>stratfor.com has been sourced on this list before.
This would
create a worse market for U.S. exports, thereby
creating a
countervailing - perhaps not equal - force to the Fed's
rate
lowerings. If folks do sell their Yen, what would they
buy?
The StratFor article indicated that the "sell the yen" call was a desperation move, a short-term play, and probably doomed to failure. They see Japan's prospects as bleak, at best, with a dysfunctional economy having major effects on the inherent social contract. "Feudal loyalties run both ways; in return for loyalty to the leadership, the elite must protect the interests of the lower classes", and with unacceptable, by Japanese standards, levels of unemployment, things are starting to crack.