Fresh & Suprise BOJ QE sends dollar soaring and PM's lower

greghansen · October 30, 2014 6:51PM

Good morning and welcome to the Bank of Japan's surprise increase in both the size and duration of their QE. BOJ has struck again, early and often, in the 'race to the bottom' with their currency devaluation. The $ is soaring, the USDYEN has taken out 110 and doesn't seem likely to look back below that anytime soon, and the PM's are being pressured greatly this morning.

TwoSides2aCoin · October 30, 2014 7:32PM

The poor can't get poorer , the rich can't get richer and the middle class can't suffer enough.

jmski52 · October 30, 2014 8:05PM

Nothing has changed, then?

Relative to the Yen, the Dollar looks like the all-time champ. Of course it does.

The problems arise when you print money to finance spending and debt servicing, instead of letting money be the result of productivity.

The question is always, "who's running the show?" Ayn Rand was right, and we're going to see it happen here.

MGLICKER · October 30, 2014 8:56PM

What is promoted as stimulus is a frantic currency monetization to satisfy a huge and unpayable national debt.

Japans current budget is over double their revenue, yet the 10 year note is at half a percent.

When gravity returns, it will not be pretty.

derryb · October 30, 2014 9:00PM

Gives the FED more breathing room/incentive for the next QE.

Strong dollar is horrible for US exports/jobs as well as for PMs. FED claims it has a mandate to help create jobs. We shall see if they mean it. They may very well be setting up the scenario to justify raising interest rates.

PRIZ430 · October 30, 2014 9:20PM

<< <i>Gives the FED more breathing room/incentive for the next QE. >>

YES!!!!....Gives the dollar a bump up....So when the FED follows with their own QE, the dollar will begin its fall from a higher starting point...
...

jmski52 · October 30, 2014 9:38PM

This reminds me a lot of "Groundhog's Day".

MGLICKER · October 30, 2014 10:26PM

Doing some quick math, world stock market caps will have risen by a trillion bucks today on the Japan move of printing an additional $10 billion per month* quite the house of cards.

* translated from Yen.

bestmr · October 30, 2014 10:41PM

I'm excited personally. Now I can buy more.

TwoSides2aCoin · October 30, 2014 10:56PM

Party

Thought this was entertaining

TGIF

Tookybandit · October 31, 2014 12:01AM

I smell $9 Silver! ... It's cookin' and it's almost ready!

Baley · October 31, 2014 12:13AM

So let me get this straight, a weak dollar is bad, and a strong dollar is also bad?

cohodk · October 31, 2014 12:20AM

Japan has awakened the sleeping giant yet again.

BAJJERFAN · October 31, 2014 12:39AM

<< <i>Doing some quick math, world stock market caps will have risen by a trillion bucks today on the Japan move of printing an additional $10 billion per month* quite the house of cards.

* translated from Yen. >>

If that trillion $$$ increase in market cap was actually converted to cash, how long do you think it would take the BEP to actually print it it?

MGLICKER · October 31, 2014 12:43AM

<< <i>Japan has awakened the sleeping giant yet again. >>

My brother is returning from a Tokyo vacation today. It will be interesting to get his perception on the City.

Japanese are rather stoic and will likely not express any discontent to a stranger.

Another example of a nation living well beyond its means for an extended period. As the debt instruments are widely held by citizens, they are holding paper that will be greatly discounted in real terms. A fair exchange for decades of over consuming and under taxing I suppose.

No free lunch in the land of the rising sun.

...or anywhere for that matter.

Fresh &amp; Suprise BOJ QE sends dollar soaring and PM's lower

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Fresh & Suprise BOJ QE sends dollar soaring and PM's lower