Some Questions humbling in my mind, Ans me plz

in this thread i will ask what ever humbling in my head related to trading forex and global economy, hope getting reply as answers of my questions will not only update me, also it will be a good follow-up chapter for rest of noobs those who also seeking ans of similar questions as i asked. So without taking much time, lets come to the questions :

[B]Q1[/B] : in todays “Daily Forex Fundamentals - February 20, 2012” by Pip Diddy here in JPY review i read a line "…Ever since the Bank of Japan decided to addan additional 10 trillion JPY to its asset purchases program(a.k.a. quantitative easing secret weapon), the yen has fallen off the charts. Over the past few trading days, EUR/JPY and GBP/JPY have risen over 300 pips!"
[B]So[/B] Can anyone tell me plz, if BoJ decided to add
an additional 10 trillion JPY to its asset purchases then why it’s not interpreted as a good news for JPY why it reacts like a bad for JPY and why JPY goes down inrespect of EUR or GBP, Oh I read the article …“additional 10 trillion JPY…” but its still bit dark to me.
Thanks at upfront.

[B]Q2[/B] : What is “Hard Landing” found this in “China Cuts Its RRR for…” article, in between the article i clicked on the link named “Hard Landing” but the article it opened is not containing any meaning which may describe it best. Ans me Plz.
P.S. RRR is clear to me, just wanna know What is “Hard Landing” ?
Thanks at upfront.

Answer 1) Each JPY in existence before the money printing is now worth less ‘other things’ (ounces of gold, Euros, etc) because before there was X JPY of them, now there is X + 10 000 000 000 JPY

With the last data I have for the JPY being 2009 the M3 (total money supply) being 1 044 647 000 000 000. This extra currency is going to lower it’s purchasing power by far less than 1/100 of 1 % , but it is also sending a message to the markets that they may print more to get the devaluation they want.

For an explanation of the difference between M0, 1, 2 and 3 try Wiki

Answer 2) China is in a bad situation for its political rulers. They have a to keep the populace happy and working hard to stop them being over thrown, yet the global economy has collapsed and so may other countries are no longer buying their products. They are also facing issues like huge rates of inflation and pollution, and poor food availability at times.

If they tighten rates too much their economy will collapse, but they need to keep rates tight to try and control inflation. This is always a problem in any economic system that is not a totally free market.

@Cyco
Thank you so much :7:
if i got any more question then i will ask here more
Thank you so so much

So Here is my first question for today…
In fxstreet i read a review and there i got some lines …"at almost 3 am in Brussels they appear to have reached a deal that will see Greece being financed by 130 billion euros as they plan to reduce its debt to GDP ratio to 121%. More details coming soon. "
[B]Q: [/B]Well, debt is debt, i understood that, but what’s the relation with GDP with National Debt?

When the debt is larger that what a country produces in a year, it’s a bad thing.

Think of it this way: If you had a monthly budget to live of say $3,000.00, but your living expenses were $3,300.00 What would happen?

That is a loose interpretation, because obviously a GDP number does not belong to the government, but neither is the entire national debt due at once. But it somewhat does ratio down to taxing of the GDP in, and budget/debt serving out.

Bottom line, if your outflow is larger than your inflow, you have a problem.

Thanks “Master Tang” :7:, now its clear to me, i understood the matter debt to GDP so nicely.
Thanks for your simple but effective way of teaching.
thanks

After reading Daily Forex Fundamentals - February 27, 2012
In Swiss Franc (CHF) section :
I gone through those lines - "“SNB Big Boss Thomas Jordan is set to talk at a forum in Zurich tomorrow. Remember, Jordan is the incumbent SNB Chairman. If he starts talking about the current level of the franc, he may just reiterate previous comments about the SNB’s “resolve” in maintaining its*EUR/CHF peg at 1.2000.”"
Q 1. Is that meaning - SNB will try to push up the pair EUR/CHF at that described level?
Or if anything else then please tell me in details do that I can capture the inner meaning of those lines.

In Australian Dollar (AUD) section
I read those lines "“PerhapsRBAGovernor Glenn Stevens’ remark about the recent strength in the Aussie being “odd” kept investors from buying the currency. You see, some analysts took it as a sign that the central bank is open to intervention. Yikes!”"
Q 2. Can anyone explain the meaning in simple way, so that a noob can digest. As I said am noob so please explain in some elaborated way so I could remember the answer for rest of mine life.

Thanks at upfront.

I asked some ques in post above, but no one helpin me with ans
did i asked something wrong? if so then am sorry.
actually i always overlooked fundamental and economic matters while trading fx in my early days, but now a days i realized along with Tech analysis it also necessary to follow economic events with fundamental analysis, but i must admit i really know a little about fundamental, am taking by lessons from baby pips on economic n fundamental courses, and by the time i tried to read all posts generated by babypips operational team, and sure in some cases i don’t understant some words or technical jargon or some entire lines. So i asked question here in a little corner of this huge street.

if anyone thinks asking is another great way of learning then plz come, help people like me, tell me, teach me and clear me on my questions. Thanks and Thanks.

May i continue asking questions? or may i stop here?

Yes. The SNB will buy/sell its gold reserves or print/with hold more money to keep the exchange rate where they feel comfortable with it

In Australian Dollar (AUD) section
I read those lines "“PerhapsRBAGovernor Glenn Stevens’ remark about the recent strength in the Aussie being “odd” kept investors from buying the currency. You see, some analysts took it as a sign that the central bank is open to intervention. Yikes!”"
Q 2. Can anyone explain the meaning in simple way, so that a noob can digest. As I said am noob so please explain in some elaborated way so I could remember the answer for rest of mine life.

Thanks at upfront.

The RBA thinks the AUD is too strong considering the global economic climate, and that this is hurting our exporters.

They may try some intervention, but don’t have huge amounts (trillions) to waste fighting a market they will then return to its previous course

@ Cyco
thank you so much for those answer, yes i understood and am sorry to say thanks in late, i was offline and now i opened and saw u replied so i jumped over to say THANKS and my best wishes for you too.

thank you so so so so so much babypips
for makin live of mine posts.
at least i feel good when i saw mine posts are live and ur moderator/s passed my post via "quality test"
thank u so much and can any one tell me when i can see my post directly appear here and when i need not to wait for moderator verification of each n every of mine posts?
thank u so much

While reading “3 Reasons Why the Aussie May Be Headed for New Highs” named article, i read this : ““In its last interest rate decision, the Reserve Bank of Australia (RBA) decided that it would be apt to keep rates unchanged. This came as huge surprise to market participants because [B]they actually had thought that the debt crisis in Europe would prompt the bank to cut rates[/B].””
[B]Q. 1[/B] So my question is, what is the co-relation with RBA rate and Debt crisis in Europe, why some market participants thought that?
thats all for today.

Here’s my take on it:
EU debt problems -> EU imports less -> Australia exports less -> Austrailia’s export-based economy suffers -> RBA lowers rate to increase money supply and re-invigorate the economy.

Also China has lowered their gdp projections and China is a major importer of Australian commodities, so that also puts pressure on the Australian economy, which could also motivate the RBA to increase the money supply.

thank u timothyblack235
for ur help