A Naive comment or one aimed at adding more speculation into the markets ?

In the following article

"The appropriate level is something basically to be decided by the market. But it should not be decided by speculative moves, but reflect the real economy," .

As if over speculation was not part of the markets . If it was the case there would be no bubbles either in commodities , stocks , financial products or FX . But the markets find out there is a bubble once they're already in a bubble . We can refer to the markets or any other type of reality with a view to theoritical physics on a principle called the uncertainty principle . Once we act on reality in order to find out something specific about it's nature , we have to somehow transform it , thus we no longer know the exact truth about it , consequently we speculate in part on it's real nature and we make projection about what it has become after we acted upon it .

Market players act the same way , but i would argue that the situation with the markets are even more complex as a large number of actors with different point of views are acting on this reality by experimenting in slightly different manners in order to know the reality of the markets and speculating based on a different set of information about it's future reality . Add to this the interest they have in wishing for different results and we end up with a near total uncertainty about it's future reality .

So Yoshito's comment if not naive is aimed to induce more uncertainty into FX marketas wether Japan will act once again to support the US dollar , i tend to believe that's the purpose . As a result The chief secretary of cabinet is doing exactly what he reproaches to the market players ...

Tec

For references on the Heisenberg principle also called the uncertainty principle see the following article at WikipediA : http://en.wikipedia.org/wiki/Uncertainty_principle