Could we see a 100 yen = $1???

[tokapi]

I said it in previous posts on other threads just what you have printed above Tokapi and people thought I was nuts!

as the US economy goes into the toilet and there are screams for a solution.

There are countless well-educated high-tech professionals ( 30 & 50 something males ) have been unemployed for nearly 8 years,I personally know a few of them.Fortunately,they have a working spouse with high-pay job and could access to home equity through loans or cash-out schemes.

Most economists forecast no solid recovery until late 2009.This means these folks will be off work for 10 years.

 

[Glenski]

Thanks, AstroBoy, but I don't know anyone in the real world who actually uses that sort of calculation. "Real world" meaning everyday people. Ask the average person on the street which is more important to him, and he'll probably say the upper graph. Only economists seem to be interested in the lower graph.

 

[DoctorP]

Well, I was able to exchange at just over 101 Friday...luckily because it's dropping again this weekend.

 

[Pachipro]

Most economists forecast no solid recovery until late 2009.This means these folks will be off work for 10 years.

Did you mean 2019?

If this is anything like the real-estate bubble/crash in Japan in the late 90's it will take even more years to recover. Look at Japan today. Although deflation has occured and prices have basically not changed since I left in '88; the stock market never even got close to its highs back then of 44,000 or so and housing prices have never recovered from their highs back then. Could the same thing happen in the US? Maybe. But I think it will be worse.

Today yen at 99.989/$ and now up to 101 and change. The central banks are really trying their best to prop up the dollar.

Well, I was able to exchange at just over 101 Friday...luckily because it's dropping again this weekend.

Was that yen into $ or $ into yen? I hope it was yen into $ as you would then be making money instead of losing it.

 

[DoctorP]

Pachipro, changing $ into yen at 101 yen/$ conversion.

 

[Astroboy]

US Dollar has continued to drop against most currencies, except SK WON.

The South Korean currency, the won, extended its fall against the US dollar on Thursday, falling for the tenth straight session to a more than two-year low and marking its longest losing streak against the greenback in 18 years............
http://www.cnbc.com/id/23608221/for/cnbc

A sign of economic crisis as in 1997.

 

[Pachipro]

"The yen will rise to 80 per dollar in two years as Japan raises interest rates and the US cuts borrowing costs", said Eisuke Sakakibara, the nation's former currency-policy chief.

 

[Astroboy]

The U.S. dollar momentarily sank to the 95 yen level Monday morning in Tokyo, marking a 12-year, seven-month low against the Japanese currency, and fell to a record low verses the euro, beaten down by mounting fears of a U.S. credit crisis.

All investors of the world is pulling out from USA.

 

[Astroboy]

Dollar Slumps Below 96 Yen to 12-Year Low on Subprime Losses

``I find it outrageous that the Fed is just throwing the dollar out of the window,'' Jim Rogers, chairman of Rogers Holdings, co-founder of the Quantum Hedge Fund with George Soros, said in a Bloomberg Television interview. ``They are signaling to the whole world that they have given up on the dollar. Most of my U.S. dollar assets are gone.''

Bloomberg - Are you a robot?

Dollar Sales by Japanese Investors Reach Record High

``They do not seem to believe in the U.S. economic recovery later this year at all,'' said Yuji Kameoka, a senior economist and currency analyst at Daiwa Institute of Research, a unit of Japan's second-largest brokerage. ``They are expecting the dollar will head south.''

Bloomberg - Are you a robot?

Japanese investors are pulling out of US Dollar.

 

[Damicci]

Wow now down to 93.23Y

 

[happilyengaged]

Whats going on, its up to 102! Do you think it will go down again? I wanted my fiance to switch her money over, but she procrastinated! dang it...I have mixed feelings about the dollars success now

 

[ArmandV]

Whats going on, its up to 102! Do you think it will go down again? I wanted my fiance to switch her money over, but she procrastinated! dang it...I have mixed feelings about the dollars success now

I'd hold off for now. Congress appears to be trying to actually do something about the mortgage crisis and if they do act and Bush signs it into law, then the dollar may get more strength.

 

[Pachipro]

It's all a game happily and for the uninitiated, they have no idea what the heck is going on. In short, the yen strengthened a little to hold off the recent rally in silver and gold which brought their price down substantially recently, but it will not last long.

Weather Bush signs a law into effect or not for the mortgage crisis, it will not do anything for the dollar. As long as the FED keeps printing money to bail out the lenders and securities firms, with nothing to back it up and at taxpayer expense, and they keep lowering interest rates, the dollar has nowhere to go but down, down, down. Especially if the FED releases all lenders of their financial responsibilities by buying up these bad mortgages at taxpayer expense.

When that happens, look out for the US economy and USD. They will spiral downward the likes of which has not been seen since the Great Depression of the 1930's

Remember, the FED stopped publishing M3 figures 2 years ago. (M3is the total number of USD in circulation. This figure was used by other countries to set their exchange rates.) Since they are no longer published one can only guesstimate and since Bernanke is printing digital money at breakneck speed there will be more and more inflation in the US as a result. Just click the link for a quick education.

With US treasuries interest so low now who would want to invest in the US when they could get better interest rates elsewhere. Besides, interest rates that the FED charges and pays will probably be near 1% by the end of the year.

IMO if one has yen and is thinking of converting it into USD I would hold off as it will be near 90 in the near future and probably near 80or lower by the end of the year.

 

[ArmandV]

Weather Bush signs a law into effect or not for the mortgage crisis, it will not do anything for the dollar.

It might. A lot of what is going on is psychological.

 

[Ray Senyu]

I watch the Yen-Dollar comparison almost every day and the last week, the Yen loses to Dollar and Dollar loses to Euro.

 

[Pachipro]

Just continue watching as it will be don slowly. With financial instituitions set to fail at a record pace the dollar has nowhere else to go but down the drain. Keep an eye on Citibank and Lehman Brothers as they are poised for failure as well as possibly Merrill Lynch. Fannie MAe and Freddie MAc, the two largest mortgage bankers, are falling like a rock and may just go under today unless the get bailed out by the Fed.

I still believe there will be sub 100 yen/$ by the ned of the year.

 

[Eugeniu]

Wasn't the yen 100 yen / $1 at one point a few weeks ago? Or is that just me.

 

[Pachipro]

I do not know exactly the date, but the yen was about 98/$ about five or six weeks ago.

 

[Astroboy]

Soaring Japanese yen unsettles G7

The yen has risen rapidly as investors flee riskier investments, Reuters news agency notes. It reached a 13-year high against the US dollar on Friday.

Among all, only JPY continues to soar.

 

[grapefruit]

It could even reach the level of 90~80/$?
The New York Times says (In Japan, a Robust Yen Undermines the Markets (Published 2008)),

Koji Fukaya, senior currency strategist in the Tokyo office of Deutsche Bank, said he expected the yen's gains to continue into November, before settling down at a value of about 90 yen a dollar.

 

[Grandpa Frank]

The way the US economy looks................

we may see $100US=1 yen. I might get to see all kinds of Japanese tourists in Maine then, LOL.

Uncle Frank

:?

 

[tada]

And probably something like 10EUR = 1 yen. Which would be 10EUR = 1USD.

People here wonder why I don't want to work in the US.

 

[Astroboy]

Euro could fall to parity with dollar.

The euro's sharp descent against the dollar may have further to run as a potential emerging-market crisis threatens more trouble for European banks, and the euro may even return to parity with the dollar.
http://www.iht.com/articles/2008/10/29/business/col30.php

European Banks are likely to suffer from financial crisis in Eastern European countries.

When Asian financial crisis ocurred in 1997, South Korea, Thailand and Indonesia fell into the hands of IMF. They were punished by IMF, which was led by US and European. When they face financial crisis in Europe, IMF changed its policy to be "gentle".... because they are not Asian.

Either way, European banks will suffer from such former Soviet bloc countries as they poured the money into those markets.

Personally I like to see .... JPY100 = USD1 = Euro1 as it's convenient for calculation.

 

[JerseyBoy]

It's time to buy US Dollar! I don't think Japanese Yen can sustain that valuation too long. It will go down to JPY 110 to JPY 115 per dollar.

 

[Dogen Z]

The Bank of Japan has forecast 90 yen/dollar in 3 months then rising to 100 yen/dollar in 6 months, which means it has no intention in intervening in the foreign exchange market.