So pudgy Japan is printing money like there’s no tomorrow and the dollar STILL fell 2% against it today. What does that tell you about the dollar if even Japan cant print enough money to deleverage against it? It’s a currency war with air-dollars buying gold to make it all look normal. Who’se gonna get creamed? Why the middle class of course as speculators leverage the ZIRP ZOMBIES to trillions and dump OIL and Corn and Pork.
Heavy selling hit the dollar, which slumped 2 percent against the yen as investors spooked by the plummeting Japanese stock market unwound hedges. It fell as low as 93.90 yen, its lowest since April 4, giving back almost all the gains made since the Bank of Japan’s aggressive monetary easing announced on that day.
The U.S. currency dropped to a 3-1/2 month low against the euro before a slight rebound left the common currency buying $1.3350.
The rout has been triggered by noises from the U.S. Federal Reserve, which meets next Tuesday and Wednesday, feeding into feverish uncertainty about the scaling back of its huge asset purchase program. But this is a lie. It can’t scale back cause washington can’t keep from wanting third world welfare systems for mehicanos who sneak over y los negros AND a huge war glut BOTH and we can afford NEITHER.
“The trend is still in principle a sell-off in markets, a sell-off in riskier assets on the expectations that the Fed might signal further readiness to maybe slow down the rate of purchases,” said Daiwa Securities economist Tobias Blattner.
“So all eyes are on the FOMC meeting next week. There is very little else that matters at the moment”
This is all theater. The real question is when Bernake has to start buying 200 billion a month to balance the US’s books. “deficits dont matter” thank you Ronald Reagan. They don’t matter until they do.