Reply #19: A rabbit hole full of Japanese Bunnies!

[tio]

Aww bunnies. Post bubble asia suffering from the hangover from the tryst with semi nationalist money (bad bunnies) had to think where next after the Washington spanking. Well the chrysanthemum throne ordered its central bank to issue free money aka ZIRPing itself, woo-hoo (waa?/hold on/be kind/rewind ... HAHAHA). This of course meant curtailing/fiddling the issuance of domestic credit but that was OK since its debts were domestic too and the dear old Dai-Nippon Teikoku Rikugun hasn't figured out that the Shogunate will export or die (well them anyway). Anyway this funny money quietly (shhh) flooded the planet and those tools (a) too stupid enough to permit it & (b) too blind with greed to 'just say no' (*giggle*) went nuts. This spawned the so-called 'yen carry trade' a euphemism for 'carrying' (transfering) free money from Nippon to any market that bore interest and then enjoying the 'spread' (difference in interest rates). Now you too can be a hedge fund, sell your soul and the rest is E.Z.! Now I'm going to short hand the rest. Japan gets uppity with China and waves fistfuls of funny money at them, China then kicks Japan in the wedding vegtables, Japan caves and so too does the carry trade, the bubblenomics (join the dots people!) of the US pops ... and ... well you know the rest. Hmm, the moral here is that money goes up and down like a bride's nightie for pretty much the same reasons.