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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (2907)	3/26/2004 11:46:13 AM
From: Jim Willie CB	Respond to of 116555

JYen heading to 100 parity by end of year debasement of Japanese currency is not the issue FOREX flows is the key Japan runs an $80 billion trade surplus with USA Japan runs a $40-50 billion trade surplus with China Chinese Yuan is pegged to USDollar most US stimulus encourages further consumption trade gap is untouched after two years of US$ decline you focus too much on rates you miss the role of BOJ debasement the Bank of Japan is acting as USFed agent they debase their JYen, but for what purpose? TO PURCHASE USTBONDS so, Greenspasm has a Tokyo Fed office acting on his behalf how can you overlook this basic point? your interest rate pre-occupation on currency movement fails to explain how the JYen moved from 84-86 to 93-95 when both USA and Japan offer 1% of shorterm money it is about capital flows, trade surpluses this is so basic JYen shows a huge inverted Head & Shoulders bull pattern, fully engulfing the completed nearterm inverted Head & Shoulders bull pattern (which hit its 95 target in January) now we dick around with 95, probably establish a shorterm inverted bullish triangle at that 95 resist level, then forge onward to 100 parity implications to rising US import prices is huge it should amplify the inflation vs deflation pressure zones / jim