PM Abe's Chief Cabinet Secretary Stating the Obvious: "When Yen Was Higher, Yen Was Much Higher"

Thursday humor to tide you over to Fabulous Friday...

From Chief Cabinet Secretary Yoshihide Suga, on the second largest plunge of Nikkei this year and Japanese yen melting up past 94 yen (for a moment), according to Reuters Japan (6/13/2013; part):

「円高の際には７６円までいったのだから。現在は１ドル９４円。安倍政権の発足時に比べたら、株価は４割くらい上がっており、為替もきょうは円高に振れたとはいえ、１５円くらい円安になっている。そうした動きは一喜一憂することではない。株価は必ず調整局面があるのだし、実体経済や先行指標は間違いなくよい方向にあり、自信をもって政策を推進していきたい」

"When yen was higher, it went to 76 yen. Right now it is 94 yen against US dollar. Share prices are up by 40% now, compared to when the Abe administration came into power, and yen is 15 yen cheaper now, even though it was higher today. Such movements are nothing to worry about. Share prices adjust, real economy and leading indicators are definitely on the mend. We would like to execute our policies with confidence."

As if real economy (aka "main street") matters to algo bots and macro investors. In case you think like Suga, it doesn't. In addition, Mr. Suga seems to already and conveniently forgot that one of the leading indicators for private capex (capital expenditure), machine order, plummeted by 8.8% in April.

Close your eyes and click your heels three times...

When Reuters Japan initially reported the news, Suga's comment was extremely succinctly summarized, as:

「円高の時は、もっと円が高かった」

"When yen was higher, yen was much higher."

Exactly, Mr. Suga.

Suga also quoted Bank of Japan Governor Kuroda telling the Abe cabinet that the stock plunge is just a normal profit taking.

Exactly, Mr. Kuroda. It's also called "bear market".

Congratulations by the way for having the first major stock index in the world that has plunged down to a bear market territory (i.e. 20% correction from the top). Japan as the world No.1!

One glimmer of hope for Suga, Kuroda, and Abe, maybe, is that Goldman Sachs, who had recommended long Nikkei September futures in anticipation of BOJ's meeting results on Tuesday, is sticking to the recommendation even after the stop loss was triggered, according to Zero Hedge (6/13/2013):

...Instead, Goldman flagrantly ignores its own stop loss, and continues keeping the muppets in what is now a losing trade, and massively losing if one applied leverage.

The overnight price action in Asia has been extremely volatile, with all major equity bourses deeply in the red. The Nikkei closed more than -6% lower (and the Topix about -5%), with the JPY trading through 93 at one point (last 94.5). These sharp moves have also meant that the Nikkei September future traded through our stop of 12,700... Stay long Nikkei September futures (NKU3), opened at 13,215 on 10 June 2013, with an initial target of 14,500 and a stop on a close below 12,700, currently at 12,400.

Translation: Goldman has quite a bit more NKU3 in inventory to sell to muppets. And muppets, clueless as always, are gladly obliging.

(UPDATE) Goldman apparently exited the trade, according to Zero Hedge.

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