Yen safe haven status.

I mentioned last week that China had become direct currency trading with Japan, without dollar intermediary. The short view column, today by Ben McLannahan confirms that as Japan has not been downgraded in a round of downgrades that included Austria and Germany, it continues to be a haven. It will be worth watching just how many Euros head this way, because already the overvalued Bunds lost their shine while we pretended to enjoy spam sandwiches and canal boats in the rain. And the effect on the Japanese economy would not be good.

The rest of this article should serve as warning to those, using Japan as an example of the backward step we should take…