MARKETS REACT TO KURODA & CREW
You know, some days you just can’t make this shit up; I mean, I was pretty confident the hapless BOJ would screw things up, but I had no idea that a group of academic MBA planners in Japan could come up with this “brilliance” of attempting to “manage the yield curve”. Nobody but nobody does “stupid shit” better than the BOJ; I’m just in awe of their stupidity, what else can I say really?
Jawboning the Yen lower? Sure, that lasted all of a few minutes before reality set in and the world discovered once again, in the words of one analyst, it’s “all an illusion”. Well, no shit Sherlock, it’s what these people do.
Remember, these are the guys who have literally killed bank balance sheets with negative rates; now, here comes the fix. “Hey, we’ll just steepen the JGB yield curve so you can make money … see, we’re listening … all is better now … right?” Only problem is that the very same people who are responsible for the banking sector problems are now the ones with the solutions; “gosh, what could possibly go wrong here this time?”
Natch, on the back of the subsequent Yen rally [USDJPY lower], gold has been rallying since the “Oracles of Tokyo” made their announcements; problem for gold now is that the market is projecting Japan’s stupidity into “Yellen won’t hike rates”, and the short covering has commenced into the New York session, lifting gold about $20 off the lows with 3 upper line exhaustion “hits” on the way up. Now, if we get “nothin’” from ChairSatan Yellen on rates, there won’t be much air in the balloon to catapult prices higher; if rates get hiked, you better have a parachute for the nasty trip down.
So far, it’s been a very good morning of trading given Japan’s stupidity; this is just “Part I”. Now it’s time to catch a few zzzzz’s and await “Part II”; i.e. the “Oracles at the Eccles Building” when they piss all over themselves @ 2 PM Eastern trying to explain why nothing or something is the right call with language no translator except a government bullshit artist can possibly figure out.
So, I’m posting early today so we can all bask in the brilliance of our “fearless leaders” when the time comes, and step back and reflect on just how fucked up this country has become; politically, financially, and of course socially. I need a little sleep cuz I don’t think my brain can handle the bullshit that is set for 2 PM without a reset. Until tomorrow … [“No, we ain’t goin’ to the beach ‘til later … I got to get some sleep here … OK, here’s a Beggin’ Strip … now STFU and lay down.]
Have a great day everybody!