Falling Yen

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Falling Yen

Falling YenBy www.ForexConspiracyReport.com http://www.forexconspiracyreport.com/falling-yen/ The fallingYenmay fall to its lowest this century as Japan misses its inflation target.CNBCreports the story.http://www.forexconspiracyreport.com/falling-yen/ Reports the Bank of Japan (BOJ) is preparing to lower its inflation outlook could push the yen to its lowest level in 13 years, analysts say.http://www.forexconspiracyreport.com/falling-yen/ Before We ContinueClick the links below to get yourFREE training materials.

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Get 12 Free Japanese Candlestick VideosIncludes training for all 12 major candlestick signals.http://www.candlestickforums.comhttp://www.forexconspiracyreport.com/falling-yen/ Pushing out your inflation targets for a couple of years probably just means the yen will stay on this weakening trend, Trading Partners managing director Peter Boardman told CNBC.http://www.forexconspiracyreport.com/falling-yen/ [The yen] might go to 130-140 [against the U.S. dollar] in the future, levels not seen since the post-dotcom bust in 2002.http://www.forexconspiracyreport.com/falling-yen/ Two years after pledging to drag Japan out of a twenty-year deflationary spiral with a huge quantitative easing (QE) program, the BOJs self-imposed two-percent inflation target remains out of reach.http://www.forexconspiracyreport.com/falling-yen/ With the central banks bi-annual economic outlook review due next Thursday (April 30)http://www.forexconspiracyreport.com/falling-yen/ The Nikkei reported that BOJ board members are discussing whether to downgrade their inflation forecasts for the next three years.http://www.forexconspiracyreport.com/falling-yen/ The combination of a strengthening dollar and falling Yen are important signals for Forex traders.http://www.forexconspiracyreport.com/falling-yen/ Japan and Deflationhttp://www.forexconspiracyreport.com/falling-yen/ A quarter of a century ago Japan appeared set to financially conquer the world. http://www.forexconspiracyreport.com/falling-yen/ Japanese investors bought up assets in the USA and elsewhere.http://www.forexconspiracyreport.com/falling-yen/ Then a network of hidden debt came to light and extinguished the Japanese economic miracle.http://www.forexconspiracyreport.com/falling-yen/ Japan went into a deflationary spiral in which manufacturers produced and sold for less, wages stagnated and even fell and cash became king while commodities and real estate lost value.http://www.forexconspiracyreport.com/falling-yen/ Japan is currently trying to fight its way out of this trap and wants inflation.http://www.forexconspiracyreport.com/falling-yen/ The currently falling Yen is a symptom of the lack of success that Japan is having.http://www.forexconspiracyreport.com/falling-yen/ The Wall Street Journalinterviewed the Japanese Prime Minister, Shinzo Abe regarding trade anddeflation.http://www.forexconspiracyreport.com/falling-yen/ In an exclusive interview with The Wall Street Journal, Japanese Prime Minister Shinzo Abe said Japan and the U.S. are near an agreement on a trans-Pacific trade deal.http://www.forexconspiracyreport.com/falling-yen/ Mr. Abe also said that while he cant guarantee deflation wont returnhttp://www.forexconspiracyreport.com/falling-yen/ Japan isnt experiencing it right now and he trusts Bank of Japan Gov. Haruhiko Kuroda to use the right policies to reach the central banks inflation goal.http://www.forexconspiracyreport.com/falling-yen/ Mr. Abes optimism regarding the defeat of inflation is not shared by everyone as demonstrated by the falling Yen.http://www.forexconspiracyreport.com/falling-yen/ Exporting Deflationhttp://www.forexconspiracyreport.com/falling-yen/ Japans efforts to fight deflation by establishing a 2% inflation rate is having the effect of exporting Japans deflation to neighboring countries such as South Korea, Taiwan and Singapore. http://www.forexconspiracyreport.com/falling-yen/ Bloomberg writes about Japans newest export.http://www.forexconspiracyreport.com/falling-yen/ But South Korea has been hit particularly hard.http://www.forexconspiracyreport.com/falling-yen/ The countrys 4.7 percent plunge in industrial output in February is the latest sign that deflation is on its doorstep.http://www.forexconspiracyreport.com/falling-yen/ The countrys consumer prices also rose by only 0.5 percent last month (the slowest pace since 1999), and its exports were down 3.4 percent.http://www.forexconspiracyreport.com/falling-yen/ Korean manufacturers have responded to the yens 20 percent drop in value by trying to keep the prices of their own products down.http://www.forexconspiracyreport.com/falling-yen/ In practice, thats meant executives with excess cash on their balance sheets have avoided making investments or giving workers a raise.http://www.forexconspiracyreport.com/falling-yen/ The resulting wage suppression, however, is having negative consequences of its own, by hampering domestic consumption.http://www.forexconspiracyreport.com/falling-yen/ (It doesnt help that Korean households are sitting on record debt, equivalent to about 70 percent of gross domestic product.)http://www.forexconspiracyreport.com/falling-yen/ The falling Yen is something that Japan wants, within limits. http://www.forexconspiracyreport.com/falling-yen/ However, regional deflation could be a disaster.