First domestic fiscal policy, and now global monetary policy has become an utter circus:
- G7 OFFICIAL SAYS G7 STATEMENT WAS MISINTERPRETED, STATEMENT SIGNALED CONCERN ABOUT EXCESS MOVES IN JAPANESE YEN
- G-7 OFFICIAL: G-7 CONCERNED ABOUT UNILATERAL GUIDANCE ON YEN
- G7 OFFICIAL SAYS G7 IS CONCERNED ABOUT UNILATERAL GUIDANCE ON THE YEN, JAPAN WILL BE IN SPOTLIGHT AT G20 MEETING IN MOSCOW
We already mocked the G-7's original stupidity... and now they say it was not what they meant. Because what the G-7 clarification really means it that while the G-7 will supposedly "allow the market to set rates", the G-7 was not happy with how the market set rates following the G-7 statement. And... #Ref!
This also means that the US Treasury which officially was prodding the Yen weaker yesterday has split off from the rest of the group, or call it G-6, which it appears is quite concerned about the Yen weakness, although technically since Japan is in there too, it is more like G-5, not to be confused with the private jet that is carting all the world leaders to Moscow. In such a perfect storm of sheer communication chaos, it is only a question of time before we move into outright protectionism, aka trade wars.
The USDJPY plunges first, asks questions later: