Yen Soars Following Econ Minister Comments That It Has Corrected In Line With Fundamentals
And just like that the Abe Yen "open-ended" devaluation is gone as soon as it came. About an hour ago the USDJPY proceed to plunge, first slowly and then very fast, following remarks from Japanese Economics Minister Akira Amari who said that excessive yen weakness could have a negative impact on people's livelihoods through rises in prices of imports, and that it has corrected to a level in line with fundamentals. Almost immediately the USDJPY slid 100 pips to a low of 88.62 yen in the wake of Amari's comments, and last stood at 88.96 yen, down 0.7 percent from late U.S. trade on Monday. As for giant "splatting" noise heard around that world, that was every Goldman senior banker slapping themselves on the forehead as effectively one comments ended the carefully built up tension leading to over 1000 pips in Yen devaluation on fears of unlimited easing without any actual intervention, and just promises, combined the best of what both the Fed and the ECB have done. Of course, each day that passes bring draws closer to some actual action out of the BOJ, and a day when the Yen slide with impunity based solely on fears of intervention, finally ends.
And speaking of Goldman bankers, prior to this news it was reported that the new, old PM Abe would meet with Yale Professor Emeritus Koichi Hamada and other academics today for lunch, and would consult on who should succeed Masaaki Shirakawa as head of the BOJ. For the sake of endless paper devaluation everywhere, and subsequent repatriation of gold by every central bank, it better be a Goldman banker (think Mark Carney).
Because only with the unlimited hubris that a central bank collective run entirely by Goldman alumni, can and will the final reset be dramatically accelerated.
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