politics

Suga refutes Trump's claim that Japan manipulates forex markets

42 Comments
By ELAINE KURTENBACH

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42 Comments
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What is Japan talking about, Japan has publicly said it has done it in the past.

7 ( +17 / -10 )

“Every other country lives on devaluation,”

Obfuscate and deflect, this isnt about China or "other" countries Mr Suga, it's about Japan, and it seems like Trump has you in his target.

Our monetary easing policy is intended to stabilize prices, not to weaken the yen against the U.S. dollar,” Suga said.

Stabilize just what prices here? Abe has made it his policy to make the yen weaker to increase exports.

0 ( +11 / -11 )

@gogogo What is Japan talking about, Japan has publicly said it has done it in the past.

teach On!!!

7 ( +12 / -5 )

That's really not what "refute(s)" means....

3 ( +4 / -1 )

“Every other country lives on devaluation,” he said. “You look at what China’s doing, you look at what Japan has done over the years. ... They play the money market, they play the devaluation market and we sit there like a bunch of dummies.”

And what has the FRB been doing printing money as if no tomorrow? Please tell.

12 ( +15 / -3 )

Trump's a moron, he's just deflecting to a foreign enemy rather than focus on his country's problems. That's what China and Russia does as well

11 ( +14 / -3 )

so the Feds printed money for over 8yrs to the tune of $5 trillion+ (quantitative easing) and now they've stopped they want to point the finger at China, Japan and EU for doing basically the same thing, the hypocrisy is thicker than molasses. If the US is allowed to manipulate its own currency then so should any other currency, cant have it one way.

10 ( +14 / -4 )

'“Our monetary easing policy is intended to stabilize prices, not to weaken the yen against the U.S. dollar,” Suga said.'

Sorry, Suga, but actually Trump is right on the mark here; Japan has flat out said it's its mission to devalue the yen in order to increase exports, and the BOJ has helped. Japan has been caught in the lie Suga is making now several times. The Japanese public may buy the "We're doing this, but please cooperate and we'll make you understand" followed by the "we're not doing it" doublespeak, but the international community does not.

"“Every other country lives on devaluation,”

Japan inc has yet one more reason to panic.

-4 ( +8 / -12 )

the central bank caused the yen’s value to fall

Nope. Myriad of factors involved here on multiple sides. Suga is correct here - currency exchange rates were a secondary, irrelevent consideration.

4 ( +8 / -4 )

Sugar should have just said the following in response to the accusations "that's fake news .. lies... horrible lies .. not truer not true "

5 ( +6 / -1 )

Oh well, he goes after all and everyone!

Now it is Japan, before it was Germany ........

Guess he's got nothing better to do than instigating stuff.

5 ( +6 / -1 )

The ForEx market is yet another scam for stock-market fast money. The banks of the USA, Japan, UK, Scotland, the "Swiss Mafia" (gov.), and China (fake gov. and economic numbers) play this game round the clock with many others. Trump's a moron if he doesn't know this (or otherwise), but when did anything he say make sense? Amateur hour at the White House continues...

2 ( +6 / -4 )

you look at what Japan has done over the years.

This is important. He clearly mentions "over the years", not current policy. Japan has indeed in the past repeatedly engaged in overt currency intervention, aimed at devaluing the yen. So Trump is totally correct to that extent.

“I don’t quite understand what (Trump) actually meant,” Asakawa said. He said Japan has not intervened in currency markets for a long time.

Totally consistent with what Trump said.

However,

“Our monetary easing policy is intended to stabilize prices

Abe's intention is 2% inflation, which is not stable prices. It's 2% inflation, which is the same as devaluing the currency by half over around 36 years. Stable prices and 2% inflation are not the same thing.

So the Japanese side is full of it, but so long as all central banks are playing the same devaluation game, no one can point fingers.

(Personally if I were the leader I'd embrace a strong currency and welcome the fact that I could have the people of other countries work and produce things for my citizens at low cost. This is what it means to be wealthy is it not?)

2 ( +4 / -2 )

Nobody complained about currency manipulation with the dollar hit 76 yen about 4 years ago. US could have made a kiling on price alone. But they didn't.

5 ( +6 / -1 )

This is what it means to be wealthy is it not?) not when you owe other countries $100billions and rely on other countries to continue to supply you credit just to stay afloat. wealthy today, bankrupt tomorrow.................Nobody complained about currency manipulation with the dollar hit 76 yen about 4 years ago. no because that benefited the US exports, pot meet kettle.

-3 ( +2 / -5 )

Trump: "we sit here like a bunch of dummies" You said it, not us.

3 ( +6 / -3 )

Trump should learn FRB's QE1, 2 and 3. ECB did QE too. Both much greater than Japan's monetary easing. QE, or monetary easing is to set inflation target and have central bank to increase cash flow to meet the target. That is not manipulation on exchange operation. Both US and EU have been doing huge amount of QE to rebound from Lehman shock. Japan only joined that effort when Abe took administration too.

-1 ( +3 / -4 )

fxgaiFEB. 01, 2017 - 04:32PM JST

This is important. He clearly mentions "over the years", not current policy. Japan has indeed in the past repeatedly engaged in overt currency intervention, aimed at devaluing the yen.

When?

Here is a historical record of interventions. http://www.mof.go.jp/english/international_policy/reference/feio/index.htm

Last time Japan intervened the foreign exchange market was from March 2011 to September 2011, after the earthquake.

Before that, on September 15, 2010.

Before that, from January 2003 to March 2004.

Now, what is President Trump's point? Is he complaining about the intervention in 2003?

0 ( +6 / -6 )

@CH3CHO That's correct. The last time in 2011 after the earthquake was a coordinated effort with the Fed to weaken the yen. Trump has no point. He is just trying to talk down the dollar. The market is still dumb enough to keep reacting to the nonsense Trump spews.

3 ( +5 / -2 )

Only Amurika is allowed to manipulate forex markets. All the others are forbidden to do such things.

Stop it Japan! You too China!

0 ( +4 / -4 )

wealthy today, bankrupt tomorrow

wtfjapan, I guess you are talking about the US but there are options. You could print loads of money to pay off your debts to foreign countries and stave off "bankruptcy", but you will have devalued your currency as a result and be a nation of paupers who can't afford goods from overseas. Another option is to reform your expenditures. I think the latter option is better myself.

CH3CHO, well exactly. Those past episodes of intervention may have been what Trump was referring to when he said "over the years". The implication may be that the Trump administration won't support any episode of intervention from the Japanese government in future.

If so, big deal I say. Intervention is pretty useless.

On the other hand, if Trump has issues with Japan's monetary policy then he's barking up the wrong tree. All central banks are playing the same game.

1 ( +2 / -1 )

Reminder that Plaza Accord 1987 is the worst form of artificial currency manipulation ever pulled against Japan... By America!

2 ( +5 / -3 )

Suga refutes Trump's claim that Japan manipulates forex markets

Well, not openly, eh, Mr Suga?

-3 ( +2 / -5 )

Actually, the devaluation of the Yen against the dollar since November was due to Trump's own policy. Trump promised to reduce tax and increase government spending. His move was deemed to make the Federal Reserve to raise the interest rate to prevent inflation, which it did in last December and is expected to do a couple of times this year. The interest rate raise is deem to increase the value of the dollar against the yen. Basically, the market is confident that the Fed is not allow inflation in the US, which results in stronger dollar.

If he wants tax reduction, increased government spending AND weak dollar, there is only one option, which is to prevent the interest rate raise by the Federal Reserve. By preventing, he can cause severe inflation in the US, and thus the free fall of the dollar. This is how his dream comes true.

-3 ( +3 / -6 )

Japan get yr facts correct and face trump straight in the face. He has 2 ears just like u , the only difference is, trump is loud and rude. It is not something, U cannot deal with right ???.

1 ( +2 / -1 )

Of course he would deny it. I think he'd probably commit seppuku before he admitted that.

1 ( +4 / -3 )

Actually, the devaluation of the Yen against the dollar since November

Come on, it's been going on since before then, I suppose now you are going to start blaming the warm weather and ice bergs melting in the arctic on Trump too.

The yen devaluation has been a part of ABE's agenda for a long time. And pray tell how in the hell is Abe supposed to "prevent" and interest rate hike by the US Fed?

-3 ( +1 / -4 )

The claims and retorts from the both President Trump, and the Government of Japan could well boil down to how one defines manipulation.

The sheer scale of the BOJ domestic monetary and fiscal stimulus polices, the large block purchases of assets and foreign exchange reserves by Japan's central banks and Government Pension Investment Fund in dollar denomination. whether these actions in combination provide enough evidence to correlate trade imbalances by artificially increasing the competitiveness of Japanese exports above perceived acceptable level so in turn inflating the value of the dollar.

President Trump will need some convincing otherwise. Abe san will need all his experience in office and political shrewdness to negotiate a compromise. I've worked quant currency hedge models to risk access market volatility and what could be defined as manipulative divisive trading strategies do tend to bob up and bite back.

0 ( +0 / -0 )

Trump promised to reduce tax and increase government spending.

I am not sure Trump wants increased government spending, indeed I have seen talk about 10.5 trillion dollars worth of cuts to US government spending.

On his campaign site:

"accelerated economic growth and more rapid productivity gains with a deficit-neutral plan targeting substantial new infrastructure investments."

"Refocus government spending on American infrastructure and away from the Obama-Clinton globalization agenda."

"Harness market forces to help attract new private infrastructure investments through a deficit-neutral system of infrastructure tax credits."

"cut wasteful spending on boondoggles."

https://www.donaldjtrump.com/policies/an-americas-infrastructure-first-plan/

So it looks to me like he wants to reprioritize spending, not increase it.

But who the heck knows what he'll actually do.

0 ( +1 / -1 )

Suga hadnt " refuted anything. He only denied a blindingly obvious fact. Who believes anything this guy says anymore?

2 ( +3 / -1 )

Is there a word for someone who gets mentally stuck 35 years ago and can't recognize present conditions?

3 ( +6 / -3 )

Whatever the rights or the wrongs are, President Trump is out to apportion blame and feels Japan, China and Germany should shoulder this burden. In so doing justify Trumps retaliatory action. Abe san is wise to keep shtoom the least said the better.in

Government spokesman Yoshihide Suga really needs practice in the art of feigning innocence.

0 ( +1 / -1 )

Trump is 100% right.... Japan continues to run the Printer at full blast.

-3 ( +2 / -5 )

Reminder that Plaza Accord 1987 is the worst form of artificial currency manipulation ever pulled against Japan... By America! and something that Japan has never really recovered from, now Trump is trying too instigated his own type of Plaza accord against Japan, China, EU.

-1 ( +1 / -2 )

Suga is an idiot to say something so stupid on public record

0 ( +2 / -2 )

OssanAmerica,

Is there a word for someone who gets mentally stuck 35 years ago and can't recognize present conditions?

I'd say LDP pretty well describes the phenomenon you are talking about. It's might have been Liberal and Democratic at one time, but it certainly isn't any more.

-2 ( +2 / -4 )

Trump should understand that the world has changed .. even if you sanction china the world is still willing to buy from china because they are ready to help you without returns or benefit ...and china is ready to sale at any price . cheap laborers. 50% of Chinese citizen is working under $1500 per month. while USA everyone want to be payed $ 3000 and men and woman fighting for equal right . Trump will push America into recession .Russian president Mr Putin has created Mr Trump to help destroy America... demonstrations everywhere .

Now Mexican president has disrespected him by canceling meeting.

soon other world leader will join .... USA can't deceive the world about war again like Iraqi war and the world will foolishly join.... is over .

3 ( +3 / -0 )

Lots of conflicting stuff here. 1.) The US manipulates and devalues their currency (they call it a fancy name: quantitative easing) and it's okay, but when other countries do it, it's not okay? 2.) One of Abe's arrows literally was about devaluing the yen to boost exports. So to deny that now....3.) The pharmaceutical executives that suck up to Trump here were probably hopeful for the TPP, the thing that Trump killed.

1 ( +2 / -1 )

Is there a word for someone who gets mentally stuck 35 years ago and can't recognize present conditions?

Not sure, but in a couple years, 'trumper' might be submitted for it.

0 ( +0 / -0 )

YubaruFEB. 01, 2017 - 09:17PM JST

Actually, the devaluation of the Yen against the dollar since November

Come on, it's been going on since before then, I suppose now you are going to start blaming the warm weather and ice bergs melting in the arctic on Trump too.

Cannot you just look at a foreign exchange rate chart? The trend of JPY-USD exchange rate clearly changed in November. I have not expected this much of post truth here.

-1 ( +0 / -1 )

So Suga claims Japan is not manipulating its currency, does anyone want to explain the 2 ENORMOUS instantaneous price shifts that occurred with the yen on ALL major forex market currencies paired with the yen about an hour ago?

The BOJ clearly slammed the yen this morning (conveniently while most of the rest of the world is sleeping) in order to try to change the direction of the yen's natural trend.

Clown government full of clowns doing clownish things. Suga playing the Iraqi Information minister to Trump, and Abe begging for treats at Trump's ankles. Hope Trump's policies will get rid of these trashclowns once and for all.

1 ( +1 / -0 )

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