I was somewhat surprised to see the yen at ¥76.9-something to the US dollar. A hour or two later, the yen had dropped to its current ¥78.9 per US dollar. Obviously the Japanese Central Bank intervened and bought a bunch of dollars.
Fools. When will they ever learn? They keep throwing our hard earned tax money down the drain to stop the yen's rise, but it is all in vain as the yen's appreciation continues.
Market Watch reports:
Japanese Finance Minister Yoshihiko Noda confirmed the government acted alone to curtail the yen’s rise, unlike in March, when local authorities acted in concert with their counterparts from the Group of Seven leading economies to keep the yen
from appreciating further.
Why do these fools keep doing this? When will they ever learn that these interventions cannot and will not stop any long term trend? The next part of the article is laughable:
Still, many analysts were skeptical that the actions could keep the yen anchored beyond the short term.
“We don’t believe today’s action will explicitly change the trend of the [dollar-yen rate],” economists at The Royal Bank of Scotland wrote in a note to clients.
“As long as concerns for the downside risks in the U.S. economy and expectations for the [Federal Reserve’s] further easing measure persist, it is hard to expect the [dollar’s rate against the yen] to return to high enough levels to alleviate the negative pressure on exporters’ earnings,” they said.
Gee, you think that, after decades of this sort of failed action repeated over and over that these analysts would figure it out? Gee... I guess they really go out on a limb and stick their necks out when they make statements like, "We don't believe today's action will explicity change the trend."
What!? After decades of this sort of action and the inevitable failures of those actions, why is it difficult to say straight out that "this Bank of Japan intervention will fail like all the others have before it."
There I said it. Am I an economic hero or what?
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