ENTER KURODA!

Japan’s HGH powered economic minister, Akira Amari, said Japanese stocks are “still low” and that “…there is no doubt higher stock prices are better than low ones.”

I happen to agree with this man.

Everyone thinks Japan is this pathetic island nation beholden to the degeneracies of their mortal enemy, China. The fact of the matter is, as the Chinese build phantom cities to keep their pathetically poor vagrant farmer class content and away from the pitched fork, the Japanese are living a life of luxury, with unemployment in Japan at its lowest level since 1999.

So don’t feel sorry or make fun of the samurais until you find a job.

But things are about to go from good to very good in Japan, despite their psychotic 205% debt to GDP dilemma.

ENTER KURODA!

“Japan’s economy has suffered from prolonged deflation that must be eradicated — that would raise short-to-medium term growth prospects significantly,” Kuroda, 68, said in an interview in Tokyo yesterday. “Two percent plus for calendar year 2013 would be quite possible and for some years could be sustained,” he said, referring to a pace of expansion not maintained in Japan since stagnation set in in 1992. source

To be clear, the favored new head of the BOJ is intent, hell bent even, on seeing Japanese inflation at 2-3%, in order to stimulate the economy.

Umm, the last time Japan had real inflation was in the 90’s, aside from that weird period of 2008-2009.

Japanese inflation is at zero right now. In order to jack it up to 2%, the yen will need to decline by another 25%.

Your trade is to be short yen, via long YCS, and get long banks and exporters. My favorites are NMR, MTU, HMC, TM, PC and CAJ. And of course, the best way to play it from a savage leech American perspective is to be long WETF, as inflows swell into DXJ.

The NIKKEI is up 2.5% for the session, so far.

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