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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: PaulM who wrote (39571)	8/25/1999 2:09:00 AM
From: Zardoz	Read Replies (2) \| Respond to of 116874

The recent ($25 Billion) intervention by Japan failed, so I would think the "break" to be in the opposite direction. We know, through years of experience that intervention into a currency usually fails. Canada use to do that, Asia, Russia, Euro-land. But a cash inflow can be slowed by an intervention. But maybe the real reason wasn't to prevent the YEN from appreciating, but only to slow it down while either a foreign government such as USA or Euorland are issuing a new debt issue. Wasn't it around Aug 13/99 when the new 30yr bonds came out with a coupon of 6.125 . Maybe that's where the Japanese money was destined to go in the first place. Let's assume that Japan bought then: 115.5 Yen/USD * $100/bond := 11550 Yen/bond Now 110.4 Yen/USD * $102 17/32 := 11319.45 Yen/Bond {-2%) But if yields drop to 5.5% {and assuming Japan don't implode} 110.4 Yen/USD * 109 4/32 := 12047.4 {4.31%} But if Japan implodes to 135 Yen 135 Yen/USD * 109 4/32 := 14731.8 {27.5%} Much of this could result in higher yields. And yes these are the opinions of mine. The Japanese GOV are running a castrated monetary policy. They will implode, the Yen is going to become unstable shortly. You can't expect to have exports continue at this exchange rate. And if Martin Armstrong is correct: '100 Yen/USD then up to 300 Yen/USD will be the way. And it'll take China with it.' Rumours heard in Canada: Oil producers. Remember the Iraq/USA war. Saudi Arabia and Kuwait became told what price to set the Oil at for defense of their areas. It was with the prompting from USA that OPEC meet in March this year to stem off world deflation. Don't think for one moment that the PRICE of OIL wasn't allowed to go this high. So where's GATA on this one? Hutch PS: Their is a cure for the BOJ. But the investors won't like it much.