Yen Reaches 13-Year High Against the Dollar

The massive short yen/long dollar carry trade is beginning to unwind in earnest. The dollar is a dead duck. Inflation is straight ahead. This is not the time to be long T-bills or T-bonds.

The yen is up 25% against the dollar this year, so far.

And here's a bit of sanity in a world of micro manipulating governmemt financial offiicials. Shoichi Nakagawa, Japanese finance minister, said he is not considering intervention in currency markets for now, the Nikkei newspaper reported on its website. Nakagawa also said the latest moves in currencies were not too sharp and that the yen’s recent gains were not bad.