Japan is in deep shit and it looks like the US tossed their partner in Asia into the Pacific

Editor's note: The interventions are massive waste of money as the Japanese yen is imploding with people and investors dumping it faster than you can click your keyboard. Japan with the 4th largest economy (now taking a back seat to Russia) having a highly developed economy while the yen is at a 38 year low with the yen expected to hit 170 or higher. As the yen crashes it is going to bite hard with higher costs for energy (Japan imports around 97 percent of its energy) as inflation takes its death grip on the Japanese consumer. There is a misconception that a weaker yen is great for Japan's corporations but that is simply not correct. The thinking is Japanese manufactured products are cheaper when sold in US dollars. If this were true Japan's exports should be booming but this is not the case. Japan's exports contracted by almost one percent in May. China is eating up Japan's market share because there is no way Japan can compete with China when China is importing cheap energy from Russia. All of Japan's trade is through US dollars and this is going to prove to be Japan going into permanent stagnation.

The Japanese Yen – 397 by 2032?
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Japan Fires Its Top Currency Diplomat As Yen Disintegrates, Another Intervention Looms

By Tyler Durden | June 28, 2024

It is hardly a coincidence that literally minutes after the USDJPY hit 161 for the first time in almost two generations...

... that Japan's Nikkei reported the man who had been tasked to explain away Japan's absolutely catastrophic currency policy, one which has made the yen the worst performing currency of the world and the envy of banana republics everywhere... 

... i.e., Japan's top currency "diplomat". Masato Kanda, has been fired.

Kanda will be replaced with Atsushi Mimura, a director-general of the Finance Ministry's international bureau, who will take over as vice finance minister for international affairs on July 31.

Atsushi Mimura is set to take over as Japan's top currency diplomat at the end of July 

Incumbent Kanda has been the main figure in handling the government's catastrophic interventions in the foreign exchange market, which have been meant to arrest the yen's slide against the dollar, yet despite spending a record $60+ billion two months ago on halting the yen's implosion, the yen is now at the lowest level since the Plaza Accord. 

And while no amount of intervention will prevent the yen from imploding further - to do that the BOJ will have to raise rates to 4% or higher, setting of a cataclysmic collapse of the entire Japanese bond market - the outrage among the populace at the runaway inflation in Japan in large part due to the plunging currency, is finally being addressed now that Japan is facing election in a few months, and scapegoat time has arrived.

Please go to Zero Hedge to continue reading. 

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