More On The 2011 Edition Of US-Japan Open Currency Warfare: "This Is Just The Beginning"

Tyler Durden's picture

According to Credit Suisse, this is just the beginning of Transpacific central banking warfare. Per Dow Jones: "The Japanese Ministry of Finance's JPY-selling operation Thursday may be the first in a series of interventions over the coming weeks to curb further rises in the unit, and may have come Thursday in part as the Swiss National Bank's move Wednesday to weaken its own currency made it easier for Japan also to step in, says Koji Fukaya, director of fixed income and global foreign exchange research at Credit Suisse. "This may be the start of a number of actions, depending on the yen moves in the weeks ahead," Fukaya says. The SNB's move Wednesday means Japan's own move "could be considered as a kind of coordinated action" in response to broad USD weakness, he says. As traders say the MOF has so far sold under Y500 billion, Fukaya says the total size ahead could rise as high as Y2 trillion, though the move Thursday should be enough to send USD/JPY above 79.00 later, where it should stabilize in coming sessions. The pair is now at 78.32, from 77.10 earlier." To anyone trading in these 100% correlated markets, which are now nothing but a battleground for those who yield the global electronic fiat printing presses, good luck.

One thing is certain: this latest attempt by the feeble BOJ to take on the Chairsatan is doomed to failure, as confirmed by the Bloomberg chart showing the "effect" of the last two such interventions:

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rubearish10's picture

Never long enough, never short enough.

Yen Cross's picture

  Time to fire up the ' Japanese lanterns'...  I can't wait for the volatility to kick in on usd/jpy.   I guess the exporters ( Real Money) are starting to get the clue

SolidSnake961's picture

don't worry its just a transitory move. this also explains the little pop up gold just had

Spitzer's picture

Buying dips in gold is for idiots. I have bought all time highs twice and made off good.

Thomas's picture

I have bought every short term peak since 1999.

Yen Cross's picture

 Ya right! May of  )(09?

DoChenRollingBearing's picture

Spitzer and Thomas are completely right!  Just buy the gold when you have the money!  I have bought mostly at peaks too, that then those peaks went on to recede into little bumps on the road to ever higher gold prices.  It's OK to BTFS!

I have been buying gold in small amounts sionce the 1980s.  It has ALWAYS seemed expensive.  Maybe it is SUPPOSED to feel that way...

I believe that the ridicilous Debt Ceiling Agreement pretty much lock in a QED for much higher gold prices.  It seems ludicrous to me to say that gold is in a Bubble at $1660 or so.  It is CHEAP!

Oh the wailing and gnashing of teeth if we get FOFOA-like numbers in the price of gold among those who did not buy...

Caviar Emptor's picture

The one dip I bought was the big one, November 08 just below 800, the very last time premiums were actually cut. 

But all the rest of my buying turned out to be short term 'peaks', always seemed 'expensive' but I bought anyway and always felt good to have it. Felt even better later. 

And yes, gold is still cheap. We got a long way to go with this unfolding story for the ages. And consider this: if they really screw up with bad decisions, gold will be your only friend

Expat2000's picture

I would buy a dip, but there aren't any, so....

DoChenRollingBearing's picture

So, you should buy gold anyway. Do it ASAP.

frank888's picture

I have heard the following...

The Chineses are pushing the YEN higher and higher  to make the Japanese companies not competitive and so to force them to delocalize their factories in China !


What do you think about it ?

Cdad's picture

Anti competitiveness is China's stock and trade, especially through currency manipulations.   

Raskolnikoff's picture

That's the utter joke about free trade, there never is any nor will there be, as the big guys have stuffed so much investment into China that we'll never get the tariffs we need to try to bring any semblence of balance back to this game. We Americans are fighting this global war the wrong way, we're sending our youth and our resources to Iraq and Afghanistan to get chopped up and what we should have been doing was an open economic war on slave labor, polluters and tyrants who hypocritically cry global warming while destroying as much atmosphere as they could for this yankee buck. It would have required tremendous economic sacrafice and will to have waged this real war but in stead we tried to cheat and have our cake and eat it too, and we gave all of our enemies our money for cheaper crap that won't even last a few months of use.

Raymond Reason's picture

Molodetz, Dostoevsky!  And then there's funding the Sunnis against the Christian Serbs...for decades.   That is particularly disgusting.  We'll be caught with our pants down eventually....our youth on many front lines with dwindling supply lines.  I want dual passports. 

prole's picture

Well we slaughtered a Christian people and a new Islamic Republic was born in Europe of "our" efforts. I guess "we" have to occupy our efforts these days to wiping out any remaining Christians in Iraq and Syria.

papaswamp's picture

Here we go beotchez!....currency war followed by trade war followed by war war.....those aztecs may have nailed it for 2012.

Sunshine n Lollipops's picture

Outside of aliens intervening or the return of Hay-zoose, I think that about sums it up.

Two Towers AU AG's picture


StychoKiller's picture

Don't care, but you should be short your CAPSLOCK KEY!

economast's picture

Love the ZH comments.


PS I was tempted to write this in ALL CAPS to see if you would double junk the caps.

zorba THE GREEK's picture

Instead of buying dollars to bury their currency, the Japanese should use their money to buy cement to bury Fukushima.

Mae Kadoodie's picture

Black hole currency vortex bitchez!

ZX's picture


let the games begin.  japan can print as much fiat as anyone; . earn nothing and watch your "safe" and you'd think "scarce", (given the price trajectory) "prudent" investment wither under the waterfall of freshly printed nippon ginkos...  why not as much as it takes ?  ditto that for the land of alpenhorns and chocolate.  did someone say "competitive devaluations".  what to do with all that paper.. there's too much, and there's nothing can be done about it other than to watch the market face off against the central bankers.  no prize for guessing the winnner.

Yen Cross's picture

  JGB's? Good post though!

Don Quixotic's picture

I thought all those Goldman Traders get big fat end of year prizes for picking ... ahem... pardon, guessing who wins.

BigJim's picture

I keep hearing about the Japanese suffering from the dreaded defaltion... can please someone explain to me why they don't just QE like crazy?

Buckaroo Banzai's picture

Race. To. The. Bottom.

TaxSlave's picture

First one to the bottom, reach out, grab the brass ring and .... pull the plug!

rocker's picture

Did we, (US), not already win this event. LOL  Round "?" has begun in this 10 round event. Is overtime allowed?

Thievery Corporation's picture

This is going to be fun!

slow_roast's picture

Well, that intervention was the easiest money I've made in a hell of a long time.  Thanks Japan...can take profits, put it into gold since that is what will ultimately benefit from these market interventions.

chump666's picture

'Chairsatan' haha that's a good one.

Funny thing though, this time, this money printing FX war about to go mental.  Equities won't rally hard.  It's all China, the USD, EUR, CHF, YEN all weaken - money will flow into oil and gold...and food commodities.  China will love that since the are a c-hair away from  a major collpase. They go, chairsatan won't be able to do anything.  The world crashes.

Yen Cross's picture

  Noda is a [ Silver back " Wookie" in Disguise.]

gookempucky's picture

hahahahhhaahaahaha..thanks for laugh YC

chump666's picture

Japan has become wimpy.  Their crappy politicians are weak and despicable, lying a-holes. Love to see some old school samurai dude come out of retirement and cut their f******* heads off

GoinFawr's picture

Plus Shirakawa was a Chicago boy.

gookempucky's picture

To much TP thrown into the porclain god has turd busters written all over it.....this paper fiasco has everyone doing double time with the plunger.

monopoly's picture

That is one area I never tread in "currencies". Will not touch them but always pay attention to major currencies each day.

DeadFred's picture

The key to playing currencies is to remember that fundamentals are completely irrelevant, the exchange rates go where the currency gods will them to go. Therefore it is a complete crap shoot whether you are right or wrong, much like red vs. black in roulette. (meant to be sarcasm but sadly not). Go against the common wisdom because the currency gods feed off of the positions of the crowd. I just put a small wager on the euro to devalue 6% against the dollar in the next two weeks. Everyone thinks the dollar is going to die so the gods smell their cash. It's kind of like putting a small wager on 00, most likely it just feeds the gods. More power to the ones who can do more than gamble it those waters.

Yen Cross's picture

  That was an interesting post

Terminal Frost's picture

Radioactive air, radioactive water, radioactive government paper.

saulysw's picture

Hadn't heard much myself about the progress of the clean up, so I did a bit of a search...

.. and it's not good.

Don Quixotic's picture

Isn't Japan bringing a knife to a gun fight on this one? If I remember correctly there's some kind of saying about how that type of thing tends to go...

zorba THE GREEK's picture

What is really frightening about nuclear power is; That on a scale from how safe it is proclaimed to be by the industry and government, and how it

is depicted on the Simpsons, reality puts it much closer to the Simpsons.



Whoops, posted this on wrong article.

XenoFrog's picture

An factually wrong comment on the wrong article. You sir are on a roll.

Don Quixotic's picture

Good call. No one ever died a slow death from radiation poisoning on the Simpsons. 

And furthermore, tangentially relevant points tied coincidentally by georgraphy will not be tolerated here, sir.