Nonlinear unstable waves in the eastern ocean basin are analyzed using a three-layer quasi-geostrophic numerical model. The upper two layers are forced to maintain a mean circulation in the absence of mesoscale motion. The waves are produced by initial small perturbations added to the mean flow. Two experiments, focused on the eastern ocean basin and differing only by mean flow strength, are performed. A region of high eddy kinetic energy is formed in the southern region, but the eastern and norther regions are vacant of eddies because of the energy efflux by westward and southwestward propagating unstable waves. Regional energetics are calculated to highlight the differences between the eastern and southern regions. Two dominant waves are found in the southern regions. Waves with a period of 120 days propagate to the west and form several wave trains parallel to the southern boundary. Longer-period waves with a period of 200 days propagate to the southwest. Comparisons with observed eddies in the northeast Pacific are discussed. Besides baroclinic instability, it is found that the energy flux by propagating waves is very important in the finite amplitude stability of the eastern ocean general circulation. ¿ American Geophysical Union 1988