Jim Rickards, Senior Managing Director at Tangent Capital, says the Bank of Japan’s monetary easing policy is so aggressive they are forcing other central banks to cut rates.
Jim Rogers: Yen’s ‘Collapse Very Dangerous’
The dollar hit a four-year high of 103.31 yen Friday, and legendary investor Jim Rogers, chairman of Rogers Holdings, doesn’t think that’s a good thing.
“The [yen], which is one of the major currencies of the world, has collapsed [...]
Japanese Government Bond FUTURES NARROWLY AVOID THIRD HALT IN THREE DAYS (BY A TICK); 5Y YIELDS JUMP TO HIGHEST IN 22 MONTHS
JGB Futures avoid a third halt in three days by 1 tick (drop 0.99 vs 1.00 handle limit) but two words spring to mind – not orderly. It seems the pendulum of ‘inflation repricing channel through the JPY’ has begun to swing back towards the JGB market – not [...]
by Phoenix Capital Research
Japan has fueled much of this latest rally in stocks, driving the marketing first with promises of money printing by the Prime Minister in November 2012, and then a massive $1.2 trillion QE program announced by the Bank of Japan last month.
The result of this has been a collapse in the Yen and a 70%+ rally in the Nikkei in the last six months.
This has been the fundamental [...]
(1) His thoughts on gold falling below 1400/oz again.
(2) How the gold cartel will collapse. He believes that this is like the German invasion of Russia, and how Germany still lost (despite the odds). He compares the Germans to the Cartel.
(3) How gold should be going up since the yen has been falling (yet gold isn’t going up in dollar terms)
From Kimble Charting Solutions:
CLICK ON CHART TO ENLARGE
The Yen, Australian $ and the Euro have created pennant patterns over the past few years and each of these currencies is now breaking support of the pennant patterns.
As the same time the US$ has been unable to “Close on a monthly” basis above line (1) in the chart above.
Joe Friday….A close above line (1) would be bullish for the US$ and should cause further [...]
Japanese Government Bonds Halted Limit Down; Yields Spike To 10 Week High; Worst Day In 5 Years
It appears things are getting a little out of control around the world. Between the collapse in JGB implied volatilities in recent days, today’s melt-down in JPY (+255 pips from pre-open US levels), the last few days melt-up in the Nikkei (+6.8% in 3 days), and now the quadrillion Yen Japanese government bond market is halted [...]
In its latest meeting minutes, the Federal Reserve said it will continue with quantitative easing, creating $85.0 billion in new money monthly, in order to bring economic growth to the U.S. economy. (Source: Federal Reserve, May 1, 2013.)
The Federal Reserve, once again, didn’t provide any clear indication as to when it will end the quantitative easing; rather, the central bank stated it will continue to do the same “until the [...]
The film will be shown with tilting seats, blowing wind and fog and odor effects via technology that is expected to come to the U.S. this year.
TOKYO – Iron Man 3 will be shown starting April 26 in 4DX at a theater in Nagoya, central Japan, operated by the Korona World chain, which plans to screen 12 titles a year using the new format.
“Fourth dimension” effects utilized by the system include strobe [...]
“We are seeing buyback from the general public,” a physical dealer in Tokyo told Reuters and there are reports of shortages of coins and bars and premiums increasing on bullion coins.
There are also reports of shortages of bullion coins and bars in Thailand and in Singapore where premiums on certain bullion coins which are legal tender and have favourable tax treatment, such as American gold and silver eagles, have risen due to tightness [...]
Today’s AM fix was USD 1,577.25, EUR 1,212.80 and GBP 1,029.60 per ounce.
Friday’s AM fix was USD 1,552.75, EUR 1,207.42 and GBP 1,019.60 per ounce.
Gold climbed $25.90 or 1.67% to $1,579.10/oz and silver rose 42 cents or 1.6% to $27.29/oz on the COMEX on Friday. Gold and silver were down 1.07% and 3.77% for the week.
Cross Currencies Table – Bloomberg
Gold futures in Tokyo jumped almost 5% to near all time [...]
from Gold Silver Worlds:
In what we consider a magnificent speech, not because of the type of message but rather in terms of the depth of insights, Kyle Bass explains at the University of Chicago Booth School of Business why he believes the Japanese government debt bubble is explosive in nature. He expects this bubble to burst soon, although he reiterates that it is impossible to know when exactly this will happen. His presentation [...]
CLICK ON CHART TO ENLARGE
The chart above reflects that the worlds “Least Loved Currency” and the S&P 500 have been moving in opposite directions over the past 90 days. Has this currency helped the S&P 500 rally? It’s possible!
The chart below reflects that hardly anyone loves this currency, with only 13% bulls.
If the past three months have been any indication of what Japan has to look forward to from Abenomics, we have a feeling his tenure will be as short, if not shorter, than all of his recent (and numerous, among which he, himself) predecessors. Because while the stock market may have risen in lock step with the plunge in the Yen, what has also soared are costs. And while a [...]
BERLIN: Germany’s finance minister on Friday warned of the dangers of countries intervening in the foreign exchange markets, as top officials from the group of 20 met amid fears of a “currency war”.
Speaking as the meeting opened in Moscow, Wolfgang Schaeuble told German radio: “We do not want state intervention in exchange rates. We want exchange rates that are determined by the markets.”
“I am actually very confident that will also [...]
ITS ODD TO ME THAT THE G20 MEETINGS IN MOSCOW ARE TO TONE DOWN THE BIG CURRENCY POWER HOUSE.. MAYBE THAT WAS A WARNING
Finance Minister Jim Flaherty says leaders of the advanced economies should tone down their words when it comes to competitive currency devaluation.
“I am concerned with the escalation of ‘currency war’ rhetoric,” Flaherty told G20 finance ministers meeting in Moscow Friday, saying it added to the “uncertainty that [...]
George Soros made almost $1 billion since November from bets that the yen would tumble, according to a person close to the billionaire’s $24 billion family office.
The Japanese wager helped the firm return about 10 percent last year and 5 percent so far this year, said the person, who asked not to be named because the firm is private. The yen has weakened 17 percent versus the dollar since about the [...]
To claim a “recovery” based on unlimited Central State borrowing and spending and central bank manipulation of asset valuations is self-sustaining is beyond absurd.
by Charles Hugh Smith, Of Two Minds:
The mainstream media (MSM) is overflowing with stories proclaiming the global economy is on the mend: Europe’s crisis is in the rearview mirror, China’s growth has rebounded, Japan is aggressively pursuing Keynesian Nirvana and the U.S. economy is in the sweet spot between [...]
Gold is rebounding. News that the Bank of Japan set a 2% inflation target and is buying 13 trillion yen worth of assets ($146 billion) rallied gold prices Tuesday, to near a one-month high of $1,697.80 set last week.
That’s not surprising since gold, more than any other commodity, rises and falls along with changing government policies globally.
Germany made even bigger splash than Japan in the gold market recently with its surprise announcement last [...]
by Phoenix Capital Research
Three popular delusions to be aware of for 2013:
Popular Delusion #1: The investment world believes China will engage in another massive round of stimulus.
This will not be the case. China’s new ruling party has stated point blank that the country will not be engaging in rampant stimulus (for the obvious reasons of rising inflation):
This may sound like an oxymoron, but China‘s new Communist government is turning away from financial stimulus [...]
“Gold Will Prove A Haven From Currency Storms” – OMFIF Study
Today’s AM fix was U.S.D 1,690.00, EUR 1,265.82, and 1,060.49 GBP per ounce.
Yesterday’s AM fix was U.S.D 1,683.25, EUR 1,260.11 and GBP 1,050.85 per ounce.
Silver is trading at $31.79/oz, €23.91/oz and £20.04/oz. Platinum is trading at $1,695.25/oz, palladium at $723.00/oz and rhodium at $1,150/oz.
Cross Currency Table – (Bloomberg)
Gold rose $7.00 or 0.42% in New York yesterday and closed at $1,686.90/oz. [...]
Currency World War looms as Japan, China, US & Europe decline
Russia has warned a currency World War is looming for the global economy. The concerns were sparked by Japan’s move to lower the value of the yen in pursuit of better exports causing fears of a massive chain reaction as other nations do the same. RT’s Egor Piskunov reports.
A new Gold Standard is being born -Ambrose Evans-Pritchard
The world is moving [...]
leap2020.eu / January 16, 2013
Until now the course of the crisis has been accurately described according to the five phases identified by our team from May 2006 (GEAB n°5) and completed in February 2009 (GEAB n°32): release, acceleration, impact, decanting and global geopolitical dislocation, the last two stages developing simultaneously. In the last issues and in particular the GEAB n°70 (December 2012), we commented extensively on the ongoing processes of the [...]
Prime Minister Shinzo Abe’s fiscal and monetary stimulus measures may trigger a collapse of Japan’s economy as early as this year, according to Takeshi Fujimaki, a former adviser to billionaire investor George Soros.
The yen has slumped 6 percent since elections last month returned power to the Liberal Democratic Party run by Abe, who’s demanded that the Bank of Japan (8301) undertake unlimited cash infusions to end deflation. The premier also unveiled 10.3 trillion yen ($116 [...]
arveyorgan.blogspot.com / January 12, 2013
Good morning Ladies and Gentlemen:
Gold closed down $17.30 to finish the comex session at $1660. Silver closed down by 51 cents to $30.37
The bankers never let gold/silver rise two days in a row and thus the reason for the raid on Friday. Gold and silver got clobbered with news that the trade deficit widened to 48 billion USA which in turn will cause the GDP for [...]
globaleconomicanalysis.blogspot.com / By Mike “Mish” Shedlock / Friday, January 11, 2013 12:18 PM
Bank of Japan to Adopt 2% Inflation Target
Bloomberg reports Yen Falls to Lowest Since 2010 on Stimulus
The yen reached the weakest since June 2010 versus the dollar after Japanese Prime Minister Shinzo Abe’s government said it will spend 10.3 trillion yen ($116 billion) in new stimulus efforts that tend to weaken a currency.
The yen headed for a ninth weekly decline, the [...]
One of the biggest leveraged hedge funds in the world got hit with a 2×4 during the 4th Q. This fund has a mixed bag of assets, but was heavily exposed to big FX positions.
The fund made a big “bet” recently when they went short EURYEN. This turned sour in a very big way; the EURYEN moved an incredible 14 big figures against them in just 60 trading days.
Street players, who know of [...]
globaleconomicanalysis.blogspot.com / By Mike “Mish” Shedlock / December 28, 2012
The Markit/JMMA Japan Manufacturing PMI™ shows Downturn of manufacturing sector accelerated during December.
Output and new orders register sharpest contractions for 20 months
Employment, purchasing and stocks all continue to be cut
Output charges lowered further as input prices remain unchanged
Latest data from Markit/JMMA indicated that the performance of the Japanese manufacturing sector continued to deteriorate in December. Output, new orders and employment all fell [...]
Gross: The cliff is better than a 50% probability & then comes the debt ceiling! Dysfunctional Washington is bad for risk assets.
Gross: Japan’s Abe means business this time. Trillions of yen to be printed. Weak yen, positive inflation.
ZURICH/LONDON – UBS will admit to criminal wrongdoing by its Japanese arm, where one of the Swiss bank’s traders manipulated yen Libor and euroyen contracts, to secure a $1-billion-plus settlement with regulators, people familiar with the matter said on Friday.
Japan’s financial regulator last December ordered UBS’s Japanese securities arm to suspend Tibor- and Libor-related derivatives trading for a week after a probe found a former trader attempted to influence the [...]
from Bullion Street:
Marking the onset of a multi-currency reserve system and a new era in world money, the IMF formally classified two commodity-rich currencies, Australian and Canadian dollar, as official reserve assets.
From next year, the International Monetary Fund can ask member countries to include the Aussie and Loonie (Australian and Canadian dollars respectively) in statistics supplied by reserve-holding nations on the make-up of their central banks’ foreign exchange reserves.
Presently, the IMF [...]
By Andy Xie
BEIJING ( Caixin Online ) — Every time I come to Japan to attend a conference, I am reminded of what a depression looks like in the 21st century.
This time is no different: shops are not busy, restaurant owners wait anxiously outside for customers and are usually disappointed, empty taxi cabs roam the streets. Two decades after its property bubble began to deflate, [...]
The city in the western prefecture of Osaka – currently called Izumisano – owes its creditors well over 100 billion yen (£775 million), the official said, adding the presence of nearby Kansai International Airport was partly to blame.
“The city spent a lot of money building roads and other infrastructure because the airport was built in this relatively remote place,” he said on condition of anonymity.
“The mayor believes the city government [...]
The worldwide currency debasement war has now entered a new and more deadly phase. Central banks have escalated the combat plan to bring about the world’s weakest currency for their individual countries. On the heels of the Federal Reserve and European Central Bank’s promises of unlimited counterfeiting forever, the Bank of Japan announced last week that it would expand its purchase of Japanese Government Bonds (and other assets including equities) [...]