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 - 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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qussl3's picture

Eye of the storm.


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...

ba dum tiss's picture this is so ghoulish or scarish?? Mwahahahaha!! Happy Halloween bitchezzz

X.inf.capt's picture

usd up to 76.10

here it comes

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

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.

LuKOsro's picture

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

Mr Lennon Hendrix's picture

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

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).

strannick's picture

Or the SouthAfrican Krug for long term

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.

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.

Id fight Gandhi's picture

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

Ahmeexnal's picture

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

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...

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.

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.

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

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.

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.

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.

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?

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?

dalkrin's picture

New Olympic sport:  Coordinated fiat printing.

Divine Wind's picture


Synchronized Printing



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!

Me XMan's picture


Mr Lennon Hendrix's picture

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

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.

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).

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.....


Awesome Art

Hook Line and Sphincter's picture


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

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.

Hook Line and Sphincter's picture

Hillarious, I thought it was something else... 


looking over my belly downwards!

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

LawsofPhysics's picture

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

DoChenRollingBearing's picture

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

Mr Lennon Hendrix's picture

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

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.

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

Oh regional Indian's picture

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


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!

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

Quadlet's picture

Even bigger unwind in Silver.  What did Corzine know?

DoChenRollingBearing's picture

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

Mike2756's picture

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

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.

MFL8240's picture

Cant be fazed with Bernanke buying every dip.

Mr Lennon Hendrix's picture

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

X.inf.capt's picture



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