[quote=carlsbadworker]Yen is trading at 15-year high recently. I heard the theory was:
1. Since the rest of the world is becoming Japan, there is no reason to avoid Japanese Yen and its associated assets.
2. Chinese government is diversifying its dollar holding into Yen holding, which may explain why FED has to start resorting printing machine to hold down the treasury yield.[/quote]
Speaking of the Chinese diversifying its dollar holdings:
From Naked Capitalism… “Auerback: News Flash– China Reduces US Treasury Holdings, World Does Not Come To an End”
