Wheeeeeeee! To be honest, this'll just mean that 2016 would be just a downright horrible time to launch a platform.

EDIT: Grr...I could've sworn it was set to Politics Discussion before the page crashed on me, mods, please move this here there.

http://www.zerohedge.com/news/2015-10-01/72-year-old-mad-dog-wakabayashi-warns-reversals-will-be-massive-scope

Story after the break:

The infamously named "Mad Dog," 72-year-old former trader Eishi Wakabayashi, who previously called JPY's tops in 1995 and 2011 is out with some dire forecasts.

Wakabayashi, a former foreign-exchange dealer who built a reputation for long-term chart-based market analysis, predicted the yen’s surge to a then all-time high in April 1995 and also foresaw the end of the strong yen era by early 2012. He joined Bank of Tokyo, now Bank of Tokyo-Mitsubishi UFJ Ltd., in 1966, and earned the nickname “mad dog” for his aggressive trading style.

As Bloomberg reports, Eishi says the yen has already passed its low and may strengthen to 100 per dollar next year as the Bank of Japan’s unprecedented stimulus is failing to revive the economy...

“The dollar is destined to decline against the yen because it’s been supported forcibly,” meaning the Japanese currency’s 2015 low of 125.86 was an excessive depreciation, Wakabayashi said in a Sept. 25 interview in Tokyo.  “The quantitative easing worked only psychologically on asset prices, weakening the yen and lifting stocks while failing to boost inflation. That’s become clear and we will see the repercussion from these shock therapies.”

 

...

 

Reversals will be massive in scope, possibly driving down the Nikkei 225 Stock Average toward 10,000 from about 17,500 now and the yen will strengthen beyond 100 per dollar next year, he said.

 

 

The world has been in a deflationary cycle since the collapse of Lehman Brothers Holdings Inc., evidenced by the euro, crude oil and a gauge of average commodities futures prices all peaking out in 2008, while risk-asset prices are merely buoyed by aggressive global monetary easing, Wakabayashi said.

 

As the accommodative policy has failed to end global deflation and artificially inflated risk-asset values are running out of steam, the dollar’s strength is reminiscent of the yen’s appreciation that hurt the Japanese economy during decades of price declines, he said.

 

“The U.S. will have to eventually resort to a weak dollar policy as deflation deepens,” Wakabayashi said.

We leave it to "Mad Dog" to sum up...

“It’s obvious the U.S. is headed for deep deflation, hurt by the strong dollar,” said Wakabayashi, 72. “The Fed raising rates in this environment is not only ridiculous but harmful. U.S. stocks are plunging, not because of the prospect of a Fed rate hike, but to prevent it.”  

he could be right for sure, he is very smart and has good reasoning. However a lot of this stuff is completely out of his hands and just in the hands of central bankers, so you can not just predict everything so easily. Japan could just as easily double down on it's stimulus policy and keep weakening the currency into the ground. The fed could also not cut rates and start QE4.

Could anyone translate that please? After reading that I feel really stupid.

What phrase? A reversal is just, well, a reversal in trend, I believe.

I really hope the Yen will strengthen a lot, because my Sony stocks will rise if it happens

Teeqoz said: I really hope the Yen will strengthen a lot, because my Sony stocks will rise if it happens

...in terms of krone, right? Uh, well, but they'll fall in terms of yen since a lot of Sony sales are outside Japan.

He's predicting the yen will strengthen from 125 to the dollar to 100. That's a sharp 20% rise in a year, and Japan already has a falling price index as is.

Nope, not a phrase or a word, I meant the whole article. I understood what's written. However I don't know what that would mean for the global economy. My English is alright, I just chose Arts instead of a boring A-level Economics course, so I lack enough knowledge to fully understand the magnitude of his warning.  

e.g. If the Yen is strong that would mean that Nintendo and Sony would have their profits reduced, as a result their stocks would fall, not rise as Teeqoz said.  

Basically he's saying both the Yen and the Dollar are going to reverse from where they are now and on a bigger scale then what would people expect.

Man wish I had money, I'd be buying yen like crazy right now and buy cheap stuff from Japan and go on holiday there.

Please take note that this is what happens on paper, according to theories perpetuated by economists :^)

Wakabayashi specializes in chart-based market analysis, which is analyzing the market using...the charts - the graphical ones. I believe a more obtuse term is "technical analysis."

Ooh boy, now here comes the hard part.

You may note that there is all this "drama" about the federal Reserve Bank of the United States raising interest rates, right? This makes it more worth the risk to lend in US dollars (since you may be living in a country where there is, say, lending at a lower interest rate). At the same time, it makes it harder to borrow in US dollars, since you'll have to pay more in interest (this discourages people from borrowing in USD, and just using that to buy their own currencies). In other words, demand for the US dollar will rise - since people will want to lend using it or invest in USD - and supply relative to other currencies will fall - since borrowing to buy your own currencies will be more expensive, and you are in fact selling USD to buy other currencies.

That should explain why Japanese Yen will increase in value compared to US dollar.

About that stock bit, you could just take a look at what happened in China earlier this year to see that intervention changes the outcome only slightly.

And, well, you can ignore the bit I said earlier, Teeqoz mentioned to me how the strong yen is actually hurting Sony.