Wednesday, September 15, 2010

Tin Foil FX

Well at least tin foil has a little more commodity value (hard asset) than Fiat Paper!  :)

This quote from

It is reported that the intervention may have exceeded 100 billion yen and was done unilaterally, however the exact numbers have not been released. We would expect to see further intervention as past Japan FX interventions have occurred over periods of time. The previous period of intervention saw the BOJ sell roughly 20.4 trillion yen in 2003 followed by about 14.8 trillion in the first quarter of 2004. Japanese officials stated that they would resume FX intervention during the NY hours if needed so be on the lookout for further near term yen weakness.

100 Billion yen is nothing, bear in mind that a Yen is approximatley a penny.   Now it varies, but the simple fact of the matter is you divide the Yen by 100 and get dollars.  

Wow---so the Japanese "eased" by 1B USD equivalent.    What is that?  about 2 hours of interest payment on the national debt?   Just saying, this is a joke, the big moves are a game. 

In the past years 2003, they eased by over 2000 times more.

This game is after all, for all the money in the world, and those that control the news, control it to vested interests.


  1. In 2003 timeframe they did dump Y35T onto market,
    they can do whatever they want now. The backlash, as in the US, is Japan has savers and they get pummeled by monetary inflation (helicopter drop).

    I was just saying $1B US equivalent is a joke, and the market reacted far stronger -- perhaps based on expectations of more injection of Yen in the future, BUT IMHO just because the market is being gamed at every level. This ain't trading anymore, it's Quant robot warfare.

  2. Good point, but don't they have Y35T to dump into the market? That would be ~450 billion USD (guessing here because it's not quite $0.01 =Y1). That ain't chump change.

    I know it's pointless, but they will try.


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