First the Japanese central bank proceeds to monetize all new debt issuance and is on route to holding 50% of all 10 Year bond equivalents within 2 years, sending the Yen year plummeting to 7 years lows daily, and then – just like Europe – Japan gets cold feet and realizes that the next steps are USDJPY 145+, meaning a complete collapse of the Japanese economy and a full on FX, if not shooting, war in Asia. So what does Japan’s finance minister Aso do? Why he talks the Yen higher, in the process completely confounding the FX algos, and risking a full blown collapse in the Nikkei just 3 weeks ahead of the Japanese snap elections.
- ASO: YEN WEAKENING OVER THE PAST WEEK HAS BEEN TOO RAPID: RTRS
- JAPAN’S ASO: SPEED OF YEN WEAKENING HAS BEEN TOO FAST: BBG
- ASO: FX RATES UP TO MARKET, NOT SOMETHING WHERE WE INTERVENE… at least he is still insane
- YEN GAINS ACCELERATE; ASO SAYS YEN WEAKENING BEEN TOO FAST
And this is not how you win the reitrees’ vote:
- ASO: HAVE TO RECONSIDER SOCIAL WELFARE FUNDING AFTER TAX DELAY
Then again, considering Abe may really just want to get the hell out of Dodge before he is forced out (and before all the Imodium runs out again) a market crash may be just what the Prime Minister ordered…
Yen:
via Zero Hedge http://ift.tt/1uFZWo5 Tyler Durden