Thoughts and links from Heinz
Date: Tue Sep 30 2003 11:18
trotsky (apparently it's the Japanese MoF) ID#377387:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
intervening VIA the Fed, not the Fed itself ( which as i pointed out doesn't have enough forex reserves to effectively intervene ) . so it's a Japanese operation designed to hit the NY markets. this reminds me a bit of the BoE fighting for the pound's life in the early 90's - only that in THIS case we actually have the perverse case of a central bank failing to WEAKEN its currency, as opposed to strengthening it...an entirely unexpected event for the owners of the Yen printing press no doubt.
in any case, this frantic Yen battle is all the more reason to stay with gold...as are today's economic data, which suggest that the printing presses on both sides of the pond will keep doing overtime.
oh btw., today's data shed fresh light on last week's 'recovery' spin assault by various FOMC members...as i said, they MUST be aware that the recovery is a mirage, unless they don't know how GDP stats are compiled, which seems unlikely. so the spin exercise was an attempt at damage control...and we should expect the jobs data to be misused for the same purpose. as Richebaecher points out in this essay, a 'recovery' these days takes place whenever the government 'feels like it' and spins the data accordingly - note the many references to the manipulation and spin in the employment report:
appropriately entitled 'employment disaster':
321gold.com
Date: Tue Sep 30 2003 11:04
trotsky (Hambone et al.) ID#377387:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
the tip-off that something is SERIOUSLY out of whack was this morning's news that Japan spent 40 BILLION dollars worth of intervention Yen to stem the Yen's rise in September alone, with a huge Yen rally to show for their efforts.
so we have a poker game where one player after another shows how weak his hand actually is...first the BoJ and now it's the Fed's turn. it is taking a huge gamble if it really intervened, because if that intervention fails to do the trick, it's curtains for the entire 'market smoothing operations' enchilada. note in this context that the Fed's forex reserves are pitifully small...too tiny to effectively intervene. it can only hope for the nimbus of its omnipotence to carry the day. this may actually be one of those dreaded 'tipping points'...
Date: Tue Sep 30 2003 10:51
trotsky (rumor) ID#377387:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
Fed intervenes in dollar/yen. that would be a rare event, and a sign of growing fear of a major market dislocation.
Date: Tue Sep 30 2003 10:38
trotsky (Prudential downgrade of NEM?) ID#377387:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
what else is new? it's really funny...since NEM traded at $16 or so, it got at least 4 downgrades from Prudential...what is it now? a super-duper sell? LOL.
that said, this is possibly the first such downgrade that may arguably make some remote sense on a short term basis...if they had told their clients to buy it at lower prices that is. that not being the case ( it was already rated "SELL" at $16 ) , one is left wondering.
in any event, it is heartening to know that gold stocks still get no respect on WS...WS joining the bandwagon would be almost as bad as seeing the word 'gold' in bold print on the front page of the British 'Sun' tabloid.
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