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Task 2 - Japanese Yen

I picked Japanese yet, because I believe Yen due its utility in the carry trade. A “carry trade” consists of borrowing a currency with a low interest rate, exchanging this money into another currency, and investing exchanged money in higher yielding and higher risk investments. These investments can include but are not limited to emerging markets, US-based stocks, and Japanese stocks. In turn, investors are essentially getting paid money when they choose to invest in a depreciating currency. In…
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alltrade avatar
alltrade 21 June

Yes, USD could go up much higher but then one also needs to remember that higher exports also raise the value of the currency of the exporting-country by creating more demand for it, that's why this pair had been falling for quite a while before the recent rise, which can clearly be seen on monthly charts, so we'll see how it goes :)

alltrade avatar
alltrade 21 June

Bernanke probably has dug a deeper hole than his predecessor/mentor Greenspan, who'd caused a massive bubble with low interest & ridiculous monetary expansion; present unprecedented amount of liquidity could temporarily fire up a mega-bubble but hell will break loose when it collapses, could be the end of US as we know it!
It's like giving more drugs to a drug-addict having withdrawal symptoms, sure, it "stabilizes" him for a while but that's not a permanent solution to his problem.
Central-planning didn't work with agriculture, not with industry & it hasn't been working with money either!

Marie avatar
Marie 21 June

annatimone thank you for the article and nice photo! please add the tag "Task 2" to this post (and don't forget to add this kind of tags to all tasks)

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annatimone 22 June

Hi Marie,
Where or how do I tags? I don't see it anywhere on the blog or anywhere on post page. Please let me know. Thank you.
Anna

annatimone avatar
annatimone 22 June

Hi Marie,
I got it! I was looking for tags option at the bottom of the post, like in WordPress. I found it. Sorry! Thank you.
Anna

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