by Wolf Richter, Testosterone Pit.com:
The Bank of Japan is certainly accomplishing the worthy task of devaluing the yen by wagging its mouth and printing enormous amounts of money. From mid-September to May 23 – the day the whole construct began tottering – the yen dropped 24% against the dollar. Then the Japanese stock market took a nosedive, and the yen retraced some of its decline. But it’s still down 18%. Japan’s attack in the Currency War was supposed to make it more competitive in international trade – but that, it failed to do. In fact, the opposite occurred.
Japan’s trade deficit in May jumped 9.5% from an already awful May last year, to ¥993.9 billion ($10.5 billion), the eleventh month in a row of trade deficits, the longest period of trade deficits since the series of comparable data started in 1979, the largest deficit for any May, and the third largest trade deficit ever.
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