because there is a huge capital outflow. Plus you get carry trades shorting the yen to other currencies for higher interest rates.
As a gaijin trying to scratch out a paltry living from N225 and topix for the past six years while trying to make sense of yen and their schizophrenic economic news flow - two words - indiscernable and corrupt. I'll never understand why some among us in Washington are so focused on bashing the Chinese when the real culprit is Japanese monetary policy. My view here is so far out of the mainstream, you'd only find people who share it in the blogosphere.
Maybe the Powers are keeping the REAL reason from us. 1. Remember how the US formerly bitched about the weak Yen and our trade deficit with them? Well, now we're not. Could be because some of that carry trade money is going into US Treasuries and keeping our rates low. (??) 2. The Japanese had that long recession. By floating carry-trade money, they cheapen their currency and create "print money" without being held accountable for it. After all, the carry trade money is technically a loan. 3. Could be part of a gigantic collusion to help ease the US with its own deficits and Baby Boom Entitlements boondoggle. (??)
I agree. Japan has been "managing" their currency all along. China is just copying what they have been doing. The IMF or WTO should be cracking down on using currency as a trade barrier.
awsome for Asia exports fueling more of a deficit in US. All the Asian coutries are screwing us . What do we get in return ? Cheap Walmart prices but how will that affect us down the road when they own us ?
Tough question. It depends on the base currency you operate in. 10K yen for example (a N225 tick) has gone from around 95$US to 81$US. An Aussie, a Brit or an EMU based trader would see something different. In his piece this week, Henry Liu dicusses this some in the section on universal currency devaluation: http://www.henryckliu.com/page136.html