Tag Archive: Bank of Japan

Nomi Prins’ Political-Financial Road Map For 2017

2017-01-05

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2017-01-05

2017 Just Ahead
As tumultuous as last year was from a global political perspective on the back of a rocky start market-wise, 2017 will be much more so. The central bank subsidization of the financial system (especially in the US and Europe) that began with the Fed invoking zero interest rate policy in 2008, gave way to international distrust of the enabling status quo that unfolded in different ways across the planet.

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A Biased 2017 Forecast, Part 1

2017-01-05

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2017-01-05

hind-sight
A couple weeks ago I was lucky enough to see a live one hour interview with Michael Lewis at the Annenberg Center about his new book The Undoing Project. Everyone attending the lecture received a complimentary copy of the book. Being a huge fan of Lewis after reading Liar’s Poker, Boomerang, The Big Short, Flash Boys, and Moneyball, I was interested to hear about his new project.

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As Central Bankers Spin

2016-12-25

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2016-12-25

I know that I resemble the old guy in this cartoon, standing by helplessly as I watch central bankers experiment with the global economy. Bubbles are blown, again, in several asset classes. Negative interest rates have become an acceptable concept, as if they are just words and have no real economic meaning.

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We’re All Hedge Funds Now – Central Banks Become World’s Biggest Stock Speculators

2016-11-08

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2016-11-08

CBS
At first, the idea of central banks intervening in the equity markets was probably seen even by its fans as a temporary measure. But that’s not how government power grabs work. Control once acquired is hard for politicians and their bureaucrats to give up. Which means recent events are completely predictable.

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FX Daily, November 01: Dollar and Yen Slip in Quiet even if Eventful Turnover

2016-11-01

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2016-11-01

FX Performance, November 01 2016 Movers and Shakers
The US dollar is posting minor losses against most of the major currencies today.The Japanese yen is the exception, as the greenback continues to straddle JPY105. There have been several developments today, and the US also has a full economic calendar today. The most important of the developments was the upbeat message from the Reserve Bank of Australia.

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FX Weekly Preview: Six Thumbnail Sketches of This Week’s Dollar Drivers

2016-10-30

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2016-10-30

Thumbnail
Four central banks meet, but expectations for fresh action are low. The US latest election news does not appear to be altering the projected electoral college outcome. UK press are speculating about Carney possibly resigning. We are skeptical.

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FX Daily, October 27: Rising Yields Continue to be the Main Driver

2016-10-27

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2016-10-27

FX Performance, October 27 2016 Movers and Shakers
The euro remains pinned near the seven-month low it recorded two days ago near $1.0850. It approached $1.0950 yesterday and has been confined to about a 15-tick range on either side of $1.0905 today. Against the yen, the dollar remains near the three-month high (~JPY104.85) also seen two days ago. New dollar buying emerged yesterday near JPY104.

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Financial Repression Is Now “In Play”

2016-10-20

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2016-10-20

A FALLING MARKET CANNOT BE ALLOWED – at any cost! The Central Bankers have clearly painted themselves into a corner as a result of their self-inflicted, extended period of “cheap money”. Their policies have fostered malinvestment, excessive leverage and a speculative casino approach to investments. Investors forced to take on excess risk for yield and scalp speculative investment returns, must operate in an unstable financial environment ripe for...

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What Happens When Rampant Asset Inflation Ends?

2016-10-19

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2016-10-19

GDP - Median Household Income
Yesterday I explained why Revealing the Real Rate of Inflation Would Crash the System. If asset inflation ceases, the net result would be the same: systemic collapse. Why is this so? In effect, central banks and states have masked the devastating stagnation of real income by encouraging households to take on debt to augment declining income and by inflating assets via quantitative easing and lowering interest rates and bond yields to near-zero (or...

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Is the Gold Bull Market Over?

2016-10-17

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2016-10-17

ABN Amro, Natixis and Wells Fargo have issued bearish calls on gold. Natixis even expects three Fed rate hikes next year. Pater Tanebrarum discusses these opinions critically.

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FX Daily, October 03: May’s Confirmation Sends Sterling Lower

2016-10-03

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2016-10-03

FX Performance, October 03 2016 Movers and Shakers
Sterling has a bad case of the Monday blues. Even the moon looks distraught. Prime Minister May has confirmed earlier suggestions that she will trigger Article 50 to formally begin its divorce proceedings from the EU at the end of Q1 17. Several officials have already hinted this time frame, though many have been skeptical that Article 50 would be triggered at all, given the complexities of the issues.

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FX Daily, September 30: SNB Intervenes to Polish Q3 Results

2016-09-30

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2016-09-30

FX Performance, September 30 2016 Movers and Shakers
True to its recent habit, the US dollar is finishing the week on a firm note. On the month, though, the greenback has fallen against most of the majors, but sterling, the Canadian dollar, and the Swedish krona. Global equities are trading heavily, and investors' angst is lending support to bond markets.

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FX Daily, September 26: Dollar Mixed while Stocks Slide to Begin Last Week of Q3

2016-09-26

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2016-09-26

FX Performance September 26, 2016 Movers and Shakers
The US dollar is narrowly mixed. The euro, yen and Swiss franc are higher, while the dollar-bloc and sterling are softer. The moving element here is not so much the greenback, which serving more as a fulcrum, but idiosyncratic, country-level developments.

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Japan’s Planners Ratchet up Monetary Experimentation

2016-09-26

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2016-09-26

It was widely expected that the BoJ would announce something this week after it promised to perform a comprehensive review of its monetary policy. It certainly did deliver a major tweak to its inflationary program, but its implications were seemingly not entirely clear to everybody (probably not even to the BoJ).

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FX Daily, September 23: It is Friday and the Dollar is Firmer Again

2016-09-23

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2016-09-23

FX Performance September 23, 2016 Dukascopy Movers and Shakers
As Nassim Taleb instructed, we should not be fooled by randomness. If you see six red results in a row at a roulette table, do not conclude the game is rigged. If you flip a coin, and it is tails six consecutive times, the contest is not necessarily rigged.

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FX Daily, September 22: Swiss Franc Strongest Currency Again

2016-09-22

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2016-09-22

Movers and Shakers, September 22,
Once again the Swiss Franc was the strongest. The EUR/CHF depreciated to 1.0875. As said yesterday, the reasons: the Fed and the strong Swiss trade balance.

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FX Daily, September 21: BOJ Can’t Weaken Yen, Fed keeps Rates Unchanged, CHF Stronger

2016-09-21

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2016-09-21

The EUR/CHF accelerated its decline since yesterday's strong Swiss trade balance data. The second reason was certainly the Fed decided to keep rates unchanged. We know that the Swiss Franc has similar "counter-dollar" status as gold.

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Why should you Buy Government Bonds with Negative Yields?

A question worth asking considering the rather large amount of them knocking about at the moment. According to JPM, the total universe of government bonds traded with a negative yield was $3.6tr last week or 16 per cent of the JPM Global Government Bond Index. It’s an answer in itself, really.

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FX Daily, September 20: The Swiss Franc Continues To Rise.

2016-09-20

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2016-09-20

Movers and Shakers, September 20
The trade balance express if a currency is overvalued or not. The Swiss trade surplus is constant or rather rising, hence the Swiss Franc is correctly valued or rather undervalued. And the franc continues to appreciate.

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FX Daily, September 19: Dollar Begins Important Week on Softer Note

2016-09-19

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2016-09-19

The US dollar, which finished last week on a firm note, is under pressure to start the new week that features Bank of Japan and Federal Reserve meetings. The slighter stronger August CPI reading helped lift the greenback ahead of the weekend, but investors continue to see a low probability of a Fed hike this week.

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