[max_power29]

I've been reading about the Yen carry trade for as long as I can remember.

I want money for nothing too.

How do you borrow money from Japan at 1%? I want to buy energy, utilities, railroads, U.S. T-bills, Gold, and silver.

Thanks in advance.

[halcyon]

http://www.garyascott.com/catalog/bl/
http://www.japan-guide.com/forum/querea ... ml?0+27217


Not affiliated, do not recommend buying any such services. Purely FYI.

[FoxV]

My sister is living in Tokyo these days and I actually thought about trying out my own personal carry trade.

However the currency risk becomes huge. When the Yen carry unwinds, the Yen will skyrocket and the USD will plunge.

Here's a chart of the Yen to USD. Each time there was a hint of the Yen carry trade unwinding we have a spike on the graph (Up to 10% when Greenspan started to turn off the money tap). Ultimately I think its too late in the game to get involved in these hookey money schemes.

Just remeber "Cash is a position". You just may want to get a few foreign bank accounts because I think if your cash is only in USDs, then its not a very good position

[CrudeAwakening]

$this->bbcode_second_pass_quote('FoxV', '
')However the currency risk becomes huge. When the Yen carry unwinds, the Yen will skyrocket and the USD will plunge.

[FoxV]

$this->bbcode_second_pass_quote('CrudeAwakening', 'S')o, buying yen would appear to be a very good investment?

[firestarter]

$this->bbcode_second_pass_quote('CrudeAwakening', '')$this->bbcode_second_pass_quote('FoxV', '
')However the currency risk becomes huge. When the Yen carry unwinds, the Yen will skyrocket and the USD will plunge.

[CrudeAwakening]

Wasn't the last significant yen appreciation partly responsible for the LTCM collapse? Or is my memory hazy?

If yen carry trade loans were ever repaid en masse, the USD would presumably collapse, or at least take a significant nosedive. Would defaults on these loans (as opposed to repayment) actually act to preserve the USD?

[CrudeAwakening]

$this->bbcode_second_pass_quote('firestarter', ' ')Since Feb's market meltdown the yen has depreciated quite nicely, especially against the dollar. It's direction has correlated nicely with the parabolic move in equities subsequent to Feb's mini meltdown.

[firestarter]

$this->bbcode_second_pass_quote('CrudeAwakening', '')$this->bbcode_second_pass_quote('firestarter', ' ')Since Feb's market meltdown the yen has depreciated quite nicely, especially against the dollar. It's direction has correlated nicely with the parabolic move in equities subsequent to Feb's mini meltdown.

[max_power29]

People always warn the the yen will appreciate but it never does and if it does it just goes back down again within a relatively short amount of time. I think its because its the way the "power people" like it.

I remember reading last year about how the bank of japan announced it would begin raising interest rates and would therefore make the sky fall. they never significantly raised rates. That was all a bunch of B.S.

The status quo just keeps on trucking. The stock market is supposed to crash, real estate losses are supposed to tank the economy, china and russia are supposed to ditch its dollars; Iran is supposed to start a major non dollar oil bourse. None of it ever happens. Thats the way they like it. Nobody has a non fiat currency except maybe switzerland (partial fiat?) So everybody is just going to keep on inflating. Inflating doesnt even take any energy to do.They will keep doing because if they decide to deflate., governments will suddenly not have anymore money to spend r essentially become powerless. There is no way the U.S. government or any other really can keep going without borrowing from their central banks which can just print it and loan it to them. weve seen it this year already the markets tried to crash, but "they" wouldnt let them take their natural course.

In the great depression, deflation was an option because the government had a surplus and rarely borrowed to pay any expenses anyway. DEFLATION IS NOT EVEN AN OPTION NOW; DEFLATION IS GOVERNMENT SUICIDE. Since when has a government voluntarily disolved itself?

The only thing thats going to tank is the middle class who dont do as the "smart money" (rich people) are doing.

[jboogy]

"The status quo just keeps on trucking"-Max Power, Truer words were never spoken.Even without resource depletion coming eventually the system would collapse on itself.Even with the global economy as HUGE as it is it can only absorb so much excess liquidity before fiat becomes T.P. What I think we're seeing is gubment's partying and gambling to the wee hours of the morning in a seedy Vegas no-tell motel's slots room with a company credit card, cause he know's the company's going out of business before they'll get his expense voucher."THEY" know about P.O. and it's ramifications so why not live for the moment?