If Yen Is Unstoppable, So Is Dollar’s Collapse

Monday, October 11, 2010
By Paul Martin

By: Rick Ackerman
GoldSeek.com
Monday, 11 October 2010

Take a look at the graph below if you think the central banks have things under control. The chart shows the yen’s relentless rise since summer, punctuated by a single, nasty plunge on September 15. That was the day the Bank of Japan intervened in the currency markets for the first time in six years, prompted by concerns that the yen’s steep rise would hurt Japan’s export-based economy, and by the fact that the yen had recently spiked to a 15-year high versus the dollar. The intervention obviously failed, since the yen quickly recouped the loss and is now trading significantly higher than before the intervention. Because we have heard little from the Japanese since, however, we can only infer that they know enough to shut up rather than pretend they can bully speculators. Repeat a threat often enough, and eventually you become a laughing stock.

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