Unwinding Anybody?

Take what you want from this article.......but remember this bank president is considered weak, bowing to the Japanese Prime Minister's wishes. Can he afford to get tough raising rates, and at the same time sinking the dollar, which I believe Japan is holding loads of.

All these politicos always go for the easy option, and as we can see begger the consequences. Remember Japanese Central Bank policies have had a hand in where we are today. Indeed their polices of chucking money at Japanese business and individuals way back in the late eighties brought about the collapse in Japanese land and property prices, which after being in a 17 year slide have yet to recover.

Another graph and projection


Or is he worried about THIS

BOJ Is Watching Land Prices for Excess, Fukui Says

http://immobilienblasen.blogspot.com/2007/...for-excess.html

Yen at record lows against the Euro, but why. If it is to do with the carry trade, it suggests investors are buying euros because of higher IRs. But what about all this "cheap borrowing" from Japan we hear about? Why doesn't that boost the yen?

...because they're investing abroad in other currencies (selling yen, buying other currency), the scale of which, is seriously holding the yen down.

That doesn't answer my question - I said as much in my own post.

My question was why isn't the yen boosted by all this cheap money that the rest of the world has been borrowing from Japan? Surely all repayments are in yen and what a great time to buy yen to safeguard against future yen rises. But it isn't happening? Anyone know why?