Huh: Bank of Japan wants to cut interest rates

These guys are determined to lead their country on a giant kamikaze mission, their weakening their own population, but that aside do we really need the yen carry trade going again? It’s destroying us.

The deal the BOJ is doing is-

  • Japanese people get a weakened yen and weak purchasing power.
  • Americans get to keep spending.
  • Japanese industry gets to stay alive in the face of chinese competition.

Its up to the Chinese to break out and revalue the yuan upwards. It will be interesting to see if they make any major move in 2008, other than buy up pieces of corporate america.

Good for gold ? I think so…

The carry trade can easily be turned off by their central bank discouraging unlimited financing by their banks. A quiet word, yakuzoo-style, would suffice.
In any case, I think the days of investors putting money into highly leveraged funds that execute carry trades are coming to an end (for our generation, at least).

Youtube greeting in English from Mr. Fukuda

His comments come after a record chinese yuan revaluation. Looks like they will follow the yuan upwards.

It all takes so long though that its very hard to make money from these appreciations.

Interesting it looks like there has been an agreement between China and Japan. Something tells me it was more than baseball they discussed.


Chinese Premier Wen Jiabao (L) and Japanese Prime Minister Yasuo Fukuda pose after playing catch-ball in the gymnasium at Diaoyutai State Guest House in Beijing December 29, 2007.

Japanese Prime Minister starts China visit
china.org.cn/english/news/237302.htm

Japan’s Prime Minister Fukuda returns home after relationship-warming trip to China
iht.com/articles/ap/2007/12/ … Summit.php

Very nice of Japan to let us know they were going to allow the Yen to move up :smiley: Thanks guys!

USD/Yen now at 106.8. Lehman brothers are predicting it to be 95 by the end of 2008.

https://www.jsmineset.com/cwsimages/inventory/56982_Bernanke.jpg

Emergency rate cuts from Mr. Bernanke on the way, lots of people unwinding their positions in the carry trade.