Chatter Of The Squirrel

The Yen Carry Trade

March 14, 2007 on 11:53 am | In Rants | No Comments

Bad things are happening, my friends.

See the engine that has been driving global economic growth the last decade or more.

See that the engine is now sputtering and dying down.

Repent, for the end is nigh.

If you are concerned about your financial futures, you must not be ignorant and come out from under your coconut shell. The Yen carry trade is unwinding, and this will have dire consequences.

Some think that this will be an excellent opportunity buy Yen. Cos when those hedge funds fully unwind the carry trade, there will be a surging tide of demand for the Yen. The exchange rate of the Yen will climb.

But, if such a disaster were to happen, gold should be a good place to be too. Without the pressure of anticipating Yen’s peak and dumping it before it tumbles back down. Cos a strong Yen can’t be good for their economy either.

There’ll be plenty of room for the powers that be to manipulate this game. So, if you want to play, it’ll be interesting at the same time it is risky.