BOJ FX Markets yen

Spare A Thought For The Bank Of Japan On Friday

Haruhiko Kuroda has a yen problem and it just got materially worse.

Haruhiko Kuroda has a yen problem and it just got materially worse.
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7 comments on “Spare A Thought For The Bank Of Japan On Friday

  1. Here’s a thought: Trump can “win” his trade war with China (to the extent that winning a trade war is possible) OR he can win reelection. But he can’t do both. If he’s willing to let the market drop 20%-25%, he may be able to call China’s bluff — but of course that would cost him reelection (and result in him spending much of the rest of his life answering subpoenas and testifying in various wood-paneled rooms). Or, he can put the trade war on pause, let Powell and the Fed take care of their business without daily interference, and huff and puff his way to another Electoral College victory in 2020. Sadly, his delusional belief that he can have his cake and eat it, too, is going to lead us all to ruin.

  2. Charles Ponzi

    What’s your view on BOE governor, Mark Carney, who in his lunchtime address at Jackson Hole laid out a proposal to replace the US Dollar with a “Libra-like” reserve currency in a dramatic revamp of the global monetary, financial and economic order?

  3. Harvey Cotton

    If the Japanese Government is buying debt from the Japanese Government, and the world still supports a strong Yen, and the Japanese Government wants a weaker Yen and more inflation…why doesn’t the Japanese Government just forgiving the debts of the Japanese Government?!

    • Harvey, I don’t know if you’re being serious, but I hope you are, because that is 100% exactly what they should do and more than a few people have suggested just that. Of course, hard money advocates cringe at that idea and I think one of the reasons why is because they (the hard money folks) know that if Japan did that and nothing happened in terms of inflation, it would effectively mean that anyone arguing against MMT is definitively mistaken, and that Stephanie Kelton is the smartest person on the planet

      • H- thoughts/suggestions on how best to start to wrap ones head around MMT? Def need the proponents, but would also like some opponents that can articulate a better detraction then the usual childish/banal “because it’s different than what I was thought to think, therefore it is wrong”.

        Much thanks for any suggestion.

  4. Anonymous

    Inflation is so very easy to attain; just drop money from the sky and let the masses pick it up and spend…. Why don’t they just try that???

    • What? And let the Plebs eat? Heck that might even lead to the Plebs to dancing and render them impervious to divisive politics (meaning less controllable)!

      But in all seriousness, the global wealth gap and the resultant lethargy in velocity of money is exactly why there is no inflation. Nearly all the liquidity from the CBs from the GFC went to non-consumption entities.

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