Goldman’s O’Neill Sees ‘Silly September’ as Yen Appreciates By...

Goldman’s O’Neill Sees ‘Silly September’ as Yen Appreciates

By Brian Swint and Rishaad Salamat

Sept. 14 (Bloomberg) -- Foreign-exchange markets have embarked on a “silly September” as traders focus too much on government debt in the U.S. and U.K. while pushing up the value of the yen, said Goldman Sachs Group Inc.’s Jim O’Neill.

“There is a very popular notion that you’ve got to sell the pound and the dollar because of the rising government debt, whereas the one that everyone’s seemingly buying is the yen,” O’Neill, head of global economic research at Goldman, said in a Bloomberg Television interview in London today. “It’s ridiculous” and “I think of it as ‘silly September.’”

Full article at http://www.bloomberg.com/apps/news?pid=20601087&sid=abvf8tiNFG74

My comment:

I think it's fair to say that Goldman Sachs talk their book. Of course investors should focus on government debt and quantitative easing - including printing money in historically unprecedented amounts - when valuing a currency.

Mr. Jim O’Neill, what valuation should we give to the currency of a country, that if a business, would be in the hands of receivers, as it relies on printing trillions of its dollars out of thin air to try and make ends meet?