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Japan Ministry Of Finance Says Ready For "Battle On Yen"

Tyler Durden's picture


According to sources, a Japanese Ministry of Finance official has said that it is now ready for a "Bettle on the Yen." Just headlines for now. Much more will be revealed later when the G-7 meets to discuss how to further weaken the currency in a coordinated effort. An immediate pop in the USDJPY above 79 follow this statement. The fact that we are getting nothing but posturing from the BOJ instead of actual intervention, such as we saw last when the USDJPY hit 80.30 in late October continues to be quite troubling. In the meantime, the NZDUSD, another funding pair has been taking on some water in early trading.


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Thu, 03/17/2011 - 11:31 | 1066733 Falkor
Falkor's picture

Will be interesting.

Thu, 03/17/2011 - 11:32 | 1066739 whatsinaname
whatsinaname's picture

Means time to double up !!   :-)

Thu, 03/17/2011 - 11:50 | 1066814 jus_lite_reading
Thu, 03/17/2011 - 11:30 | 1066735 nobusiness
nobusiness's picture

Is there no end to Government manipulation?  This is how the G7 have become the most indebt nations of the world.

Thu, 03/17/2011 - 11:52 | 1066832 Roy Bush
Roy Bush's picture

Should I give my 20 bucks to the Red Cross Japan relief before or after the BOJ creates a gazillion more yen out of thin air?

Thu, 03/17/2011 - 12:00 | 1066868 taraxias
taraxias's picture


Thu, 03/17/2011 - 12:13 | 1066926 traderjoe
traderjoe's picture


Thu, 03/17/2011 - 12:16 | 1066934 dbach
dbach's picture

The BOJ should directly wire the newly printed Yen to the Red Cross and other relief orgs. That would simultaneously devalue their currency and help their residents. And cut out the worthless banks. Win win win.

Thu, 03/17/2011 - 12:20 | 1066955 Roger O. Thornhill
Roger O. Thornhill's picture

I was just thinking the same thing. Japan isn't some sad 3rd world country. They have billions in T-Bills, and the ability to spawn money out of thin air. Let them devalue their currency and pay with the magical electronic yen.

My money will be sent to more worthy causes - people who are not ever going to get a bail out. Maybe there should be a fund for the tragedy of kids who are stuck with student loan debt that cannot ever be dismissed! Not as tragic as an earthquake, but the level of stress that is created (I have nieces and nephews groaning under it) is quite sad.

We've created a whole generation who's standard of living will be diminished based on forking over nearly one hundred thousand dollars to learn to evaluate fiction novels, as well as learn that their western society is a curse on the earth and the best thing they can do a a group is die off. Again, they payed dearly to learn this nonsense. We live in unbelievable times.

Thu, 03/17/2011 - 12:32 | 1067002 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Roger, according to the Baby Boomer elite who are running this country, that generation doesn't count. Fine, when their retirements are blown and they are too old to work, poverty awaits you Boomers.

Thu, 03/17/2011 - 13:12 | 1067165 Boonie
Boonie's picture

There's an irony to charitable giving in this situation is there not?  Unlike most of you, I know little about foreign currency exchange trading.  I'm just a dipshit lawyer.  But, when I just cut my check to the American Red Cross for $100, I explained to our office manager that I'm actually making matters worse for the Japanese.  When the Red Cross uses my $100 in Japan, it will exchange or sell the $US for Yen, correct?  This will reduce the value of the $US sold while increasing the value of the Yen purchased, yes?  By strengthening the Yen via our charitable giving, we actually make the cost in Yen of the foreign goods, services, raw materials, etc. needed for rebuilding, food, shelter, etc. more expensive to the Japanese.  I would assume at least for the time being and perhaps for quite some time the Japanese will find it difficult to rely on their own productive base to rebuild, fee themselves, heat/cool themselves, etc.  Am I offbase here?

Thu, 03/17/2011 - 11:31 | 1066742 Josh Randall
Josh Randall's picture


Thu, 03/17/2011 - 11:31 | 1066743 tmosley
tmosley's picture

This is right up there among the dumbest fucking things I have ever heard from a government official.

Thu, 03/17/2011 - 11:49 | 1066813 wirtschaftswunder
wirtschaftswunder's picture

Do you use swearwords in every post?

Thu, 03/17/2011 - 11:49 | 1066820 tmosley
tmosley's picture

When warranted, which is the vast majority of the time these days.

Thu, 03/17/2011 - 11:59 | 1066865 wirtschaftswunder
wirtschaftswunder's picture

Seems very crude and backwoods.

Thu, 03/17/2011 - 12:17 | 1066892 Zero Govt
Zero Govt's picture

"crude" fuk yes but the MF is bang on, this Jap Govt is so dumb you can almost hear the Forex traders forming cues, the collection tins rattling in their impatient hands and their saliva hitting the tarmac for a whopper 'Pay Day'  -  a huge wealth transfer from BoJ to amassed drooling traders  -  Govt dimwits lining up to the slaughter..... are you ready? ...i fuking am!!! 

Thu, 03/17/2011 - 12:12 | 1066924 tmosley
tmosley's picture

No, it is crude to restrict the use of words.  The concept of a "bad word" is what is crude and backwards.

Those words are very useful for expressing state of mind.  Those who attempt to forbid use of those words are trying to stop people from feeling angry.  That doesn't work.  It's putting the cart before the horse.

I'm mad as fuck, and I'm not going to take it anymore!

Thu, 03/17/2011 - 12:59 | 1067105 wirtschaftswunder
wirtschaftswunder's picture

Both of you above are using the words to insult. As words of expression, they represent diminished cognitive ability.

Thu, 03/17/2011 - 13:18 | 1067162 Rodent Freikorps
Rodent Freikorps's picture

Fucking asshole. More worried about form than function. Fuck you.

I don't even like TMosley, but you suck more.

Thu, 03/17/2011 - 14:55 | 1067644 long juan silver
long juan silver's picture

You got no function at all in this life you useless donkey bitch.

Thu, 03/17/2011 - 15:58 | 1068049 tmosley
tmosley's picture

THERE'S Willy's new username.

Thu, 03/17/2011 - 13:44 | 1067308 ThreeTrees
ThreeTrees's picture

In the words of a cuttingly observant comedian in possession of a most trenchant wit who has hence passed away, "Shit, piss, fuck, cunt, cocksucker, motherfucker. Tits."

Thu, 03/17/2011 - 16:04 | 1068086 tmosley
tmosley's picture

Uhhh, no, they don't.  My IQ is multiple standard deviations above the mean.  There is no correlation between use of "naughty words" and cognitive ability.

You are ignorant of the wider world.  Go live among people for a couple of years, then hit us back up and tell us how "backwoods" we are.  Odds are that you are from some pissant small town where no-one curses, but everyone beats their wives and children.

Thu, 03/17/2011 - 12:16 | 1066941 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

Who fucking cares if its true? Who fucking cares if its on the internet?   A person speaks colloquially so they're oppinion doesn't count?  Do you sniff your own farts out of a champagne flute or a brandy sifter?

Thu, 03/17/2011 - 13:01 | 1067115 Freebird
Freebird's picture


Thu, 03/17/2011 - 15:33 | 1067833 jmc8888
jmc8888's picture

I'm sure Jared Lee Loughner thought the same way. He cared alot about 'words' as well. To an extreme.

People who can't handle 'cuss words' are idiots.  Holding onto some bullshit value that never really existed (nor had a rason to).

It's not used as a crutch for other words.  It's used to express emotions, instead of pretending they don't exist, until they do JLL style.

People who can't handle 'cuss words' have some sort of mental disease. 

The 'proper' way of things, is arbitrary and thus bullshit.

I believe Lewis Black said it right...rough paraphrase, from Red, White, adn Screwed...'these guys are supposed to protect us (in fact are running on it)...but if you say poopy...they cry.' 

Foul language is only foul to people who believe it is so.  It is a learned condition.  A learned self-limiting behavior.  It is complete bullshit.

No one has ever answered the question of WHY not to use 'curse words'.  Because you shouldn't, or because there is (not) a different way' isn't an answer. Because the kids are listening, isn't an answer.  There is no good answer. Civility? How is it civil to not use curse words?

Finally if people don't like it, remember Geroge Carlin, when speaking of the 7 dirty words whether on TV or Radio.  One knob turns the station, the other knob turns it off.

The excuse of  blaming 'bad language' is the refuge of people who don't have a real point.  Just because a bunch of dipshits say 'poor language is bad', doesn't actually make it bad.  Only in the limited minds of idiots.

Backwoods, is thinking there is such a thing as foul language.  This isn't victorian england, and we're never going back to beaver cleaver land. Thank god.

People need to realize that they were brought up on bullshit.

Thu, 03/17/2011 - 12:10 | 1066903 Richard Head
Richard Head's picture

Tmosley, it appears your buddy william has created a new account.

Thu, 03/17/2011 - 12:40 | 1066967 Zero Govt
Zero Govt's picture

Tmosely  -  fine by me... PC is a mind-numbing political hed-fuk, the assholes that peddle it are walking sphincters ...regards expressing anger our time is approaching, as stocks collapse wider social anger goes up in direct correlation. In about 1-2 years it's all going to kick off with wider society catching up to where we're at now ...pitchforks waiting

Thu, 03/17/2011 - 12:21 | 1066959 HoofHearted
HoofHearted's picture

I'd just stay stick around. Some pol is sure to say something even yet more stupid in 3, 2, 1...

Thu, 03/17/2011 - 11:33 | 1066744 ZeroPower
ZeroPower's picture

News being sold, under 79 again. An epic battle indeed..

Thu, 03/17/2011 - 11:34 | 1066746 oh_bama
oh_bama's picture



The BOJ is just stupid! BOJ, PLEASE, do another QE! Only 1 quadrillion yen would be more than ENOUGH!!

In this situation, it requires heroic measures. BOJ must come up with decisive, civilization scale QE to stop the panic and fight the disaster!



Thu, 03/17/2011 - 18:17 | 1068619 StychoKiller
StychoKiller's picture

So you did!  Is shooting puppies in a barrel gonna become an Olympic sport?

Thu, 03/17/2011 - 11:32 | 1066748 4shzl
4shzl's picture

Sell yen, buy dollar, buy Treasuries.  Same old, same old.  Debt @ 300% of GDP? You betcha.  They can do it, and they will do it.

Thu, 03/17/2011 - 11:38 | 1066770 A Man without Q...
A Man without Qualities's picture

Print Yen, sell for Dollars buy oil, gold, silver, hell anything solid and maybe one of those Philippine islands just in case...

Thu, 03/17/2011 - 12:22 | 1066968 HoofHearted
HoofHearted's picture

Wish I could print something people would accept. I'd sure sell it for something much more valuable than other paper, though. I'd be the reincarnation of John Law.

Thu, 03/17/2011 - 12:49 | 1067054 AZSovreign
AZSovreign's picture

I guess I just simply don't understand why they would want to devalue the Yen at this point???

Thu, 03/17/2011 - 12:23 | 1066962 Rogerwilco
Rogerwilco's picture

OK, who's buying the dollars?

Thu, 03/17/2011 - 13:09 | 1067147 AccreditedEYE
AccreditedEYE's picture

Under normal circumstances Roger, I would be with you as I have a very contrarian bent and did believe in dollar strength as part of the overall deflation macro play. However, what we may be witnessing is the replacement of the yen with the dollar for the carry trade. That's a whole new level of pressure for the buck...

Thu, 03/17/2011 - 11:34 | 1066754 Silverhog
Silverhog's picture

Maybe a firehose will work better on the Yen.

Thu, 03/17/2011 - 11:36 | 1066769 101 years and c...
101 years and counting's picture

The only way they can get this over $80 and stay there is for Bernanke to come out a kill any QE3 talk, raise rates and/or kill the rest of QE2.  Not going to happen, so go ahead and short USD/JPY.

Thu, 03/17/2011 - 11:38 | 1066778 LawsofPhysics
LawsofPhysics's picture

Wow, unbridled stupidity and proxy for WWIII.  Hedge accordingly.

Thu, 03/17/2011 - 11:40 | 1066781 hugovanderbubble
hugovanderbubble's picture


Thu, 03/17/2011 - 11:46 | 1066802 Franken_Stein
Franken_Stein's picture


Why ?


The Euro is stronger than ever and will stay that way.

Last time I checked the ECB wasn't hell bent on printing like there's no tomorrow,

even hinting at rate rises.


What Trichet prints in a month is an afternoon shift for Benny & associated Inkjets.

Powered by Hewlett Packard.


Thu, 03/17/2011 - 11:50 | 1066810 hugovanderbubble
hugovanderbubble's picture

Because Spain and Portugal will need Bailout cos Real Estate Loans Losses, that the general traders doesnt know, cos Media and Bank of Spain lies in the figures and in the valuation.


Impossible to hold current 10yrs and 5 yrs yields in this will be dillutive for banks and financing in whole cross Europe.


Euro has been artificially sustained------Haircut(Forgiven debt schemes coming ---QUITAS----20-40% from par value

Germany with current Japanase Crisis will need to have a very very cheap Japan is the first German Customer


Euro Target for 2013 = 1.10-1.18



Hugo Peterssen,

Thu, 03/17/2011 - 11:58 | 1066827 Franken_Stein
Franken_Stein's picture


Japan is not Germany's first customer.

Germany exports ca. 30% of its goods to France, its main customer.

Almost 60 % of German exports go to EU countries.

Then comes the U.S. with around 10 % and then maybe Japan.


Thu, 03/17/2011 - 12:08 | 1066871 hugovanderbubble
hugovanderbubble's picture

Review ur stats


Country most affected by Japan Crisis-------------Germany

Thu, 03/17/2011 - 13:29 | 1067244 Rodent Freikorps
Rodent Freikorps's picture

How much of that is that Green Tech crap no one is going to buy any more of?

Thu, 03/17/2011 - 12:32 | 1066998 PY-129-20
PY-129-20's picture

Are you listening to the N24 and N-TV "pundits"? You could as well watch CNBC. Same stupidity.

Thu, 03/17/2011 - 12:30 | 1066993 Lednbrass
Lednbrass's picture

Good luck with that.

As Germans are stolen from to provide for the retirements of Club Med nations, I truly hope you enjoy the Euro.


Thu, 03/17/2011 - 12:36 | 1067013 PY-129-20
PY-129-20's picture

lol - yeah, but I've given up. Most Germans will never understand that. So, be it. Let them work harder, let them work longer, increase tax, rob them blind (that's what they've done already) - but present them with one expert, being paid by banks, and they will believe everything.

Thu, 03/17/2011 - 11:47 | 1066783 Ben Probanke
Ben Probanke's picture

* Barclays "Took Yen Prices Off System" As Yen Surged -Spokeswoman
 * Barclays Yen Prices Off Barx For "Minutes" Weds - Source

Thu, 03/17/2011 - 11:42 | 1066792 Shameful
Shameful's picture

If they are going to just print Yen and dump them out of helicopters why not send a few loads into the rad zone.  Rradioactive Yen is going to make the velocity on it move even higher.

Thu, 03/17/2011 - 11:48 | 1066805 AccreditedEYE
AccreditedEYE's picture

+1 Seriously. This is getting insane... they are burning through yen literally at this point. The carry unwind is too big to be contained.

Thu, 03/17/2011 - 11:42 | 1066794 hugovanderbubble
hugovanderbubble's picture

Long CAD short EUR

Thu, 03/17/2011 - 11:45 | 1066800 Robert Neville
Robert Neville's picture

Could someone tell me why the BOJ printing trillions of Yen make the Yen stronger? If If monetizing debt equals strong fiat then gold should be $50 an ounce.

Thu, 03/17/2011 - 11:54 | 1066823 John McCloy
John McCloy's picture

Theory would be that deflationary forces are so strong as evidenced by their need for liquidity and the wealth destruction by the damage that it will go higher short term. IMO the dollar is going nowhere but up which means markets down.

A whole bunch of guys were just on CNBC telling me 30 mins ago that they were buying both China and Japanese dips so I guess all is well.

Thu, 03/17/2011 - 12:48 | 1067051 Robert Neville
Robert Neville's picture


Thu, 03/17/2011 - 11:58 | 1066857 MachoMan
MachoMan's picture

Stronger in regard to what sort of timeline?  The yen strength has nothing to do with printing...  if you NEED yen, you NEED yen and don't care what the central bank does...  Now, after the need has subsided and the printing concept/effect remains, then the analysis might be a little different.  Or, alternatively, when the dollar gets a rocket booster.

Thu, 03/17/2011 - 11:59 | 1066863 Scisco
Scisco's picture

Right now there is a huge demand for Yen. This has an imediate effect. The printing has a delayed effect and will become apparent once physical resources are bid for. Also, there is the collapsing of credit to consider.

Thu, 03/17/2011 - 12:18 | 1066942 medicalstudent
medicalstudent's picture



humans died. those humans had debt. debt died. boj monetized people and their future debt aggregate.

structures destroyed. structures were collateral for some debt. that collateral was destroyed. debt was destroyed. boj nominally monetized physical collateral.


debt destroyed --> currency destroyed --> deflation --> boj e-printing --> inflation --> here we go again.


yeah, keep blaming the cause on the effect.

Thu, 03/17/2011 - 11:44 | 1066801 plocequ1
plocequ1's picture

What ever happens, The "Petty Taxpayer" will handle it.

Thu, 03/17/2011 - 11:48 | 1066806 falak pema
falak pema's picture

Apparently the rate of coital union in Japan has alarmingly risen. It's proportional to the number of micro sieverts in the air and it's sending the yen to yearnings that nobody ever imagined. Great balls of fire (figuratively speaking). We don't know much about earnings but that depends a lot on the weather. Keep your hats on and the hose pointed in coital erection. Let it all flow out...the battle of the yen and that of yin and yang go on and on...No holds barred! Banzai Japan! We are all japanese today... Fukushima mon amour!

Thu, 03/17/2011 - 11:47 | 1066809 John McCloy
John McCloy's picture

Did I just see a flash on CNBC that Bahrain as halting production of 250k barrell production facility?

Thu, 03/17/2011 - 11:56 | 1066849 John McCloy
John McCloy's picture

Thanks. Guess that is bearish for oil in this market.

Thu, 03/17/2011 - 11:49 | 1066811 John Law Lives
John Law Lives's picture

What a goddam irresponsible thing for a government official to say.

Thu, 03/17/2011 - 11:52 | 1066826 gianakt
gianakt's picture

Large PD in trouble due to yesterday's action in the Yen, explains todays action in the market, Fed has ordered rest of PD to support the market to assist troubled PD with trade liquidations.

Thu, 03/17/2011 - 12:10 | 1066911 taraxias
taraxias's picture

Can you back this up with anything other than "trust me"?

Thu, 03/17/2011 - 11:54 | 1066840 gkm
gkm's picture

I really don't follow the BOJ's logic on this.  They are going to have to spend billions (trillions?) to replace their infrastructure.  A weaker yen is the last thing they need right now.  We could see a thrust out of the LT consolidation all the way down to 30-40 USD/JPY and they should be selling yen (buying dollars) in that range.  They should use the opportunity to their advantage.  Ultimately the yen will be worth face value (zero) so it's all about getting the most bang for your buck (yen).

Thu, 03/17/2011 - 11:55 | 1066851 TradingJoe
TradingJoe's picture

The proverbial shit is about to hit the fan, this time for good, there is no way out! That moment has passed when the first "tarp money" went to the PDs, now it's about real survival for all these shills! No matter mow much they looted it'll be worthless WHEN(not if) inflation hits!

So far today SELLING into "strength", I guess it isn't over JUST YET! To me it's the beginning of the END! Trade accordingly! (Long physical stuff, short anything else)! 

Thu, 03/17/2011 - 11:57 | 1066852 Franken_Stein
Franken_Stein's picture


Hillary Clinton doesn't want to run for a 2nd term.

I guess because she doesn't want to be a serf to the Wallstreet oligarchy.

That's below her standard.


Thu, 03/17/2011 - 12:02 | 1066883 MachoMan
MachoMan's picture

Her comments on Wolf were pretty troubling following b9k9's post...  (where he speculated that biden would resign, and ultimately a "strong hand" placed at the helm)...  he asked her if she would consider taking biden's spot if he were to resign...  seemed like a really odd ball question.  [ie why you wouldn't solely make query into whether she would run for VP, which he did also].

Thu, 03/17/2011 - 12:37 | 1067018 Alienated Serf
Alienated Serf's picture

you have a link to that b9 post?

Thu, 03/17/2011 - 14:47 | 1067624 MachoMan
MachoMan's picture

This was the comment:

And this is a post on another site (through google search) referencing a previous post of B9's regarding strong men.

Thu, 03/17/2011 - 20:01 | 1069145 Alienated Serf
Alienated Serf's picture


Thu, 03/17/2011 - 12:00 | 1066864 William Wics
William Wics's picture

What is a "Bettle" and why would you put one on a Yen?


Thu, 03/17/2011 - 11:59 | 1066866 99er
99er's picture

Dollar Futures

Target 78.40.

Thu, 03/17/2011 - 12:06 | 1066890 medicalstudent
medicalstudent's picture

outcome tree:


1) japan no fix the nuclear problem --> fucked. --> w coast panic.


2) japan fix problem a) with ust selling --> risk dollar collapse/debt ceiling breach (how we gonna pay them?), b)without ust selling but with us help --> were broke --> more deficits.


either way, boj will have to decide if they want to prop usd or strengthen yen at this juncture. help themselves or help us help them.

comment: why cant us send a camera and geigered drone over there -> drop a floatable pump and long ass hose into nearby water. --> pump water into the bitch straight from the ocean with a pulleyed hovering drone or chopper.


rinse repeat.


either way btfd. urre should be back up soon.

Thu, 03/17/2011 - 12:08 | 1066900 Atomizer
Atomizer's picture

Next, Tim Geithner we must raise the debt limit on TV in 5, 4, 3, 2, 1.

Thu, 03/17/2011 - 12:10 | 1066907 Panga Man
Panga Man's picture

What is all this printing going to do to the price of gold and silver over the next 6 months?

Thu, 03/17/2011 - 12:26 | 1066966 John Law Lives
John Law Lives's picture

Look at commodities surge (as of 12:20 EST)

It is amazing that warped minds of The Fed could suggest this is a good thing.  It is scary that they defend their QE policy with tooth and nail.


Thu, 03/17/2011 - 12:58 | 1067101 HoofHearted
HoofHearted's picture

Anyone else notice it is only SILVER and OJ that are down? Manipulation anyone???

Thu, 03/17/2011 - 12:30 | 1066974 bingaling
bingaling's picture

This is so short sighted on BOJ's part . How long do they think the run into yen will be ? When this mess gets straightened out no one is going to want to touch yen with a 10 foot pole and with everyone flush with yen ,demand will be non existent, and the value is going to drop like water in a nuclear reactors fuel pond after a tsunami .

Thu, 03/17/2011 - 12:52 | 1067068 gwar5
gwar5's picture

Geithner says he wants an IMF world currency, so now the USD will fall off a cliff faster. He has revealed his true goal -- destroy the USD as WRC. Dump man-child Giethner and the globalist socialist bankers and their globalist fiat fraud movement.

Heloise tip of the day: Make a DIY Hazmat suit to protect you and your family against wind blown fall out radiation! Just soak your clothes in Boric Acid/Borax, 2 cups per gallon of water for an hour, and let them air dry. It will soak up all that bad radiation and prevent it from going through your clothes. Feel fresh and confident going outside when the wind blows into your neighborhood!

Thu, 03/17/2011 - 12:56 | 1067077 djrichard
djrichard's picture

Japan would be better off if they nationalized the BoJ so the gov could print money directly for whatever expenditures were needed.  That way they could print what they need to rebuild and keep the Yen weak to support their exports (and to keep all those carry traders from exploding).  If they want to strengthen the Yen, all they have to do is tax it out of circulation.

Also it would have the plus of nullifying any gov debt held by the BoJ.

Thu, 03/17/2011 - 12:55 | 1067088 onarga74
onarga74's picture

What happened to the current info on Japan/nuke/news? Am I missing something?  I know we have micro attention spans but a couple of days ago this situation had the market by the neck and there was real breaking news.  I had to check the tv this morning cause I thought the  words "CNN Breaking News" might have beeen engraved on the screen.They look like they're gonna say something important but yesterday and today they just have a freakin helicopter show in the background. Is this still incredibly important, are the news folks told to put a lid on it, or is this story moving into the Titillation Hall of Fame?




Thu, 03/17/2011 - 13:15 | 1067193 baby_BLYTHE
baby_BLYTHE's picture


If inflation is so much more destructive than deflation... why aren't we losing nearly as many jobs as we were during the 2008-2009?

Thu, 03/17/2011 - 23:15 | 1069885 BlakeFelix
BlakeFelix's picture

I'm hardly an expert but I think inflation is better than deflation but they both suck. Deflation especially sucks because people stop spending so people with debt can't pay it off and have to default, which just causes more deflation. Inflation especially sucks for people on fixed incomes but at least people still spend money. The big problem for inflation is the exit strategy is hard. Maybe a TIPS based dollar like the Brazillian real? Basically it requires a new currency or going Volcker, both of which take good governance which is in short supply.

Thu, 03/17/2011 - 23:17 | 1069887 BlakeFelix
BlakeFelix's picture

Double post.

Thu, 03/17/2011 - 13:24 | 1067237 cocoablini
cocoablini's picture

if battling for the YEN is spraying dollars all over the place, then it's NOT WORKING

Thu, 03/17/2011 - 13:32 | 1067262's picture

Now that Japan is an importer it's best that its Yen gets stronger.

Weak currencys only matter when you're running a strong export economy.

Thu, 03/17/2011 - 14:33 | 1067562 InconvenientCou...
InconvenientCounterParty's picture

judging by your avatar you are clearly worth listening to.

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