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When central bankers go wild...
h/t @NanexLLC
* * *
Perhaps a better analogy is as follows:
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So that's kind of like a Girl lifting her shirt and shaking her titties in your face, but different?
Fast and furious.
Other than FX porn, can someone tell me what I am looking at in the first chart? Also, video has been removed by user.
Yen carry trade gone wild.
Nice boobs, big nipples, but who knows who gets to actually hold and play with them in the end - and who goes home frustrated.
http://www.investopedia.com/articles/forex/031014/mrs-watanabe-abenomics-yens-wild-ride.asp
I fucking called this! And I'm just a fucking farmer! I'm patting myself on the back, ha-ha-ha-ha! This fucking economics shit is child's play! Ha-ha-ha-ha!
But seriously...(no I really did call it) seriously, this post is the most important news, bigger than fake ebola, bigger than calling netanyahu a chickenshit (no DUH!) and there are only 33 comments?
Somebody tell me this wasn't planned, so I can make fun of you on Zerohedge.
Yellen (to Kuroda) (in deep voice) C'mere bitch. I wanna fuck you up the butt!
Kuroda: Why, cehtanly, Herr Yellen! My shiny yellow ass is all yours! Will you be using the neon pink dildo or the big black strap-on?
Yellen: It's strap-on time, bitch!
So this makes it cheaper for US financiers to borrow from Japanese financiers, right?
AE 9/11 Truth researchers plan lawsuit to seek release of 500,000 documents held by FEMA, NIST http://wtfrly.com/2014/11/01/ae-911-truth-researchers-plan-lawsuit-seek-...
Currency. Just another failed government program.
Yes, the carry trade. Borrow from BOJ at ZIRP and buy UST at 4% or so. Free money for the Wall Street demons. The problem is if the yen got stronger, they had to repay with more US dollars. That kills the carry trade. If the yen got weaker, then they make a killing with the free interest plus repaying in fewer US dollars. Looks like the yen will be the first major currency to commit hara-kiri. Wall Street bankers will make billions.
Yellen: "Neither..I will be using my cock"
"I'm so bullish it hurts"
says Kuroda squeeling with agony after Yellen threatened to please him for the 10th time...
"So that's kind of like a Girl lifting her shirt and shaking her titties in your face, but different?" --------ebworthen
No way, dude! There's nothing like that!
it looks like the easy money will continue to fall from places like this while the entire financial system goes into an increasingly blatant grand finale. at some point, though, it will become apparent to the players that they are reaping diminishing returns. then, the currencies will finally show their true comic book colors as their values continue to drop, unabated. the scramble for real assets will become increasingly more desperate. hyper-inflation will rule the day, and it's game over.
Cheers to Zerohedge.
Where the readers spend 1/2 minute 1/2 reading the article and then the next 10 minutes laughing and figuring out who has the best sarcastic comment..
FukuFXshima
I wonder if our Japanese bearing supplier will lower their prices for us. Woo-hoo if so!
Do they price in USD or Yen? Seems like it's be a no-brainer to take advantage of the exchange rates (or find someone that sells in yen.)
They price in US$. But, both we and they follow the $/Yen rates. We bought from them when they raised prices when the Yen went up, at some point if the Yen goes down I imagine that our prices will go down.
Our supplier is a small bearing mfr. The four big bearing companies in Japan provide lots of competition (not to mention SKF of Europe, the Chinese and Koreans).
FYI, USA's Timken sells very few bearings other than to the heavy industrial sector and the mines. Businesses that need high (guaranteed) quality. And will pay up for it.
We supply the automotive sector. Timken is very weak in our sector, except for their (wait for it...) pieces made in Brazil, China, etc....
EDIT:
For Putin fans, ah well, in Peru Russian bearings are non-existent. Too bad, sorry.
Russian bearing very best! Hard steel! Bearings not fall out races, roll, even not with grease!
The day will come when we might not have toilet paper like Venezuela but we will have plenty of USD and JPY to wipe our asses with...
You can't even do that because it will all be electronic bits and bytes.
What Fuku didn't destroy, BoJ will.
And for all of that effort not a single grain of rice was added.
It's Friday. They're stoned.
Let's celebrate with a big plate of tiger blowfish.
The day that the Japanese stop pixelating porn videos is the day that they grow up.
Will it happen in our lifetimes? Probably not.
Free Hondas with a fillup
"Big Red." Marysville, Ohio sends its regards.
I miss it
COLD DAY IN HELL BEFORE THEYLL BE GIVING AWAY HONDAS COCKFAG!
You folks should take the tour of the factory sometime.
"They mean business there." Boot to the neck of all of phucking Detroit that plant. "The Honda Accord." Also make Goldwings and they used to make Honda S2000's as well. "Best of the best." With energy and materials prices having collapsed inside the USA the value of that plant cannot be overstated....especially if your Japan period and need even more billions of dolares.
That one plant can give Japan that...plus all he others in that industrial region. Plus they make super fast motorcycles...best way ever to brand your cars....something Detroit never understood and still doesn't.
Hence "Big Red." They win all the motorcycle races.
Used to live in Marysville working for a Japanese supplier to Honda. Once Honda-san, Mr. Soichiro himself, was asked why he built the plant in Marysville. His response: It was the will of God. (kami no oboshimeshi deshita.)
Honda make the best motorcycles on the planet.
If you don't think so, you know nothing.
And I'm a Kawasaki fan. (I like loud, over powered pigs, with shitty brakes and handling).
Then you have never ridden a MV Agusta.
Bankster stooge much?
I'll be shorting usd/jpy going into next week. It's going to go much higher, but it's too oversold right now.
Bwhahahaha. Go fuck yourself.
Are you on medication or seeking some form of therapy for your Tourettes affliction?
Highest probability but obviously 'normal' ain't normal anymore. Being a bear long term clearly will pay out but the wins have been reaped by the house well past a point that all of the 'smart guys' ever thought could happen.
Better have God on your side if you want to survive any FX participation as a hobby type trader like me.
Nothing personal by that remark...
BTFD!!!
Agree. Hv made money from your tips.
spike down reversals and scalping like a drunk Comanche.....yeeeeeeeee HAAAAA!
why does it necessarily have to go much higher? This was a change in velocity of 10t yet or 12 percent, not a trajectory change. It effectively prices JGBs to 0 percent return and closes what small portion of the market that was left... I can see 120 to 125 by end of 2015, but lets say that Japanese exports actually revive I could also see 100. There biggest issue imported energy has been removed from the equation.
My guess is the ECB does nothing due to the Germans, and then we get a surprise shortly out of China...
China has no choice, but will they have to sell their UST to save their banking system and who will soak up that 1.3 trillion? Probably the Fed.
Best of luck to you. This is such a hard way to make an "easy" living. Anyone that does it with their own money for a living gets my respect.
'They' do it with other people's money. Most earn it; 'they' gamble with it.
This chart sponsered by the LBGTQLMNOP lobby
pretty colors.
Like aurora borealis.
"This video has been removed by the user."
Kuroda or Yellen?
if this started from the bottom of the toilet it will get straight into bankers asses
http://dilbert.com/strips/comic/1995-03-14/
"If you wear a tie to work, stop whining, you deserve it."
- Me
http://dilbert.com/strips/comic/2014-10-13/
Video removed?
Zimbabwe...EVERYTHING! looks like Zimbabwe today...
Smile,,,
Like I have to tell you what to do...
This video has been removed by the user. Bummer.
"This video has been removed by the user." Ah, shucks.
What was the video?
I think it showed Julie Andrews' tits. Though I may be mistaken.
The Video was a Fireworks factory going skyward. One spark and Kar Boom
The 1965-1980 version or the 2014 version?
Not sure how this helps Japan's economy except for the sale of exisiting stocks of product.
Really weak Yen destroys domestic economy, and increases the cost of production at home since they have no raw materials and import energy.
I can't see the advantage for domestic industry where there is a component of imported inputs to production. And for their foreigned based plants i gather they would be dealing in foreign and USD and not so much Yen....so yeh for product produce in foreign countries in USD sales would generate more yen for them. But the sale of that product isn't produced or sold any cheaper.
This just seems like tail chasing by Japan. Imported input to build a 100Yen car at say 50Yen becomes say 60Yen of costs, they need to sell the car for 110Yen.They have to put up their export prices. There only advantage is for domestic provided inputs. Their profit margin has to reduce which offsets somewhat the more yen they get for the export....
What I can't obviously see is a large threat to say Chinese production with a heavily devalued yen. If it were a country exporting commodities like Australia...yes then I can see it.
Seems like they have trashed the Yen big time for no real advantage...
Waiting to see some expert analysis of this here.
I think the difference is that they do export alot of high value added product, machine tools, electronics, cameras etc. where in your analogy the cost of the raw material may be 10 yen devaluation brings it to 11, they did sell the product for a 100, now they can sell it for the same margin at 90, or what they have been doing is selling at 100 and improving margin....
"waiting to see expert analysis"? wtf?
we have years of it here at ZH.
this doesnt even remotely "help" anything. this is FULL WEIMAR RETARD, but now GLOBAL. PERIOD.
no need for a useless Ph.D in eCONomics. that is the kool aid they have fed the world. voodoo emperor no clothes shenanigans. no, even a inbred fauz duck dynasty honey boo boo 'Murican with 2 brain cells to rub together should PLAINLY see.. this is ONLY destructive.
I'm no credentialed expert, just a former stock broker, but I see it like this:
The Japanese government is the most heavily indebted entity on planet Earth, perhaps in all of recorded history.
The Japanese government cannot possibly pay the debt, but it will attempt to roll it over. Rolling it over in a progressively weakening currency reduces the load. Thus, Abenomic's ongoing debasement of the yen.
However, in its heavily indebted state, the Japanese government is very vulnerable to interest rate shocks. It has been speculated elsewhere that servicing a 10-year yield of 2% would effectively cost every single yen collected in taxes by the central government.
So, the nominally independent BOJ, already owning more than half the JGB market, has been drafted by domestic and global stakeholders into purchasing massive JGB issuance going forward, to cap interest rates, and thus mediate risk of a market-directed interest rate shock.
If it sounds like Zimbabwe, that's because it is. The difference between a Japanese currency/debt crisis and a Zimbabwean one being that yen is a part of the IMF-SDR basket, Japanese commercial banks are globally integrated in global counterparty payments, and thus Japanese collapse represents systemic risk to the overarching global financial racket.
Notice that I am restricting the discussion to credit/monetary matters only. Because that is what the policy is designed to do: maintain the government/bank credit system. Any insinuation about Abenomic's impact on trade flows, import/export balances, employment, jobs, growth, etc. is merely Public Relations Voodoo, designed to distract an ignorant domestic populace, and camouflage the fact that the World's 2nd Largest Bond Market and 3rd Largest Economy is, without such desperate and drastic measures taken, about to go tits up, and very possibly take down the entire global financial system through cascading default/counterparty risk.
It is that bad. It is going to get worse.
Perhaps I am wrong. Perhaps the historical record showing 100% collapse of all debt-backed fiat currencies within 100 years of their inception will be proven wrong this time.
In the meantime, Japan will debase to ease rollover, and monetize to contain interest rates. And of course, spin the fuck out of this onrushing disaster to make the terminal nation appear ambulatory, because "When it gets serious, you have to lie."
Excellant post!
Please ... do not worry.
Because all the Pundits fail to understand Japan has been a Concomitant to OUR Bond Bull.
This is Why Kyle Bass, et al., et al., and MANY Before Him keep getting it wrong.
Japan is NOT operating in its own Sphere, but rather Ours.
Their action on the heels of the US Ending QE only confirms this.
Been so 1945 to Endgame.
who want's punch?
this one is spiked with sake
oh wait, only banksters get punch
2 left jabs and then a roundhouse?
This is so Fuckushitma.
Fiat, spread the fiat as it fertilizes the minds of banksters! Harvest false profits now!
what really sucks is those closest to the fiat spigot trade those false profits for real assets
Want to see more analysis from those who fully understand how the this all fits together in the greater scheme of things.... have some decisioins to make...and want to hear from those who are smarter and know a heap more than me....
I see this decision in Japan as something that will be looked back on as some sort of important milestone..
I fully agree. We forget because of its size that Japan remains a major economic player in deep trouble. Japan is facing a wall of debt that can only be addressed by printing more money and debasing their currency. This means paying off their debt with worthless yen where possible and in many cases defaulting on promises made. Japan's public debt, which stands at around 230% of its GDP and is the highest in the industrialized world.
The moment the Japaneses stock market fails to rise enough to offset inflation this will turn into a tsunami of money fleeing Japan and constitute the end of the line for those left holding both JGBs and the yen. This has been a long time coming and I contend the cross-border flow of money leaving Japan is why some stock markets have remained so resilient . When Japan crumbles it will be felt across the world. More on this subject in the article below. Remember the failure of the yen may carry over to loss of faith in the Euro.
http://brucewilds.blogspot.com/2014/05/japan-sliding-towards-abyss.html
I plan to listen to this later. Mish will be interesting to hear talk about this because he is a deflationist.
http://globaleconomicanalysis.blogspot.com/
Chris Martenson and Mish Audio on Bank of Japan's Surprise Move on FridayRead more at http://globaleconomicanalysis.blogspot.com/#8xuPhUzWOU8YLvjx.99
The censored narrative around the world says that the global economy is recovering much better than initially thought. Few are pointing out what the BoJ did happened a day after the Fed ended their program.
There is no public discussion on this. The elite and their moneychangers are doing this in unison and they will continue this crap until their propaganda fails or the people can no longer afford to buy food and start revolting.
If you're a salaried employee it sucks. If you're self employed, your rates and prices have just gone up again to keep the lights on.
a.k.a. global central bank circle jerk
This could be only the start of a much bigger meltdown. The Fed recently whacked the dollar down but for how long? For months the major world currencies have traded in a narrow range as if held in limbo by some great force. This has allowed people to think we were on sound footing as central banks across the world continued to print and pump out money chasing the "ever elusive growth" that always appears to be just around the corner. Recently some currencies have made multi-year highs or lows depending on the match-up.
John Maynard Keynes said By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. While there are not many Bond Vigilantes there are a slew of Currency Vigilantes and they are ready to make their presence known. Weakness in the value of the Yen, Pound, and Euro must not go unnoticed. More on why this may be a signal that currency trading is about to get very wild in the article below. Please note, this may also be sending a signal that the whole system is unstable and the stock market is about to drop like a stone from the contagion this brings!
http://brucewilds.blogspot.com/2014/10/fed-concerned-that-stong-dollar.h...