I sure can! No one on the financial news programmes is talking about the 'looming problems' of the US's twin deficits. No matter how much we PRETEND that they are not real, the worse off our children will be in the future: the two-headed monster is not going to die anytime soon.
I strongly believe the US dollar is in for a 'huge correction' in the very near future. Perhaps, GW will let the dollar fall after he gets re-elected in '04. Personally, I don't think a weak dollar will look too good for GW in next year's Presidential Debates/Campaign. So, I predict the yen will shoot for the stars come March 2005. And if it comes sooner than that I won't complain. (Japaninc.net)
After reading 'Princes of the Yen', I strongly believe the central bankers will throw the world financial markets into a topsy turvy loop in order to re-position Japan in a much stronger role in the world.
The Princes at the BOJ do want Japan to 'rule' the world. Somewhere deep down, I think the Chief wants to return Japan to its former glory in the early 1930s. Having said that I believe Japan needs a stronger yen in order to do so. Many people predicted that Japan's manufacturing industry would collapse when the yen rose above the 125 yen level. Well, it didn't. Then the 'naysayers' said Japan would collapse when the yen topped the 110 yen level: Japan is still here. (ProfitResearchCenterLtd.)
Japanese companies have been dieting for the past 7 years. Slashing, burning, letting go workers. Divesting their unprofitable business lines. Now, after many years of turning around the battleship, Japanese companies are ready to fight again. As such, many companies can survive at the 100 yen mark and some, I predict, are ready to compete at the 80 yen/US dollar level in the near future.
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