Loading ...Helicopter Ben meets Crazy Abe Kuroda
It appears the Keynesians are back in fine form as Helicopter Ben and Crazy Abe Kuroda play tag with each other in their ongoing game of currency devaluation.
So far the Yen has weakened and Gold got dented but has not generated a sell signal for me.
We will have to see how the day develops.
Forex Sites are saying the Yen has dropped because Abe was re elected in a landslide
It was his announcement that he is printing another 10 trillion Yen that sparked the Yen weakness against the US Dollar.
Their entire premise is ludricrous. “The reason why growth is stalling is because there is not enough currency in the system or credit available”. Then to critics who clearly observe their efforts are failing, they draw upon the “Well if we hadn’t things would be worse off” story. Fk Savers, Fk P/E’s, Fk Failure and Fk Reality – Deutsche Bank will be a mere flesh wound. Graddhy’s blow off top scenario might be playing out after all.
I think the end game is drawing near, regardless of how much fiat they throw at it. The jig will up and confidence in central banks ability to fix the problem of the massive debt they themselves created will evaporate.
Will Yen weakness translate into gold weakness?
I’d say not, the ‘celebration’ for the status quo will be short lived IMO. Nothing as far as the lack-of-growth picture has changed.