Asian shares decline after Fed chief's comments on inflation

Maybe Kuroda will come under such immense pressure he'll relent and tighten. Or the MOF will intervene. Could be interesting.

The U.S. must intervene because Japan is not doing anything.

Somebody save us!

Stay strong BOJ. Don't budge. The US can keep their high inflation and high interest rate for all we care. They don't care about the public at all. All they care is profit and more profit and ruining other countries currency.

Japanese Finance Minister Shunichi Suzuki made comments seen as a slightly more forceful pushback against “sudden movements" in exchange rates after meeting with Treasury Secretary Janet Yellen on the sidelines of G-20 finance ministers’ meetings.

A bloomberg article out this morning can take us a little closer into what happened.

Suzuki declined to comment on whether the two spoke about market intervention to prop up the yen. He said the talks focused more on the state of their economies than on concerns over currencies.

“We discussed existing Group of Seven thinking on foreign exchange,” said Suzuki, speaking to reporters late Thursday in Washington D.C. “We’ll respond based on that agreement.”

TBS reported Friday afternoon that Suzuki discussed the possibility of coordinated currency intervention with Yellen, citing an unidentified Japanese government official. The report said the official described the tone on the U.S. side as one of “positive consideration.”

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Standing G-7 agreements state that foreign exchange rates should be decided by the market, although excessive moves can have a negative impact. Economists cast doubt on the likelihood of the U.S. helping Japan out to prop up the yen like it did in 1998. The best Japan might hope for is a tacit green light, they indicated.

Japan Finance Minister, Yellen Confirm Existing Forex Agreements as Yen Plunges

All they care is ...ruining other countries currency.

If anyone can be said to be "ruining" a currency, it's stubborn Haruhiko Kuroda. He's doing this on purpose to meet his elusive 2% target. The Japanese and their determination not to "lose face."

Maybe Kuroda will come under such immense pressure he'll relent and tighten.

I have been wondering when he will retire. He said he would achieve 2% inflation in 2 years, and well it is 2022 now and he failed to do what he said he could. Should have quit 7 years ago.

But on the second point - tightening - that it still a ways off. The BOJ has the spigots full on buying unlimited JGBs so as to prevent higher borrowing costs for the profligate national spending. Before the BOJ can tighten they have to stop printing more money first.

I am picking Kuroda’s departure before that happens.

Or the MOF will intervene. Could be interesting.

To support the yen, they have to sell dollars. Right when the US is dealing with high inflation. I am doubtful the US would be cool with that, and the MOF only has so many dollars to sell.

Hence I think the biggest impact to be had at this point is Kuroda’s exit. That would provide some temporary reprove for the yen, but things need to fundamentally change…

And whoever gets the BOJ job is in the same trash position as Kuroda.

Glad I am loaded up with foreign assets…

The US can keep their high inflation and high interest rate for all we care. They don't care about the public at all. All they care is profit and more profit and ruining other countries currency.

You sound like Turkey’s Erdogan.

The US doesn’t have high interest rates yet, but they are heading that direction because of the high inflation their policies created. Then they will have lower inflation again.

And Japan has ruined its currency all by itself. Spend money you don’t have like crazy and print money to “pay for” it. Well, Japan’s yen holders are paying for it and probably going to pay a lot more yet. Hopefully the people will vote for better policy makers in the aftermath.

Taking down globalisation flips the global economy from optimisation to a fractured train-wreck. Inflation is going to rocket. The stats are artificially low as they cover multiple economies, including 'fake' ones like stocks, and because so many companies are absorbing initial rises (which can't last). The real economy is starting to see costs rising 20%, 50% and more. This is not going to plateau any time soon. Raising interest rates won't stop it. As this will increase mortgage and loan costs, it may even increase the damage. Interest rates may be a joystick on an average day, but flipping from the globalised model to a non-viable alternative is not a normal day. Governments have broken the global economy and have no way of fixing it. Helicopter money, borrowed on the national credit card (actually stolen from your kids) will only go so far. Few countries are like Japan, which appears to have an endless supply of cash to hand out. It's now Brexit for everyone. Governments have thrown the global economy out of a plane with no parachute. Gravity will now do what gravity does best.

 from optimisation to a fractured train-wreck.

20 years of globalization have delivered us just that: a fractured train wreck. Optimization of what? the wealth of the oligarchs and billionaires and the power and influence of communist dictators. No thanks.

lipping from the globalised model to a non-viable alternative 

You mean like what he had before globalization? Union jobs, rising real wages, a growing middle class, affordable housing and no financial crises? Seems pretty "viable" to me. LOL.

Now there’s inflation in Japan and that was the goal (so we were brainwashed to believe) but wages haven’t gone up so there’s going to be massive pain for the citizens of Japan.