... the Bank of Israel!
“Beginning this year, and in coming years, the Bank of Israel will purchase foreign exchange in order to offset the effect of natural gas production on the exchange rate.”
Q: “According to your policy, you only purchase foreign exchange when the exchange rate deviates from fundamental economic conditions or when there are disorderly markets. The production of natural gas is a real economic factor which is fundamental and long-term. Why offset its effect through foreign exchange purchases?”A: “Natural resources are a blessing for Israel’s economy. However, international experience shows that sometimes the discovery of natural resources can have negative effects on the economy, often referred to as ‘Dutch diseases’. The goal of the policy announced is to offset these detrimental effects.”
The rate cut and announcement of FX interventions apparently could not wait for another 2 weeks, until the next scheduled meeting, fueling speculation something more sinister was going on. From the Q&A:
Q: “The last time the Bank of Israel made an inter-meeting rate decision was after the collapse of Lehman Brothers, at the height of the global crisis. In two weeks you were scheduled to decide on interest rates in any case. What do you know that did not allow you to wait?”
A: “Recently, crucial information became available which was the basis of the decision. Central banks reduced interest rates and continue large scale quantitative easing. These intensified the appreciation pressures on the shekel.”
Infamously, the BoI last year bought a position in Apple stock (around $550) and suffered deep book losses. Apparently they haven’t learned anything and will continue to play in “longer-term assets with higher expected returns”:
”The foreign exchange reserves are invested in liquid assets so that they can be utilized in times of crisis. The foreign exchange flows which will accumulate as a result of this policy will be invested in longer term assets, with higher expected returns.”
What kind of assets are those? With fixed income, your return is known at time of purchase. Talking about “expected returns” means anything but fixed income, or things like equities, commodities, private equity or hedge funds. Good luck!
You got to love the fact central bankers are beginning to believe in the bubble they helped to create!
What’s next – the Swedish Riksbank entering currency wars due to the discovery of a large number of blonde au-pairs?
And Cypriot...
Is a Cheesepope the head of the Kraft Guild?
The guy I sit next to at work justified Abenomics' monetary diarrhea by stating "Everybody else is doing it." And he was Dead. Serious.
Not true..!! Show him the EUR/JPY pair from the beginning of Japanese debasement. How the German's are going to continue to allow themselves to get toasted by the Yen is beyond me...
They won't. Once the Yen drops below a certain point (probably in the 120-130 Y/$ range), the Germans will order the ECB to start printing. That should really get Bernanke's bubble inflating at warp speed. Why the DOW should go up by 1000 points a day., once the EU joins the mad printing party.
Another 150 basis points to go before B o I matches the Sharia rate of ZERO...
Anyone who defines themselves by their religion is, for me, a lost cause.
To be fair, though, there's a big difference between Jewish and Zionist.
Christians, Muslims, Jews, etc., etc all seem to be too lazy to form their own thoughts and so let someone else do it for them.
You have probably guessed by now that I am atheist.
Unfortunately the Jews (who're guilty of zionism until proven otherwise as far as I'm concerned) have convinced perhaps 2 billion non-Jews into also being zioscum. Most have no idea why they support them, but are more than happy sending other people's kids to die for them nonetheless.
Try making a Jewish friend sometime.
The chances are good they would be one of the strongest you would ever have.
The CIA ain't christian
THe MOSSAD ain't jewish ( mossad is israel 'cia' for those who not have a clue )
This debate has not a god damn thing about jews, or chrisians or arab's or mexicans, ... or anything.
Mossad & CIA came out of Rockefeller big-oil, FORD big-auto, ... about the same time the FED-RESERVE was created, ..albiet under different names, but always controlled by the same people. They brought HITLER to power,
After WWII power was split, most ameriKKKan's blame the mexican or arab, or asian,
Some nitwits like to blame the jews, ...
You all have only to blame yourself for being idiots, and not having left the USA long ago, when you still could,
Today anybody still in the USA is fucked, and he's not fucked by a jew, or mexican, or anybody, ... he's fucked, because +60% of the USA people are parsites, and the entire nation has gone parasite. The 'masters' CIA/MOSSAD are at a complete loss about how to control their FRANKEN-STEIN monster, ...
In war you have a few outcomes ...
1.)slavery
2.)genocide
3.)economic recovery
1.)usa folk are too lazy
2.)just about right
3.)nobody is going to invest another nickel in the usa,
So the logical outcome is civil-war MASS genocide,..
Like I have said, if you didn't leave 5+ years ago, its already too fucking late.
As an American Jew, I can assure all that the country of Israel is insane, with its Likudniks and so on. The government is as corrupt as hell, and , outside of Japan, I cannot find a more homogenous culture. Israelites are racists to the core and many liberal and educated Jews are leaving Israel because that country is becoming an Orthodox mess. Israel is #1 in commercial and industrial espionage every year here in the U.S., according to annual FBI stats. So, why is anyone surprised that BOI wants to board the Currency War Express?
Shocked. Just shocked!
So, how many Billionz of shekels is Israel gonna print?
Try trillions, they run all the CBs.
Who is Jimmy?
http://www.youtube.com/watch?v=ja3-vOiqnSU
Too easy (video)
I can't wait to get banned, thus suppressing truth that may not be pretty. Life experience proves not every single one is (insert description), but enough are to justify acknowledgement.
"anonymity is a shield from the tyranny of the majority. it thus exemplifies the purpose behind the bill of rights, and of the first amendment in particular: to protect unpopular individuals from retaliation-- and their ideas from suppression-- at the hand of an intolerant society."