For this last week or so, the yen has been hovering around ¥76.8 yen to $1 US dollar. Every time the yen has gotten strong, until now, the Japanese government has thrown massive amounts of money away in vain attempts at intervening to stop the yen's rise. And every time they've done this they have failed, yet they keep doing it over and over.
I wrote in "Japanese Government: These People Are Just Plain Nuts":
They intervened in the yen at ¥76.9, spending some $50 billion dollars. The yen rose to over ¥80 to the US dollar. Now, today, exactly one week later, we're right back where we started. The yen today, as of 4:11 am August 11, 2011 Japan time, is at ¥76.81...
Now they are considering doing this again!? What is wrong with these stupid people?
Since, at that time, the Japan Central Bank (JCB) claimed it was "watching the market and would act accordingly" I have been expecting to see the yen jump back to ¥80 to $1 US Dollar over this past week or so.
It hasn't happened.
Now, Bloomberg says that some clown nick named, "Mr. Yen" (a former finance minister says the yen could hit ¥75 to $1 US Dollar soon.
He says, “Intervention, in order to be effective, needs to be persistent and continuous and needs to have the understanding” of other authorities...!? Now do you understand why I call this guy a clown? When has intervention ever been effective for more than a few weeks?
I've written many times about how these fools never learn.
In 1996, the average yen to dollar rate was about 106 yen to $1 USD.
Today it is ¥76.82 per $1 USD - about a 30% increase in the yen. I suppose this says volumes about how effective these interventions to weaken the yen have been.
I'm sure we will hit ¥75 to $1 US Dollar... The question is how many more interventions and wasted tax monies do the Japanese public have to suffer before that happens?