Update: Japan Shock Therapy Stumbles: Japanese Stocks Halted!Submitted by goldenequity on Wed, 05/22/2013 - 06:19
Japanese Stocks Halted; Plunge 1500 Points To Close Down 7.3% - Biggest Drop In 26 Months
UPDATE 1: They are panicking... BOJ injected 2 trillion yen ($19.4 billion) into the financial system to stem volatility following a circuit breaker in JGB futures trading.
UPDATE 2: Nikkei 225 is now down 1500 points from its highs and down 1150 (over 7%) from yesterday's close
UPDATE 3: The Final closing data is a disaster with JPY surging back to 101.50 (carry trades getting baumgartner'd everywhere), stocks down over 7%, and 10Y JGBs swinging from +11bps at the open to -6bps at the close for the second biggest range day in a decade...
Tonight: Gov Kuroda BoJ is due to speak (10:55pm EST)
Good Luck Gov Kuroda!
April 4: BoJ Plans to DOUBLE Monetary Supply (What???) / GOLD drop explained
The global punch bowl was spiked like never before.... Borrow the Yen / Buy the Dollar... everybody's doing it (again). It's explains the drop in Gold completely.
Kuroda BoJ: "Shock Therapy"
the "2-2-2-2" Policy - April 4 Announcement
2% inflation in 2 years
DOUBLE the AMOUNT: Monetary Base and BoJ AMOUNT of Japanese Govt Bond Holdings (JGBs)
DOUBLE the TIME (duration) of Japanese Govt Bonds (JGBs) that BoJ buys
She does a VERY good job of explaining the resurgence; the EXPLOSION (again) of the Yen carry trade. It's back folks... and will utterly DESTROY their currency. Meanwhile... the party's on!
She explains it best... take the time to listen.
►That poor island... when this bubble bursts.
Keep in Mind....
While she does a GREAT job at explaining the 'Carry Trade' effects...
George Soros (as usual) talks out of both sides of his mouth.
What do I mean?
Well is this REALLY a bear market in gold?
Not really. It's a bear market in PAPER.
Paper Gold. ETF's
1. They (holders of paper Gold) are looking (and always were looking)
for YIELD... she explains that very well. So they are dumping it for 'other' paper... the Yen carry trade. The yield is GUARANTEED (for now).
2. They (holders of paper Gold) are quickly realizing they cannot GET their hands on the physical.
As a matter of fact, George Soros KNOWS it very well and is encouraging OTHERS to divest paper for (other) paper.
While George (himself) is doing the exact opposite:
No Bear Market In Gold — Paul Craig Roberts
You know that gold bear market that the financial press keeps touting? The one George Soros keeps proclaiming? Well, it is not there. The gold bear market is disinformation that is helping elites acquire the gold.
. . . the Soros Fund maintains a $32 million stake in individual mines; added 1.1 million shares of GDX (a gold miners ETF) to its holdings which now stand at 2,666,000 shares valued at $70,400,000; has 1,100,000 shares in GDXJ valued at $11,506,000; and 530,000 shares in the GLD gold fund valued at $69,467,000. [values as of May 17]
The 13-F release shows the Soros Fund with $239,200,000 in gold investments. If this is bearish sentiment, what would it take to be bullish?
The misinformation that Soros had sold his gold holdings came from misinterpreting the reason Soros’ holdings in the GLD gold trust declined. Soros did not sell the shares; he redeemed the paper claims for physical gold. Watching the gold ETFs, such as GLD, being looted by banksters, Soros cashed in some of his own paper gold for the real stuff.
Is there REALLY a bear market for Gold?
The Physical dirge is getting worse:
Clients Denied Gold At Major Banks As Shortage Intensifies
. . . there is no more physical redemption of the ABN AMRO gold accounts, it seems these contracts are no longer backed by physical gold. It’s just backed by paper, and this is of course typical for the paper market, Eric. This paper market, which is 100 times bigger than the physical market, probably has zero percent backing of physical. This is why ABN stopped redeeming in gold.
. . . last week we had an investor being refused to take his physical gold out of a major Swiss bank. They told him that the regulatory authority prevented the bank from giving the client his physical gold. That is of course total nonsense, and eventually we helped the client to get his gold out of the bank.
. . . Another of our clients was told by a major Swiss bank that he can only take out 100,000 Swiss francs of physical gold every six months. They blamed money laundering and terrorist activity for this decision. Yet another client was again told by a major Swiss bank that his storage fees would be going up substantially. When he complained he was told that he should convert to paper gold.
. . . another big bank, which has an ETF, told a client who wanted to transfer gold out it that he would have to wait at least two weeks for the transfer. You just wonder why a major bank that is supposed to hold substantial amounts of physical gold needs two weeks of more to transfer gold to a client.
We sit on an economic powder keg... her analysis is absolutely correct.