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Financial representatives of the G7 countries came away from an informal two-day gathering...

Financial representatives of the G7 countries came away from an informal two-day gathering hosted by Britain's George Osborne satisfied that Japan's extraordinary monetary policy maneuvers are targeted at vanquishing deflation not exchange rate targeting. Although German finance minister Wolfgang Schäuble did mention "the relatively high levels of liquidity" present in the market (the obligatory German nod to conservative monetary policy), U.S. Treasury officials said the "conversation [with Japan] was good." Osborne also noted that when it comes to fiscal policy, "there are more areas of agreement between [the G7] than is commonly assumed."
Comments (11)
  • Oh, clearly Japan's monetary policy is not aimed at devaluing the Yen, nor is South Korea's, nor will the EU's massive monetary response be, nor the Chinese response to that. Not even the Fed's current and future profligate printing will be aimed at devaluing the dollar. Yet oddly enough, the effect will be just that as it's the easiest way to improve "competitiveness" in today's global economy. So let's just pat each other on the back, agree that we're not at war, then go home and plan the next in a long line of economic battles over the coming decade(s).
    12 May 2013, 07:29 PM Reply Like
  • of course that is true. what did they really say at the meeting that was informal and not disclosed to the press.
    13 May 2013, 12:10 AM Reply Like
  • I guess everything will suffer except Nikkei
    12 May 2013, 07:36 PM Reply Like
  • Sounds like a great reason to long the Nikkei.
    12 May 2013, 08:34 PM Reply Like
  • As far as I can remember even Japan has a year end target for Nikkei.
    12 May 2013, 10:03 PM Reply Like
  • >>...U.S. Treasury officials said the "conversation [with Japan] was good." Osborne also noted that when it comes to fiscal policy, "there are more areas of agreement between [the G7] than is commonly assumed."<<

     

    Translation: the food and wine were excellent; who gets to pick the cuisine next time?
    12 May 2013, 07:38 PM Reply Like
  • ...this will end poorly....Bernake started this out of necessity...and I do believe that...to stave off a total collaspe......did he go to far with the policy....I would say he did...but who am I.....

     

    Bernake is smart enough to know once Japan, Korea, ECB and whoever else starts easing he can coast a bit here in the states....these other currencies will no doubt over shoot the debasement goals and the dollar will still be the reserve currency....
    Ugly yes....hard to invest, trade or find fixed income for next several years ......I see tremendous volitility over the next 2 years..
    12 May 2013, 08:30 PM Reply Like
  • This is not how the G20 views things. The G7 drinks their own Kool-Aid and believes all their own lies and propaganda. G20 has said many comments how the G7 is committing currency wars.
    12 May 2013, 08:46 PM Reply Like
  • ridiculous comment from G7. the is True. the intentional devaluation will bring the inflation(maybe).
    13 May 2013, 02:39 AM Reply Like
  • All about exporting.
    13 May 2013, 04:00 AM Reply Like
  • I've recommended/put various family PAs in DXJ to take advantage of both the Yen debasement and Japanese equities' cheapness. So far so good.
    13 May 2013, 09:01 AM Reply Like
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