This week the Japanese LDP picked Keizo Obuchi as the new Prime Minister. Throughout the week "international investors" had signalled repeatedly they wanted someone else, but the Japanese didn't listen.
On other news Moody's investment rating service has put Japan up for review. A possible downgrade of the Japanese credit rating is assumed to put pressure upon the new Prime Minister to follow the line being put forward by the U.S. to spend their way out of the economic crisis. In response the central bank of Japan seems intent upon a policy of lowering interest rates to stimulate inflation. This in turn will probably weaken the yen. According to press reports, the U.S. Federal Reserve plans on intervention again soon to prop up the Yen. Whether or not this is true, there seems to be many signs that options are growing narrower about what to do to stop the deflation picking up steam in Asia.
This week South Africa was put under heavy pressure by the currency markets. It appears that S.A. is heading toward trouble. regards, Doyle Saylor