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It's fallen a lot, and I know it's traditionally been a rather hard currency. Perhaps the Japanese will not tolerate much more of this inflation. Should I buy me some yens?

No.

They are fixin to print a mess of yen and do reflation.

Will they print it faster that we are?

By comparison, they are printing it far faster than us. Yen will sink.

They are going into the crapper...stay clear of that mess.

No, I really wouldn't. After years of deflation and Japanese companies being devastated by a strong yen killing their exports the Japanese government has announced a very aggressive inflation policy. It's been dubbed "Abenomics".

If you want to take advantage of this I would recommend buying the stock of Japanese companies set to benefit from this policy.

Short Yen/ Go long Yuan

Sheikh_yer_Bu'Tay wrote:Short Yen/ Go long Yuan

^^^^What he said.

Ticker DXJ - long Japan stocks with a currency hedge. Nice combo.

inflationhawk wrote:By comparison, they are printing it far faster than us. Yen will sink.

The government has excepted this as a challenge! The US doesn't like competition

Ecotic wrote:No, I really wouldn't. After years of deflation and Japanese companies being devastated by a strong yen killing their exports the Japanese government has announced a very aggressive inflation policy. It's been dubbed "Abenomics".

If you want to take advantage of this I would recommend buying the stock of Japanese companies set to benefit from this policy.

That's what I'm thinking though- Japan has seen deflation for a long time, and I'm not sure it's wise to expect things to change so quickly. I know they're pursuing an inflationary policy right now, but Japan's government has tried to weaken the currency before many times and not gotten results. This time seems to be different, but is it really?

As for investing in stock, that would have payed off handsomely if I had done it before the inflation started, but I know Japanese stocks have already risen a lot. I'm not sure they'll go much higher, and of course they have lower to fall now than before.

It will quickly become obvious that there is no way Japan can pay back her sovereign debt. She will not be able to borrow money at low interest rates. The result will be a massive default. All her paper will burn up like a moth in a bug-zapper. If you love Japan like I do, you have to mourn for her. This game of musical chairs is almost over.

Japan is already printing more than half of her annual budget. With a rapidly aging population and a dash of xenophobia, there is no readily apparent solution.

shinnosuke wrote:It will quickly become obvious that there is no way Japan can pay back her sovereign debt. She will not be able to borrow money at low interest rates. The result will be a massive default. All her paper will burn up like a moth in a bug-zapper. If you love Japan like I do, you have to mourn for her. This game of musical chairs is almost over.

Japan is already printing more than half of her annual budget. With a rapidly aging population and a dash of xenophobia, there is no readily apparent solution.

About two hours after I posted the above, my favorite gloom and doom page posts this:

http://www.zerohedge.com/news/2013-05-1 ... t-day-5-ye

Didn't Abe over in Japan say he wanted to inflate the currency enough to drive the Nikkei to 30,000? Ballsy but hey, at least he ain't lying.

They are doubling their money supply. As a function of GDP they are printing more than the Fed. China is not buying from Japan because of their island dispute. Steer clear. Stick with money that can't be devalued, good old gold and silver.