Subjective Invective v.8

The G-7 Finance Ministers and Central Bank Governors issued a statement to calm the troubled markets today.

We reaffirmed our shared interest in a strong and stable international financial system, and our support for market-determined exchange rates.

Market-determined exchange rates like pegging the Swiss Franc to the Euro.

Market-determined exchange rates like multiple interventions by the Bank of Japan.

Bank Of Japan Intervention Leaves Trail Of Blood And Gore.

Bank of Japan Ponders Further Intervention

In recent weeks, many central banks have taken aggressive actions to control the values of their own currencies.

If the Bank of Japan continues to follow its precedent of supporting exporters though, the yen may depreciate from here. Yet, if other central bankers (who themselves may be pursuing weak currencies) have their say, the Bank of Japan may be unable to really weaken the yen.

If anything is market-determined in this day and age, it surely is currency exchange rates. Pursuing weak currencies is the hallmark of market-determined exchange rates, or something. I forgot where I was going with this. Oh, right. Forex trading is so easy that an E*Trade baby can do it! Can you feel the sarcasm?