The currency market appears to evaluate Japan higher than the EU, which has been spoiled by its weaker members; much higher than the U.S., which is leaving substantially more than 16% of its labors unemployed.
The appreciation of yen may reflect the fact that the Japanese society, in spite of its current suffering from earthquake and radioactivity, may be evaluated as being more stable than the Anglo-Saxon-driven economy zones.
I can certainly agree to some extent. I can indeed live peacefully in Tokyo, despite the fact that parts of northern-east Japan still remain damaged.
However the market appears to be overvaluing Japan. Japan is still vulnerable to invisible threats- for example, radioactivity, as well as the potentiality of future earthquakes.
I would say that the appreciation of yen derives from weaker dollar rather than higher yen. This situation is likely to have been caused by the folly of the US, represented by its useless wars against invisible terrorists.
Remember Vietnam. All that the stupid war left were a huge garden tomb and a huge scale of debt. Everyone knows it was not the U.S. military but Coca Cola and McDonald's that opened the mind of eastern world.
The more the U.S. military attacks terrorists, the more they revenge. It is not carpet bombing but serene lifestyle that makes terrorists remove their weapon. The sun is stronger than the north wind.
Anyway unfortunately this absurd currency level is likely to last for quite some time, until the U.S. stops foolish wars which benefit only the military industry. Only after these circumstances change, a stable society and a reliable economy will be realized, which then would be the fundamentals of a strong dollar.
Of course I know no one can imagine that the crazy big cat will calm down and lower his paw so easily so far.
from Tokyo
