The #MMT crowd is trying to 'normalize' the huge drop in the Yen. In real effective terms, Yen is down more than Turkish Lira, Egyptian Pound or Argentinian Peso since 2019. Japan is a debt crisis that's morphed into a currency crisis. There's nothing normal about any of that...

日本は、円に対する公式為替介入を長きにわたり失敗に導いてきた。現在もそれは同じだ。一時的に円高になった後、円はすでに再び下落している。円を安定させる唯一の方法は、10年国債の利回りを急上昇させることだが、日本にはそれは許されないことだ。

I am really sorry, but this just isn’t a name.

We need to further ramp up sanctions on Russia - zero tolerance for sanctions evasion. Move to 100% ban on trade with Russia say on five year ahead target unless special licences are obtained. ft.com/content/a9a583…

Fiscal dominance is a thing

Man muss kein Super-Duper-Insider sein, um zu sehen, wie westliche Güter (auch kritische) nach Russland gelangen. Danke an Robin Brooks für Inspiration und Input für diesen Text zeit.de/wirtschaft/202…

When something goes on long enough - even if it’s very bad - it gets normalized. So kudos to ⁦Maxim Kireev⁩ from ⁦DIE ZEIT⁩ for writing about Germany’s export boom to Russia’s satellite states. Fact that Germany doesn’t stop this is a scandal… zeit.de/wirtschaft/202…

We're putting out a new The Brookings Institution blog every two weeks. Last week's post noted that markets are the most Dollar bullish in a long time. That's why Japan's Yen is falling so much and why depreciation pressure on RMB is mounting. USD will keep rising until something breaks...

Dollar strength is causing dislocations overseas. In Japan, policy is descending into incoherence with the MoF intervening to strengthen Yen, while BoJ pursues policies to weaken it. Similar incoherence in China, where $/CNY (blue) has decoupled from the official fix (black)...

It makes NO sense for Japan's MoF to intervene to strengthen Yen (black), if - simultaneously - BoJ is buying JGBs (blue), which weakens Yen. This is what happened in 2022, when $/JPY was 140. We're now at 157, which tells you just how ineffective this kind of intervention is...

Sad and worried for Spain. President Sánchez deepens the 'Us, the good guys, versus them, the fascists' rethoric. This is not a fair description either of the Press investigating him, nor of the opposition.

In any democracy, investigating the lobbying activities of the spouse of…

Japan has a long and unsuccessful history of official FX intervention in the Yen. Now is no different. After a brief strengthening, Yen is already falling again. Only way to stabilize Yen is to allow 10-year JGB yield to rise sharply, which is something Japan can't afford to do.

「円が急落し、市場はレッドラインがあるのかと疑問に思っていますが、それはありません。存在するレッドラインは10年物国債の利回りにあり、これが上昇すると財政危機を引き起こすため上がることができません。日本は円を安定させつつ利回りを抑えることは同時にはできません。日本の債務は非常に厳し…

I think the situation of the Yen currency crisis is at a very dangerous level. I think there is a possibility of asset crashes and more bankruptcies.

This is the show

The reason Western sanctions on Russia matter so much is because they’re supposed to act as a deterrent for countries like China. The hard reality is that endless dithering in Europe and weak sanctions implementation mean there is no deterrent at all… on.ft.com/49ZLyz3

Where are my MMTers at?

Le yen est en chute libre et les marchés se demandent s'il y a une ligne rouge. Il n'y en a pas.

La ligne rouge qui existe est le rendement des JGB à 10 ans, qui ne peut pas augmenter car cela provoquerait une crise budgétaire.
twitter.com/robin_j_brooks…

Vielleicht solltet ihr dem hier mal nachgehen watson News SRF Republik

Così, a occhio e guardando gli anni precedenti, le sanzioni alla #Russia c'entrano nulla, alla ripresa dopo la pandemia la #Germania sembra aver raggiunto il tetto della sua offerta rispetto al resto del mondo, per ora ovviamente