Monday, January 30, 2012

Question to the Bank of Japan - How's that intervention been workin' out for ya?

Talk about a collosal waste of money...

Some of the more industrious among us might want to tally up the total sum of money used to shove the Yen lower on the foreign exchange markets by the Bank of Japan as well as the ECB and the Fed. As stated many times, intervention can NEVER reverse a market trend; it can only postpone it.




As a point of reference, the continued strength in the Yen is tending to keep Yen-gold on the defensive, in contrast to gold priced in terms of most of the other world major currencies.


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2 comments:

  1. BillJanuary 30, 2012 at 10:54 AM

    Hedge-Fund Bulls Add to Commodity Bets

    http://www.bloomberg.com/news/2012-01-29/hedge-funds-lift-bets-to-two-month-high-as-rally-accelerates-commodities.html

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  2. silverwoodJanuary 30, 2012 at 7:14 PM

    Dan, it is my understanding that the Bank of Japan will sell Yen for other currencies in order to prevent the price of Yen rising too sharply against said currencies. So isn't this just a form of Yen dilution/devaluation? The BOJ can simply print as much Yen as it needs for this. Isn't paper and ink still reasonably priced?

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