Yen, welcome back!

You, people planing to visit Japan, already changed your country's currency into yen? I wrote a speculation by an analyst that yen appreciation against the US dollar as of $1=123yen or 122 yen or so. It had changed 124 yen and 112 yen yesterday. Now it is ,,,hmm,, 114.29 yen. It is changing drastically. Suppose you changed U.S dollar into yen as of 124 yen = $1, you could cut 10% of cost as of 112 yen. Now it is said the rate would take a jump to 107 yen. An Australian political scientist, I like his outspoken opinions, said it might temporarily turn into 95 yen. He is a political scientist though, in addition, his father is Colin Grant Clark, a famous English economist.



To get back to my original point, I am glad of appreciating yen, and am not glad of appreciating yen. Good point is that I can visit foreign countries at cheeper price. Not good point is that companies I have stocks can't earn as much as they did. Anyway, I would change some money into pound. Once I intended to visit London but I canceled the plan due to a terror in London. It was too bad. But this time, I want to visit London if given the chance.



Incredible, incredible, incredible. I heard the base fare of subway, tube, in London costs you 1,000 yen!!!!! In Japan it costs us only 160 yen or 170 yen, even highest one would cost us only 200 yen!!!!. Prices in London have gone up incredibly!!!!. I guess now it costs us 900 yen or so in London. It is still incredibly high.



Yen is still very cheap though, I guess people want to visit Japan would have a lot of other chances to change. I'm not sure but, difference in interest rates between Japan and other countries are still wide. In Japan, central bank rate is 0.5%. In America, it is 5.25 now. Even if FRB change the rate to 4.75, difference is still wide. So I guess, following massive surging trend, the yen will be weakening with lenience. I think The Dude san knows fine about finance far more than I know. More than 120 yen may impossible any more, I guess.



But to check the rate is trouble some. To leave it to chance maybe better. :-)



Here, maybe I can buy western products at cheaper price from here on. Mac-Book may get cheaper. iPod may get cheaper. Burberry's clothes may get cheaper. Filipino Banana will get cheaper, English tea may get cheaper. I grow up with English tea and I do like it. I want to drink Earl Grey now. ,,,,I made it now. Delicious.



Over night, the economic situation in Japan has changed. It is a countermarch like change. Japanese companies have resistance to appreciating yen. So, I don't worry about it seriously at this time.



I watched CNBC this morning. It was a topic about FRB's policy. One man said FRBshould not rescue hedge funds, FRB is avoiding facing problems. He would be right in one way. Another man said it is not countermeasure to rescue hedge funds, but it is for whole economy.



Although I don't know American common opinion about the FRB's policy, in Japan many people opposed to rescue banking facilities with public fund after the asset-inflated growth period. Mass medias inflamed people's mind. But people were wrong. If government dealt with the aftermath much earlier and much stronger, Japan would regain much earlier. Financial crisis is one of most danger situations. Hmm, It doesn't crash in the American government bond market. It is good news, I guess. Triple sell-off is the worst.



I thought the fall would be coming to an end at level of 16,000 or 15,670 because it is a turning point analyzed with empirical rules. Yesterday it plunged to 15,273. The range of drop is 874.81 yen. This may be the "Selling-climax". (18,200 was not Tenjin-zoko but Tenjin-tenjyo. ) But 15,273 is in zone of big crash almost no one expected because Japan's economy is in good condition. Now American reduced consumer spending is not big matter as much as it was in Japan. But it seems both domestic and international corporate investors and individual investors felt panic and dump their stocks at a burst. I don't lost my cool. I'm waiting to a chance to buy stocks. Stocks get back to reasonable price always. I guess stocks of TORAY, a company making carbon fiber for B-787 and developed carbon fiber for car　chassis, making water processors etc, is in bargain foor.



Do you know what Yen mean? Yen is 円 in Kanji, which means "circle". Yuan is 元 in Kanji. It seems it means element, number and etc. In Japanese, 元 means the beginning, the origin, the source, the rise, the root, the cause, originally ,material, capital

, the cost, according to a dictionary.



It is a photo of 五重塔, Gojyuunotou, of Hasedera in Nara prefecture.