Abenomics in simple terms allows the nation’s Prime Minister to push its supportive Central Bank to increase the money supply by ramping up government printing presses, resulting in the yen dollar to break the ¥100 barrier.
Soros’ yen “avalanche” would appear to have begun with the yen having fallen by 9.5% against gold in five trading days since last Thursday leading to record nominal highs in the yen at more than 0.1577 million yen per ounce this morning.
While gold is lower in dollars and in most currencies today, it is sharply higher in Japanese yen after the BOJ announced the continuation of ultra-loose monetary policies and even more radical measures in a clear signal that currency wars are set to deepen.
Masaaki Shirakawa chaired his last monetary policy meeting this week as governor of the Bank of Japan (BoJ); but even before his departure, tolerance of a strong JPY was already killed off by the new government. What follows now could be the next big leg down in the JPY exchange rate.
The Gold Investor Index, which tracks buying and selling on the world's largest physical gold market for private investors online, fell to 54.9 in January, down from a 12-month high of 58.3 a month earlier and its lowest reading since September.
One month after Obama was inaugurated in 2009, gold had risen to $992.90/oz and silver to $14.44/oz. Thus, in the 30 days subsequent to the inauguration, gold rose nearly 16% and silver by more than 27%.