Japan announces $100 bil program to deal with strong yen

This is far wiser than mere currency intervention, which does nothing over even the medium turn anyway. A yen this strong will not last forever, so best to take advantage of it while it lasts: get the assets large companies are sitting on converted into foreign currency so large swaths of raw material and production facilities can be secured for future benefit. At the same time, the relatively constant sale of yen for what is assumed to be dollars should dampen the strength of the yen.

Let's hope companies fully utilize this opportunity.

Yeah agree with you Laguna, it's a pretty decent move by the Japanese Government. Hopefully they make more moves like this that can have a better benefit long term.

100 billion US dollars?

100, 000, 000, 000 US dollars?

or 7.6 trillion yen?

damn... thats a lot of cash

Best move but still not in the best interest of all. Its gonna go mainly to help M&A with usually American or dollar based companies and those in need of foreign assess or raw materials. Some us us receive dollars but from Asian countries. And we are in no situation to need to acquire foreign property or raw materials

That should make Japanese stocks even more attractive with plunge-free measures. JPY will continue to rise then.

It is a pity that this money isn"t being used for storing radioactive debris and safe disposal facilities!

Good strategy

Good, but will the yen really depreciate as a result?

This is not a good strategy and makes me think that no one in the Japanese government has a clue how about economics. I am amazed at the stupidity.

They want to borrow more debt to pay debt

What a death government DPJ !

She questioned the government’s decision to focus on mergers and acquisitions overseas at a time when Japan needs help sustaining production at home.

The evacuees are forgotten again. 100 billion US and not a cent is going to moving the evacuees out of cardboard cut-a-ways and into humane living arrangements, that they don't have to pay rent immediately Why not give the evacuees at least 6 months so as to get themselves on there feet again. Finally the Jgovt may rent their land so as they can have some income coming in for some of the evacuees.

“We believe today’s decision is unclear and will have little impact to alleviate the yen’s appreciation pressure,” she said.

Just about defines Japan for the last two decades -- obtuse policies that have little or no impact at a great cost. The elevator is going down.

The yen needs to be devalued drastically, to, say, around 120 yen to the dollar.

The yen would be instantly devalued to a sensible level if only people with dollars would refuse to sell them for yen at the current ridiculous exchange rate.

US FED may go for the QE3. The market needs to pay attention to what FED will say on this Friday. Europe's debt crisis is getting very ugly.

Senario #1-low GDP growth + QE3 Senario #2-expected GDP growth + no QE3 Senario #3 -better GDP growth + no QE3

I am worrying about the market as investors start dumping (one point, it went to south by $100) gold today.

Friday will be a defining moment... sigh......

Until Japanese bureaucrats (and Chinas too) get the message that the days of free riding mercantilism are over, the yen will just keep getting stronger. There are too many other countries now doing it hard that have a vested interest in seeing the Asian export behemoths return the favour and move to growth based more on domestic consumption. Contrary to American assurances that they are not behind the dollars weakening, the reality based community knows this is exactly what they want and are contriving to bring about. The day of sub-seventy yen to the dollar is fast approaching.

Encouraging the companies in what way?--moving their headquarters out of Japan? It sounds more like the plan to facilitate industrial hollowing-out to me.

And where does the loan come from?--Taxpayers money.

100 billion US dollars?

100, 000, 000, 000 US dollars?

or 7.6 trillion yen?

damn... thats a lot of cash

@gogogo, if you think this is a lot of cash.

You may want to listen what the world has been estimating to restore Tohoku. It would cost 50 trillion yen ( a consv. estimate) due to Fukushima Nuke!!!! FIFTY TRILLION YEN! Tell me if the Nuke energy is cheap, I do not think so.

It i a type of Suiciding ...

This is a massive Japan version of QE that has been needed for years. This is very brave and agressive, and the timing of this action is PERFECT!

Japan should still needs to pay attention to a China massive Yen buying.

Pray for Japan.