A Yen for your Thoughts

Despite a perpetually lousy economy, the Yen continues to rise; Three reasons. First, deflation makes the Yen worth more tomorrow than today encouraging investors to hold it despite microscopic interest rates. Second, Japan’s large trade surplus ensures continued demand for the Yen from US importers. Third, despite dismal growth, high debt and profoundly dysfunctional politics, Japan somehow manages, which is more than we and the Europeans can say.