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Recent stories in Japan
"We need something bolder..."
Let's put in a USD 550 bio extra of asset purchases, or may be on second thought, let's double that amount. After 9 consecutive rounds of QE worth JPY 100 trillion - roughly EUR 1,000 bio and some small change - the freshly elected Japanese government headed by Shinzo Abe is looking for something more, let's say, "challenging". ...
And there goes the Yen ?
A couple of days ago, blogger Bruce Krasting (fx) had a nice story on the Japanese Yen. "The full name for what is familiarly known as JA is Japan Short Anonymous (JSA). The group is patterned off of AA or Alcoholics Anonymous (many JA members are also in AA). The only qualifications for joining JA are the loss of a great ...
My calculated Pension Risk
The age of financial repression is going global these days. And it hence shouldn't come as a surprise that large pension funds are not really happy with what monetary policy is fabricating in terms of QE and interest rates. As a consequence, some re-allocations are taking place. Yesterday, the news came in that Japan's Teacher's ...
A note on Banzai Bonds
Yesterday, leading rating agency Standard & Poor's maintained its credit rating for Japan at AA-. And although the state of public finance should give some reason for concern, S&P nevertheless is quite confident that Japan's future current account will be sufficient in the black in order to absorb the domestic funding needs. Well, ...
Kabuki
In our previous posting, we mentioned that not a lot of safe havens still exit in the world of today. Which sovereign bond can I trust, what kind of monetary system will be there the day after tomorrow etc. Recently we have seen some strange developments occurring in financial markets, confirmed by international investors net in- ...
The Nipponization of the US
If we use the same logic over and over again, we will arrive at the same end result. The solutions that were used by Japan, and proposed by ia. Greenspan and Krugman failed. And yet, the same school is still in power, and implementing the same policy in the US. In Europe, this school is very powerful. In 2008 they pushed for higher ...
Japan aftershock - Open discussion
"The G7 last week (currency intervention) came together to save the US. Japan is very fine on its own".
Japan & M-East : Risk & Weekly wrap-up
One week into the Japanese drama and we have already witnessed some important developments on the financial front. As usual, just follow the flows.
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