Friday, March 18, 2011
And when the currency is lowered or weakened, it means the opposite- everything costs more domestically and money is devalued, but exports are cheaper and business is happy.
Got it? Good.. on to the big news story of Thurs. night...
G-7 countries announce joint currency intervention (AP) -- "Finance officials from the Group of Seven major industrialized countries on Thursday agreed on a coordinated effort to weaken the Japanese yen, which has surged to record levels following last week's earthquake and tsunami. A super-strong yen could cripple Japanese exports... Finance Minister Yoshihiko Noda said early Friday that the government would intervene in the Tokyo market once morning trading opened... Noda said the planned intervention was meant to calm "volatility" and G-7 governments were not aiming at a specific exchange rate for the yen."
So what does that gobbletygook mean in simple terms?
1) All global markets are constantly manipulated on side of investor & banks
2) Nations will spend billions.. even trillions if need to be, to rig markets for the benefit of traders and investors
3) Weakened Yen means Japanese people will pay more for everything so that Japanese business can make more profit when shipping its goods overseas (The US is currently doing this as well)
4) All governments Lie- they will say and do Anything to calm volatility to appease investors
5) The everyday person means absolutely nothing to a government
Posted by Susquehanna at Friday, March 18, 2011