Safe havens: what's so special about the yen and Swiss franc?

Once again we see the fallout from the UKs tragic fake property boom of 1997 - 2003 when prices rose 350% on 'hot air' from Mr Blair s equally tragic government. There is so much fake money floating around from this it has created a tsunami-sized F+++ Up and an enormous divide between the newly wealthy (last 15 years) and the perpetually poor. Until this issue addressed (find who printed the money and get it back) the UK economy is going nowhere.

"... the yen’s status as a safe haven was likely to be questioned, due to Japan’s massive debt-to-gross domestic product ratio of 200% – the highest in the West."

Er ... thought Japan was more in an Easterly sort of location?

It's a bit late now the markets moving up again.

@Jonathan - The markets may move wherever they want, it does not change the underlying problem that billions in fake money was printed during 1997 -2003 via property values, and until this issue is addressed you will continue to see massive imbalance in the economy.

Absolutely huge problems caused by Blair s comedy government and their fraudulent policies, ordinary people got taken to the cleaners on an epic scale in the property values scam. Probably the biggest financial travesty of the 20th century In real terms their £ is worthless, while the fat cats sit on huge piles of funny money. Its time Tony Blair s government and those who assisted them were brought to book but, hold on, that wont happen because the people responsible for that actually have all the funny money ! You couldn't make it up !

Seeking a safe heaven in the yen seems like committing harikiri (suicide). Deposits pay no interest, investing the acquired yen in japanese equities doesn't seem wise since its export driven economy is in the doldrums. Infact the japanese government is intervening in the market to put a break on the yen's value. The japanese consumer hasn't been spending and the economy has been in a deflationary mode for years. The only reason the government is still able to finance its huge deficit is due to the high savings rate of the population who buy up the government debt. It is a brave person indeed who steps in the yen, and yet I have to admit that leaving your savings in the currency of bankrupt nations (The US has just lost its triple A credit rating) makes no sense either. Who dares to buy gold at this level with no income returns? Safe alternatives are far and few between.

Richard: You're right but the report refers to '...the developed world'.

Time for us in the West to revolt 'en masse' in the streets, bring out the guillotines and punish those responsible by removing their heads.... if only!

Terminator, yes Bliar was in charge, notionally. The real power was Brown?Balls, which they grossly abused-they held the purse strings, he has has says!

Japan is also in desperate trouble, but not to 'gaijins', but to their people. The Japaneses Govt owes trillions to their citizens, which they cannot repay without bankruptcy/a credit arrangement, or a chapter 11 in US parlance. Yen, wrong haven.

Cynic, as you say if only, in the UK that would mean most of the Zanulibebore MPs, starting with Bliar/Brown/Balls, Mrs Balls and not forgetting the expense cheats of all parties and those those allowed them to escape justice, nearly all the shadow cabinet, the govt front bench, most of their support and their law officers.

A new broom is required, to sweep away the dirt, but not pointless revolution.......

Balls has got the termerity to question Osbourne for taking a holiday at 'this time of deep financial trouble.' Some balls huh, from a man who created this mess with Brown & Blair and which was sent from someone who is currently on holiday in Spain!

Stick to it Vince show those snake oil salesmen how to resolve the problem then get the bankers balls on the block

@Terminator - Actually the markets are moving down again. When you say "fake money" I'm assuming you mean the money the central banks create out of "thin air" with monetary policies? How else would we get inflation if it wasn't for this though?

Cynic two writes

"Time for us in the West to revolt 'en masse' in the streets, bring out the guillotines and punish those responsible by removing their heads.... if only! "

I thought its already started in a certain way in Tottenham, Walthamstow, Brixton, Greece, Spain etc. The death of the youth was just a catalyst. Politicians call it opportunistic gangs of thugs, I call it the symptoms of closing youth programmes and centers, poverty, unemployment and loss of hope. This is here to stay for a while as State and Local Authority spending cuts persist in order to balance budgets and reduce debt. This will also likely bring on a new recession and the Government's hands will be tied in trying to revive the economy through stimulus programmes. Its looking bleak I'm afraid, not only for the UK but for the global economy.Some nations such as the US may even resort to protectionism in order to save its industries and jobs. The list goes one but one must keep up hope.

@Jonathan The 'fake money' and the period that I am referring to is between 1997 - 2003 into which I have done substantial and empirical research.

During this period property prices rose across the board an absolutely mind blowing 350%. THIS FIGURE IS SIMPLY BEYOND BELIEF BUT TRUE !

What took place then bears no resemblance to traditional 'old style' property investment as the rule book was thrown away.

A property which was valued at £50,000 in 97 was worth around £200,000 in 2003, likewise with much larger properties the figures were proportionally (and far more dangerously) much larger. This was against a backdrop of unremarkable economic activity otherwise (for eg millions of jobs were not created , nor did typical earnings increase in any significant way.) On the contrary, it was all achieved during a period of stagnation in pretty much every industry except the TALKING UP OF PROPERTY PRICES and subsequent speculation thereof. Put simply, there was no reason for these prices to go up at all let alone to the level they did, other than A LOT OF PEOPLE WANTED THEM TO It became the sole 'income' of millions.

People were buying without getting anywhere near the front door, using money they didn't really have, (thanks to the banks) selling 6 months later and trousering £100,000 tax free (at the low end) ! They then repeated the whole thing again and in many cases had a number on the go simultaneously. Millionaires were 'created over a 2-3 year period. People who in many cases had no job and no money (foreign investor help) conjured up hundreds of thousands to millions in a couple of years, We now have a situation whereby people are sitting on billions in freshly printed money ! This is the ONLY way to describe what took place. PRINTING MONEY. A blind man can see this. Property prices thanks to this are TELEPHONE NUMBERS to most people. The government that allowed this to happen is Mr Blair s administration. It was counterfeiting on an epic scale and has changed the course of at least the next 2 decades.The divide now between the newly super-rich and the permanently poor is simply too large to contemplate. And it is because of the money printing via property scam promoted by the Blair government. This is the fake money to which I refer.