By Sell Puts
As the Yen rises Bank of Japan is scurrying to to intact measures to devalue the Yen. Monday BOJ is holding a meeting to discuss the issue. Below is a key quote i would like you to focus on, theme "temporary":
“BOJ monetary policy alone will only stop the yen’s advance temporarily,” said Mari Iwashita, chief market economist at Nikko Cordial Securities in Tokyo.Bloomberg goes onto say:
"Governor Masaaki Shirakawa and his board were scheduled to gather at 9 a.m. “to discuss monetary control matters based on recent economic and financial developments,” according to a central bank statement. Shirakawa returned yesterday to Tokyo, cutting short a U.S. trip by one day after Prime MinisterNaoto Kan said he expected the bank to implement policy “swiftly.”
Meanwhile China is on the defensive of its subsidized shadow economy once again. Michael Wines of The New York Times Writes:The yen slipped and stocks rose after the announcement backed speculation the BOJ will step up injections of liquidity to sustain the recovery. The bank’s meeting follows signs that its U.S. counterpart is also open to further monetary stimulus, with Federal Reserve Chairman Ben S. Bernanke saying three days ago that he has the tools to prevent another recession."
"New data from the World Bank show that the proportion of industrial production by companies controlled by the Chinese state edged up last year, checking a slow but seemingly inevitable eclipse. Moreover, investment by state-controlled companies skyrocketed, driven by hundreds of billions of dollars of government spending and state bank lending to combat the global financial crisis."
