Is Japan's Yen Sale Viagra for USD?

Damien Hoffman Wall St. Cheat Sheet September 15, 2010

September 15 2010 tweetmeme_style = 'compact'; Email

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The US Dollar has receded over 94% like a steroid-induced hairline since 1933. With insane debts and a wealth-vacuum trade imbalance in the US, the Dollar looks to continue its downward spiral.

But wait! The Bank of Japan is flying to the rescue. Finance Minister Yoshihiko Noda has announced the unilateral sale (AKA, dumping) of Yen to curb too much strengthening against global currencies. The result? The US Dollar is having a viagra moment versus the Yen.

Although the core reason for Japanâ??s intervention was to prevent more harm to exports and economic growth, US Dollar bears are getting their faces ripped off this morning. Whatâ??s a prudent investor to do? Government intervention in the US has damned the dollar, and now government intervention in Japan has injected some potency.

Like dealing with drug addicts, we canâ??t tell which government is going to add a dose of market-moving policy to their currency. But by the looks of the long term US Dollar chart below, Japanâ??s Yen sale looks like nothing more than a few long hours of viagra amidst 77 years of impotency:

Source: Zerohedge.com

More on this topic (What's this?) US Dollar - UUP (All Allan, 8/30/10) Are Gold and the Dollar About to Go Separate Ways? (Red Hot Energy and Gold - Global..., 9/9/10) Yen Tumbles on Japanese Intervention (Jutia Group, 9/15/10) U.S. dollar spikes vs yen on reported intervention (Penny Stock DD, 9/14/10) Read more on U.S. Dollar (USD), Japanese Yen (JPY), Pfizer at Wikinvest Sharing Is Cool reddit_url='http://wallstcheatsheet.com/breaking-news/economy/is-japans-yen-sale-viagra-for-the-us-dollar/?p=18112/' reddit_title='Is Japanâ??s Yen Sale Viagra for the US Dollar?' yahooBuzzArticleHeadline = "Is Japanâ??s Yen Sale Viagra for the US Dollar?"; yahooBuzzArticleType = "text"; yahooBuzzArticleId = window.location.href;

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Damien Hoffman - who has written 931 posts on Wall St. Cheat Sheet.

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Tags: bank of japan, bears, core reason, debts, dollar chart, downward spiral, drug addicts, economic growth, finance minister, global currencies, government intervention, hairline, impotency, japan, noda, prudent investor, trade imbalance, US Dollar, vacuum, viagra, Yen

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