Posts Tagged ‘Shirakawa’

Notes From Underground: Back to Work and the Battle Cry of Pepper Spray Davos

January 22, 2013

First and foremost: Notes From Underground has become a global community and the outpouring of support and condolences to my family has been phenomenal. Again, my heartfelt thanks to all who expressed such wonderful thoughts.

Much has transpired since last Sunday as the Swiss franc and the Japanese yen have continued their recent weakness as intervention with the intention of forcing the YEN and FRANC lower have been very successful. Also, as usual, I will poke at this weeks circus in Davos, Switzerland. From my perspective, the entire conclave of insider trading–as the rich and business elites gather to discuss ways to save the world–in the last 20 years are a direct result of the political and economic movers and shakers exchanging ideas in the Swiss Alps. Yes, we go from crisis to crisis.


Notes From Underground: Mario Monti Is No General Sherman

December 23, 2012

Over the weekend Mario Monti decided not to run for the Prime Minister position through joining any party’s list for the election to be held in February. Mr. Monti was never elected to his present position but was parachuted into the job by the Eurocrats in Brussels. It seems that PM Monti fears facing the electorate as so many Italians are angered by the slash-and-burn techniques of the supreme technocrat–both left and right have criticized the present Monti government. Monti resigned after Silvio Berlusconi pulled his support from the Monti regime, but now it appears that Berlusconi would renew his support for a Monti-led coalition. The dramatic fall in bond and stock prices following Monti’s resignation caught the attention of the monied groups in Italy.


Notes From Underground: The Tight Rope Walker Was The Key Circus Performer

September 6, 2012

As I covered in NOTES yesterday, the three-ring circus was coming to town Thursday and the show was so fantastic that it dazzled investors worldwide. The RIKSBANK began the show by cutting its rate by 25 basis points to get the audience in a festive mood. Mervyn the Magnificent from the Bank of England did his laying down and going limp act so as not to be sawed in half by the by those magicians of the slight of hand. The BOE left everything as is and presented a very benign statement that offered up very little as to its rationale for maintaining the present rates as well as the same ASSET BUYING PROGRAM. The market was gawking at the rising financials in Europe when in the center ring, Marvelous Mario dropped his cape and headed out on the high wire in which the safety net was pretended to be removed or was totally transparent.


Notes From Underground: Did Socrates Drink the POISON of a European Bailout?

April 6, 2011

Tomorrow will bring interest rate announcements from two key central banks, okay three , if we count the BOJ but the Japanese have so many problems it is a forgone conclusion that Mr. SHIRAKAWA will hold the line and, if anything, find away to flood the market with more liquidity. The Bank of England (BOE) will announce at 6:00 a.m. Chicago time. Though there are a few analysts who think the Mervyn King-led BANK will raise to head off the increase in inflation, I would say that the chances are maybe 5 percent.


Notes From Underground: The Dutch may have windmill but markets have rumor mills

August 30, 2010

First things first: The Japanese Central Bank did in fact hold an emergency meeting Sunday. The market’s initial reaction was to sell the YEN. But the market was disappointed when the BOJ and MOF trotted out the same old, tired plans for stimulus at a press conference. There would be no intervention to halt the YEN appreciation, thus the market reversed the YEN selling and the DOLLAR was sold off by 150 pips. All the YEN crosses also reversed–the market punished the Japanese for TALKING LOUDLY AND CARRYING A LITTLE STICK. Moral of the story for Finance Minister NODA and MOF GOVERNOR SHIRAKAWA: Like a groom on the honeymoon, don’t promise more then you can deliver.


Notes From Underground: Waiting for the 12 gnomes of the FED

August 10, 2010

Overnight, the Bank of Japan announced that it was holding rates at zero. The recovery was proceeding but the BOJ was watching the impact of the YEN on growth going forward. But at this point BOJ Governor Shirakawa was content to leave the YEN price to market forces. According to a Bloomberg article, Shirakaw did say that the PRESENT VALUE OF THE YEN did dominate the meeting because of possible risks to the economy. Most of the time, members from the Ministry of Finance  (MOF) are invited to sit in the meetings with no vocal presence unless specifically asked. Finance Minister Yoshi Noda has been very vociferous about the YEN appreciation and it effects on Japanese exporters.