{"id":932,"date":"2007-06-27T01:48:14","date_gmt":"2007-06-27T01:48:14","guid":{"rendered":"http:\/\/cryptogon.com\/?p=932"},"modified":"2007-06-27T01:48:14","modified_gmt":"2007-06-27T01:48:14","slug":"japan-warns-on-carry-trade-risk","status":"publish","type":"post","link":"https:\/\/www.cryptogon.com\/?p=932","title":{"rendered":"JAPAN WARNS ON CARRY TRADE RISK"},"content":{"rendered":"<p><strong>WARNING: This is not a recommendation to buy, sell or hold any financial instrument.<\/strong><\/p>\n<p>Woh.<\/p>\n<p>New Zealand dollar holders: If you&#8217;ve got &#8217;em, consider spending &#8217;em.<\/p>\n<p>Becky and I are adding to our &#8220;investment&#8221; portfolio by acquiring gold, guns and <a href=\"https:\/\/cryptogon.com\/?p=842\" target=\"_blank\">nappies<\/a>. Your results may vary, batteries not included.<\/p>\n<p>It doesn&#8217;t make any sense to buy New Zealand dollars at these levels. We&#8217;re spending down our cash-on-hand and turning the change that&#8217;s left (after our bills and expenses) into hard assets. While the financial press is finally waking up to the importance of the carry trade to New Zealand, I don&#8217;t think there&#8217;s any way to really understand the implications of what a yen tightening would mean for the global system.<\/p>\n<p>Any disturbance in global liquidity and&#8230; Well, good luck guys.<\/p>\n<p>Via: <a href=\"http:\/\/www.dailytimes.com.pk\/default.asp?page=2007%5C06%5C27%5Cstory_27-6-2007_pg5_28\" target=\"_blank\">Daily Times<\/a>:<\/p>\n<p><em>Japanese Finance Minister Koji Omi stepped up his rhetoric on the weak yen on Tuesday by warning against the risks of markets making one-way bets, an apparent reference to carry trades.<\/p>\n<p>Omi\u00e2\u20ac\u2122s comments, which echoed those made at recent Group of Seven meetings on carry trades \u00e2\u20ac\u201d borrowing a low-yielding currency to buy higher-return assets such as the New Zealand dollar \u00e2\u20ac\u201d prompted the yen to jump against the dollar and euro.<\/p>\n<p>At the same time, South Korean and New Zealand foreign exchange officials said an unwinding of yen carry trades was a big threat to international financial markets and countries affected needed to deal with the issue in a \u00e2\u20ac\u0153pre-emptive\u00e2\u20ac\u009d manner.<\/em><\/p>\n<p><strong>Related:<\/strong> <a href=\"http:\/\/www.bullionvault.com\/from\/irishkev\" target=\"_blank\">BullionVault<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WARNING: This is not a recommendation to buy, sell or hold any financial instrument. Woh. New Zealand dollar holders: If you&#8217;ve got &#8217;em, consider spending &#8217;em. Becky and I are adding to our &#8220;investment&#8221; portfolio by acquiring gold, guns and nappies. Your results may vary, batteries not included. It doesn&#8217;t make any sense to buy [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-932","post","type-post","status-publish","format-standard","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/www.cryptogon.com\/index.php?rest_route=\/wp\/v2\/posts\/932","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cryptogon.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cryptogon.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cryptogon.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cryptogon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=932"}],"version-history":[{"count":0,"href":"https:\/\/www.cryptogon.com\/index.php?rest_route=\/wp\/v2\/posts\/932\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.cryptogon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cryptogon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cryptogon.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}