Wednesday, June 27, 2007
The Japanese Yen is at lows against anything you care to mention – why?
Why does everyone hate the Yen?
The thing driving currency markets is Interest Rates.
Posted by alan @ 04:01 PM (483 views)
One thought on “The Japanese Yen is at lows against anything you care to mention – why?”
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sold 2 rent 1 says:
Similar to the FT article yesterday
http://www.ft.com/cms/s/81105144-2382-11dc-9e7e-000b5df10621.html
Quote:
“Central banks are likely to attempt to ratify current inflated asset values by inflating prices and incomes to avoid a deflationary economic collapse. Unfortunately, sharp reductions in interest rates in the US, UK and the euro area will lead to a rapid unwinding of the global carry trade, perversely threatening to worsen problems in the credit markets.”
Central banks have been trying to create inflation by increasing the money supply. All that has happened is debts and assets have gone up even more.
You can’t create wage-price spiral inflation in the West when 3 billion workers are added to the global economy.
What do you think of this, Stoatgobbler?
China is not even mentioned and we have a picture close to armageddon. An investment bust in China will only add fuel to the fire.