Goldman Sachs (the vampire squid) “expects the Japanese Yen to collapse” within 12 months

An interesting article appeared at Zero Hedge in which Goldman Sachs is predicting the Japanese Yen to collapse within the next 12 months. Of course, other than being one of the most corrupt financial institutions in existence probably outside of HSBC Bank, the Goldman Sachs forecast here published by Zero Hedge is probably designed to profit off any collapse of the Yen. The other thing here to pay attention to is that this is being put out by the alleged elitist economist Paul Krugman who has gotten so many things wrong on his “forecasting” it is really a wonder anyone with any integrity even listens to Krugman anymore.
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Source: Zero Hedge

Why Goldman Expects The Japanese Yen To Collapse Within 12 Months

by Tyler Durden

April 24, 2016

Abenomics Bank of Japan Bond Core CPI CPI Japan Krugman Monetary Base Monetary Policy Monetization Nikkei Wall Street Journal Yen

Forget the G-20 agreement on no “competitive devaluations” – the full court press on the Bank of Japan to engage in the next round of aggressive currency devaluation is on, just three months after Kuroda unveiled Japan’s first negative interest rate.

Recall that it was Goldman who not only brought forward its forecast for a first rate hike from July to April and first suggested earlier this week that it is time for the Bank of Japan to forget about caution and to more than double its purchases of equities in the form of ETFs (and which the BOJ already owns a majority of all available securities) as doing either more NIRP and more QE may no longer have a favorable outcome:

… we think the BOJ is most likely to ease mainly via the qualitative measure, with increasing ETF purchasing the central pillar, with a view to improving business confidence. We think the market is already factoring in an increase in annual purchasing from ¥3.3 tn to ¥5-6 tn, and we thus think the BOJ may look to slightly more than double its current figure to around ¥7 tn.

This pushed both the USDJPY and the S&P off their overnight lows when it was first floated in the early morning of April 20.

Please go to Zero Hedge to read the entire article.

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2 thoughts on “Goldman Sachs (the vampire squid) “expects the Japanese Yen to collapse” within 12 months

  1. 130yen/dollar is hardly a collapse and the smart people don’t care anyway. It has been there before and it will be there again. And it will be at 89 again too. Forex is impossible to forecast with any success over the long term. The smart move is to be heavy in USD instruments only because they pay intrest spread of about 5% vs JPY instruments. Buy dollars. Sell yen. Invest dollars. Repeat. 5% spread year over year over year. When the exchange rate is favorable take profit. It is called the carry trade and it has made smart, ungreedy people very wealthy in the long run. Forex is a suckers game and the smart people dont care in GS lying or not.

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