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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: futures speculator who wrote (36408)	7/20/2005 4:17:06 PM
From: Crimson Ghost	Respond to of 110194

Bloomberg carried an article yesterday arguing that uncertainties about Post Office privatization were a key factor behind the Yen's slide. Just goes to show that the commercials can get it it very wrong sometimes (though not often) I am long the Japan index Fund (EWJ) A nice rise in the Nikkei has been totally offset by the plunge in the yen. So this fund has gone nowhere recently

To: futures speculator who wrote (36408)	7/20/2005 11:59:57 PM
From: mishedlo	Read Replies (3) \| Respond to of 110194

Could it be that BOJ is pushing it down as far as possible, trying to squeeze those who have bet on a JPY appreciation? So BOJ can cover its $320bn (35trillion) of counterfeit money it (BOJ) created during late 2003-1Q2004, to intervene in the forex market? Japan's forex reserves are $850bn in total. If actual market forces are behind this, then BOJ would be really lucky to find "natural" buyers of USDJPY. But would it be possible that behind this terrible JPY performance is BOJ itself? I do not think the BOJ can push it down. Nonetheless your question is interesting. Long ago (when everyone was speculating that Japan would be "forced" to cover due to mounting losses, stated that Japan would cover when they had a huge profit. Everyone thought I was nuts at the time, but my scenario sure seems more likely now. Mish