Then send one or 8 of them my way pls. By the way, why would a country teetering on the brink of implosion be buying 100s of billions of units of USD debt and fully disregarding US warnings of continuing to do so? *busts up laffing*.. Any of those hot Jap chicks been puttin saki in your drinks? Even if any of what you say is true, the best time to buy a country's currency is when the country is at its cheapest, and that is when it is possibly on the verge of an upswing / showing an upswing, after years of hard times. Sam
Sam, You obviously didn't listen to anything I told you, so ya might as well stop asking. There are so many holes in your hypothesis it is mind boggling. 1) and this is the main one, Japan could spend every cent of their foreign holdings, and it would barely make a hiccup in the currency markets. Maybe for a day or so. Their intervention totals for the year are miniscule compared to the size of the forex markets. Nationwide intervention has NEVER worked long term. No nation has enough money. 2) Japan's debt to GDP is massive. Larger than the US. 3) Japan invests in US debt cause it still sees it as the best place to put its money. Where else is it going to put it? 4) Japan's recovery is anemic as hell and just started after 10 years of recession. It could get slammed easily. A renewed recession in the US woulld devastate Japan. 5) Here is a biggy. If Japan could control rates, the yen would be in the toilet vs the buck. Exports drive their economy. Take a look at a long term chart and the yen is doing pretty good relatively speaking. You are trying to justify your position. Jay
Here are some actual figures showing Japan's fiscal health BTW. Debt as a % of GDP = 7.4%. By far the highest in the world among the major industrial countries. US is 4.9%. GDP growth: Japan past year: 3.6%. Pretty good huh? In nominal terms its more like 1% (price deflation). US GDP up 4.3%. Japan is not in any any condition to toss any currency around. Source: The Economist. This is my last post on this subject. I'm not even reading this thread anymore its so silly. Jay
Damn Sam..........................That is just one way I can't go, and I can do almost anything, apes , dogs, rabbits..............LOL Love your statement though........was pretty funny
It is clear and obvious to everyone that follows the currency market, that Japan is currently the dominant force. What they are doing is unprecedented and frankly I'm sure quite unsettling to US policymakers. They are going to unbelievable lengths to keep their currency artifically weak vs. the dollar when every other 'free-floating' currency is strengthening. This puts great strain on the other currencies and is just downright unfair for a country that supposedly has 'free-floating' currencies. The fact that they have purchased about 250 billion $/Yen this year alone is tremendously significant to even the multi-trillion dollar per day currency market. It's the additional marginal buying that is important. For example, a stock that trades 50 million shares per day, maybe really has a net change of real holdings of a million or so shares (the rest is back and forth day trading/fast money types). If a buy and holder came along and purchased 10 million shares of a stock that traded 50 million shares per day, it would have a huge long term impact on that stock's price. Plus, if that entity had a seemingly unlimited bankroll and kept showing up on the bid every time the stock dipped, it certainly would have a huge impact.
One of the lessons we learned back in the 1980s is that Japan doesn't play "fair". They play to win. Not that there's anything wrong with that. Just needs to be kept in mind. After all, the Redcoats didn't think the colonists were fighting "fair" during the American Revolution. Usually in these cases the complainer is making some implicit assumption and is shocked that the other party isn't following the script. And yes, Japanese women are wicked hot.
When I travel there on vacation (tourism) next month I will definitely be on the look out for these hot Japanese women. Regarding the USD now sliding against the yen... For Japan to move the yen down in price anymore than the 111 - 112 level would be a "brutal currency move." That is AGAINST G-7, G-10 and G-20 globally agreed upon policy that the BOJ helped establish. Japan is prohibited from further yen-weakening intervention. As soon as the corporations in Japan book their profits BOJ will let the USD slide back down against the yen to the 105 level, probably lower. Regards, Sam
It sounds like you are having a hard time convincing yourself of what you postulate here, Jay. The USD slide also has to do with the EURO. Read trade-ya1's post. Sam
It sounds like you are having a hard time convincing yourself of what you post here, Jay. The USD slide also has to do with the EURO, remember. And, unlike you indicate, the EURO is not in the toilet. Read trade-ya1's post. Any more BOJ intervention lowering the yen above 111 - 112 level will be seen as a "brutal currency move." This is AGAINST the G-7, G-10 and G-20 global currency regulation policy that Japan helped establish - Japan is prohibited from further weakening the yen. Sam
From Bloomberg: Yen May Rise "The only economy pumping out regular surprisingly good news is Japan,'' said Robert Rennie, currency strategist in Sydney at Westpac Banking Corp. "The market is being manipulated by Japan. It's driving the whole currency market.'' http://quote.bloomberg.com/apps/news?pid=10000101&sid=a0f1gE6X.Ork&refer=japan Sam