This page has been archived and commenting is disabled.
Japan's Kuroda Denies Existence Of Currency War As China Devalues Yuan To Fresh 4 Year Lows, Injects CNY150bn Liquidity
The night began much like any other morning in Asia - with pure comedy gold from Japanese leadership with BOJ's Kuroda saying he is "not concerned about currency wars, there is no currency war," adding that he has "no plans for further easing." That coincided with a drift lower in Japanese stocks from the US close - but mots of Asian stock markets were green buoyed by America's victory against malicious sellers for the first time in a week. Meanwhile, in China, margin debt drops to a 7-month lows (but is still up 133% YoY). But as rumor-mongers face death squads and any broker caught not buying with both hands and feet faces prison, it is no surprise that Chinese stocks are higher in the pre-open (A50 +5%, CSI +2.7%) but large corporate bond issues are being canceled willy nilly even as China devalues Yuan to fresh 4-year lows (6.4085) and adds CNY150bn liquidity.
First we turn to Japan...
Some comedy genius from Japan's central banker
- *KURODA: NOT CONCERNED ABOUT CURRENCY WAR, IS NO CURRENCY WAR
- *KURODA: CENTRAL BANKS NOT TARGETING EXCHANGE RATES
- *KURODA: SOME IN MARKET TOO PESSIMISTIC ABOUT CHINA ECONOMY
- *KURODA: FX POLICY IN JAPAN IS UP TO FINANCE MINISTRY
Well yeah apart from China (directly intervening to devalue), Japan (printing $80bn a month doesn't count), Kazakhstan (devalue 25% or die)...
but none of the EMs should worry...
- *KURODA: UNDERSTANDS CONCERNS EXPRESSED BY EMERGING ECONOMIES
And then he dropped this little gem...
- *KURODA: NO PLANS FOR FURTHER EASING
Which sparked a little run...
Don't worry, we got this (just like the PBOC)..
- *KURODA: CAN AVOID ANY SERIOUS FINANCIAL INSTABILITY DURING QQE
What a farce - and these are the people "in charge!!"
* * *
Having got that off our chest, we pivot to China...
Some more good news... the deleveraging continues...
- *SHANGHAI MARGIN DEBT BALANCE FALLS TO LOWEST IN SEVEN MONTHS
But its still up a stunning 133% YoY...
But with witch hunts growing, is it any wonder today's US rally is being escalated in China...
- *FTSE CHINA A50 SEPT. FUTURES RALLY 5.5%
But not everything is awesome...
- *CHINA CSI 300 STOCK-INDEX FUTURES EXTEND GAINS TO 2.7%
But let's get some context for this bounce in light of the last 3 days' utter collapse...
- *CHINA SHANGHAI COMPOSITE SET TO OPEN UP 1.7% TO 2,978.03
But everything is not awesome in bond land...
- *XIAMEN HAICANG INVESTMENT CANCELS BOND SALE ON MKT VOLATILITY
- *XIAMEN HAICANG INVESTMENT CANCELS 1B YUAN BOND SALE
And even with everything awesome in stocks, it appears The PBOC still needed to devalue to frsh 4 year lows,...
- *CHINA SETS YUAN REFERENCE RATE AT 6.4085 AGAINST U.S. DOLLAR
and inject more liquidity...
- *PBOC TO INJECT 150B YUAN WITH 7-DAY REVERSE REPOS: TRADERS
The biggest injection since Nov 2012...
But they have other problems for now...
- *SHANGHAI WARNS CHILDREN, ELDERLY STAY INDOORS ON POLLUTION
- *SHANGHAI AIR `HEAVILY POLLUTED' AS OF 9 A.M.: MONITORING CENTER
And finally another probe...
- *TIANJIN PORT SAYS CHAIRMAN UNDER PROBE
- *TIANJIN PORT SAYS CO. KNOWS ABOUT CHAIRMAN PROBE FROM XINHUA
- *TIANJIN PORT SUSPENDS TRADING IN HONG KONG: 3382 HK
Chinese police have arrested 12 people suspected of involvement in this month's massive explosions in the city of Tianjin that killed 139 people and devastated the port area, the state-run Xinhua news agency said on Thursday.
Among those arrested were the chairman, vice-chairman and three deputy general managers of the logistics company that had been storing the chemicals that blew up, the agency said, quoting police. It did not say who the rest were.
The news comes a day after China sacked the head of its work safety regulator for suspected corruption.
The witch-hunting, blame-mongering, and scape-goating will go on until morale improves.
Charts: Bloomberg
»
- 18772 reads
- Printer-friendly version
- Send to friend
- advertisements -
"Liquidity" = monetary heroin.
Mmm...what a smooth high!
Hey Kuroda, how's Toshiba doing?
Gentlemen and countries, start your engines, we are in a race to the bottom. You, the fat lady in the car with the NWO sponsor ad, Yellen. If you can't fit in the car, get someone who can. Or pull your POS Obamamobile off the track!
In the new socio-Keynesian economic theory, doesn't this call for a new minimum-minimum wage for the devaluation of of the laborers currency, to balance it all out at the centrally planned pricing-societal level?
Ahhh well, who the hell can make sense of insanity anyways ;-)
Not to worry, our dear leader will make it all up on a Global Warming tax of the air we breath - you carbon spewing heathens.
Another "improvement" the human experience in the USSA - death panels will move the cut-off age lower to further reduce the carbon spewers...to shave the planet.
Don't over think this... currency wars begat real wars...and population reduction...all part of the plan. The ebb and flo of the NWO plans for you carbon spewers. :-) Have a good day.
1oz Silver Australian Kookaburra Coin just €17.21 @ EurGold
https://www.eurgold.eu/silver/kookaburra-1oz-silver-1-dollar-legal-tende...
And in other news, Bob denies the existence of tanks in the streets of Bagdad.
"Chinese police have arrested 12 people suspected of involvement in this month's massive explosions in the city of Tianjin that killed 139 peopleand devastated the port area"
Call it scapegoating all you want, but it beats what would happen to them in the US: nothing.
Currency war = Cost/Benefit analysis
At what cost, and literally at what cost in $$ should the stock/bond market be held up? At what cost of these liquidity injections is it to suppress the gold market?
That is the point it ends. Well, that or hyperinflation.
benefit = exports are more competitive
cost = capital outflows
Liiiiiiiiiiiggggggggghhhhhhhhhtttttttt, Mr. Kuloda!
how come they always leave CAD off these charts?
KURODA = Chinese characters are BLACK and RICE FIELD.
Sounds like something from Fukushima Japanese people are eating without knowing it.
Alternatively, we can translate it more more loosely as "field nigger".
Not clever enough to think for himself, just slaves away doing his master's (BIS/Fed) bidding.
In Japan, if you are corrupt, they say OMAE WA KURO DA!
Oh, TPTB do love their little inside jokes, don't they?
Inject 150 billion yuan liquidity equals $23.4 billion UST dumped.
Stack On
China doesn't fuck around when it comes to arrests starting at the top. If the explosion would've happened here SWAT would have stormed the lowest dock workers lunch wagon and gunned down everyone for resisting, then MSM would have assured us they got the culprits.
The strongest indicator that there's a currency war:
When the government denies there's a currency war.
is this what we call Financial?? wtf
arry ting rsome
The picture of Japan's future is both cloudy and complicated by the combination of its massive still growing national debt, an aging population, and their heavy reliance on exports. A recent article in Reuters outlined how Japan is painting itself into a corner when it pointed out the latest fiscal strategy draft being issued by Premier Shinzo Abe lacks the mandatory spending cap. It should be noted the draft is also based on some rather optimistic economic estimates of future events.
This is in many ways about "confidence", the moment it is lost the consequences will be huge. With the government financing almost 40 percent of its annual budget through debt it becomes easy to draw comparisons between Greece and Japan. The obvious difference being Japan is not at the mercy of others and is able to print currency at will.
The bottom-line is the BOJ is in the hot seat and any effort to taper its purchases could cause chaos. Unless the government restores fiscal discipline bond prices will plunge and yields soar on any attempt by the BOJ to cut its bond buying. If it doesn't, fears that the country will monetize its debt will drive funds out of Japan and send the yen into free-fall.
http://brucewilds.blogspot.com/2015/07/japan-and-its-shrinking-number-of.html