Deputy Governor Hirohide Yamaguchi of the BOJ pledged “decisive” policy action.. Imo he is making a play here for the top job. I’m on record as saying the Governor, Masaaki Shirakawa is in the ‘departure lounge’. I believe this is the commencement of his exit.

So, I wonder what decisive measures the central banker could be referring too.. lol

http://www.bloomberg.com/news/2011-07-20/boj-to-take-decisive-policy-action-if-needed-deputy-says-1-.html

The JPY’s rise vs the USD (and therefore most of Asia) as well as the rise vs the Euro is strangling the Japanese economy.

The race to bottom is on. The JGBs at record low yields. When rates can’t go any lower fiat paper is usually printed with little restraint, Shirakawa was a notable exception. Holders of JGBs are about to get a rude awakening.

The rush out of JGBs into hard assets makes the Nikkie very attractive at these levels, imo.

Note the IMF’s recommendation – every time, without fail the IMF always recommends developed nations print money.  Conversely they never recommend EM and Frontier ever print.

Onwards.

Rich

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