Right now it's above160. I can't believe the BOJ is going to throw good money after bad with another massive intervention. Something has to give.
294 sats \ 1 reply \ @supertestnet 26 Jun
Sometimes the lack of self awareness is stunning. Commenting on day-to-day currency moves, the Vice Finance Minister said: "we won't comment on day-to-day currency moves," before going on to discuss planned interventions the government is ready to make if day-to-day currency moves get "excessive" or reduce the yen's value to certain key levels.
Their government wants to give the impression that their country's dramatic economic inflation is actually not very significant, certainly not significant enough to warrant comment from the finance ministry. But they also *need* to comment because that impression won't create itself.
Keynesian economics teaches us that an actual state of economic stability emerges from people believing in a state of economic stability, and instability emerges from the opposite belief. So you can stabilize economic conditions by convincing people there are no problems -- "there's nothing worth commenting on" -- and that if there are any, they are easy to fix: "as for the massive ongoing debasement of your money, don't worry, we can fix that through an intervention -- i.e. by spending yet more money."
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21 sats \ 0 replies \ @siggy47 OP 26 Jun
Funny you brought up Keynesian economics. I'm reading "The Genesis Book" (excellent) by Aaron Van Wirdum, and he talks about the Hayek/Keynes arguments. Government intervention was always the answer, regardless of the question.
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65 sats \ 1 reply \ @IamSINGLE 26 Jun
I believe in Japaneese people anc can sense that Japan will be able to leave deflation behind in the second half of the year.
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0 sats \ 0 replies \ @john_doe 27 Jun
The problem in Japan is not deflation but inflation and "free" money. If you hear that there is deflation in Japan, it just means that people hide hikes in prices through different means (e.g.: different providers, lower quality/quantity, less services, etc).
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54 sats \ 0 replies \ @grayruby 26 Jun
Another intervention, inevitable. The one after that also inevitable.
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87 sats \ 3 replies \ @SatsMate 26 Jun
Yikes! I just checked the chart and couldn't believe it.
I also think the US can use SWAP lines to help bail them out, or Japan can try to dump more US Treasuries if they have that ready.
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54 sats \ 2 replies \ @siggy47 OP 26 Jun
I think the US will do what it can, but I don't know what the consequences will be.
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54 sats \ 1 reply \ @gmd 26 Jun
What happens in the macro if they dump US treasuries? Does that mean we have to raise rates to keep buyers interested?
Feel so bad for the Japanese people. Wonderful culture but they fucked.
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99 sats \ 0 replies \ @siggy47 OP 26 Jun
I think short term the US Treasury market is liquid enough to absorb the selling they may do. Long term US interest rates are hurting and will continue to hurt banks holding this debt, foreign and domestic.
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54 sats \ 0 replies \ @Satosora 26 Jun
Another intervention?
They are really behind the eight ball.
They might have stepped in too late to correct it.
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120 sats \ 0 replies \ @Undisciplined 26 Jun
That's how I feel about just about everything, right now.
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