So Shinzo Abe is back in power, carried to victory on the promise of massive stimulus designed to bring the Japanese economy roarding back to life and end years of deflation.
Speculators jump all over the yen, selling it down to levels not seen in nearly two years.
And what's the big stimulus plan?
More Quantitative Easing. (Can somebody tell Abe and the specs that that hasn't worked for the past 10 years?)
|The Bank of Japan should buy more long-dated government bonds and a wider variety of risk asset types, including foreign bonds, to achieve 2 to 3 percent inflation, Koichi Hamada, a special economic adviser to Prime Minister Shinzo Abe, said on Thursday.
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If this is their plan, it's crazy. Just more of the same. I am long the yen. Wait 'til they restart the nukes and the country's trade deficit goes back into surplus.