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Japan ready to act over yen's historic rise

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Why would you tell anyone this? It just strengths the yen more because investors know the government is about to give money away... Don't these "experts" know how the financial system works?

You want to do this you do it quick and quietly so investors dont buy now sell later.

1 ( +1 / -0 )

doesn't follow.

the government is warning speculator parasites and other maggots trying to manipulate the market that it is going to make efforts to adjust the inflated value of the yen, and bolster the deflated value of the other currencies.

the government doesn't have to act in the shadows like speculator parasites in the "financial system", which doesn't by the way, work.

1 ( +1 / -0 )

Do it privately!

-1 ( +0 / -1 )

Why would you tell anyone this? It just strengths the yen more because investors know the government is about to give money away... Don't these "experts" know how the financial system works?

This is Japan. Real world economics don't apply here.

I made a killing off the last 2 interventions. Keep the announcements coming!

-1 ( +1 / -2 )

Unless it's sustained for a long period this is meaningless. It'll be another 2-3yen bump then back to where you were a week later, with a tidy little loss locked in.

2 ( +2 / -0 )

@takoyakitora

I made a killing off the last 2 interventions. Keep the announcements coming!

By exchanging Yen for USD?

0 ( +0 / -0 )

This is stupid, if Japan wants to lower the yens value how about this.

PRINT TRUCKLOADS OF YEN FOR TOHOKU, the yen will drop some, but instead of wasting foreign reserves your left with a TON OF YEN to use in Tohoku & then you dont have to tax the crap out of us!

Worst case with the above is a bit of inflation, but the 2 positives easy outweigh this!

2 ( +2 / -0 )

"The government and the Bank of Japan have started discussions..."

That about sums up what 'action' means in Japan: a discussion about possibly taking action.

"Finance Minister Yoshihiko Noda also predicted that Asia’s second-biggest economy..."

Are we talking about Japan or China here?

-1 ( +0 / -1 )

Oops! Just noticed it said "Asia's". My bad, once again.

-1 ( +0 / -1 )

This is more like it. Way to go, Japan.

For the past week, all global investors have been sending numerous signals to buy Yen, but BOJ did not fight against it. Make sure you do it MASSIVELY AND SWIFTLY. But yet this is just a short term solution. Make sure BOJ buy more future natural resources (commodities).

Real solution to this problem is to call international leaders (G7, G20) to bring back an UPTICK RULE and prohibit SHORT SALES until the market find an equilibrium. We need to keep pressuring S&P to adopt this rule back again before everyone lose everything we have.

Second, we need to start pressuring China to go to currency floating system. China also needs to open Chinese bond market to foreigners. China can buy Japanese govt bond (debt), but Japanese cannot buy their govt bond(debt). How so???

Printing more money to restore Japan may not be a good idea while DEPT/GDP ratio of Japanese sovereign debt is already over 200%, it is the highest in the world. Are you willing to add more debt on top of this? Who needs to pay? Tax payers will. Japan had missed many opportunities and economic tools in the past 30 years to do it right. Now it seems too late.

2 ( +2 / -0 )

By exchanging Yen for USD?

Some currency exchange accounts allow you to leverage investments 100 times or more. Meaning you could potentially double your money by betting on a 1% currency fluctuation, (or lose your money, if the currency fluctuated 1% in the opposite direction).

0 ( +0 / -0 )

Noda said Friday that the government would consider what long-term policies were needed to soften the economic impact of the yen if it remained at its current high levels.

Sounds like this is a Japan QE to me. If you do, just do not build any more airports and Hakomono Bunka Kaikan type. It was a total failure without a long term vision.. It only helped unemployed construction workers. Now so many these buildings were emply and useless.

This time it has to be a "looOOng" term objectives such as promoting a life time education, nursing training schools nursing homes, hospitals, and R&D. They all have to link to a LONG TERM JOB GROWTH, so that workers can work full time and long time, thus start contributing money back to the govt (tax).

0 ( +0 / -0 )

It's when they announce they are selling their gold reserves you want to be worried. Money is only worth the paper it is written on...

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Japan ready to act over yen's historic rise

Very bad idea. Because after some month in the world would start inflation of food. That fact would means that Japanese will need strong yen. But now Japan can start 'big holiday' for people for spend strong yen in other countries. Now Japan have big stress. May be less work, more enjoy?

0 ( +0 / -0 )

If you're going to speculate on Yen, there are a couple ways to do it. One is by buying futures contracts, where you can be heavily leveraged, or if you're an average joe with average means, you can buy an ETF (exchanged traded fund) which goes up when the yen goes down. These are traded like stocks, and you won't stand to lose or gain too much.

As for the possibility of the J-government making any difference by intervening, it might give it a slight bump, that might last a couple days, but that's about it. The Yen is strong because almost all J-debt is held in Japan, so even though the govnt has heavy debt, it's considered very safe, as the rest of the world's finances are going in the toilet.

I don't think the yen will weaken much until the dollar strengthens, which ain't gonna happen any time soon, regardless of any interventions.

To see an example of how useless government interventions work in financial markets, one only has to see the tiny temporary bumps that QE1 and QE2 affected on the U.S. economy.

2 ( +2 / -0 )

look at the bright side, all you yen holders can live it up oversea and buy up all the designer label stuffs at deep discount.........................cheers.

0 ( +0 / -0 )

QE is not taking on more debt, but the central bank buying Japan's debt, it does not have to borrow to do this. Infact is Japan enacted a law which nullified all JGB held by the BOJ, it would do 2 things, lessen the national debt and devalue the Yen.

0 ( +0 / -0 )

The yen can not stay this strong vis a vis either the euro or the US dollar. It's no good for anyone.

0 ( +0 / -0 )

Printing more money to restore Japan may not be a good idea while DEPT/GDP ratio of Japanese sovereign debt is already over 200%, it is the highest in the world. Are you willing to add more debt on top of this? Who needs to pay? Tax payers will. Japan had missed many opportunities and economic tools in the past 30 years to do it right. Now it seems too late.

I am not talking about borrowing from anyone or selling more bonds, I am talking about just printing more yen, you dont have to pay ANYONE ANYTHING, as others correctly pointed out the affect on the exchange rates wud be short term & not significant but your leftover with TRUCKLOADS OF YEN which the govt can freely use for Tohoku, it wud be free $$$$!

Normally this wud be pretty crazy but not right now imo, HELL the govt cud even use this new ca$h to pay DOWN its debt if it wanted to.

AGAIN ALL AT NO COST TO TAXPAYERS except maybe a bit of inflation, ,but this option wont be around forever, print now & give me a wheelbarrel full damn it!

0 ( +0 / -0 )

lessen the national debt and devalue the Yen.

@jasperandy, agree with your comment "lessen the national debt", but I would like to know how to devalue the yen. This is a key for survival of Japan. How do we do that? Thanks.

0 ( +0 / -0 )

look at the bright side, all you yen holders can live it up oversea and buy up all the designer label stuffs at deep discount.........................cheers.

A good idea as consumers, but a bad idea as workers. More and more jobs are moving out of Japan.

0 ( +0 / -0 )

It would be fool hardy and useless for the MoF to act as it did on Aug. 4th with the looming prospect of a permanent or temporary CHF peg to the EUR. I would suspect that the MoF would wait until a definitive resolution to that situation.

0 ( +0 / -0 )

Buy, buy, buy anything foriegn and profitable!

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am not talking about borrowing from anyone or selling more bonds, I am talking about just printing more yen, you dont have to pay ANYONE ANYTHING, as others correctly pointed out the affect on the exchange rates wud be short term & not significant but your leftover with TRUCKLOADS OF YEN which the govt can freely use for Tohoku, it wud be free $$$$!

@GW, oh, then what does it do to your money in the bank? What the world business will do to Japan? What kind of inflation are you talking about? You are not telling me to follow the mistakes of Chile, right? Please study all the mistakes Chilian government did in the past. And let me know if this is still a good idea, pal.

0 ( +0 / -0 )

I hope they give me 3 days warning again.

0 ( +0 / -0 )

oooh, hang on. maybe they just did!

0 ( +0 / -0 )

Buy, buy, buy anything foriegn and profitable.............................................. please use the strong yen to buy Nokia ( at a huge premium, disclaimer...........I am a shareholder ), use japanese ingenuity to turn it around to be the next Apple ( disclaimer, i am a shareholder of that too ). Thank you

0 ( +0 / -0 )

They did such a bang up job devaluing the Yen last time I can only hope they really go all out and balls it right up once again. onegai.

0 ( +0 / -0 )

To see an example of how useless government interventions work in financial markets, one only has to see the tiny temporary bumps that QE1 and QE2 affected on the U.S. economy.

@gaininfo, US is trapped just as Japan did in the past 2 decades. Until China starts a real fair play in global economy, we are just throwing money in a toilet.

0 ( +0 / -0 )

Buy, buy, buy anything foriegn and profitable!

@Asago, agree, but this is still a micro vision, that's what J. bankers have been doing in the past lost decades. J. bankers have no other places to go except buying the US T bills.

In my humble opinion, the Japanese position should be a domestic JOB GROWTH, JOB, JOB, JOB while stocking up piles of resources with a cheap $$ This is a big challenge for the next PM of Japan.

0 ( +0 / -0 )

This round of QE and intervention may hopefully help weaken the yen some and bring back recovery. But they have to be very careful about this because such a move could spike the JGB long rates and very quickly turn deflation into hyperinflation. This would then mean an economic depression for Japan, and then the same or deep recession for the whole world. Nonetheless, the BOJ has to do something to bring down the yen. I totally agree with you Globalwatcher and a huge coordinated effort by the G7 and/or the G20 is the safest way to do this. Nowadays since everything is globalized, one country cannot go it alone anymore. Pray for Japan.

-1 ( +0 / -1 )

@MeLuvULongTimes, good and we are on the same page.

The market wide swing (volatility) today never existed before until all these day traders (speculators) were given powerful tools; a laptop computer and a smartphone. They can trade anything, anytime from all over the globe. They are careless about you, me and their own countries. They are a very selfish creatures. They only care about money and profit with no rules. We need to call for a time off to bring back the uptick rule prohibiting short sale. Japan cannot do it alone. It takes a world coordination and effort. It is very critical for Japan to play an active role in the next G7 and G20 meetings.

In my humble opinion, Japan is on the way to "D". I pray for Japan too.

1 ( +1 / -0 )

We need to stop China going a massive Yen buying. China will eventually bankrupt Japan, I am afraid. FYI

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Japan is ready to take action against a further surge in the yen, including market intervention, after the safe-haven Japanese currency hit a post-war record high, local media reported on Saturday.

After that Central Bank of China will buy many yen's. That is means that China will get more rich but Japan will be less rich. Japan may less work and more holiday. After start inflation in the world Japan (May be after after holiday?) can more work for increase more power export and also more upper yen.

Central Bank of China will sell US dollar and buy yen's for rice yen and get advantage for export. China use own resource for upper yen for move factory from Japan in China. US dollar is very bad currency, because China will sell US dollar and buy yen.

Because Japan will may less work and more holiday for less export and down yen's.

0 ( +0 / -0 )

@BesonovYan, that's the reason I never go for an "One Asia" concept that Ozawa (Mr. slicky) and Hatoyama (I- am-still- dremin -n- space) have been advocating in the past.

It is a time for all Japanese to wake up from a long sleep to realize how stupid this idea is. China has not been very nice to the world. You guys are exporting unemployment to Japan, US and the rest of world. Make no mistake about it. Shame.

0 ( +0 / -0 )

@BosonovYan, by the way, when do we get a money (ODA) back from you? It is over due.......we can sure use it now.

0 ( +0 / -0 )

@globalwatcherAug. 21, 2011 - 04:51AM JST

@BosonovYan, by the way, when do we get a money (ODA) back from you? It is over due.......we can sure use it now.

What is this ODA?

0 ( +0 / -0 )

Back on topic please.

0 ( +0 / -0 )

@globalwatcherAug. 21, 2011 - 04:38AM JST

China has not been very nice to the world.

May be your estimate is very radical. Because low cost products is very good for the world.

0 ( +0 / -0 )

Your accusation is without some arguments. Russia never export unemployment to Japan.

P.S. I can't get all answer to you. Because Moderator Team of JT mark it as offtopic

@BessonovYan, China is exporting unemployment to the world, I have never said Russia exporting unemployment.

Speaking about O.D.A (Official Development Assistance of Japan) You can go to the web link http://www.mofa.go.jp/policy/oda/

Japan has been sending billions of dollars to assist poor people in China for many many years in the past. But many Chinese have never seen them as the same monies were all passed on to African countries from China. Again none of them were used for Chinese people.

They were all used for a financial gain of Beijin..

0 ( +0 / -0 )

By declaring null and void BOJ holdingd of JGB, it in effect says to the world that the yen is not such a good bet, along with new QE, would likely see the yen devalued by 20%. The QE would also keep JGB yields from spiking.

Make no mistake, all counties at present are in a race to the bottom as far as currency is concerned. Of course you do not want pre WWII german hyperinflation, but Japan is along way from that.

0 ( +0 / -0 )

By declaring null and void BOJ holdingd of JGB,

@jasperandy, sounds like you know what you are talking about. I am kinda lost here. If you do not mind, would you explain, so that I can understand. Thanks.

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Sell hi, buy low

0 ( +0 / -0 )

@GW, oh, then what does it do to your money in the bank? What the world business will do to Japan? What kind of inflation are you talking about? You are not telling me to follow the mistakes of Chile, right? Please study all the mistakes Chilian government did in the past. And let me know if this is still a good idea, pal.

Gwatcher

Why dont you answer yr own questions above, under normal situations I wud never advise to just print $$ but what is happening today is extremely unique(hint Chile has NEVER ever been in this situation before your comparison is absurd!).

If Japan printed a bunch of yen its value wud drop some, WHICH IS WHAT JAPAN WANTS, understand? With all the crap happeing in the US & Europe, global business wont to much of anything).

At worst a BIT of inflation, tradeoff TONS OF YEN which can be used to kick start things up north, and at extremely little cost, like I said right now Japan has a unique chance to do this when usually it wud be a mistake. As long as Japan doesnt get too greedy this is an excellent idea, just wasting foreign reserves just costs Japan & doesnt achieve anything where as my idea lets Japan kick start the renwal of Tohoku etc

0 ( +0 / -0 )

@ Global watcher

The BOJ holds japanese government bonds, it has done so by QE, the same as the FED has done QE1 and QE2, so ina sense part of the government debt is owned to the Bank of Japan (BOJ) just at part of the the US government debt is owed to the FED.

However the FED and The BOJ are not commercial banks, they might resale the bonds on at a certain date but do not need to. The US also considered the same just before the debt limit waqs reached.

In normal circumstances you would not declare bonds null and void as it is default, but when you in effect owe the debt to yourself, you can do so if you enact a new law.

The trick is by QE the government is monetrizing its debt, and then by canceling the QE debt, you can get a loss of confidence in the currency. To much and the currency plunges but enough and you get some devaluation.

0 ( +0 / -0 )

@globalwatcherAug. 21, 2011 - 09:15AM JST

Japan has been sending billions of dollars to assist poor people in China for many many years in the past. But many Chinese have never seen them as the same monies were all passed on to African countries from China. Again none of them were used for Chinese people. They were all used for a financial gain of Beijin..

This is quetion for Official Development Assistance of Japan because thay had money and thay can control it. But now I sure that people in China don't poor. China is good economic counterbalance for USA. That is good for stable world.

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@jasperandy, understood. Gotcha. That's exactly the plan of FED.

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@GW, when printing more Yen, it has to be backed by BOJ.

Hope you are not writing checks while your account is a ZERO balance. In US, this is a federal crime and you can be arrested. The same rule applies to unethical tax practices. So many US citizens got into trouble by not filing tax annually. FYI

0 ( +0 / -0 )

for pete sake I wasnt talking about people printing their own LOL, done by the mint, govts print $$ all the time, take some out of circulation, prints.

When they print more than they take out they are INCREASING the money supply, when taking out more than they print, DECREASING the money supply, govts do this all the time.

In todays world the ca$h floating around isnt backed by a god damned thing, that is another problem but anyway. Japan cud do what I suggest & wudnt cost them much to do so which is why its a viable option which 99.99999% of the time it wud not, we are in bizarre times economically, the whole world is a giant ponzi scheme now that has been created by big business & wallstreet & the world is getting on the verge of paying bigtime for all the S&%T that has been going on in this regard the last 30yrs, so as I said Japan hasnt got much to loose by printing & may gain something, play the game thats been screwing the entire world over, might as well.

0 ( +0 / -0 )

@GW, now I understood what you have been saying here. Thank you for clarification.

Sounds like you are talking about a QE Japan version. I have been very frustrated as well as you are. It is sad the cash isn't backed by anything today. I do not think BOJ has not ruled out your option at all. Let's hope we do not have to go through that.

A danger of this option is that will lead to hyperinflation, then later it may lead to a depression. Please keep it mind that a sovereign debt of Japan today is over 200%. Can Japan afford to create another huge debt on top of that? That's what is happening in Europe today. They do not know how to get out from the huge sovereign debts. Unless something are agreed with French and Germany soon , they are on the way to collapse.

Japan has missed so many good opportunities in the past 20 yrs (poor leaders) to implement a policy to boost a long term domestic job creation. The long term means a full time and a long time employment. Many workers have been working on short term contracts as business does not want to hire full timers. The employment rate of Japan is currently at 4.6% which is relative to 9.2% US unemployment. This is very, very high. When the unemployment is 0% (not realistic, but an example), these workers will contribute tax to the government. When tax are fully paid, then debt will decrease accordingly. We also have to focus on the GDP expansion to make a pie bigger. It takes a fine tweeking coordinated by JOB, J. politicians and business leaders to achieve this goal. Hope Japan can restore once again to bring all dream, hope and future back to people. I know we can do this.

0 ( +0 / -0 )

GW is right. One of the things Japan can do to counter the yen's rise and fund recovery from 3.11 as well as pay off its debt is to print more Yen. Let's not talk about "hyperinflation" in a time of deflation. Many of the economic policies put forth in the past have been anti-inflation measures and of course, don't really work in a time of deflation! Japan's debt is different from that of Greece, etc. who owe money to foreign creditors. Japan's government debt is 95% owned by Japanese and is all in Yen. Unlike Greece, etc. Japan has the sovereign right to print its own currency and pay off its debt if it wanted to. And, with so much savings stored up in Japanese banks Japan can issue another 100 trillion yen in bonds and it will still not go into default. Hyperinflation won't happen in Japan, where production capacity greatly exceeds demand. What Japan needs and wants is a reasonable amount of inflation, and it has to increase the money supply to attain it.

0 ( +0 / -0 )

@GW and JesusLovesJapan, well, see what will happen with a new PM of Japan.

It seems to me that BOJ never has a gut to take a drastic monetary action to stimulate J. economy while the entity is supposed to be independent. The BOJ has been pumping a limited amount of oxigen while a patient is really dying.

0 ( +0 / -0 )

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