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Revolutionar Post time: 2016-2-12 20:57
Negative interest rates can make the yen go up.......
The more negative the more people wants the y ...
Currencies are manipulated. The Japanese Yen depreciated against the dollar right after the announcement of Kuroda that the Bank of Japan will impose a -0.1% interest rate on the commercial banks which add new "excess reserves", which does not apply to existing "excess reserves" or the basic "required reserves". In this sense, the BOJ is telling all those who earned new money to spend them right away. Kuroda hoped to increase Japan's GDP by forcing all Japanese to stop saving. But, in the process, he in effect is robbing their savings by introducing a penalty (negative interest rate) on it.
The simplest way to understand this is that the boss of a store that is unable to sell his inventory has declared that his employees must spend every Yen they earn in their paychecks, in buying his merchandise, and in addition, extracts a penalty on their savings if they refuse to use them as well to buy his store's merchandise.
Kuroda is like the trustee of their savings and retirement funds. His obligation is to the savers and retirees, but he turned around, and put the boss above the employees, ignoring his duty to the savers that should have trumped his duty to his boss, because theoretically, his boss, the Japanese government, should have been the elected servants of the people. But, this is just another proof that these governments that impose negative interest rates have their loyalties inverted, and by negating the very authority used to establish their existence, have put their continued enjoyment of the public trust at peril. When the public refuses to accept their authority, chaos will ensue.
The Yen rose because other countries have their own crises, of greater import, forcing their savers to end up buying Japanese Yen. Drowning men are known to grasp at straws - exactly as is now happening.