Our comments on the BOJ announcement
Earlier today (or late last night depending on your time zone) the BOJ made the announcement that instead of staying focused on their inflation target of 2% they were going to focus on managing the 10 year interest rates on bonds. This change in policy came as a bit of a surprise to analysts and we saw the Yen and gold move higher. There are still some of the finer details to work out but Chris Temple and I chatted about our first impression on the BOJ comments.
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We have a society run by criminals. No other way to put it. It’s just the plain truth.
Certainly people with a different set of values1
Certainly kind of interesting to say the least.
As any target shooter knows, if you keep missing………change the target. Chris once again shines some light on a very cloudy subject.
Or you can do what I am doing is joining a skeet club and buying a 12 gauge. You can miss the clay but not a target unless it is a long, long way away.
Hah! I told anyone who’d listen that there was no way, no how the Feral (yes feral, that is not a typo) Reserve would raise and that they would look like the utter fools and criminals that they are with today’s announcement.
We are a country run by criminals and incompetents. No other way to put it.
Those were really interesting comments you made today Chris. The whole idea of extinguishing debt is probably one that could fill hours of shows and you may be right that the efforts being made are to do just that. The last few hours I have been trying to get up to speed on the Chicago plan. Who knows, we may all end up surprised what comes down the road during the next financial crisis no matter how improbable it sounds today.
And of course Chris, I could not agree with you more when you commented the Euro is doomed. First time I recall hearing your outlook on that currency was so gloomy. We are inching our way ever more closely to what I believe will be a shock decline in euro that could be quite literally come at any moment now. I have not said this in the last few posts because it just sounded too alarmist but we are right on a pivot that may be indicating a sharp decline in the euro could start any day now (if my reading of the chart is right). I am hearing Martin Armstrong has been talking about this for years. Maybe that is so, I really don’t know. What I do know is that whatever is about to happen has almost arrived (technically speaking) so lets be careful out there.
First time you’ve heard me gloomy on the euro?? You’ve missed a LOT. That’s been a usual, never-ending theme of mine since there was a euro.
Debt’s going to be extinguished one way or another. . .I have to wonder out loud if the present plan of bleeding it off slowly as I described today is the least bad of other, more dramatic/damaging (to the system) options
I expect a hike when Dumbo leaves office and we get a business MAN in office that knows economics, not redistribution socialism.
Looks like Yen will reverse tomorrow. It has been stopped dead virtually on the upper resistance line at parity (1.0002) and should now embark on a decline phase. Bad luck for gold since the correlation is fairly tight lately time-wise. On the five minute chart she is about to roll over….the hourly is not offering much added hope. So its down we go for pm’s and Yen.
Silver Price in 1980 dollars is an astonishing 6.77.
I know its hard to believe, but it is true. So if you think silver is expensive….think again.
the management
Thanks Dave. You have a chart on that by any chance?
I posted this last night on yesterday’s feeds. BOJ are clearly clutching at straws now.
The recent fascination on this site with the Euro really can’t hide the fact that the YEN is in serious danger now. When credibility is lost it’s a gonna be a fast decline. Certainly approaching the end-game in my view.
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JGBS (1 x inverse JGB futures) etf & JGBD (3 x inverse JGB futures ) etf have mysteriously been closed this week!
More than a little fishy in my book.
I know the BOJ had been buying etfs, since they ran out of bonds to buy… Do you think they bought these 2 to take them off the market ?!
Clearly a crisis is coming, at some point yeilds are gonna go parabolic… if only for a very short time. These etfs were an easy way for retail investors to profit from that.
Great work Tad. That’s news to me so thanks for the heads up. I have a healthy yen decline on the radar right now as well and it looks like its going to coincide with the euro starting its face-plant. That can only mean one thing and that is the dollar is about to take the elevator up if those two majors are both going down together (along with gold). October is going to be a wild ride in the currency markets if my hunch is correct.
Tick…tick….tick….and we shall know very soon.
Radiation over there at the BOJ frying their brain cells.
The Japan news will come overnight? I thought they had already made a decision this morning and done, well, nothing?
Is it tomorrow morning Japan time for some Japanese announcement?
Last night. Not doing much.
They want to “control the yield curve”.
Hmmm.… basically, they’ve run out of ink!
I actually think Gold and Yen are going to decouple… big time.
Down together for a month or two first perhaps, but then the jig is up.…
Buy GYEN (long gold & short yen). Not investor advise! Just what I’m doing.
Has the Fed changed your mind on gold?
No. The Fed doesn’t look capable of changing much actually.
$20 up and down intraday is no big deal really.
October & November look like volatile months and we could get the seasonal pullback in PMs (or continuation of this extended and, I think, overdone pullback we are in).
I think it’ll be the last chance to get good value if buying.
Medium/long term, it’s looking good for bullion and PM miners I think.
Need to get into the 1600s as soon as we can (summer ’17?) then we could be on for 2000 by the end of next year. Especially likely, if other things fall apart on the way…
Just my play book though… not really trading. Just buying and holding.
Heading for late ’18-19 before cashing in major chips.
Al;
May be time to bring Roger from NUG on for an update interview review of all the drilling going on over there.
Thanks
Fed Monetary Policy Is Being Held Hostage by Wall Street Banks
While the U.S. Senate Banking Committee was taking testimony yesterday from the Chairman and CEO of Wells Fargo bank, John Stumpf, about his $19 million in pay last year and how Carrie Tolstedt was set to retire with $120 million from the bank, despite both of them presiding over the creation of two million bogus bank accounts and credit cards…
http://wallstreetonparade.com/2016/09/fed-monetary-policy-is-being-held-hostage-by-wall-street-banks/