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Wolf Richter, Testosterone Pit
The meltdowns at Fukushima Number 1 that have caused so much havoc have also paralyzed Japan’s nuclear power industry. The last of its 54 reactors will be taken off line in May for scheduled maintenance, but none has been restarted due to local resistance.
“Deindustrialization” is gripping the power-starved country. TEPCO, owner of the Fukushima plant, is being bailed out with trillions of yen in taxpayer money, or rather [...] Wolf Richter www.testosteronepit.com It’s a doozie. On December 24, the cabinet approved a draft budget for fiscal 2012 whose headlinenumbers were horrid enough: ¥90.3 trillion ($1.173 trillion) in outlays, ¥42.3 trillion in tax revenues, and a deficit of ¥48 trillion. 49% of the outlays are to be covered by issuing bonds, a record even for Japan. But it gets worse. Accounting shenanigans gloss over the fiasco by removing two items from the general [...] by Bo Peng, SA 1. JPY weak I could not believe it when the JPY surged last Friday. OK, I understood the Yen repatriation argument but does the market really trade on such strictly short-term factors, even though it’s in complete contradiction with the much more potent and certain longer-term forces? I didn’t buy it. I’m not buying it. In any case, I’d like to thank the [...] 1. When the “carry trade” of borrowing at ultra low rates goes in reverse and money is being returned from the hot plays back to Japan it creates increased demand for Japanese currency. This is simply a mechanical process. 2. The BOJ bond market is second only in size to the U.S. Thus it provides enormous levels of depth and market liquidity. To say that the Yen is a safe-haven would depend [...] |
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