Far Out Bear Posted July 30, 2007 Share Posted July 30, 2007 The disease I speak of is the blatant intervention by authorities in the markets. Japan is the 51st state. The worse the situation in the US becomes, and the lower the Yen falls, the more this is becoming obvious. Am I imagining stuff? Quote Link to comment Share on other sites More sharing options...
LargelyIgnorant Posted July 30, 2007 Share Posted July 30, 2007 The disease I speak of is the blatant intervention by authorities in the markets.Japan is the 51st state. The worse the situation in the US becomes, and the lower the Yen falls, the more this is becoming obvious. Am I imagining stuff? IMO, Japan is the clear leader in the competitive currency devaluation race to the bottom. As an exporter, they have been able to do this - don't think we can follow without importing inflation. http://elainemeinelsupkis.typepad.com/money_matters/ Quote Link to comment Share on other sites More sharing options...
?...! Posted July 30, 2007 Share Posted July 30, 2007 The disease I speak of is the blatant intervention by authorities in the markets.Japan is the 51st state. The worse the situation in the US becomes, and the lower the Yen falls, the more this is becoming obvious. Am I imagining stuff? What are you saying? That when the markets fall governments buy? There are only a handful of government trading funds in the world, Norway and China being the most obvious. Wouldn't the clearing team spot "secret government agenda fund" on the trades? If I were trading and this went through my back office I would expect somebody to tell me. I think you have been caught up in some kind of conspiracy theory. Quote Link to comment Share on other sites More sharing options...
music man Posted July 30, 2007 Share Posted July 30, 2007 When currency falls check out George Soros's record of buying pennies on the pound. Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted July 30, 2007 Share Posted July 30, 2007 When currency falls check out George Soros's record of buying pennies on the pound. Yes. I would expect him to prop up his retirement stash on cost of the British taxpayer anytime soon. Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted July 30, 2007 Share Posted July 30, 2007 I think you have been caught up in some kind of conspiracy theory. What exactly is the PPT doing in market crashes? http://en.wikipedia.org/wiki/Plunge_Protection_Team Quote Link to comment Share on other sites More sharing options...
?...! Posted July 30, 2007 Share Posted July 30, 2007 What exactly is the PPT doing in market crashes? http://en.wikipedia.org/wiki/Plunge_Protection_Team Nationalising large employers? Taking a Keynesian approach? This is not a market crash, it is pre-crash volatility. The volatility you see at the moment is because of this... Commercial mortgage backed security spreads increasing fivefold inside a month? CMBX-NA-AAA? These are not sub prime borrowers, these are your General Motors, and WalMarts. What can the government do in the face of that? Trade stock on the DOWIA? Laughable, the federal government only has a $2.9 trillion budget. And how long do they hold this stock? Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted July 30, 2007 Share Posted July 30, 2007 Nationalising large employers? Taking a Keynesian approach?... What can the government do in the face of that? Trade stock on the DOWIA? Laughable, the federal government only has a $2.9 trillion budget. And how long do they hold this stock? Can the treasury just sell more debt to the Fed and then buy whatever they please to? Can they just give huge loans to their friends at JPM or GS and tell them to buy, buy, buy? Quote Link to comment Share on other sites More sharing options...
i_godzuki Posted July 30, 2007 Share Posted July 30, 2007 The disease I speak of is the blatant intervention by authorities in the markets.Japan is the 51st state. The worse the situation in the US becomes, and the lower the Yen falls, the more this is becoming obvious. Am I imagining stuff? Sorry, what are yuo getting at? The Nikkei closed up 5 points today after opening down following the Upper House election result. This, presumably, can be explained by an initial over reaction and then investors bargain hunting. Nothing to do with intervention. The yen, meanwhile, has appreciated about 4 yen in the last week or two. The Ministry of Finance has't intervened for several years in the currency markets. Quote Link to comment Share on other sites More sharing options...
Goldfinger Posted July 30, 2007 Share Posted July 30, 2007 The Ministry of Finance has't intervened for several years in the currency markets. This articles claims quite the opposite: http://news.goldseek.com/GoldSeek/1185471482.php Example: Japan’s reserves ballooned after selling 35-trillion yen in 2003 and the first quarter of 2004, in exchange for 330 billion US dollars. Quote Link to comment Share on other sites More sharing options...
?...! Posted July 30, 2007 Share Posted July 30, 2007 Can the treasury just sell more debt to the Fed and then buy whatever they please to? Can they just give huge loans to their friends at JPM or GS and tell them to buy, buy, buy? Such "huge loans" would need to be auctioned, so JP Morgan and Goldman would have to pay market prices. And the whole thing would be transparent. Quote Link to comment Share on other sites More sharing options...
i_godzuki Posted July 31, 2007 Share Posted July 31, 2007 (edited) This articles claims quite the opposite: http://news.goldseek.com/GoldSeek/1185471482.phpExample: No, that's my point. Someone further up was suggesting intervention is happening no but it's over three years ago--i.e. when the economy was floundering. Since things got back on track, there have been no signs of intervention (other than the low interest rates, of course). Even with those, many argue the low rates are stil fair given that Japan's inflation has been negative (just) for the last four months. The reason the yen has sunk is due to the differential between Japanese and global interest rates, but it's hardly Japan's fault that countries like the UK and US have allowed inflation to get out of control and, therefore, have raised rates faster than the BOJ. Edited July 31, 2007 by i_godzuki Quote Link to comment Share on other sites More sharing options...
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