Today's Bank of Japan (BOJ) intervention into the price of the Japanese yen versus the dollar now explains why Naoto Kan was kept on as president of the DPJ and will continue as Prime Minister of Japan: It was all a back-door deal. Wheeling and dealing as usual.
"Scratch my back and I'll scratch yours."
All this time Kan was reluctant to prop up the yen and then, suddenly, he wins the vote and the next day, his so-called "principles" are out the door and the BOJ jumps into yen intervention head-first for the first time in six-years (after it was proven it didn't work the first time). Well, at least that explains why he was kept on.
My favorite economic blog in the world, Mish's Global Economic Trend Analysis, has an excellent
analysis on the idiocy of the BOJ intervening in the price of the Japanese Yen versus the US dollar.
Mish cynically writes of the Bank of Japan (BOJ) intervention:
"The effect from Japan's solo intervention won't last very long. We have to see how the U.S. and European monetary authorities would react," said Yuji Kameoka, chief forex strategist at Daiwa Institute.
The intervention came a day after Prime Minister Naoto Kan held onto power after fending off a challenge from veteran lawmaker Ichiro Ozawa for the ruling party presidency. Ozawa had advocated currency intervention, but Kan had until now been reluctant to act.
Kan and his people got the votes they wanted by promising to prop up the yen... It's business as usual in Japan, folks.
The politicians in this country and even the Bank of Japan are not concerned about the well-being of the average Japanese person. They will do whatever they can to keep the Ponzi scheme going for as long as they can... The can has been kicked down the road once again....
A few months ago, Kan said he wouldn't prop up the yen because he was worried that, due to debt, Japan would become like Greece... But, here we are.
Thank God that these politicians look out for number one... Thank God they will do whatever it takes to get elected....
The Japanese people be damned.
PS: Normally I would be thrilled with a ¥81 a gram rise in the price of gold... But when it is due to price manipulation of currency... What should anyone be?
Keywords: gold, Ponzi, Ichiro Ozawa, Kan, Mish, Marketing Japan