Jump to content
House Price Crash Forum
R K

Giant Squid Sees 'silly September' As Yen Appreciates

Recommended Posts

http://www.bloomberg.com/apps/news?pid=206...id=abvf8tiNFG74

Sept. 14 (Bloomberg) -- Foreign-exchange markets have embarked on a “silly September†as traders focus too much on government debt in the U.S. and U.K. while pushing up the value of the yen, said Goldman Sachs Group Inc.’s Jim O’Neill.

“There is a very popular notion that you’ve got to sell the pound and the dollar because of the rising government debt, whereas the one that everyone’s seemingly buying is the yen,†O’Neill, head of global economic research at Goldman, said in a Bloomberg Television interview in London today. “It’s ridiculous†and “I think of it as ‘silly September.’â€

Currency strategists are trying to calculate which economies will benefit most from signs of a global economic recovery. While the dollar has dropped 11 percent in the past months on a trade-weighted basis, the yen has appreciated 9 percent against the U.S. currency and 6 percent against the pound since April.

“If I look at the underlying fundamentals, virtually everything that drove the yen stronger in its floating exchange history isn’t there anymore,†O’Neill said. “The yen doesn’t deserve to be anywhere near this, and I don’t see it lasting.â€

Dollar bounce anyone? :unsure:

Share this post


Link to post
Share on other sites
what, from about a 95% fall since 1913 ? :lol::lol:

7668_a.png

Yes, yes, that excludes interest and income from dollar investments which is always the case from a bugs perspective because gold carries no yield. As you well know, it is the yield on investments where the money is, not the nominal value (or perhaps as a bug you don't). ;)

Share this post


Link to post
Share on other sites
Yes, yes, that excludes interest and income from dollar investments which is always the case from a bugs perspective because gold carries no yield. As you well know, it is the yield on investments where the money is, not the nominal value (or perhaps as a bug you don't). ;)

is that the digitised virtual interest & income or described a better way, the off balance sheet, mark to fantasy stuff, from the doomed dollar ? :D

Edited by grumpy-old-man-returns

Share this post


Link to post
Share on other sites

there was an article in the FT by Goldman about 5-6 weeks ago. They were saying it should not be 95 to the dollar more like 195. I shorted the yen long dollar and sold out at 97 - which compensates fractionally for my usual appalling timing.. Good to see goldman squealling now at 90.

Share this post


Link to post
Share on other sites
is that the digitised virtual interest & income or described a better way, the off balance sheet, mark to fantasy stuff, from the doomed dollar ? :D

I was simply pointing out that currencies are transactional. That dollar chart is pointless and I've no intention of getting into the gold debate again.

The point was whether we are going to see a bounce, not whether the dollar will still exist in 2000 years if you stash it under your mattress or bury it in the ground. Who cares!

Share this post


Link to post
Share on other sites
I was simply pointing out that currencies are transactional. That dollar chart is pointless and I've no intention of getting into the gold debate again.

The point was whether we are going to see a bounce, not whether the dollar will still exist in 2000 years if you stash it under your mattress or bury it in the ground. Who cares!

you will next year, I can assure you.... ;)

Share this post


Link to post
Share on other sites
you will next year, I can assure you.... ;)

Can you give me a 100% correct guarantee please? Just in case it falls from $1000 to $690 again? Much appreciated. ;)

Share this post


Link to post
Share on other sites
Yes, yes, that excludes interest and income from dollar investments which is always the case from a bugs perspective because gold carries no yield. As you well know, it is the yield on investments where the money is, not the nominal value (or perhaps as a bug you don't). ;)

seigniorage gain.

you can't win.

Share this post


Link to post
Share on other sites
there was an article in the FT by Goldman about 5-6 weeks ago. They were saying it should not be 95 to the dollar more like 195. I shorted the yen long dollar and sold out at 97 - which compensates fractionally for my usual appalling timing.. Good to see goldman squealling now at 90.

Come on then, what was the stake? was that £1 a point? £10, £1000? ;)

Share this post


Link to post
Share on other sites
Hardly going to help Japanese exports is it?

probably not, should help the chinese export market though. Anyone think the chinese maybe the prime sellers of dollars and buyers of yen?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   295 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.