Yesterday I bought a new book of Keitaro Hasegawa who is an international economist with the stock investor whom we respected for many years. We assert that only he is in Japan as for the reliable economist who can say thus much. However, the book that I found interesting was written in Japanese. Today I decided to introduce the part of abridgment to our FF members.
From pages of questions and answers:
Q(a member of Hasegawa's club): How will be the yen?
A(Mr.Hasegawa):The yen is depreciation of the yen as far as "yen carry" follows. This tendency is unchanged for the duration, I think.
"Yen carry" is that people borrow the yen of low interest rate and change yen into other currencies and speculate in huge sums. Depreciation of the yen continues as far as this continues. You may have you think that this mechanism persists unchanged.
Q: A price of crude oil falls, but where do the funds move?
A: Oil is a product. If it rises in price, it becomes unsellable.
A buyer is going to suppress comsumption as much as possible. A seller increases it. Therefore, if it rises in price, a change cannot but happen for supply-demand balance by all means and you may think that it is natural to come over.
I tell you straight, there are two points that this speculation funds move. One is a flow to project finance via bond market. Another is equity investment.
In case you didn't know, not only New York Dow but also the Asian stock prices update a high price both. It is only Japan in developed countries that do not rise to a new-high. It must be because the funds which moved to commodity speculation flow into the stock markets. Then I express project finance via bond market, it will cost 1 trillion euro to need to build Baltic Sea's undersea pipeline. Therefore they publish a long-term bond and raise a fund. You may think that investment capital changes to this long-term bond.
Q: Investments to the Euro seem to increase as a result that the euro is brisk. Although there are relations with the dollar, too, for the European key currencies, please tell the future of the Euro.
A: As you know, Euro is European common currency, but Euro doesn't have much strength fixed as the standard of the European economy or basis perfectly. In some ways it's only a local currency. It cannot replace a US dollar. Please settle for such things is impossible.
Despite this, euro is kept running stably comparatively and euro rises firmly against US dollar. The prime reason being that the mechanism which Middle Eastern oil money enters euro first and is redistributed over entire world from there functions.
A euro goes to Frankfurt(Germany) specifically. And this time is passing in other markets. Or euro goes to London and enter a sterling pound. You may think the reason that GBP is strengthened relatively is because of continuing without inflow's of oil money stopping.
From pages of questions and answers:
Q(a member of Hasegawa's club): How will be the yen?
A(Mr.Hasegawa):The yen is depreciation of the yen as far as "yen carry" follows. This tendency is unchanged for the duration, I think.
"Yen carry" is that people borrow the yen of low interest rate and change yen into other currencies and speculate in huge sums. Depreciation of the yen continues as far as this continues. You may have you think that this mechanism persists unchanged.
Q: A price of crude oil falls, but where do the funds move?
A: Oil is a product. If it rises in price, it becomes unsellable.
A buyer is going to suppress comsumption as much as possible. A seller increases it. Therefore, if it rises in price, a change cannot but happen for supply-demand balance by all means and you may think that it is natural to come over.
I tell you straight, there are two points that this speculation funds move. One is a flow to project finance via bond market. Another is equity investment.
In case you didn't know, not only New York Dow but also the Asian stock prices update a high price both. It is only Japan in developed countries that do not rise to a new-high. It must be because the funds which moved to commodity speculation flow into the stock markets. Then I express project finance via bond market, it will cost 1 trillion euro to need to build Baltic Sea's undersea pipeline. Therefore they publish a long-term bond and raise a fund. You may think that investment capital changes to this long-term bond.
Q: Investments to the Euro seem to increase as a result that the euro is brisk. Although there are relations with the dollar, too, for the European key currencies, please tell the future of the Euro.
A: As you know, Euro is European common currency, but Euro doesn't have much strength fixed as the standard of the European economy or basis perfectly. In some ways it's only a local currency. It cannot replace a US dollar. Please settle for such things is impossible.
Despite this, euro is kept running stably comparatively and euro rises firmly against US dollar. The prime reason being that the mechanism which Middle Eastern oil money enters euro first and is redistributed over entire world from there functions.
A euro goes to Frankfurt(Germany) specifically. And this time is passing in other markets. Or euro goes to London and enter a sterling pound. You may think the reason that GBP is strengthened relatively is because of continuing without inflow's of oil money stopping.
Peace and Happiness through Prosperity (by Konosuke Matsushita)
