acting-man.com / By Pater Tenebrarum / December 28, 2012
Even Dennis Gartman is Shorting the Yen…
As CNBC reports, even Dennis Gartman is now shorting the Japanese yen. Along with every Tom, Dick, Harry, their aunt Elsie and her dog Freddie as it were. If ever there was a consensus trade, this must be it. Let us look at Gartman’s arguments. They actually make superficial sense as you will see:
“The Japanese government has given a “sell” signal for the yen, Dennis Gartman, editor of The Gartman Letter, said Wednesday on CNBC.
“I’ve been short of yen for quite some time,” he said. “I’m short of yen against dollars, generally.”
On “Fast Money,” Gartman said he was short of yen in U.S. Dollar, Canadian dollar, Australian dollar and New Zealand dollar terms. Over the past six or seven months, Gartman added, the trade is working out.
“I think it’s abundantly clear that this new administration has made it very clear it intends to force the Bank of Japan to supply Japanese yen in unlimited terms,” he said. “”I can’t remember ever having heard that before.
“You have to remember, a government has a hard time strengthening its currency. But governments can very easily weaken their currencies simply by printing them. And when the Japanese said they’re going to print them in an unlimited fashion, you have to believe them.”
“What do I care whether they can or cannot create inflation as long as they are going to create more yen? This is the first time we’ve seen an authority in Japan use the term ‘unlimited,’” he said.”