’s chambers,
They gathered for the feast
They stab it with their steely knives,
But they just can’t kill the beast."
You forgot:
Don't get ahead of yourself.
Watch out for radioactive black swans too.
Defend the Yen. Tyler said the WS trading desks were getting destroyed, may be not enough though..
It won't last, it reeks of DESPERATION.
They are in a race against an out of control meltdown.
They know it, they are scared shitless and they are desperate.
End off.
It only has to last through tomorrow with options expirations. All those smart people who protect their portfolio by going short or buying puts will be wiped clean. Once again putting fear in anyone who dare short this market.
Long live the central planners. Is the only free market the local butcher shop.
no the butcher's been deluting your scrapple with soy
maybe the butcher's wife then...is on the black market...When you kill the open market it comes back by the back door...very black but very exciting speak-easy, like bare back riding a frustrated wife when the 'postman' calls twice. Never say die to the market ideal or it'll bite you back like the butcher if he catches you inside a wife whose baking oven happens to be his safe deposit. Run baby run and leave that honey bun as the butcher's knife is no laughing matter. Ask the poor cow, not just his wife, but the other one that's meat on your table... Once you've humped to your delight the honey bun on the black triple diamond, dizzying run...That way you get two bangs for your inflated buck rogers.
So, is Japan going to be the second largest holder of Treasuries again when this is all over?
Timing is impeccable... After hours trading shuts down and BOJ begins buying dollars... What's a small investor to do?
Your time in the casino is at an end. A bouncer will shake the change out of your pocket before tossing you from the building. Have a nice day.
Gives new meaning to "March Madness"...and I thought it was just a hole in my pocket that caused the lost change.
First you feel cocky. Then you feel nuts. Then you realize you have a hole in your pocket.
the small investor will suck it like always. Its not going to suck itself.
Most of us buy real money. In the long run it's gold, silver, and tangibles that provide the only solution.
Most of us buy real money. In the long run it's gold, silver, and tangibles that provide the only solution.
Sorry guys, lag. Still, I guess the advice is to trade up to twice as much real money. :D
The elite are such a bunch of pussies.
I hope the housewives wipe the floor with the BOJ and the forex desks.
Despicable swine.
do you suppose the housewives read ZH? my guess is they do
Total end game now...oil price blows up killing off any Japanese recovery, Japan goes into a fiscally death roll.
A wave of inflation (with radiation) about to hit the US...nice trade off
hyperinfladiation
Toxic asset price supports.
June/July and the signs of a hyperinflationary crack up will be unmistakeable. Unless something big implodes.
How do you come up with those dates? Explain please.
These arent the droids you are looking for...move along.
Hmm, they might be educated but there's nothing they're going to be able to do to counteract the tides coming in...
DavidC
Lol, gold does a pop wheelie off of 1404. Fun, fun, fun kids.....
Guess I was dead wrong - the BOJ is still under the control of the FED.
Thought for a instant this nuclear shock would jolt the Jap establishment but I guess CB operatives and owners regard such tribal distractions as just that.
God I wish for a Gold standard to end this farce - but realistically only a economic fission reaction can bring this sucker down
And the Fed under control of The City, and the tree in a hole and a hole in the ground and the green grass grows all around all around, the green grass grows all around.
This is interesting, and should be expected of course. Hope you got UPS logistics, if not...you're GM.
Lacking Parts, G.M. Will Close Planthttp://www.nytimes.com/2011/03/18/business/global/18auto.html?src=twrhp
Gadhafi threatens to join 'holy war' against West
Libyan tyrant says if attacked, he'll start working with al-Qaida
Read more:Gadhafi threatens to join 'holy war' against Westhttp://www.wnd.com/?pageId=276293#ixzz1GuNBm2bm
I guess we'll have to send in a few more fighter jets than last time and finish the job.
Wars are not meant to be "won" or "finished" quickly...they are meant to be prolonged. Look at Vietnam, Afghanistan, Iraq...I sometimes think that TPTB look back at WW2 as a missed opportunity to make billions more had they only managed to keep it going longer.
War is a racket...and a very profitable one at that...Providing you're the one declaring the war and creating the weapons for that war and financing that war...However, it's not quite as lucrative for the ones doing the fighting and dying. But then again...they don't really count...they don't really matter. What was it that Henry Kissinger called the non elites?..."Useless eaters". You can always count on Kissinger to sum it up...such as this little gem of his:
"Military men are dumb, stupid animals to be used as pawns for foreign policy." - Henry Kissinger
Isn't it comforting to know that this is how those who declare the wars feel about the ones fighting the wars for them?
alien! where have you been???? wall_rus banned me from your board, can u unban me please? and come back to ihub. i miss chatting with you
I am sick to f%ck that the global banksters prop the market with a blank cheque book but don't pay the bills for starving homeless people about to die.
Darfur, no
Libya oil yes
I know what you are saying. Greed will destroy our planet and us with it, if we don't temper it. It starts here.
Darfur, no. Libya oil yes
Exactamundo. well said.
As stated this week, watch how the NGOs create money out of thin air.
http://www.ong-ngo.org/spip.php?page=fiche_pn&id_rubrique=114&lang=enhttp://www.g7.utoronto.ca/scholar/hajnal20000720/index.htm
The NWO socialist society is pushing the envelope to complete its mission. The last Hail Mary has been thrown, the receiver is watching the ball in mid air. We'll be right back after this commercial break.
Please, what are NGO's?
Google it.
the nikkei crashed this week when it was down -1350 intraday, Btfd was over.. theBernank is truly a madman.
Wait for policy to shift - nothing has shifted. Pump, pump, print, print.
Never short stocks when the world of banksters are all in "PRINT" mode.
Short CASH and be long GOLD. And wait for policy to shift...
This will only end when enough people with nothing left to lose start putting bankster heads on poles. Let me know when the real riots begin, I'll bring donuts.
That will not happen. It will end when there are no taxpayers left. The smart people do not revolt. They move. They just fucking move. My fiances friend moved to Russia and she couldnt be happier
+ ¥10 trillion
I wonder what the hell China is thinking about all this nonsense as they wave their abstain flag in the air?
Dumping fiat on PMs, oil and industrial minerals and metals and though they started years ago, they're wishing they started earlier.
You forgot Military intelligence, bombs, jets, tanks, and aircraft carriers.--And they definately wish they started earlier.
The USD/JPY is the most important chart in the World. above 80 risk on..below 80 off.
it does seem that way, but the contrarian in me can't help but feel that 'risk off' is more akin to picking up a 2300C zirconium plated fuel rod these days. At some point, the substance of 'risk on' and 'risk off' is going to invert.
Does that graph look like Oct 2008 to you?
This latest intervention means that banksters are openly saying this is a pyramid scheme and they are trying to defend it to the death...
yeah I hope you rot in the muck pit you came from you evil banksters
So glad I decided to drink heavily, instead of dick Fx.
Fukking Plaza Accords are going to stop radiation releases?
OMG, the morons in this pig set of markets.
I need serious drugs, now!
Tequila shots...later on.
major surge on...be short lived, usually the slack was picked up via Japan's Mrs Wantabes, on carry trades - nuke fall out fear has cleared them out. G7 are useless as is the BoJ, Japan is a nuclear train wreak. Best G7/BoJ/Fed did was spike oil, great timing with Libya about to go bonkers. So helpful to the poor Japanese at the moment...
volatility on the AUD/USD cross...tasty.
1.5 hour half life? I'm thinking. But drinking also...
"Coordinated Yen intervention" is just following "The New Rules of Global Ponzi_Nomics":
-"You print, I print" is a rule that says that "if we all do it, nobody will get in trouble".
Global central bankers in charge of economies hopelessly in debt and running massive compounding deficits all agree that its better if everyone races to the bottom simultaneously.
-"If I run a deficit, you print to offset it" is a quantum leap in Ponzi_nomics. This rule holds that, basically, if I run up a massive deficit buying goods from you, just destroy your own currency and we can start all over again.
Just in case anyone forgets, the USD/JPY plunge was precursor to May 2010 flash crash which needed QE2 + QE lite $1tr to turn around. This interbvention will not fail, ben promised.
Just in case anyone forgets, the USD/JPY plunge was precursor to May 2010 flash crash which needed QE2 + QE lite $1tr to turn around. This intervention will not fail, ben promised.
Yup. There's more to this than just Japan welfare
weak memory here... Plunge from what start level to end/lower level?
Fuk it, shorted USDJPY at 81.51. Alomost puked on the keyboard with that ridiculous price.
Edit: damn drunk fingers, 81.31
Think I meant sold, but this is why I don't do so good. Uuuurrpppp!
anything the BoJ does lasts about a day, G7 maybe three days. Fed, well that is a continue money pump, that is the danger...what ole strap-jacket bernanke does next will be the big question.
Enough already! 6 contracts in! Die, dammit!
Canada To Send Warplanes To Enforce Libya No-Fly Zone
LOL
http://online.wsj.com/article/BT-CO-20110317-717616.html
Canadia has planes?
F-18s bitches.
hahahahaha..
Carpet bombing with hockey pucks.
Our whole force, what about it?
How long until they send black ops guys after anyone who trades size against them?
Obama do work?
1) Ramp up markets
2) Give TBTF banks one last chance to sell on Friday afternoon
3) Weekend of bad news
4) Announce worldwide bank holiday for next week
5) ???
6) Profit!
You forgot the earthquake on the New Madrid fault.
Then, new world currency.
Will be backed by PMs.
Gold fixed $500.00 / Silver $20.00.
I am having Scope, neat, in a dixie cup.
Was there this afternoon. Meethinks the tooth is toast.
Youse guys will just luv the 3 month recovery they figure on a pull!
Eternal, bitchez!
Was the market THAT bad..?
Who gives a fuck. Its only money. In the endgame, There is God.
Too far from the endgame for that attitude. And there is no God, but TD.
Breaking bread with TD in heaven when i leave this forsakened place is not what i envisioned .
In Heaven there is no beer that's why you have to drink it here!
"Japan’s exporters say they can remain profitable as long as the yen trades at 86.30 per dollar or weaker, compared with the previous year’s breakeven point at 92.90, an annual Cabinet Office survey showed on March 11."
http://www.bloomberg.com/news/2011-03-18/g-7-intervenes-to-weaken-yen-as-surging-currency-threathens-quake-recovery.html
Interestingly, back when the tables were turned in the original Plaza Accord, structural differences between the two economies had little effect.
When the G-7's start selling the Yen as markets open it should eventually climb to that $86.30!
So, are you implying God is bringing the USDJPY back to 86+?
Would appreciate any help here....
81.2 on Jack really requires serious drugs.
Zero interest rates forever. The world has become Japan. Is there anything left that has any true value?
Love, Family and friends.
Thanks Dr. Phil.
And beer.
TD,
I couldn't read this crap day after day without your sense of humor. You make it tolerable, which I'm not sure is good.
First of all, my heart is heavy for the unfortunate people of Japan. Without globalization and the interconnectedness of us all, we would still be clueless on actually what happened over there.
Now on to the subject of this post. Central banks, smentral banks. They are all the same. BoJ thought, "Hey, The Bernank printed gazillions of paper and proceeded to buy all the crappy assets in the system. It seemed to work according or so says the US mega-media. So, why can't we do the same and feed the same propaganda to our own people?".
There must be a Japanese version of Krugman to roll out to the masses. Just replace dollars with yen. Damn it, where is he when we need him?
Yup. There is...
Krug san man
You people never waxed unhappy when Charley wiped us out, so piss off.
Sorry ass TV watchers.
5MA on the AUD/JPY and AUD/USD is being tested. fun to watch, hedge funds aint allowing the makrt to get to horny
aud/jpy 5ma smashed...can it hold?...how much can the butnuts at the boj afford to lose?
Quad core i7's can spit out 0's after 1's like nobody's business. I suspect rather a lot...
Here's another part of the game: Yen intervention is a 3 way deal since Bernank wants a weak dollar too. So EUR/USD spikes to compensate
What was that Armstrong wrote about 1.4050?
the solution to excess volatility is volatility in the other direction...
never a crisis to go to waste... right ?
yeah well.... fuck this shit....
In victory, you deserve champagne, in defeat, you need it.
~ napoleon
this is defeat.....
of common sense, of logic, of ethics, of all the things good.
well perhaps, this is a necessary evil, in order to cleanse the system of idiocy and
excess, then again, as the post sugggest.......
tihis is indeed the end......
time for wine, and wild women....
what else could possibly matter...?
Still not gettin' it. I mean, this sounds harmless enough, from the NYTImes:
"The Bank of Japan, the European Central Bank and the central banks of the United States, Britain and Canada will sell yen for other currencies, reducing its value and curbing speculation.
Weakening the yen would allow consumers in the United States and other countries to buy Japanese goods at lower prices."
I suspect that the US central bank doesn't have very many yen to sell. Most of the yen selling will probably be done by the Japanese, possibly using newly printed yen. Otherwise the Japanese would need to borrow the yen (but they already have a huge national debt) or to raise taxes (never popular).
But another way to weaken the yen vs. the dollar would be for the Fed to raise interest rates. I wonder what the heads of all those central banks really agreed to.
"Weakening the yen would allow consumers in the United States and other countries to buy Japanese goods at lower prices."
And where are they planning on getting said goods?
glad to see some printing overnight. those SLV Mar 34 calls expire tomorrow, after all. print, baby, print.
They are also printing more silver. By morning you will find you've taken a bath while you were sleeping.
There's no free lunches here. They're debasing yenes by flooding marketes with freshly printed yenses so yenses won't rise against dollares. But debasing yenses makes yenses in peoples's pocketes lose valueses.
but if the u.s. and other central banks are selling yen, how is that creating yen. they already owned the yen. i'm not talking here about the BOJ part of this action, fyi. i'm just trying to understand why this FX action is making all you ZHer's crazy tonight!?
Fed isn't selling yen (we're broke). BOJ is creating yen out of thin air, shifting the supply curve, and using that new (and free) money to buy dollars, shifting the demand curve (as opposed to merely moving along either curve). In theory, in the ivory tower of academics, it should be more juice, yet it didn't appear to work, much as showing fear to a pitbull rarely turns out well.
Not sure how one plots supply of one 'product' against demand for a different 'product' on the same chart. Chart would have to be for the pair. I'm ashamed to say I can't draw it, and I was an econ major long ago. Guess that proves the old adage.
but if the u.s. and other central banks are selling yen, how is that creating yen ...?
What part of "freshly printed yenses" do you not understand ...dear?
Who prints yenses? Our Fed, Bernokio?
Or could it possibly be the Japanese central bank, aka BOJ?
... and yes we're crazy ...and cranky in my case... this printing / inflating shit is stealing from US, YOU, ME, Americans, Japanese, ALL of us. They're DEBASING OUR CURRENCY, STEALING OUR WEALTH ...what's left of it... yes it DOES drive us crazy.
Tonight is proof positive that virtually any financial convulsion can been snuffed out by massive money printing.
Paper rules!!!
Just print more, and your currency gets stronger and risk markets rise once again.
Imagine being in Japan, watching the oil price rise.
However, your currency is rising even faster, because your central bank is printing faster than even The Fed...
LOL....
Who would have thought?
1280, more time spent there in the last five years than anywhere else. Must be a pretty good place. I liked it back in '03 too.
Just print more, and your currency gets WEAKER and risk markets rise once again ...in debased currency units, not real value.
Fixed it.
... you're welcome.