"It is vital that both the government and the BOJ each commit to ... achieving the 2%...

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Ariel Aharonovich Comments (433)
 
Why would there be a backdown? Does anyone seriously think that after all he did so far, Shinzo Abe will back off in light of some international noise? Since when Japan care about foreign voices when it comes to its domestic monetary policy? My forecast: they won't use weaker tone until the USDJPY hits 100 and possibly even higher!
28 Jan, 11:49 AM Reply Like

PhC Comments (15)
 
Between 2001-02 and 2009-10, Britain added £5.40 of private and public debt for each £1 of ‘growth’ in GDP. Between 1998 and 2012, real GDP increased by just £338bn (30%) whilst debt soared by £1,133bn (95%). Is Abe about to replicate Gordon Brown’s failure in the U.K. Yes, indeed. Debt and GDP are not both sides of the same coin. GDP growth cannot be driven by debt, be it in Greece, the U.S., Japan, etc. Therefore within few years we shall all witness the facts that Debt has continued to rocket in Japan while Growth has failed the match. Hence, the Debt/GDP ratio will have rocketed to 300% while BoJ will have found another reason not to intervene past the 2014 deadline. For those, who expect the Yen to weaken further, make sure that JGB yields don't go through the roof before BoJ begins to fight next year.
28 Jan, 12:58 PM Reply Like

Ariel Aharonovich Comments (433)
 
I agree: SHORT JPY AND SHORT JGB
28 Jan, 01:08 PM Reply Like