Financial Advisor: Ford Motors CEO Calls Japan a 'Currency Manipulator'

Tubbergen's radio shows are also available as podcasts.

Grand Rapids, MI -- (SBWire) -- 07/08/2013 --In today's world it is difficult to stay abreast of everything that is happening financially. Dennis Tubbergen, a financial advisor, author, radio show host and CEO of PLP Advisors, LLC can be counted on to give a hand when it comes to understanding the latest events in U.S. and world economics.

Whether people enjoy his monthly newsletter at or his blog at, Tubbergen is dedicated to sharing his viewpoints and opinions. On July 3, 2013, his blog was titled Ford Motors CEO: Japan a Currency Manipulator.

"Alan Mulally, CEO of Ford Motor Company, did a little name-calling last week, calling the country of Japan a 'currency manipulator,'" began Tubbergen.

Below he quotes from a June 20, 2013 from Bloomberg News.

Ford Motor Co. (F) Chief Executive Officer Alan Mulally called Japan a currency manipulator that’s giving local exporters an unfair edge as the weaker yen threatens to undermine U.S. automakers’ profits.

Japan is “absolutely” manipulating its currency, the CEO of the second-biggest U.S. automaker said in a Bloomberg TV interview today. “With the currency manipulation, we just have to get back to the place where the currencies are set by the markets and the free trade agreements really are free trade agreements.”

Mulally, who’s expressed concerns about the yen throughout this year, illustrates how the currency-led boon for Japanese exporters is drawing mounting international criticism. Bank of Korea Governor Kim Choong Soo this week urged Asian countries to work together to defend themselves against the side-effects of Prime Minister Shinzo Abe’s reflation campaign.

“Mulally is one of the harshest critics on the yen,” said John Zeng, a shanghai-based analyst at LMC automotive. “A weaker yen puts them in a disadvantageous position.”

The yen has fallen against every major currency since mid-November, including 18 percent versus the dollar, bolstering the value of overseas sales at Japanese exporters from Toyota Motor Corp. (7203) to Sony Corp. (6758) Japan’s benchmark Topix index last month climbed to the highest in almost five years and exports in Japan in May increased the most since 2010.

"Japan is not the only country that is a currency manipulator, as Mr. Mulally describes the country," explains Tubbergen. "Arguably, any country with a Central Bank is a currency manipulator. The Federal Reserve in the U.S. has been easing to the tune of $85 billion per month since the latest round of easing began. If that’s not currency manipulation, I don’t know what is."

Tubbergen goes on to say that unfortunately for Japan, as well as other countries that print, massive easing or printing will end badly. The country of Brazil used the term “currency war” in 2012 when the Brazilian Prime Minister made this statement, “When the real appreciates, it reduces our competitiveness. Exports are more expensive, imports are cheaper and it creates unfair competition for businesses in Brazil,” (taken from

"An interestingly similar statement to the one made by Mr. Mulally isn’t it?" asks Tubbergen. "After that statement was made by the Brazilian Prime Minister, Brazilian monetary policy was made more ‘flexible’; in other words money was printed to allow the real to depreciate against other currencies."

Tubbergen explains that now, 18 months after a concerted effort was made to devalue the Brazilian real against other currencies, Brazil is facing the proverbial music. Over 1 million people are taking to the streets to demonstrate. Inflation is rising. Stocks are declining and interest rates on Brazilian Government debt have increased to more than 5% presently, up from 3.6% just one month ago. The Central Bank is beginning to take action to tame inflation raising interest rates in spite of a less-than-stellar economy.

"The lesson here is clear," concludes Tubbergen. "Easing may create the illusion of prosperity, at least temporarily; however, sooner or later bond markets and/or political pressure will dictate that the easing stop. That’s when reality sets in. It’s happening in Brazil and will happen in Japan as well."

To read the blog in its entirety go to and select his July 3, 2013 entry.

Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM.

About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at To view Tubbergen’s latest Moving Markets newsletter, go to

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.

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