jaycey

Yen Carry Trade: Dire Threat or Poltergeist?

Is there something somewhere on the net that explains in a schematic fashion just how Japan deals with these surpluses? It is my view that despite the fact that they've been running surpluses for decades the old saw that "Things that can't go on forever, don't go on forever" must eventually blow up the currency pressure cooker that is the yen.

I've read a lot of "revisionist" history about Japan and it seems to me that "smoke and mirrors" is a way of life for government officials over there. It also appears that deflationary policies are a deliberate means of dealing with a yen that wants to go up because of economic forces and foreign pressure while still maintaining their sacred surplus.

Your thoughts? Links?