by Tommy Behnke
Last month, central bankers and finance leaders from the Group of 7 (G-7) advanced economies met in Sendai to discuss the global economy at large. As expected, the United States cautioned Japan, a US currency watchlist country, to refrain from taking further steps to manipulate its currency. This warning came as a result of finance minister Taro Aso hinting that his country was “prepared to undertake intervention” in the foreign exchange market in order to weaken the yen.
The hypocrisy of US Treasury Secretary Lew’s injunction is laughable. He might as well have told Japan, “We’re America, we’re powerful, and we’re allowed to make rules that we’re allowed to break,” because that was certainly the implication of his words.