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Yen In Free Fall!

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posted on Mar, 16 2011 @ 04:32 PM
Yen in free fall, this is really scary people. we can only wait until we see the asian markets open to see whats next
edit on 16-3-2011 by camaro68ss because: (no reason given)

posted on Mar, 16 2011 @ 04:38 PM
Doesn't that mean the Yen is gaining value?

Looks like it went from about 81 Yen to the dollar to 77.

posted on Mar, 16 2011 @ 04:38 PM
...So it begins
At least i have prepared for this the last half year!
... Hope you guys have!
Time is getting short, but theres still time to stock up on food & water and if you have cash buy gold and silver!

posted on Mar, 16 2011 @ 04:39 PM
Entire industries have been destroyed in Japan.... It is to be expected that the economy and the yen will suffer.

It is so sad to see what is happening to Japan... I really hope that Japan can heal quickly.

posted on Mar, 16 2011 @ 04:42 PM

Originally posted by Turq1
Doesn't that mean the Yen is gaining value?

Looks like it went from about 81 Yen to the dollar to 77.

yes but its not good for a country thats a mass exporter! Jappan just pumped the $700 dollars worth of money into the market and its still falling. they will now become mass importers. you are watching the distruction of the 3rd largest economy crash
edit on 16-3-2011 by camaro68ss because: (no reason given)

posted on Mar, 16 2011 @ 04:48 PM
reply to post by camaro68ss

Gee I would have thought that the $700 pumped into the ecomomy would have gone a long way to assist them get over the utter chaos they are experiencing.

posted on Mar, 16 2011 @ 04:50 PM
Would not the Yen fall anyway due to the injection of such a large sum of money?

There is a lot of market volatility in general.

posted on Mar, 16 2011 @ 05:20 PM
It's strange isn't it? That the YEN would be gaining value against the dollar after this tragedy. This got me thinking, so i took a look at a long term USD/JPY chart. Back in January 1995 when The earthquake hit Kobe Japan, the exchange rate was right around 100 yen to the dollar 100Y=1$. Over the next 3 months the Yen gained about 20% and by the end of March it was at 80Y=1$. This can be attributed IMO to a massive demand for Yen as anyone and everyone scrambles to get out of stocks and into cash yen. After the initial 3 month 20% run up in the Yen to 80, it went on a long downward slope, and did not stop until june 1998 at which point it took 145 Yen to buy a dollar 145Y=1$ I see the same thing going on now.

posted on Mar, 16 2011 @ 05:41 PM
There are a number of articles on zerohedge on the Yen. Sounds like massive DEflation of anything imported into Japan.

By the way, it was $700Billion, not $700. I easily spend $700 on Japanese goods in a month myself. At least until anything priced in Yen got so expensive.
edit on 16-3-2011 by dbriefed because: (no reason given)

posted on Mar, 16 2011 @ 07:42 PM
A post from the comment section of zero hedge said it best:

Not sure if I can give you a brief summary, but I will give it a shot.
1. Japan is, by and large, an export economy.
2. An export economy sells more products when it's currency is weak, because those products are relatively cheap in the countries it exports to (due to exchange rate purchasing power).
3. As export economies mature, their currency tends to appreciate, but in Japan's case, the BoJ intervened and began a program of purchasing US treasuries to strengthen the dollar and weaken the Yen, and lowering the Japanese primary rate (bonds, overnight cash).
4. This led to a credit bubble/real estate bubble which ridiculously indebted everyone in Japan.
5. As a consequence of (4) BoJ lending to the domestic market came to a virtual halt, but given the low interest rates, foreign lending increased (particularly to US, Eur and AU). This is known as the carry trade. Borrow short in Yen, lend long in local currency.
6. The FX risk of the carry trade (5) is only lightly hedged, given the traditional stability of the BoJ and Yen interest rates (most common hedge are FX swaps). As a result, carry trade books have significant exposure to Yen, which traditionally has not been a problem, given previously mentioned stability of the BoJ.
7. The stability of the BoJ is now challenged, given that they now need to (a) calm financial markets with liquidity injections (b) will need Yen for re-building 40,000 homes and (c) they have a massive nuclear plant that may go critical soon which would be a cluster# of biblical proportions. Consequently, the BoJs ability to weaken the Yen by purchasing UST is now severely compromised, and so it is likely that (1) the undervalued Yen will appreciate to the market price and (2) the BoJ will need to sell UST to pay for (a,b and c) above. Hence, those carry traders who are exposed to Yen are borked (like the f*ckwit AU banks). Those who are exposed to Yen hedges (FX derivatives, options, forwards, futures, swaps etc) are either in the money or borked. But here is the real kicker: The FX market is a 24hr, 7 day per week, interbank market. It never closes. In fact, to close the FX market, even for 1 day would be a greater financial catastrophe than banks blowing up due to FX exposure to Yen. So now we have the perfect black swan event

posted on Mar, 16 2011 @ 07:50 PM
I figured this to be mid year. At least that was my call in 2007. It is a bit early.... or possibly the US one will hit mid year. After all, I was mostly thinking of North America, though I did say something about Asia being first in line.

I have been looking for that post.

posted on Mar, 16 2011 @ 08:25 PM
The dollar is in the free fall.
Yen hits post-war high vs. Dollar

Dollar Sinks to new Low Versus Yen

Traders already spooked by Mideast unrest and today's bad housing data are worried that Japanese insurers and investors will redeem their assets overseas--essentially converting that money to yen--to pay for damages stemming from radiation leaks at Japanese nuclear plants, Bloomberg explains. There is also concern that Japanese investors, alarmed by the crisis in their country, will pull out of risky investments abroad. A currency strategist tells The Wall Street Journal that during times of trouble, investors also tend to purchase "safe-haven" currencies like the Swiss franc and the yen, which is considered safe because Japan is a net creditor to the rest of the world. "It may seem counterintuitive, since this is something happening in Japan, so naturally one might think the yen would weaken," he says.

It seems that this thread earlier about the Japanese moving out of US T bonds may have some truth. If this happens the dollar might collapse. I have been one of those preaching that it will be a five year decline, but if Japan starts a run on US bonds all bets are off.

Great buying opportunity for silver, and to a lesser degree gold. If anyone is still crazy enough to be in equities this may be the last chance you have to move into something tangible.

Keep your eye on the dollar index. Real Time USD INDX Chart If it dips below 75 then I would glue my eyes to it. Once the central banks of other nations start flooding the markets with US treasuries watch out. If that happens I intend to remove all remaining money out of banks, and into any non-dollar asset. Guns, land, art, and of course precious metals. Anywhere but in a bank with 0% reserve ratios.

Hopefully, I am being overly paranoid. I just do not want to be like most Americans when the bank holiday happens. Caught with their pants at their ankles wondering what to do.

posted on Mar, 16 2011 @ 08:32 PM
Add in the Yen appreciation with the Japanese markets decling 20% this week and Japanese stocks are looking real cheap. Whatever happens they will need to rebuild. The worse it is the more they will have to rebuild. I will be a strong buyer of Japanese stocks once they get the nukes under control and I believe they will.

posted on Mar, 16 2011 @ 08:43 PM
reply to post by sligtlyskeptical

Great opportunity to get into recycling.

Most of what they need to re-build is already there:

-crush the concrete back to aggregate.
-recycle the steel.
-usable lumber recycled to finger joint studs.
-unusable lumber shredded for composites (oriented strand board panels)...OSB.
-unused shredded material can be re-shredded to (medium density fiber board panels)...MDF.
-recycle the miles of copper.
-recycle the tonnes of aluminum.
-recycle whatever else it is they have on that rock.

I don't think they'll have to import all that much...just need to sort it all out.

edit on 16-3-2011 by helltick because: (no reason given)

posted on Mar, 17 2011 @ 12:01 AM
The market is going to tank by close Friday ,bottom line,flatline.My secondline .

posted on Mar, 17 2011 @ 12:04 AM

YEN has gone UP!

The Nikkei seems to have more issues than the Yen, but after an expecting drop from such a natural disaster, it seems to be sustaining itself..

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