NEW YORK ( TheStreet) -- If you have paid any attention to the financial markets at any time in the last three months, you would know about the George Soros' big yen short.The legendary investor sold his SPDR Gold Shares ( GLD) holdings fast and furiously to partly finance his short yen position and made a cool $1.2 billion in profit (unrealized as of his December regulatory filing). The whole world has joined in. But now the yen is poised to get a lot more cheaper, but for the opposite reason upon which the big yen short is premised. Allow me to explain. The thinking goes that the theatrically aggressive devaluation of the Japanese currency, as affirmed by Federal Reserve Chairman Ben Bernanke and the G20 summit, would provide a long-needed boost to Japanese exports, right the sins of past timid actions by the Bank of Japan and make everything better. The media have given more than enough coverage to the "lost decades" of Japan, which I argued in 2010 at Seeking Alpha should be considered a success story for the Bank of Japan considering the country's demographic trends.
But unless you follow the Japanese economy, you might not know that Japan has consistently run a trade deficit since early 2011 (see the chart below, generated at TradingEconomics.com).