Prediction Comes True, Hours Later (That Was Fast)

Bloomberg reports that Japan threatens to devalue the Yen. Until now, the Japanese finance minister has talked about tolerating a higher Yen. We'll see how long that lasts if the Yen goes even higher.

So, what's the solution? Print Yen (they're strong) and buy Treasuries. The U.S. is happy and China is screwed. China can keep printing, but if there's hyperinflation anywhere, it happens in China, not here in the U.S.

"Meanwhile Toyoo Gyohten, will is scheduled to be appointed an adviser to Fujii today, expressed support for the U.S. dollar as the world’s reserve currency."

Exactly. Except that he means Japan's reserve currency. And Japan might be increasing those reserves. This is worth watching.