Friday, the yen hit a 15-year high to the chagrin of the Bank of Japan and the fools who "govern" this country. This, just three weeks after massive Bank of Japan currency intervention on Sept. 15.
The U.S. dollar slid to a 15-year low versus the yen on Friday after a weak U.S. jobs report while Wall Street edged up on speculation of more Federal Reserve economic stimulus as policymakers in Washington seek to avoid a currency war.
Just up to a few days ago, the Bank of Japan was patting itself on the back that they went to the G7 and, since no one complained about the big currency intervention on Sept. 15, that Japan was ready to do it again.
"I explained to the G-7 that Japan's previous intervention was aimed at curbing excessive appreciation in the yen that could hurt the Japanese economy," Yoshihiko Noda said at his first press conference since returning from a meeting of finance ministers and central bank officials of the Group of Seven industrialized nations.
......Japan’s Finance Minister Yoshihiko Noda said at his first press conference since returning from the weekend’s Group of Seven nations’ meeting of finance ministers and central bank officials that Japan would take “decisive” action if necessary, including currency market intervention, to stem the yen’s rise.
Now he should say, "Since the currency intervention was a miserable failure, I look like a total buffoon, with the rest of these morons in power. But I don't care since we are spending other people's money..." But, alas, he won't.
Noda and the rest of these idiots don't realize what the average guy on the street understands: Currency intervention doesn't work - especially if it's just one country doing it (see here) and the reason why no one complained about it at the G7 meeting was that the other participants thought it (and the Bank of Japan) are a big joke.
You'd think that these morons in the government would learn their lesson and stop repeating the same asinine mistakes or, at least, keep their mouths shut. But no...
Noda's reiteration of Japan's currency stance highlighted the risk of another round of intervention to weaken the yen after Japan weathered a flurry of weekend Group of Seven and IMF meetings with no overt criticism of last month's yen selling -- its first in six years.
Now why in the world would this idiot finance minister Yoshiko Noda telegraph Japan's next moves again when they just complained that China bought billion of dollars of Japanese bonds yet Japan is unable to buy Chinese Bonds or currency?
In spite of being a totally incompetent and typical run-of-the-mill old-school politician himself with no new answers to anything, former Prime Minister Taro Aso was right about one thing: The DJP is run by a bunch of in-experienced incompetents who will run Japan into the ground.
Some of my regular readers might think I am being too harsh (again) but I do not exaggerate when I say this has become a such a disgusting farce and that the entire world thinks the Japanese government and Bank of Japan are a complete and totally clueless group of morons.
Rick Ackerman can back me up on what money commentators on the other side of the Pacific Ocean think about this:
"...That was the day the Bank of Japan intervened in the currency markets for the first time in six years, prompted by concerns that the yen’s steep rise would hurt Japan’s export-based economy, and by the fact that the yen had recently spiked to a 15-year high versus the dollar.
The intervention obviously failed, since the yen quickly recouped the loss and is now trading significantly higher than before the intervention. Because we have heard little from the Japanese since, however, we can only infer that they know enough to shut up rather than pretend they can bully speculators. Repeat a threat often enough, and eventually you become a laughing stock."
The only thing Ackerman gets wrong is that he doesn't realize just how really out of touch with reality and messed up the Japanese government is... Heck, I guess I don't blame him. You'd have to live here and be here everyday to see it with your own eyes to believe it.
Hell, I've lived here for almost 30 years and I find this hard to believe.
The farce gets even wilder by the day as it is learned that China bought yen and might be "playing" with Japan and her economy.
Diplomatic tensions rose this past week after a Chinese fishing vessel bumped into Japanese patrol boats near East China Sea Islands claimed by both.
Mr Noda pledged to bring to the Chinese leadership his frustration over China's heavily managed capital account, which restricts foreign buying of local-currency securities.
“While China can buy Japanese bonds, Japan can't buy Chinese government bonds using its foreign reserves. I feel that's unnatural,” Mr Noda said.
Incredibly, even with screw-up after screw-up the Japanese government repeats the same mistakes...
Mr Noda's more strident rhetoric did little to convince investors that Japan has the firepower to stop the yen's ascent.
“The market is fed up with warnings,” said Yoshinori Nagano, a senior strategist at Daiwa Asset Management.
It is written that the Albert Einstein said that the definition of insanity is:
"...doing the same thing over and over again and expecting different results. "
Like I blogged before.... With the same old tried and true failed methods being tried again and again, expect Japan to keep slipping down the slope to head towards an economy that will look like the Philippines. I wrote about that here in "Japanese Government Continues to Destroy the Economy" and here in "Twenty Lost Years About to Become Thirty"...
I suppose we shouldn't expect anything but incompetency from the Japanese government though... LDP or DJP... But what do these politicians care? They don't have to pay. It is the average Japanese who has to pay the piper for decades of mismanagement.
We can see the results of these policies everyday with just a walk into town. Does this really anger me? Yes. It should make every person every person living in this country who is not in dementia furious.
