Moon Kil Woong

The Yen Is Due for a Fall

Yen strength is similar to dollar strength. No one is holding either to make money. The dollar gives you oil access and let's you export (since most international contracts are dollar priced). The Yen is already a stagnant money pool and has been for years now. So what does it give you? Security the government is not going to start doing more dumb debt inducing things than it already has done. Basically, it has already experimented with the horrible results of policies the US is just now beginning to do (prop up bad companies, banks, start building cities for no one, and supporting bankrupt construction companies, as everyone puts all their money into government backed monopolies like the Japan Post Office).

Right now what is the Fed and treasury doing? The more they bail out the bigger the demand for treasuries. Why? Because they pretty much have caused panick and have confirmed that the only safe haven is in US treasuries which does the opposite of what they want. No one wants to buy anything else. And as they issue more treasuries to back bad debt that just means more people who want security can buy them. Soon no one will want or own anything but treasuries. How does that help? It doesn't. Wake up Fed and Treasury and read a economics book sometime. After all you are suppose to be professionals.

So far all I see is absolute incompetence. If the banks are safe, then why are you giving them all $. If they aren't, why aren't you forcibly making them transparent and cleaning them up rather than watch them hemorrhage CDS and CDO liability for 10 or 20 years as the economy declines to the stone age.

To the Treasury and Fed: Fix the mismanaged banks, insurance companies, and brokerages and stop trying to fix the consumer! That is, after all your job. Not finding out how to make the average US citizen borrow and then go bankrupt.