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Everybody Print! BOJ Will Reenter Global Currency Devaluation Frenzy To Kill Yen

Tyler Durden's picture


Following the USDJPY touching on a fresh post-WWII low earlier today, not only has Noda made the transition from simply watching to outright panicking to being on suicide watch, but the BOJ has finally freaked out (something we predicted back in April only to be just 6 months ahead of the curve). Case in point: the Nikkei just reported that the BOJ "will discuss additional monetary easing measures to help blunt the mighty yen's impact on the economy when its policy board convenes for a meeting Thursday." Specifically, the BOJ may (read) will, expand the existing 50 TRN yen asset-purchase program by 5 TRN yen, and also may consider the purchase of bonds of more than two-year maturity, thus expanding scope of program and converting it into Japan's own Operation Twist. In other words, printing goes to Japan, now that it is widely expected that no matter what Europe does, the outcome will be one of EUR weakness. Everyone knows the proclivities of the deranged Chairsatan (and for those who don't just observed the dramatic backwardation in Crude observed here first yesterday), which only leaves Shirikawa. And he has just had enough. Which in turn explains the surge in gold: with the entire world once again entering hyprintspeed mode, the only safe repository of value is now exclusively gold (sorry CHF, you are no longer relevant: thank Hildebrand and the goonies at the SNB who are quietly padding up the asset side of their balance sheet with hundreds of billions of soon to be even more worthless euros).

Presenting the trade-weighted Yen:


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Tue, 10/25/2011 - 13:27 | 1809018 mfoste1
mfoste1's picture

printing is the easy way out for central bankers that dont wanna think

Tue, 10/25/2011 - 13:37 | 1809058 Ahmeexnal
Ahmeexnal's picture

Hentai printers at warp speed Mr. Sulu!!!

Tue, 10/25/2011 - 13:57 | 1809154 SilverIsKing
SilverIsKing's picture

I'll give you Warp 8 and maybe a wee bit more!

Tue, 10/25/2011 - 14:23 | 1809281 Fukushima Sam
Fukushima Sam's picture

Between radioactive land, water, tea, cars, and now Yen, Japan is the #1 producer of toxic exports!  Soon to add people to that list as the exodus gains momentum...

Uranium from finger nail of a Tokyo citizen

Tue, 10/25/2011 - 14:48 | 1809386 kito
kito's picture

i thought kamikazes were pilots, not central bankers?

Tue, 10/25/2011 - 15:39 | 1809603 Hard1
Hard1's picture

Monetary policy stupidity seems to be contagious nowadays

Tue, 10/25/2011 - 13:38 | 1809066 Unprepared
Unprepared's picture

Next thing you know the BOJ will peg the JPY to the CHF and the FT would break the story of a rogue teenaged trader almost blowing up MUFG reportedly because of some sour SPY options.

Tue, 10/25/2011 - 13:55 | 1809138 GottaBKiddn
GottaBKiddn's picture

Devaluation, ............Bitchez

Tue, 10/25/2011 - 13:57 | 1809155 traderjoe
traderjoe's picture

No. Central banks are private institutions representing the fiat cartel. They are doing their masters bidding - which is diametrically opposed to the peoples interests.

Tue, 10/25/2011 - 15:27 | 1809528 trav7777
trav7777's picture

these dumfuk central bankers at SNB should be buying EUROPE not the fucking euro!  Print and buy the goddamned assets!

Tue, 10/25/2011 - 16:03 | 1809713 POTUS
POTUS's picture

why doesn't everyone see this for what it is ... global coordinated intervention. Europe does their clown show using CBO's and other peoples money to try and paper over their own problem.. then they run to the G20 meeting with hat in hand asking for IMF and Fed to bless the Euro plan with some more money. G20 obliges with a Nov 4 communique stating that there will be GLOBAL EASING - to spray foam on the runway -- Fed can then buy every MBS that isn't nailed down at the European banks - the USD can drop to 1.40 and the SPX can rally to the 200sma. Put your short shorts on once that happens.....

Tue, 10/25/2011 - 13:29 | 1809024 GeneMarchbanks
GeneMarchbanks's picture

So yentervention was the culprit.

Tue, 10/25/2011 - 13:31 | 1809036 redpill
redpill's picture

I like ggoooolllddddd!!!  Ishnt dat veird?

Tue, 10/25/2011 - 13:36 | 1809061 CClarity
CClarity's picture

Ta Da!  Best explanation for gold pump today.

Tue, 10/25/2011 - 13:42 | 1809081 Ahmeexnal
Ahmeexnal's picture

Time to go long Jade, Gold, and Cocoa Beans.

Tue, 10/25/2011 - 13:44 | 1809094 GeneMarchbanks
GeneMarchbanks's picture

Today it really could've been numerous factors that did it when you really look at the headlines. The Japanese are so trusty...

Tue, 10/25/2011 - 13:29 | 1809027 No One
No One's picture

Does Japan use HP or Konica Minolta?

Tue, 10/25/2011 - 14:07 | 1809210 cossack55
cossack55's picture

Irrelevant.  The cool thing about the yen is its ability to glow in the dark.  Soon it will make the worlds foremost confetti for night baseball.

Tue, 10/25/2011 - 13:31 | 1809037 Ryman1075
Ryman1075's picture


Tue, 10/25/2011 - 13:32 | 1809042 Troll Magnet
Troll Magnet's picture


And I just picked up two 100 oz Engelhards, two 100g gold Pamps and two 1oz Plats this past weekend!


Show me your physicals, bitchez!!!

Tue, 10/25/2011 - 13:42 | 1809083 Unprepared
Unprepared's picture

Nice try ... Ain't showing you shit.

They already have my ip address and that's too much intell.

Tue, 10/25/2011 - 14:09 | 1809216 cossack55
cossack55's picture

I told you before that it fell out of the freakin' boat along with my guns. 

Tue, 10/25/2011 - 15:28 | 1809536 trav7777
trav7777's picture

seems to be a common occurrence round here

Tue, 10/25/2011 - 16:28 | 1809844 Troll Magnet
Troll Magnet's picture

That's because most of these boats were Made in China.

Tue, 10/25/2011 - 15:38 | 1809606 fnord88
fnord88's picture

I spent mine on coke and hookers. Sorry Sir, I can't remember their names. Candy? Cindy? Bambi? Something like that Sir.

Tue, 10/25/2011 - 14:37 | 1809344 malikai
malikai's picture

I just bought a bit more over the weekend too. But I wasn't expecting it to be in the green this soon.

Tue, 10/25/2011 - 16:35 | 1809871 Troll Magnet
Troll Magnet's picture

Congrats!  I've been buying ever since silver crashed back to low 30s and gold $1620.  Took a lot of guts but I began buying thinking, 'I'll just keep adding to my stash on the way down.'  The game isn't over yet.  There will be more hit jobs.  But I really don't care.  I had a specific goal in mind when I started buying PMs and I'm getting closer each and every day.  Actually, I've already surpassed my goal in silver but I recently discovered the joy of fondling 100 oz bars.  They're so nice!

Tue, 10/25/2011 - 20:12 | 1810498 Aguadulce
Aguadulce's picture

I've been buying more silver recently and am planning on converting it to gold at 40:1 Which brings me to my question...does the GSR have any relevance anymore?

Tue, 10/25/2011 - 13:32 | 1809045 Dr. Engali
Dr. Engali's picture

My question is...who is going to be the first country to say "the hell with your fiat. We are tired of your constant devaluation"?

Tue, 10/25/2011 - 13:36 | 1809059 redpill
redpill's picture

France has a rich history of bloody revolution.

Tue, 10/25/2011 - 13:43 | 1809088 mfoste1
mfoste1's picture

certainly wont be the US

Tue, 10/25/2011 - 13:57 | 1809157 GottaBKiddn
GottaBKiddn's picture

Remember, Rothschild "controls the currency".

Tue, 10/25/2011 - 14:16 | 1809253 breezer1
breezer1's picture

the people of vietnam are speaking...

Tue, 10/25/2011 - 14:22 | 1809278 NotApplicable
NotApplicable's picture

That's kinda what the BOJ is saying.

Tue, 10/25/2011 - 14:47 | 1809384 cossack55
cossack55's picture

Toss up. Zimbabwe or Iceland.

Tue, 10/25/2011 - 13:34 | 1809051 Bloodgroove
Bloodgroove's picture

What could possibly go wrong?

Tue, 10/25/2011 - 13:51 | 1809120 Manthong
Manthong's picture

Peak Seppuku.

Tue, 10/25/2011 - 13:35 | 1809054 0cz
0cz's picture

When are they going to hold the vote for which political leader will emboss the 1,000,000 denomination of Japanese currency?  I vote for this guy:

Tue, 10/25/2011 - 13:43 | 1809078 fuu
fuu's picture

They should go with Masataka Shimizu. It will honor the toxicity of the notes.

Tue, 10/25/2011 - 13:39 | 1809069 rfullem
rfullem's picture

uh, market reaction nil. since when did BOJ printing money lead to inflation?

Tue, 10/25/2011 - 13:45 | 1809102 El Viejo
El Viejo's picture

depends on you Zip code. Hold off on buying that new Honda. Prices are coming down.

Tue, 10/25/2011 - 13:39 | 1809071 exiledbear
exiledbear's picture

Print Baby Print

Tue, 10/25/2011 - 13:40 | 1809075 unionbroker
unionbroker's picture

earlier in the year wasn't 81 the line in the sand that could not be crossed?

Tue, 10/25/2011 - 13:41 | 1809076 Mugatu
Mugatu's picture

Just tell me when the music stops so I can grab a chair before they are all taken.

Tue, 10/25/2011 - 13:49 | 1809113 0cz
0cz's picture

After they are done the chairs will have been split so many times that your will only be able to clean your teeth with them much less have a seat.

Tue, 10/25/2011 - 13:42 | 1809082 dwdollar
dwdollar's picture

Any artists here? I would almost pay money to have 'dance' replaced with 'print' in Safety Dance...

Even keep the video... The circus is very fitting!

Tue, 10/25/2011 - 13:42 | 1809084 afdestruction
afdestruction's picture

SOOOOO they devalue the yen, why is the dollar still way down? hmmmm

Tue, 10/25/2011 - 14:24 | 1809287 NotApplicable
NotApplicable's picture

Bigger pile of shit, more stink.

Tue, 10/25/2011 - 13:42 | 1809086 John Law Lives
John Law Lives's picture

This song just popped into my head from some strange reason:


Tue, 10/25/2011 - 13:44 | 1809096 AccreditedEYE
AccreditedEYE's picture

How masochistic of them..... what was the lifespan of their previous foray into the market? haha

Tue, 10/25/2011 - 13:45 | 1809097 Shvanztanz
Shvanztanz's picture

Obama to rule by decree?


I don't need no stinking legislation... and me amigo Hugo say so too.



God bless the veterans, I'm one, but shit, bye bye Invisible Hand, hello Iron Fist!

Tue, 10/25/2011 - 13:59 | 1809167 John Law Lives
John Law Lives's picture

Don't underestimate the lengths that fvckwad will go to try and stay in office.  Obumble is by far the worst TOTUS ever (imho)... and G.W. "Shrub" Bush was pretty bad...

Tue, 10/25/2011 - 14:04 | 1809193 Uchtdorf
Uchtdorf's picture

Go back a little farther...

Bush Daddy was criminal.

Clinton was worse.

Bush, Jr. was worse.

Obama is the worst (so far).

Hmmm, I see a trend developing.

Tue, 10/25/2011 - 14:25 | 1809297 NotApplicable
NotApplicable's picture

A trend labeled: Entrenched Coup.

Wed, 10/26/2011 - 05:23 | 1811449 Gavrikon
Gavrikon's picture

Hm.  Bad->Worse->Worst.

If we don't get RP I see the trend continuing.

Tue, 10/25/2011 - 16:10 | 1809748 earleflorida
earleflorida's picture

from the frying pan into the fire in a closed loop of insanity

einstein you rascal, you

Tue, 10/25/2011 - 14:18 | 1809262 Lets Eat Grandma
Lets Eat Grandma's picture

Is that the part of the jobs bill that is supposed to prevent rapes?

Tue, 10/25/2011 - 13:45 | 1809099 Dr. No
Dr. No's picture

Yawn.  Countless attempts and as many failures.  How does an exporting nation withi a culture of saving devalue its currency?  Japan is a model of efficency but I doubt they can as efficently errode competitiveness and productivity as quickly as the west.  Sorry, we reign supreme.  Long FXY.

Tue, 10/25/2011 - 14:36 | 1809304 NotApplicable
NotApplicable's picture

Saving implies storing wealth over time. These days, all the Japanese do is hoard Yen, which is down 270% compared to gold over the last ten years.

Tue, 10/25/2011 - 13:46 | 1809105 Dick Darlington
Dick Darlington's picture

Now that we have all on board in the global race to the bottom, the natural question that follows is: When does the war start?

Tue, 10/25/2011 - 14:41 | 1809360 knukles
knukles's picture

Start?  Start?
Look about you man!  We're already in it!

Tue, 10/25/2011 - 13:48 | 1809112 YesWeKahn
YesWeKahn's picture

Be careful gold holders, I will print gold.

Tue, 10/25/2011 - 14:01 | 1809178 Uchtdorf
Uchtdorf's picture

I dare you. And please share with me if yu do.

Tue, 10/25/2011 - 13:53 | 1809133 GOSPLAN HERO
GOSPLAN HERO's picture

Breakup of USA into regional red state and blue state political unions has merit.  A USSA for some folks and a USA for all the others.

Tue, 10/25/2011 - 14:32 | 1809320 NotApplicable
NotApplicable's picture

Well, red and blue covers the USSA. What color will the USA be?

Tue, 10/25/2011 - 13:55 | 1809143 junkyardjack
junkyardjack's picture

Oh no they didn't, Its time for Big Ben to hit the court and show them who the real printers are.  Son ain't going out like that!

Tue, 10/25/2011 - 13:58 | 1809159 docmac324
docmac324's picture

Its Tsunami time.



Tue, 10/25/2011 - 14:00 | 1809169 SilverDoctors
SilverDoctors's picture

QE to Infinity....AND BEYOND!!!!

Tue, 10/25/2011 - 14:01 | 1809173 Pretorian
Pretorian's picture

"now that it is widely expected that no matter what Europe does, the outcome will be one of EUR weakness" it is only EUR that is no printed.?

Tue, 10/25/2011 - 14:02 | 1809181 Uncle Sam
Uncle Sam's picture

What is the value of a currency of a country that, by any stretch of the scientific imagination, should have been evacuated 6 months ago?

Long plutonium neutron rays, bitchez!


Tue, 10/25/2011 - 14:02 | 1809184 peekcrackers
peekcrackers's picture

euros are like my  cup-a-fart ... 1st shocking then just a  bad memory .

Tue, 10/25/2011 - 14:33 | 1809328 NotApplicable
NotApplicable's picture

Lemme guess, they don't hyperinflate either?

Tue, 10/25/2011 - 14:05 | 1809200 gwar5
gwar5's picture

Well.... here we go again.  The real action is still with EUR/USD/CNY and who is going to be the biggest loser (winner) in the race to the bottom. The EURO is winning by default because it can't help itself. Bernanke may have to bail them out to bring the USD down.


"Firstly, it is a basic human right to choose to save without our savings being debased by the tax of monetary inflation. Those who are worst affected by this inflation tax are not the rich -- they benefit -- but the poor and the barely well-off, which is why monetary inflation undermines society and why the right to sound money should be respected. If government gives itself a monopoly over money, it has a duty to protect the property rights vested in it."   -- Alisdair Macleod, of the clan Macleod




Tue, 10/25/2011 - 16:08 | 1809733 JR
JR's picture

Great post, gwar5. As one blogger put it: “Savers and people living on fixed incomes have no voice in Washington. The banks, meanwhile, waltz around town with megaphones."

Quote from Thomas J. Feeney in “The Immorality of Fed Policy,” September 18, 2011, on Seeking Alpha:

Every Fed action involves the choice of winners and losers. In evaluating such actions it’s important to recognize that the Federal Reserve Board is an entity established by bankers for bankers. That recognition explains why maintaining the health of banks and bankers always appears to be the most important objective in any rescue effort. That intention becomes all the more galling in the current instance in which ultra-wealthy bankers, whose firms were bailed out and force-fed essentially free money for lending or investment, received giant bonuses while vast numbers of U.S. citizens remain unemployed. The money to bail out and feed those banks has to come from the far less affluent general public.

The greatest inequity falls upon the elderly retired and generations unborn. Millions of Americans worked for decades, saved, and retired with the valid expectation that their retirement assets would provide a variable but reasonable return. By reducing short-term interest rates essentially to zero, the Fed denied the elderly retired a risk-free return. Fed officials have acknowledged their intent to “force” investors to take risks. Imagine the psychological distress that prospect creates in those who don’t want or can’t afford to take risks with their money. Worse yet, imagine the psychological and financial distress it causes those who take risks and lose money. Unlike big banks, such people are not “too big to fail,” and the Fed has no bailout program for them. Now that the Fed has pledged to keep interest rates exceptionally low through at least mid-2013, a growing numbers of retirees will be forced to take risks for a chance to receive any appreciable return.

It is, frankly, very surprising that there has been no hue and cry raised by savers--especially the elderly retired--about their money being used to bail out overextended borrowers. Have the Grey Panthers gone dormant? We see a very clear choice by the Fed to reward the profligate at the expense of the frugal. That choice turns everything we’ve been taught in life on its head.

Tue, 10/25/2011 - 14:15 | 1809202 topcallingtroll
topcallingtroll's picture

This is an example of america's free lunch.

When we decide to monetize and the dollar devalues, other nations arw obliged to buy up those dollars and put in a floor to remain competitive.

Size matters. The world doesnt revolve around the sun. It revolves around America.

The dollar has been overvalued so we have wiggle room here. We print dollars. The rest of the world buys them. We get more monetization and less dollar devaluation than we would have been able to achieve if we didnt own the trade currency and if the third world werent so mercantilist.

This is america's free lunch. Who pays for it? Mostly sheeple in mercantilist economies. To remain competitive when we devalue they have to accept a lower standard of living than they would otherwise, if they had a more balanced economy.

The mercantilists are trapped. They dont have diversified economies with strong internal demand and cant just let the dollar slide unopposed.

Now you understand why chinese political leaders gwt upset at Fed treasury buys. As a mercantilist economy they lose whether they stay pegged or not. However you can deceive your people about their lack of more rapid progress in living standards by staying hard pegged to the dollar versus target ranges.

Tue, 10/25/2011 - 14:14 | 1809244 dr.charlemagne
dr.charlemagne's picture

in other news, SPY looks like it is about to roll-over

Tue, 10/25/2011 - 14:18 | 1809260 nomoreoil
nomoreoil's picture

I've to print something useless also

Tue, 10/25/2011 - 14:38 | 1809347 JR
JR's picture

Taxpayer money is going straight through to the bankers now.

 Instead of currency devaluation, we should now say currency manipulation.

The people in charge are making currency decisions to fit their financial tribes and key industries, not their people.  You can be assured that if the United States or Japan or Canada, or most any developed country, does anything “good” for its currency, it’s not good for the people, it’s good for the private rulers.  Currency decisions are what’s best for the people who put the policy makers in power, not What’s Good for America, What’s Good for Canada, What's Good for Japan...

In short, it ain’t gonna be good for us; cause we ain't represented.

The results of Keynesian currency debasement in America are evident in housing.  Interest rates are at bottom yet people aren’t buying, employment has plunged to depression levels, an inflation-wiped-out populace is going into winter facing excessive fuel costs, food-stamp lines are 43 million long...  And we’ve got a President of the United States who talks like a basketball player (the picture of Obama with drooping eyelids and a cigarette hanging out of his mouth, well, that’s Obama—they didn’t even clean him up much).

The Americans and non-Americans who are being rewarded in the housing market are those who don’t contribute anything – be they banker or non-paying home “owner.” What responsible working person would want to invest in a new home whose value is controlled by a Freddie/Fannie/Welfare/TBTF-manipulated housing cartel that also influences property taxes and homeowner insurance? See today’s George Washington’s:

Obama to Bypass Congress on Mortgages” … But “New Obama Foreclosure Plan Helps Banks At Taxpayers’ Expense”

Changes in America are coming soon!  When the Fed decides it has to go back to the housing market and actually pay to lift it, that’s the signal of the seriousness of this Keynesian-contrived economic crisis.

Soon, when the middle class is wiped out, there won’t even be enough money for infrastructure.

Tue, 10/25/2011 - 14:40 | 1809358 mayhem_korner
mayhem_korner's picture

USDJPY touching on a fresh post-WWII low


Nice Freudian slip, Tyler. 

Currency wars beget trade wars beget military wars.  I wonder (really), if WWIII breaks out whose side Japan will be on.

Tue, 10/25/2011 - 14:50 | 1809398 peekcrackers
peekcrackers's picture

kill the Yen ?  Looks like I will not be eating poodles & noddles anymore.

Tue, 10/25/2011 - 16:08 | 1809737 tactical sanity
tactical sanity's picture

Currencies in the ultimate race to the bottom.....all except gold which will continue to race to the top !!

Tue, 10/25/2011 - 16:10 | 1809744 Ned Zeppelin
Ned Zeppelin's picture

Tools in CB Toolkit:

1.  Printer. Check

2.  Rate setting gizmo.  Check

3.  Bully pulpit. Check.

No other tools.  

Thu, 03/01/2012 - 03:28 | 2211564 simoniddings
simoniddings's picture

The currency printers must have been very busy, but of course not that what happened was actually a physical act. In today’s world, money and currency have become very metaphysical in existence, being traded as electronic signals, over the Internet.

Simon -

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