highnote
04-18-2014, 12:50 AM
Is anyone shorting the Yen?
ProShares UltraShort Yen (YCS) looks interesting.
People think the Yen will go to infinity due to Japan's aging demographics and their governments willingness to keep printing money in order to get inflation to 2%. They are trying hard to avoid depreciation and a depression that would follow.
Some of the Japanese problems are similar to what has happened in the United States. In both countries manufacturing jobs moved offshore where labor costs were lower. The "salary man" jobs of the past with full benefits has given way to part time retail and service jobs. It is estimated that 40% of the Japanese workers are employed in these lower paying jobs.
The Japanese population is shrinking and aging. Any significant immigration is not permitted. In this circumstance it is difficult to envision the return of a vibrant economy with consumers active, spending what amounted to 75% of the economy. Those days are gone and higher taxes and energy costs will only make things worse.
ProShares UltraShort Yen (YCS) looks interesting.
People think the Yen will go to infinity due to Japan's aging demographics and their governments willingness to keep printing money in order to get inflation to 2%. They are trying hard to avoid depreciation and a depression that would follow.
Some of the Japanese problems are similar to what has happened in the United States. In both countries manufacturing jobs moved offshore where labor costs were lower. The "salary man" jobs of the past with full benefits has given way to part time retail and service jobs. It is estimated that 40% of the Japanese workers are employed in these lower paying jobs.
The Japanese population is shrinking and aging. Any significant immigration is not permitted. In this circumstance it is difficult to envision the return of a vibrant economy with consumers active, spending what amounted to 75% of the economy. Those days are gone and higher taxes and energy costs will only make things worse.