Yen Plunges As Uber-Dove Kuroda Set To Head Bank Of Japan

Tyler Durden's picture


In our prediction two weeks ago of who the next Bank of Japan governor was likely to be, we said that "the tussle lies between a slightly less dovish bureaucrat in Toshiro Muto (favored by the opposition) and a banker, Haruhiko Kuroda, who is a front-runner in Abe's camp.... we suspect Abe will err on the side of uber-dovish to fight the currency wars alongside him." Sure enough, the uber-dove Kuroda, not to be confused with the Yankees pitcher, is now set to become BOJ governor.

From Reuters, "Japan's government is likely to nominate Asian Development Bank President Haruhiko Kuroda, who has called for pumping more money into the economy, as its next central bank governor, the Nikkei newspaper reported on Monday. Kuroda, formerly Japan's top currency diplomat, has already been offered the post unofficially by the government, which plans to submit its nominees for three BOJ leadership posts to parliament this week, the paper said. Kikuo Iwata, an academic known as one of the most vocal advocates of aggressive monetary expansion, is likely to be nominated as deputy BOJ governor, the Nikkei said without citing sources."

The other deputy BOJ governor post will probably be filled by a central banker, most likely BOJ Executive Director Hiroshi Nakaso, who now oversees the central bank's international operations, the paper said. Kuroda, 68, has been considered a strong candidate to replace current BOJ Governor Masaaki Shirakawa, whose term ends on March 19, because of his extensive experience at the Finance Ministry and in international policy. He has long called on the BOJ to set an inflation target and pump more money into the economy through purchases of government bonds and risky assets.

And just as expected, Mrs. Watanabe is replaying the old news once more, even though it has been extensively priced in by most, and the Yen is once again re-re-re-plunging on the non-news.

And just as sure - the price of LNG in Japan is about to go uber ballistic as the cost of imported energy hits fresh daily records.

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Sun, 02/24/2013 - 15:39 | 3271981 DoChenRollingBearing
DoChenRollingBearing's picture

It's all cool.  Our MBS bearings for Peru will get cheaper then.

Sun, 02/24/2013 - 15:43 | 3271992 Sudden Debt
Sudden Debt's picture

and as a USP or UBP you can add that thanks to gamma radiation, they're mostly bacteria free AND glow in the dark!!

Sun, 02/24/2013 - 15:49 | 3272004 Divided States ...
Divided States of America's picture

The effin Japanese citizens wont do shit...their loyalty to their government is just amazing, they will die for their government. Thats why this coordinated central bank currency war begins in Japan. They can really devalue the Yen and the Japanese people wont do shit about it.

Sun, 02/24/2013 - 15:53 | 3272027 DJ Happy Ending
DJ Happy Ending's picture

If you replace Japanese with American and Yen with Dollar, your description applies perfectly to the sheeple and situation in the USA.

Sun, 02/24/2013 - 15:59 | 3272044 McMolotov
McMolotov's picture

As hopeless as it seems here, we'll at least have riots and shit. The Japanese will slowly die of starvation before they take to the streets. Suicide is a time-honored tradition in their culture, especially when it comes to a no-win scenario.

Sun, 02/24/2013 - 16:06 | 3272065 Divided States ...
Divided States of America's picture

the Japanese like to do things the Kamikaze way

Sun, 02/24/2013 - 16:26 | 3272105 kaiserhoff
kaiserhoff's picture

Hell yes.  First fuck-you-shima and now let's piss away the currency.

At least the glow in the dark sushi will be cheap.

Mon, 02/25/2013 - 00:35 | 3273135 Treason Season
Treason Season's picture

Misogynists spell it Fuk U She Ma.

Sun, 02/24/2013 - 16:23 | 3272097 smlbizman
smlbizman's picture

we will only have riots if the lakers or pistons win the title....

Sun, 02/24/2013 - 16:48 | 3272139 dwdollar
dwdollar's picture

Let's test that theory...

Let's pick a social program and take it away.

Sun, 02/24/2013 - 17:22 | 3272204 GMadScientist
GMadScientist's picture

I pick TARP.

Sun, 02/24/2013 - 17:31 | 3272224 kaiserhoff
kaiserhoff's picture

Section 8 Housing;)

Sun, 02/24/2013 - 18:25 | 3272307 GMadScientist
GMadScientist's picture

Oooh...a real estate investor riot; sounds really scary. Lulz.

Sun, 02/24/2013 - 18:41 | 3272376 kaiserhoff
kaiserhoff's picture

Section 8 is free housing, utilities, cable TV for the Obama voters, and yeah, it would get interesting.

Sun, 02/24/2013 - 21:14 | 3272692 GMadScientist
GMadScientist's picture

I know what it is. And where the money goes (aka it's reason for existence).

Making those people homeless would hurt the collectors of said "free" rent as their apartment complexes in the shittiest neighborhoods sit empty.

They all have teats to suck, but you only see the "Obama voters" (as if there are no Section 8 developments in red

Why is that?

Sun, 02/24/2013 - 21:44 | 3272759 dark pools of soros
dark pools of soros's picture

the poor are just a straw to suck tax dollars to the rich

Mon, 02/25/2013 - 08:31 | 3273515 kaiserhoff
kaiserhoff's picture

Maybe because some precincts in Philly voted 130% for the Stalinist.  Now that's loyalty, to EBT.

Sun, 02/24/2013 - 16:03 | 3272049 francis_sawyer
francis_sawyer's picture

So I guess this means we should expect more "knucklers", & "folly floaters"...


Sun, 02/24/2013 - 20:38 | 3272620 WmMcK
WmMcK's picture

Just watch out for the "Hesitation Hummer".

"I've never seen anyone get a hit off that Hesitation Hummer"

-- Frank Messer

Sun, 02/24/2013 - 16:05 | 3272057 DoChenRollingBearing
DoChenRollingBearing's picture

@ Divided States

Some of those loyal citizens are loyal to our company in Peru.

Pluses and minuses, as in so many things.  When I was there last May visiting our bearing supplier, I felt confident in them that they would do us right more than I ever felt from Timken (the US's only world scale bearing maker).

Same with our partners in Korea.

Whatever problems Asian countries may have, their loyalty to solid partners has a big upside as well.  That is our experience, FTW.

Sun, 02/24/2013 - 16:54 | 3272151 Freddie
Freddie's picture

American idiots who watch TV and Hollywood are just as brainwashed.  If you watch it, you support it.

Sun, 02/24/2013 - 15:56 | 3272037 DoChenRollingBearing
DoChenRollingBearing's picture

Yo, Sudden Debt!  Maybe those gamma rays will help protect the grease from deteriorating.  Kill germs and all.  If the bearings glow a bit, that might help the mechanics mount them better on the wheels during the night shift...

Sun, 02/24/2013 - 15:43 | 3271993 Motorhead
Motorhead's picture


Sun, 02/24/2013 - 16:49 | 3272145 francis_sawyer
Sun, 02/24/2013 - 17:01 | 3272163 Motorhead
Motorhead's picture

I remember Ultraman and Johnny their super hero is Abe, hehe.

Sun, 02/24/2013 - 21:42 | 3272753 StychoKiller
StychoKiller's picture

What, ya don't remember Action Bastard? (Shin-Chan)

Sun, 02/24/2013 - 15:43 | 3271994 Bear
Bear's picture

When there is no consequence for more money printing ... why stop?

Sun, 02/24/2013 - 15:50 | 3272015 HappyCamper
HappyCamper's picture

If the Yen falls into hyperinflation, could that then be the black swan the pushes the USD into hyperinflation?  We're all holding dollars of fiat backed by nothing but "faith and credit", and this is a game of confidence, after all.

Sun, 02/24/2013 - 15:52 | 3272021 fonzannoon
fonzannoon's picture

If the yen falls into hyperinflaton how would that push the usd into hyperinflation? I see the opposite....

Sun, 02/24/2013 - 16:12 | 3272077 HappyCamper
HappyCamper's picture

I don't mean good for the USDJPY traders who are long on the dollar.  Of course this event is bullish for the dollar relative to the Yen.  But this can't be good for confidence in the US dollar as a general safe haven for wealth. The US has adapted the Japanese economic model, after all.   Can we soon expect an acceleration of hyperinflation in commodities, oil, land, etc?

Sun, 02/24/2013 - 16:28 | 3272107 kaiserhoff
kaiserhoff's picture

Works until it doesn't.

Sun, 02/24/2013 - 17:20 | 3272198 css1971
css1971's picture

Actually I expect a flight to the dollar and another recession in the US first.

Sun, 02/24/2013 - 15:49 | 3272005 DavidC
DavidC's picture

Fucking idiots are guaranteeing an implosion soon.


Sun, 02/24/2013 - 15:56 | 3272038 Divided States ...
Divided States of America's picture

I agree...but somehow the bankers will end up winning and the rest of us are the losers...

Sun, 02/24/2013 - 16:02 | 3272059 McMolotov
McMolotov's picture

How can you say that?

"Kikuo Iwata, an academic known as one of the most vocal advocates of aggressive monetary expansion..."

He's AN ACADEMIC, for fuck's sake. Nothing can possibly go wrong.

Sun, 02/24/2013 - 17:21 | 3272201 Spigot
Spigot's picture

Kyle Bass in the cat bird seat AGAIN, Bitchz!

Sun, 02/24/2013 - 17:56 | 3272277 disabledvet
disabledvet's picture

again? you mean "finally"...and we will still see about that. certainly if we go "by the numbers" he seems pretty well Sprott on. But that yen is still quite strong...and has been doing nothing but showing strength for a decade or more. i find the whole "energy meme" well as the theory that the Japanese are incapable of protest (my understanding is that the anti nuclear element in Japan is VERY powerful...all the more so in being understated. I am no expert however.) I think the only obvious winner is the US dollar...and clearly it's not because "we're doing everything right."

Sun, 02/24/2013 - 15:50 | 3272008 tallen
tallen's picture

UK downgraded, Retarded-dovish head of the BOJ appointed. Where will gold open, that's what I want to know!

Sun, 02/24/2013 - 19:03 | 3272424 tallen
tallen's picture

And it opens down. *Head explodes*

Sun, 02/24/2013 - 22:11 | 3272817 DoChenRollingBearing
DoChenRollingBearing's picture

Paper gold...  The real thing is worth much more than the paper.  Give it time.

Sun, 02/24/2013 - 15:50 | 3272013 JustObserving
JustObserving's picture

Money printing all over the world and yet gold and silver get hammered everyday.  The fraud gets larger everyday.

Sun, 02/24/2013 - 16:12 | 3272078 Pseudo Anonym
Pseudo Anonym's picture

that's for the muppets

gold and silver get hammered everyday

just like there are financial dark pools and shadow banking, there are shadow gold markets that do not reflect the staged kabuki you refer to.  there's war for gold behind the scenes and the hofjuden are winning it - for now.

Sun, 02/24/2013 - 17:18 | 3272175 css1971
css1971's picture

Just think about what you're saying. I've modified it for you.

Money printing all over the world and yet gold and silver get hammered in USD everyday.

If you look at gold, it is simply mirroring the USD index.

2 charts for you to flip:

Gold (GLD)

USD Index (UUP)

People are escaping their local currencies and buying USD. Wouldn't worry much about gold in dollars, the dollar can't afford to appreciate vs the world for very long.

I could point out that the GBP chart looks similar to gold.


Which means gold is trading substantially as an alternative currency, not just tradition. This is a good thing, not a bad one, particularly if you're USian.

Basically the race to debase hasn't hit the dollar yet.

Sun, 02/24/2013 - 17:46 | 3272255 max2205
max2205's picture

Ung to the moon?

Sun, 02/24/2013 - 15:50 | 3272014 Itch
Itch's picture

Here we go again, they still have not spent a penny, yet the pantomime of possibility and expectation is expertly played out act after act. The wheel of the CB rumour mill is in full spin; they could even choose a cryogenic copy of Keynes himself and put him up for election...but until he starts shovelling the cash into the fire, its all but a dream.

Sun, 02/24/2013 - 18:31 | 3272354 Orly
Orly's picture

I say sell the news on yen pairs.

Watch copper and the implosion of the Australian dollar, if it comes to that.

All talk, no action.  One man's name gives back four hundred pips.



Sun, 02/24/2013 - 15:52 | 3272026 walcott
walcott's picture

more like steal even more money from the once middle class that are now broke and give it to the just us criminal banking clumsy pedophile religious cult.

Sun, 02/24/2013 - 15:55 | 3272032 Dan The Man
Dan The Man's picture

Think of all the japanese baseball teams paying their yank imports in $US...ow

Sun, 02/24/2013 - 15:55 | 3272034 Black Markets
Black Markets's picture

So in this (allow me to coin a phrase) 'new normal' world, Central Banks are in a state of aggressive competition with one another to inflate away their deficits.

Oh my god!

Sun, 02/24/2013 - 16:16 | 3272087 HappyCamper
HappyCamper's picture

Early 1930's all over again, but exponentially more aggressive this time it appears.

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