Monday, March 3, 2008

3 March Carry Trade Death


USDJPY now at record low, going to challenge 101.67.
when that breaks, USDJPY would be back to 80-90. Then hell would break loose.
Nikkei would plunge, so will Asia markets.

Otherwise, BoJ needs to reflate the Carry Trade, to fuel the next Equity rally.
I.e. BoJ need to buy USD aggressively, buy the US treasury notes, which they have shun in earnest in the past few months.

For the Jap to save their Stock Markets, they have to go back to their morphine.

Japan holds the key to the impending crisis, the Dollar Crisis and Market plunge.

The Japanese would be cast into another decade long curse. The Japanese would be held back, while China rise to the world arena in the next decade.

The oppposite would be another decade of carry trade, financial exuberence to the worlds end.

The world now needs a UltraMan.

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