Shocking!! The Yen Yanged

Just as the carry trade threatened to blow up another rabbit somehow someway was produced from Ben and friends. A coordinated effort of the G7 to save an old friend….no not Japan…they could care less…but the Ponzi carry trade. The blood of liquidity that keeps the ponzi alive. As expected the ponzi lives. Global economic collapse is averted and the casino stays open. Markets will squeeze all the shorts that have piled in and now the structural issues of Japan’s earthquake/tsunami/nuclear meltdown will be simply solved with monetary shenanigans. Its perfect. I think I like it. Being a Central Banker may seem like a stressfull high functioning type of occupation but I think I can do it. Housing bubble pops….print. Banking bubble infected with hundreds of Trillions of derivatives and MBS……print. Massive collapse of a ponzi job market……print. Yup…..I think this could be something I might be able to do. After all it seems like just one button needs to be printed.

It seemed obvious this was coming….all the bears were trotted out on Wednesday. Everytime I looked up at CNBC they were TRUTHFULLY telling you just how bad everything was. It was so obvious that someone was readying the shorts for a murderous squeeze. Of course this is all “too organized” or “too conspiratorial” for the most stayed and pragmatic of market participants to even remotely consider so lets not upset them and let them ponder this. Let’s just allow them to continue to believe that serendipity and “normal market forces” are at work…..hehehhe……sure they are. But does it really matter? NO! Ben has told you the game. When he tells you that he is going to maintain this policy of POMO until employment shows a sustained an meaningful improvement …..HE MEANS IT!!! Until the costs of essentials is making you and every other sheep in this world bleed out of every orifice of their body will he consider pulling back on the throttle. As Joe correctly pointed out however this WILL happen….just not today and probably not until next year. Will prices worsen this year on essentials. Yes yes and YES!! You are going to feel PAIN. He is going to rev the engines of monetary policy until the wheels fall off of the cart.

If you wanna feel sorry for pigs…then you can feel sorry for the forex idiots that were jumping on the short the yen/usd ….How long did they think the true power was going to let that go??? Did they really believe these guys were going to let that go??

Don’t worry though we have lots of games to play yet. Employment…PIIGS defaulting/restructuring…Japan’s issues aren’t even close to over….wait until their rolling blackouts filter into our JIT supply chain and our manufacturing collapses…it could….Riots across the Middle East and soon closer to home as the game unravels……enjoy its only going to get better….sometimes I wonder how they can make this last even till the end of this year but they will….we just might have had a black swan this time if they can’t get this supply chain going….this is where they have a huge problem.

Most of our plays are hanging in there. I gave up on Uranium but its had a nice bounce so for you still in it GOOD LUCK.

Gold and silver are struggling to regain some momentum but the ponzi is relentless in its efforts to throw the kitchen sink at them….Some of the cheaper miners like GPL and EXK look interesting.

ATPG HNR HERO NBR SGY GMXR have been solid performers and with Japan’s energy issues I like this sector.

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