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Please Welcome The Latest Currency Peg

Tyler Durden's picture





 

For the last 45 minutes, USDJPY has been unable to shake loose of 79.2 by more than a pip or two. Following the SNB and their efforts with EURCHF, which as far as we recall is technically pegged at 1.20, is Azumi now pushing another of our freely floating foreign exchange currencies to a peg, as he soaks up any and all USDJPY offers under 79.20? Gold is down a little (in its knee-jerk response to USD strength reflecting off the JPY intervention) but one has to wonder if slowly but surely we are being reverted to the 'rigidity' of a gold standard? Lastly, we eagerly await to hear the justification for this unilateral defection by a G-X member 5 days ahead of the G-20 meeting in Cannes this Friday (and we can't wait for Schumer and Geithner to proclaim Japan a currency manipulator). Lastly, to all those who so vehemently were debating whether the EURUSD is down or not earlier (when it opened lower), feel free to take a look at the EURUSD chart right...about...now - 150 pips that worthless semantics will never get you back.

It is also worth noting that ES just dropped below Friday's lows as JPY crosses become useless carry-drivers (for the first time in many weeks/months).

Update as of 11:45 EDT - still flat as a frozen siberian lake.

 

 

 


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Sun, 10/30/2011 - 23:33 | Link to Comment qussl3
qussl3's picture

Eye of the storm.

 

Sun, 10/30/2011 - 23:46 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Gold was down $35.00 a few minutes ago.  The Bitchez That Be (TBTBtm) are hard at work to shake it out of our hands.  It will not work.

Back on top-ic, I do not trust any of the currencies.  Who knows if it will be the Euro, the Yen or the US$ that gets kicked to the floor first.  Before long, they are all toasted paper...

Sun, 10/30/2011 - 23:51 | Link to Comment ba dum tiss
ba dum tiss's picture

So.......is this is so ghoulish or scarish?? Mwahahahaha!! Happy Halloween bitchezzz

Mon, 10/31/2011 - 00:08 | Link to Comment X.inf.capt
X.inf.capt's picture

usd up to 76.10

here it comes

 TRICK OR TREAT...................BITCHEZ

Mon, 10/31/2011 - 01:32 | Link to Comment saulysw
saulysw's picture

Gold was down $35.00 a few minutes ago. 

This is a matter of perspective. I see it as a global currency event, not a gold valuation event. Gold went up in other currencies, such as the yen. Of course, if you "only see the world in US$", then yes, it went down.

Mon, 10/31/2011 - 04:43 | Link to Comment LuKOsro
LuKOsro's picture

More and more traders are joining the JPY fade-the-intervention party. Come on, there's free punch.

 

http://journey-to-alpha.blogspot.com/2011/10/and-its-yentervention-time.html

Sun, 10/30/2011 - 23:52 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Get your hands on the Norwegian Krone, if you can.  That is the short term winner.

Mon, 10/31/2011 - 01:23 | Link to Comment TruthInSunshine
TruthInSunshine's picture

If Japan is a currency manipulator, The Bernank is a currency charlatan.

On a related matter, things are going to get extremely interesting now that the ECB has to print trillions in € in order to stave off an implosion of PIIGS+France+UK (PIIGS-FUK; with the UK directly, adversely submarined by the implosion of their largest export block) if Merkel & Sarkozy's words and the much touted Eurozone stabilization has a snowball's chance in hell of succeeding, even if "succeeding" (in terms of an extremely destructive end game and set of low expectations) is allowing for a slower death sentence on an inevitably doomed economic [dis]union to be carried out (and even at that, I'd bet on the snowball, if given a choice, especially since the cost of petrol will be the equivalent of 20 USD per gallon in Europe if the ECB prints as many € that will be needed to keep kicking the EU can and recapitalize the sucking-chest-wound European banks [and bagholders of EU Member sovereign bonds - aka toilet paper]).

... and the price of a barrel of oil/gallon of petrol in the EU is just the appetizer of what will be rampant inflation.

The EU is filled with delusional individuals if they actually believe they can begin with a hollow, begging to be funded 'rescue platform,' leverage it up by 500% (soon to be 1500% - watch and see), get the ECB to print the many trillions of € that will be needed to backstop the losses that inevitably will be suffered by the Eurozone banking system's Too-Big-To-Fails and pension/union funds, have Germany pretty much be stretched into molecularly thin taffy in the process of all this, be able to absorb the consequent massive inflationary impact without an equally adverse destruction in economic demand (as the need for further deleveraging follows as a natural result of the higher prices setting in), and then have to repeat the exact same process 2 years from now, or roughly thereabout, when these events cause economic contraction on an epic scale that further depresses credit-dependent asset classes (e.g. houses, factories) while simultaneously inflating inflexible goods and commodities.

The Bernank & Trichet should fully understand that a central bank can't give to Peter (backstop and rescue the financial sector) without mugging and raping Paul (causing consumers to get destroyed, along with their purchasing power), thus ushering in The Great Deleveraging that we've already begun to see, and which is now threatening to advance in rapid fashion through economic markets, in a manner potentionally on a scale as great as or even greater than what was seen in the 1930s.

There's no free lunch. A dollar or € can't be conjured and given without condition to the financial/banking sector without at least an equal and adverse consequence to the other sectors of the economy (and private consumption, which comprises 65% to 73% of economic activity in the EU and U.S.).

Printing fiat and giving it out to banks and the financial sector is all fun and games until the consumers lose an eye (and their propensity/inclination/ability to spend).

Mon, 10/31/2011 - 00:34 | Link to Comment strannick
strannick's picture

Or the SouthAfrican Krug for long term

Mon, 10/31/2011 - 01:11 | Link to Comment thunderchief
thunderchief's picture

I love it how they do this stuff over the weekend.  Another pre-planned drive by shooting. 

This one should be good for a few days.  The dollar rises because everyone wants their currencies to decline.  Great dollar fundamentals.  Sell your gold and silver fools.

Mon, 10/31/2011 - 02:37 | Link to Comment legal eagle
legal eagle's picture

Why? Priced in JPY I am doing great today. Isn't that the point -I can exchange for whatever I want when I want.

Sun, 10/30/2011 - 23:55 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Chf is NOT pegged, it has a floor, there's a difference

Mon, 10/31/2011 - 00:17 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Yes, the SNB are not idiot, they are just retarded.  There is a difference.

Mon, 10/31/2011 - 04:03 | Link to Comment Ghordius
Ghordius's picture

Ahmeexnal, it does make a difference, and it makes a difference for the Swiss economy and future. I might have missed your posts explaining how you would manage a currency, let me guess: you would not? If so, what's the difference for you? Just asking...

Mon, 10/31/2011 - 06:05 | Link to Comment Overflow-admin
Overflow-admin's picture

"it makes a difference for the Swiss economy and future" -> "it makes a difference for the Swiss lobby finances and future". Fixed. Don't say thanks, it's always a pleasure to help.

Mon, 10/31/2011 - 07:37 | Link to Comment Ghordius
Ghordius's picture

of course, you are right, IMO.

AND it makes a difference for all the economy in Switzerland that is highly integrated with the EUR economy. Lots and lots of small parts that are shipped across the border to aggregate to items that make other parts that go into other products.

Sun, 10/30/2011 - 23:34 | Link to Comment JimBobOMG
JimBobOMG's picture

WTF JPY!

Sun, 10/30/2011 - 23:36 | Link to Comment I think I need ...
I think I need to buy a gun's picture

does anyone know if this gold tax that was fixed to health care a few years back still goes into effect 1/1/12

Sun, 10/30/2011 - 23:47 | Link to Comment High Plains Drifter
High Plains Drifter's picture

i believe that was tabled ............

Sun, 10/30/2011 - 23:38 | Link to Comment MFL8240
MFL8240's picture

Intervention before people shit in their pants and dump dollars.  Its coming regardless of this manipulation.  Hold on to your seat, this will be fun as the US liars blame everone but themselves.

Mon, 10/31/2011 - 00:02 | Link to Comment DeadFred
DeadFred's picture

It's worked so far for the Swiss. All we need is for every currency to peg to each other and then peg to gold and it's fixed.

Mon, 10/31/2011 - 00:25 | Link to Comment Stagflationary
Stagflationary's picture

Err... if all ccys are pegged, what do you need gold for?

 

That aside, BOJ is going to see the JPY down to 82 by the end of the year whether anyone likes that or not.

Mon, 10/31/2011 - 03:20 | Link to Comment knukles
knukles's picture

To extend that to a logical conclusion; if all the currencies are pegged to one another and there's no use for gold then as gold becomes worthless, I'll buy it all off ya for nothing.
How's that?

Mon, 10/31/2011 - 04:06 | Link to Comment Ghordius
Ghordius's picture

I'd laugh with you but we had already quite a long time where all major currencies were pegged to each other...

An international gold standard is a kind of multi-peg, too, isn't it?

Mon, 10/31/2011 - 00:58 | Link to Comment dalkrin
dalkrin's picture

New Olympic sport:  Coordinated fiat printing.

Mon, 10/31/2011 - 01:52 | Link to Comment Divine Wind
Divine Wind's picture

ROFL

Synchronized Printing

 

 

Sun, 10/30/2011 - 23:38 | Link to Comment Belarus
Belarus's picture

Yep, it looks just like when our HFT's grab a falling market and peg it, hold it, then ramp it. The intervention is keeping her steady--they're working it hard. 

Free markets, bitchez!

Sun, 10/30/2011 - 23:38 | Link to Comment Me XMan
Me XMan's picture

Is CURRENCY WAR on?

Sun, 10/30/2011 - 23:54 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You are a little late to the party.  Drink up.

Sun, 10/30/2011 - 23:59 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

It's a race to the bottom, strong currency is somehow bad. They're all retarded, like they were hand picked from the local ARC.

Jpy wants it low for trade. Usd being down just sucks to be a consumer nation, helps the asset inflation and money changers.

Mon, 10/31/2011 - 00:08 | Link to Comment Hephasteus
Hephasteus's picture

I've been having a lot of obnoxious bullshit dreams lately. But they give me a good chance to feel up their bullshit.

Currency wars aren't the problem here. This place is loosely based on a bunch of groups. Some of them violent some of the non-violent. The false advertising is once a group goes violent it refuses to oporate in any other fashion. That's not the truth at all. The violent groups are simply to create non-violent groups which they then abuse.

There is no significant transformation until the non-violent groups do an about face and start pacifying the violent groups through hurting them a whole bunch. But the non-violent groups are sick of the process and will likely just leave and never come back.

They keep wanting me to pass along bullshit messages which I keep refusing because I simply don't trust them.

The bank of international settlements keeps trying to falsely advertise the globe as a place where the small players can't be defaulted on because of the "rules". But it doesn't work like that in the real world.

Countries are not playing it smart. They are not pulling in and becoming more self sufficient and self contained. We are caught in a complex society collapse and re-emergence of simple societies. And philosphers keep saying it's an experiment we all go through to try to find our "collective" structures and what we can do in complex configurations. But it's not it's a experiment that people who want complex societies keep trying to force on everyone by killing them off or trying to convert them or enslave them or whatever. The people who want complex societies are the ones who issue the currency and run the violent groups that enforce that power and don't follow the laws and rules that they are in fact saying they are enforcing. And who have no shame about benefiting from complex societies with boats planes and luxury cars.

The problem is the pathways to complexity are slow and gradual and developed. The pathway back to simple societies is bloody, painful and damn near instantaneous though it feels like it takes frikkin forever.

Like europe. It only took them what 15 years to develope complete co-dependancy disease? They wanted Greece for it's ships. Now that shipping is frikkin dead now don't need them but can't cut them loose because the complexity is coming back (or so they blindly wish).

Mon, 10/31/2011 - 00:56 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Well said Heph. The part about complexities taking time to build and nanoseconds to implode is sepacially important.

Perhaps relevent, perhaps not, but India is a microcosm of everythign we see wrong with the world in general. And I see, every day, another sand particle dropped on the growing pile. WHen it slides, it will be fast and furious, if you pardon the pun.

I think we are at that top of the roller coaster point, infinitely slow, perfectly balanced and then.....

ORI

Awesome Art

Mon, 10/31/2011 - 01:38 | Link to Comment Hook Line and S...
Hook Line and Sphincter's picture

Hephasteus,

First of all, I will never again magnify your avatar.

Second, your dreams are doing a great job enunciating cosmic consciousness. Keep up the macro-channeling. The chances for a cyclical complex society reboot is dying whether the PTB has plans to reboot it or not. 

Hook, Line and Sphincter

Mon, 10/31/2011 - 02:27 | Link to Comment Hephasteus
Hephasteus's picture

It's a picture of the leet from funcom's game anarchy online. I put it up as my avatar the day gold hit 1337.

I beta tested for that game. In the game the leet is a level 1 mob. That walks around and says things like. R U NUbi? Can I has ur sword?

I was a pain in the ass to the developers. I would give them feedback like.

In the future megacorporations all make guns and they all suck at their jobs because everyone would use the same guns in every class.

I mostly just annoyed them beause I like to play the game behind the game.

Wed, 11/02/2011 - 20:12 | Link to Comment Hook Line and S...
Hook Line and Sphincter's picture

Hillarious, I thought it was something else... 

e.g.

looking over my belly downwards!

(can we conjure some level 1 mobs for OWS?)

Sun, 10/30/2011 - 23:39 | Link to Comment LawsofPhysics
LawsofPhysics's picture

All currencies must go to parity before the world currency comes to pass. Got physical?

Sun, 10/30/2011 - 23:47 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Wish I had some extra money to pick up some more physical at a cheaper price Monday morning...

Sun, 10/30/2011 - 23:55 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

PM won't catch until a day after the Fed meeting.  You have some time.

Mon, 10/31/2011 - 00:11 | Link to Comment Ahmeexnal
Ahmeexnal's picture

banks are begging people to accept loans. i'm tempted to accept one and load up on PMs, they pay back when hyperinflation sets in.

Mon, 10/31/2011 - 01:44 | Link to Comment Hook Line and S...
Hook Line and Sphincter's picture

DCRB on a street corner, pimping or being pimped?! Don't sell your body for the extra cash!

You know you have enough bling as it is. When all is said and done, it won't make a eyeblinks of difference after the expansion of your existing shiny lovelies.

Hook, Line and Sphincter

Mon, 10/31/2011 - 02:11 | Link to Comment Oh regional Indian
Oh regional Indian's picture

HLS, your new tagline, along with your avaatar picture make me "gather myself" so to speak.

ORI

Sun, 10/30/2011 - 23:41 | Link to Comment rubearish10
rubearish10's picture

Yeah, without cross fx trading &  hedging etc....perhaps the shiny ole' relic has a chance! Afterall, who would position single currencies? BORING.....ROLMFAO!

Sun, 10/30/2011 - 23:43 | Link to Comment kito
kito's picture

I'm thinking gold doesn't like mf global and the potential deleveraging more than what's going on in the usdjpy

Sun, 10/30/2011 - 23:47 | Link to Comment Quadlet
Quadlet's picture

Even bigger unwind in Silver.  What did Corzine know?

Sun, 10/30/2011 - 23:48 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Corzine is in the running for biggest POS on the planet.  Like many others, he should be in jail.

Sun, 10/30/2011 - 23:51 | Link to Comment Mike2756
Mike2756's picture

gold, silver and gasoline at or taking out their 40 dma's.

Sun, 10/30/2011 - 23:48 | Link to Comment RobotTrader
RobotTrader's picture

Yep, any news of paper manipulation or the failure of a firm like MF Global causes everyone to shoot and sell PM's first, ask questions later.

I guarantee you that most retail stocks tomorrow will be unfazed.

Sun, 10/30/2011 - 23:52 | Link to Comment MFL8240
MFL8240's picture

Cant be fazed with Bernanke buying every dip.

Sun, 10/30/2011 - 23:57 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Yeah this has nothing to do with Japan leasing gold to buy dollars to print yen....

Mon, 10/31/2011 - 00:12 | Link to Comment X.inf.capt
X.inf.capt's picture

+1 

robo,

another BTFD opportunity, thanks for the encouragement....

ROBO, YOU'RE THE BEST!

Mon, 10/31/2011 - 00:22 | Link to Comment homersimpson
homersimpson's picture

"I guarantee you that most retail stocks tomorrow will be unfazed." Talk about a guarantee written in sand.. you couldn't promise me what time it will be an hour. Whutta joke.

Sun, 10/30/2011 - 23:48 | Link to Comment steveo
steveo's picture

Plagarism, smarts the old fashioned way, we stole it!

The first chart contributed by Doctor J, a real elliot wave technician who also screen caps female forms onto charts, quite amazing.    The dogs here are by me though.

And free paid reports from BPT, 50 pages of great chart, enjoy.

http://oahutrading.blogspot.com/2011/10/free-newsletter-and-foreign-mark...

Sun, 10/30/2011 - 23:49 | Link to Comment rubearish10
rubearish10's picture

WTF? ES rather stubborn. I'm turning very bullish! Does anyone hear me?? Bullish Bullish Bullish!!! PCE vs Savings drain. Now that's American!

Sun, 10/30/2011 - 23:51 | Link to Comment Socrate
Socrate's picture

Bullish on ES, I fear not this time.

Sun, 10/30/2011 - 23:54 | Link to Comment rubearish10
rubearish10's picture

based on what? MF? You must be joking....

Mon, 10/31/2011 - 00:43 | Link to Comment Socrate
Socrate's picture

Nope, based on surgng dollar due to BoJ intervention.

Sun, 10/30/2011 - 23:50 | Link to Comment drwillia
drwillia's picture

Weekend Report

The gold sentiment chart really shows the emotional nature of this market as user sentiment is clearly a contrarian indicator. Last weeks low user sentiment reading was followed by the move of gold out of an early cycle low. i think we were all expecting gold to work its way down to extreme oversold conditions. Now sentiment has caught up we could also see some profit taking this week in gold. Id suggest that this may be a good place to purchase mining stocks should we see this weakness flow through to that particular sector.

http://thethoughtfultrader.blogspot.com/


Sun, 10/30/2011 - 23:50 | Link to Comment SilverDoctors
SilverDoctors's picture

Perhaps those who scoffed several weeks ago when it was pointed out that the previous 2-3 silver smashes have all occured on ocult illuminati "holy" days may wish to revisit the topic considering tonight's (Oct 31st in Japan and Europe) action with Yen, and subsequent gold and silver smash.

Sun, 10/30/2011 - 23:51 | Link to Comment chump666
chump666's picture

Chaos awaits.  They got their Oct meltup, now sh*t comes undone (as it does).  The MoF (Japan) are now out of control.  China can officially say to the US f*ck you and send the Yuan lower, that will 100% freak out metal markets...because China is dying for an excuse to inflate money supply as China maybe passing the hard-landing stage i.e full blown crash.

Sun, 10/30/2011 - 23:52 | Link to Comment UTICA CLUB XX PURE
UTICA CLUB XX PURE's picture

Even the "stupids" R catching on. Hoard your essentials and share them where U C appropriate. 

Mon, 10/31/2011 - 00:02 | Link to Comment Printfaster
Printfaster's picture

Idiots.

The only way that you can buy down your currency is by buying dollars, that is to sell gold for dollars.  No damn fool is going to take yen while you are dumping them.

Gold sold.  Dollars bought.  Gold down.  Dollars up.

Idiots.

Mon, 10/31/2011 - 00:21 | Link to Comment Printfaster
Printfaster's picture

Now that JCB has successfully pegged the dollar, the gold price is rising as they buy gold back with yen.  Slowly as they hold the dollar peg.

Dump and pump.

Interesting game.  Fun to see it played.

Mon, 10/31/2011 - 00:56 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

These moves won't last long, but look for NY and Londontown to try and sell into the panic.

Mon, 10/31/2011 - 01:49 | Link to Comment Hook Line and S...
Hook Line and Sphincter's picture

Exactly, and that's why we have a long way to go for those interested in nominal emotional lifts of AU priced in FRN's.

...longer than anyone may want to believe

Sun, 10/30/2011 - 23:56 | Link to Comment SilverDoctors
SilverDoctors's picture

why don't we just solve everything and just peg the USD to the Euro?  Then we can all scream at China simultaneously...and we can coordinate our printing without fear of losing the devaluation race....

Mon, 10/31/2011 - 00:02 | Link to Comment MFL8240
MFL8240's picture

"....we eagerly await to hear the justification for this unilateral defection by a G-X member 5 days ahead of the G-20 meeting in Cannes this Friday."

WHY WAIT?  THE INTERVENTION IS BECAUSE THE DOLLAR WAS FALLING AGAINST THE YEN LIKE A ROCK AND THE US GOVERMENT WANTED THEIR FRIENDS TO PROP THE DOLLAR UP TO FAKE PEOPLE OUT, ONCE AGAIN. IN RETURN, THE JAPENESSE WILL BE ALLOWED TO DUMP MORE SHIT ON OUR SHORES.  HOW IS THAT??

HERE YOU GO, READ IT IT IS IN BLACK AND WHITE.

http://finance.ninemsn.com.au/newsbusiness/8367581/yen-hits-new-post-war-high-against-dollar

 

Mon, 10/31/2011 - 01:36 | Link to Comment deebee
deebee's picture

Finance Minister Jun Azumi on Thursday threatened government intervention in financial markets, complaining that speculators were using Europe's debt crisis as an excuse to push the currency higher.

Wow, Azumi blames speculators and not the crisis itself. That level of stupidity is very dangerous....

Mon, 10/31/2011 - 00:11 | Link to Comment navy62802
navy62802's picture

Shh ... haven't you heard, the economy's as strong as an ox right now. Just go listen to some CNBS, they'll tell you so.

Mon, 10/31/2011 - 00:02 | Link to Comment bob_dabolina
bob_dabolina's picture

eur/usd shitting itself

Mon, 10/31/2011 - 00:15 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

....$1.35

Mon, 10/31/2011 - 00:43 | Link to Comment chump666
chump666's picture

US markets should get the ass kick on Monday.  ESFS/EU bullsh*t is overplayed just look at Italy stocks that closed a neg 2%!  This debt plan is done, and I'll bet Italy starts to threaten to kick it's self out of the EU. 

 

*In Friday's bond auction, Italy was forced to pay more than 6% interest on its new 10-year debt, approaching levels that some analysts said the country can't afford for long.

"Italy remains a big problem," said Alessio de Longis, a portfolio manager at OppenheimerFunds. Italy has been failing to deliver on promises, he said. Instead "it's only talk -- chiacchiere in Italian," he said.

Mon, 10/31/2011 - 00:04 | Link to Comment gwar5
gwar5's picture

One can only hope we're being herded to a rigid gold standard, with gold valued a 10K.

 

Mon, 10/31/2011 - 01:54 | Link to Comment Hook Line and S...
Hook Line and Sphincter's picture

if ever 10k, add... 'and quite illegal to hold unless in fractional form'

paper has powerful biceps people

when phys AU is illegal to hold it will be years out

Mon, 10/31/2011 - 00:05 | Link to Comment Unprepared
Unprepared's picture

Rogue 20-something trader causing MUFG $1Tr losses of sour futures in 3, 2, 1...

Next up, EURUSD, USDGBP pegs

Mon, 10/31/2011 - 01:01 | Link to Comment wisefool
wisefool's picture

Also, Paul Krugman introduces a new pallete for alien race complexion. Brown and Green are only two possible variations of sentient beings we need to kill to get the economy out of this rut.

Mon, 10/31/2011 - 00:07 | Link to Comment greensnacks
greensnacks's picture

I guess if one was buying worthless efsf bonds, might as well do it at the cost to print new Yen.

Mon, 10/31/2011 - 00:13 | Link to Comment sbenard
sbenard's picture

Currency wars are here!

Mon, 10/31/2011 - 00:23 | Link to Comment Ye Ye
Ye Ye's picture

It would be surprising if they went full Hildebrand.  The Swiss economy is so much smaller than the Japanese economy, it would be a whole new level of floor.  (Otoh, Japan has smaller GDP than China, and China does it, so ... )

If they don't announce Hildebrand style "unlimited quantities" and "will not tolerate" language than the clear move is to short USD/JPY as this cannot last unless they are willing to lose control of the balance sheet.

But if they do ... wow ... breathtaking.  What happened to real terms of trade?  Everybody wants to impoverish themselves to ensure they can continue to export their real goods and services to the United States in exchange for worthless pieces of paper.  I guess we all need to do our globally patriotic duty and consume!

Mon, 10/31/2011 - 00:44 | Link to Comment Mark123
Mark123's picture

Yes, we must all do our duty.

 

Buy a new GM on easy credit terms...I hear they are handing out sub-prime loans like candy.  Trick or Treat!

Mon, 10/31/2011 - 00:26 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Rock, Raper, Scissors kids.  Take the fukking scissors and cut that fukking unbacked paper sh*t and replace it with gold/silver rocks.  The end.

Mon, 10/31/2011 - 00:30 | Link to Comment chump666
chump666's picture

G-20...What a bunch of losers.

Mon, 10/31/2011 - 00:39 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Err, paper. sorry, it's late.  But it is a raping nonetheless.

Mon, 10/31/2011 - 00:42 | Link to Comment Mark123
Mark123's picture

When this whole banking crisis started people scoffed at the idea that countries would get into competitive devaluation....now, here we are!!

 

Also, wasn't this one of the main reasons the 1930's depression got so bad?

 

If a real depression wasn't so damn scary this would be funny.

 

 

Mon, 10/31/2011 - 01:51 | Link to Comment Fips_OnTheSpot
Fips_OnTheSpot's picture

Yah, if one said that (cur race to the bottom) he was called: "ah, is this some conspiracy shits. wont happen. NEVAR!"

Next bullion delivery is due this morning... buy or die.

Mon, 10/31/2011 - 02:43 | Link to Comment Incubus
Incubus's picture

It's still funny, man.  Loosen up a little.  You're not getting out of life alive, so what's the point in taking it seriously.  You know how many people die every day over stupid shit?  It's all one big joke. 

 

Life is ultimately meaningless.  Wax poetic on the value of people all you'd like.  Expectation does not align to reality.

 

Do you give a shit about thousands of people who die in any given natural disaster, or to disease, or to meaningless violence, or starvation?  We just offer worthless words to make ourselves feel better--not that we really care outside of helping our own selves "deal" when it comes down to it.  Life is tossed away without a second thought--and it does not matter who "dies" as long as it is not someone or some peoples we value personally. We're all sonsofbitches that'll pay for our "sins" if there were any hell to be had. 

 

Too bad religion is another delusion.   You can't even suffer and have any meaning to it, huh?  What a bunch of shit.  What scares me isn't some depression: what scares me is that our social systems are entirely nihilistic.  And all of this shit we're "fighting for" will be reduced to a few pages in a text book 30-50 years from now.  A passage in textbooks maybe 100 years from now.  Probably won't even resemble any reality of what we're facing now.

And your "kids" you fight so dearly for--well their kids won't even care much for who the hell you were, and their kids probably won't even know your name, or care to know who you were.

That's the reality of what you "fight for." 

 

What I'd like is for all of us to burn for the misery we cause upon one another.  And I can't even have that, can I? 

 

Mon, 10/31/2011 - 00:44 | Link to Comment jack stephan
jack stephan's picture

Thanks, I wanted an excuse to get a few more physical.

Mon, 10/31/2011 - 00:46 | Link to Comment dwdollar
dwdollar's picture

Just load the helicopters up already and give it over with.

Mon, 10/31/2011 - 01:38 | Link to Comment ItsDanger
ItsDanger's picture

Well, ZH did predict a currency war a while ago.  It has officially begun with Japan firing the 1st shot.  Not unlike wars in their past.

Mon, 10/31/2011 - 01:49 | Link to Comment Anomalous Howard
Anomalous Howard's picture

China ain't gonna ante up a stinky tofu fart for the efsf now that azumi just put a bullet in its (the efsf's) head.

The eu can't even retaliate.

currency judo.

 

 

Mon, 10/31/2011 - 01:52 | Link to Comment msmith
msmith's picture
Very bullish price action is developing for the DX as expected.  This move could have significant implications on equities and commodities.  http://bit.ly/tckY8L
Mon, 10/31/2011 - 01:56 | Link to Comment jarboejl
jarboejl's picture

Is it me, or is T.D. getting a little smarmy in the last few trading days??

Mon, 10/31/2011 - 02:57 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

it's you, shithead

Mon, 10/31/2011 - 03:22 | Link to Comment knukles
knukles's picture

LOL

Mon, 10/31/2011 - 01:58 | Link to Comment Incubus
Incubus's picture

"The Last of the Keynesians"

 

I'd watch that movie.  I'd like to live that reality, too.

Mon, 10/31/2011 - 01:59 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

........................fuck the banksters.........................

BUY GOLD.

Mon, 10/31/2011 - 03:02 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

EUR Opens Lower As Bailout Disenchantment Returns

L0L!!! tyler's revenge = "worthless semantics" of the toy-boy trolls, BiCheZ!

Mon, 10/31/2011 - 03:30 | Link to Comment Motley Fool
Motley Fool's picture

Welcome....to a world of pain.

Mon, 10/31/2011 - 03:30 | Link to Comment Fips_OnTheSpot
Fips_OnTheSpot's picture

 

 

So - NIKKEI had a nice 120pt north spike on that Yentervention .. just to give away 150pt until closing - below 9000. HALFTIME, BITCHEZ!

Mon, 10/31/2011 - 07:01 | Link to Comment Gief Gold Plox
Gief Gold Plox's picture

Dear Latest Currency Peg, Welcome! ... to the club of irrelevant paper and database entries.

Pardon my stupidity, but if all currencies are pegged to each other, whats the point of having them at all? Wouldn't that in effect be the same as having a single world currency? Screw it, I'll stick to Au and Ag. Atleast they're shiny.

Mon, 10/31/2011 - 09:50 | Link to Comment mayhem_korner
mayhem_korner's picture

Pardon my stupidity, but if all currencies are pegged to each other, whats the point of having them at all?

 

The fiat printing lobby is pretty strong in each country...need to keep employment up in some sectors.

Good description, btw, it's like the Tower of Babel in reverse.

Mon, 10/31/2011 - 10:14 | Link to Comment tmosley
tmosley's picture

I'm not sure it is in reverse.  The tower just hasn't been struck down yet.

Mon, 10/31/2011 - 07:30 | Link to Comment Mr. Lucky
Mr. Lucky's picture

$15,000,000,000,000.00+

Mon, 10/31/2011 - 09:47 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Out with paper/ETF gold and in with pegged fiat.  A currency battle wrapped up in a PM-short survival tactic. 

Pop some corn!

Mon, 10/31/2011 - 10:00 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Synchronized currency pegging creates ___flation cross-subsidization, no?  Is the Bernank putting on his angry teeth this Hallow e'en 'cause the BOJ is tying him to Au, or is he putting on his happy face 'cause he gets inflation imported and a scapegoat for it?

Mon, 10/31/2011 - 10:42 | Link to Comment rwe2late
rwe2late's picture

A popular, though misleading viewpoint found in ZH is represented in a remark by YeYe:

“Everybody wants to impoverish themselves to ensure they can continue to export their real goods and services to the United States in exchange for worthless pieces of paper”

---------------

But it’s not “everybody”, and it’s not about wanting to be impoverished.

(a) On the one hand, the US runs a petrodollar extortion racket. Dollars are needed to purchase vital oil. Ask Iraq, Libya, Iran, or Venezuela how those who make moves to opt out are targeted.

(b) On the other hand, the US runs a global protection racket for oligarchs and dictators willing to comply with the dollar reserve currency racket. Some get outright protection (like Saudi Arabia, Colombia, and Haiti), some are satisfied just to rake off a cut from their own native population (like India, Korea, Romania, and even China).

Global elite, global dominance, sycophant oligarchs, dictators, and drug lords, all part of the imperial network. They do not aim to impoverish themselves.

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