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Private-sector advisers urge proper BOJ response to weak yen

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They also called for measures to help Japan achieve an increase in the average hourly minimum wage ...earlier than the government's target of "by the mid-2030s."

If the private sector supports it and wants it now, then what in tarnation is holding it back?!

10 ( +14 / -4 )

Only way is to sell some/all of the $US debt they have. Japan is the second largest holder. But no, they've been told by the USA Government not to do this as rates in the US would spike. Can't have that in an election year.

Be nice if the BOJ supported Japan and its people, not the USA.

11 ( +21 / -10 )

EdToday 06:42 am JST

Only way is to sell some/all of the $US debt they have. Japan is the second largest holder. But no, they've been told by the USA Government not to do this as rates in the US would spike. Can't have that in an election year.

Be nice if the BOJ supported Japan and its people, not the USA.

High US interest rates are part of the problem for Japan. Nobody is going to rush to buy yen after some measly US treasury sales.

2 ( +8 / -6 )

Expect the yen to keep tanking then!

-9 ( +11 / -20 )

Teens in America are making $17.00 to $20.00 / hr. while their friends in Japan are making about $6.50 / hr. keeping in mind that Japan is suppose to be the third or possibly the fourth largest economy. and on top of that the amount of taxes Japanese teens pay is double of what American kids pay.

-5 ( +15 / -20 )

Japan needs to completely overhaul it's minimum wage system and allow young people to earn as much money as they please with no top limits, it should also allow Tipping in Restaurants, Taxis, Hotels, Coffee Shops, workers can earn that extra income and live a good life instead of getting ripped off by the system.

-15 ( +7 / -22 )

Ohh. This is comedy gold, as the spineless corporate sellout mouthpiece Kyodo News trying to sell this load of c×@p as some kind of path towards a better future.

This is the best part of all:

key challenges for Japan is to maintain the current momentum for wage growth...

...wage growth has been consistently negative...

...down for the 24th straight month

So which one is it? Momentum? Or downward spiral?

What is outrageous though, is that the whole media industry was clapping it's hands for 24 months straight!

I still remember how Kyodo News put out corporate propaganda just about 2 months ago celebrating the absolutely irrelevant shunto wage negotiations.

But hey, this is Japan. Burying the heads in the sand is the best this government can come up with after all. This is a tradition in this country.

Also. Is any non-profit civil group represented in that council? Why are these corporate overlords telling the PM what to do???

2 ( +14 / -12 )

The members of the prime minister's top economic and fiscal policy advisory panel cited the weaker yen, inflation outpacing wage growth and lackluster private consumption as posing challenges to the Japanese economy, which likely contracted in the first three months of 2024.

Private sector advisors speak with forked tongue:

"We are making groundbreaking profits due to the weak yen and sitting on hoarded capital gains and passing on little to labor. But the lack of wage growth and consumer consumption is troubling. Please LDP do something!".

4 ( +14 / -10 )

While I agree that a weak yen has a lot of downsides such as low quality tourists, I think it should be used as an oppurtunitity to decouple Japan from expensive imports such as oil and move the country towards renewable energy.

1 ( +4 / -3 )

everything remotely foreign is more expensive in Japan than in the EU or US, even when including the exchange rate conversion.

How can any Japanese person still afford this??

-3 ( +8 / -11 )

Private sector advisors speak with forked tongue:

"We are making groundbreaking profits due to the weak yen and sitting on hoarded capital gains and passing on little to labor. But the lack of wage growth and consumer consumption is troubling. Please LDP do something!".

Exactly!

-4 ( +8 / -12 )

Who are these "advisors" anyway? Are they not interested to be named?

7 ( +9 / -2 )

@koiwaicoffee. It is a little further down in the article. The usual suspects.

> The current private-sector members include Sumitomo Chemical Co. Chairman Masakazu Tokura, who also heads the country's most influential business lobby Keidanren, and Takeshi Niinami, who leads the Japan Association of Corporate Executives known as Keizai Doyukai.

They also called for measures to help Japan achieve an increase in the average hourly minimum wage to 1,500 yen ($9.6) from the current 1,000 yen earlier than the government's target of "by the mid-2030s."

By 2035, 1500 yen will be worth what? About two bucks?

-8 ( +4 / -12 )

Last week intervention during Golden Week is considerably failed even measured by "Japanese" standard.

Btw, it cost 9 Trillion for that intervention.

https://www.japantimes.co.jp/business/2024/05/04/economy/currency-intervention-ineffective

-8 ( +8 / -16 )

All the NAY sayers dill down vote me but time will prove I was right.

YEN is going to depreciate more.

SELL your YEN until you still can!

-10 ( +6 / -16 )

Japanese married to an American can open an account an get 5 percent easily on their savings

-4 ( +4 / -8 )

The recent yen intervention cost 70,000 yen per resident of Japan.

this is the second or third time the BOJ has intervened.

just give the residents the cash. The Yen is tanking again.

4 ( +10 / -6 )

WoodyLeeToday  07:17 am JST

Teens in America are making $17.00 to $20.00 / hr. while their friends in Japan are making about $6.50 / hr. keeping in mind that Japan is suppose to be the third or possibly the fourth largest economy. and on top of that the amount of taxes Japanese teens pay is double of what American kids pay.

I think this type of comparison is oversimplified.

in Tokyo the 1,100 JPY hourly minimum wage buys you a full lunch (teishoku).

Does the 16 USD minimum hourly wage in New York buys you much more that a lunch? It does not seems so as the Big Mac is 13 to 18 USD according to locations (it is less than 5 USD in Tokyo).

7 ( +10 / -3 )

RakurakuToday 09:08 am JST

WoodyLeeToday  07:17 am JST

Teens in America are making $17.00 to $20.00 / hr. while their friends in Japan are making about $6.50 / hr. keeping in mind that Japan is suppose to be the third or possibly the fourth largest economy. and on top of that the amount of taxes Japanese teens pay is double of what American kids pay.

I think this type of comparison is oversimplified.

in Tokyo the 1,100 JPY hourly minimum wage buys you a full lunch (teishoku).

Does the 16 USD minimum hourly wage in New York buys you much more that a lunch? It does not seems so as the Big Mac is 13 to 18 USD according to locations (it is less than 5 USD in Tokyo).

Maybe a full Big Mac meal with fries and a coke, but it would be a pretty exclusive location for even the meal to make it up to 18 dollars.

-2 ( +2 / -4 )

MoF is selling dollars in bought at much cheaper levels, making huge capital gains. It doesn't "cost" taxpayers to intervene.

-2 ( +2 / -4 )

TaiwanIsNotChinaToday  09:15 am JST

RakurakuToday 09:08 am JST

WoodyLeeToday  07:17 am JST

Teens in America are making $17.00 to $20.00 / hr. while their friends in Japan are making about $6.50 / hr. keeping in mind that Japan is suppose to be the third or possibly the fourth largest economy. and on top of that the amount of taxes Japanese teens pay is double of what American kids pay.

I think this type of comparison is oversimplified.

in Tokyo the 1,100 JPY hourly minimum wage buys you a full lunch (teishoku).

Does the 16 USD minimum hourly wage in New York buys you much more that a lunch? It does not seems so as the Big Mac is 13 to 18 USD according to locations (it is less than 5 USD in Tokyo).

Maybe a full Big Mac meal with fries and a coke, but it would be a pretty exclusive location for even the meal to make it up to 18 dollars.

Yes 18 USD is top of the range. But even with bottom of the range (13 USD) the picture remains the same. In both countries the minimum hourly wage buys you a lunch.

5 ( +5 / -0 )

If the yen keeps weakening and the price of commodities, especially food, keeps going up, domestic demand is going to plummet and we'll be back in another prolonged deflationary period again within a few years.

6 ( +7 / -1 )

The yearly minimum wage in the uk for 35 hours works out at ¥3.9 mil-raising the basic wage in Japan to similar levels will stimulate spending and growth of the economy. Stop printing money, before abe stated ‘abenomics’ in 2012 the yen was a super strong currency, it’s now on the way to being worthless. Strong countries have strong currencies..

5 ( +7 / -2 )

Strong countries have strong currencies..

correction strong economies have strong currencies, Japan hasnt a strong economy in decades, its domestic consumption has been stagnant at best, aka Japaneses dont spend they save when their futures are uncertain

3 ( +5 / -2 )

Many companies announced their financial results yesterday, and of the 487 companies, 323 companies (66%) revised their operating profits upward.

A sudden depreciation of the yen would be a cause for alarm, but a gradual depreciation of the yen would be welcomed by the majority of companies. Foreign exchange intervention should be carried out at the minimum when necessary.

As crude oil prices continue to rise, the first step in changing the current situation of shutting down nuclear power plants and relying on thermal power generation is to restart them. Support for the development of nuclear fusion reactors. Developing renewable energy that does not damage the environment.

Securing new thermal silver to reduce the consumption of crude oil, which is used as a heat source in factories. There are various issues such as tax incentives for purchasing hybrid cars.

Inflation is also gradually increasing, so it will be necessary to raise wages for workers.

Although I do not expect Kishida to be able to make a strong contribution to the Keidanren, he must guide companies in the direction of improving their performance and raising wages.

Alternatively, corporate taxes may need to be raised and individual tax burdens reduced.

Raising the minimum wage has also been attempted in neighboring South Korea, but rising labor costs will only cause staff cuts, and it is unlikely to go well.

If the government is going to take the initiative, it would be better to raise corporate taxes or find other ways to do so.

2 ( +2 / -0 )

Japanese is doomed because national consumption is dropping and cannot be countered by tourists consumption.

Why ? Population rate decrease.

-3 ( +3 / -6 )

the Japanese economie is sinking and we can expect an even bigger real estate disaster than in China. Prices are still artificially kept up by the mega construction companies by swallowing the vacant units rather than let the market adjust properly. Even they can not keep doing that but they hope against hope that sales and rents will improve before this particular bubble collapses. In vain

-4 ( +3 / -7 )

Companies are now taking in record profits with exports. Japan has very poor planning. The economy is shrinking, salaries are that if 30 years ago, what do they expect. When you pay your staff 3k a month and expect them to live etc in 2024. Insane. With a stronger dollar the economy is actually stronger. People will realize their money is valued from 30 years ago and record profits of companies show the wage gap is growing. Japanese are fleeing overseas already to earn money. Japan’s government influence in the market is just temporarily strengthening it. The real value is probably around 175 to the dollar and even my Japanese friends say it. I did notice the graph from the last year. Interesting dips are around major National holidays. I think the government is simply adjusting for its citizens to travel abroad. It doesn’t make sense.

-3 ( +3 / -6 )

Someone also mentioned gas prices. Let this sink in.

in Japan 1L is about 160 yen. Rent 80,000 yen Bills 30,000 yen average salary 300,000 yen

in Indoneisa 1L is about 110 yen. Rent 20,000 yen. Bills 10,000 yen and average salary 50,000 yen.

who says Japan isn’t over charging when prices in Indoneisa are about the same but the salaries are drastically different. People here should be saving a ton.

My diabetes medicine in Japan WITH health insurance is the same price as Indonesia WITHOUT insurance.

wake up. Companies are just price gouging.

0 ( +2 / -2 )

Don’t tell me that the Government don’t know that until the private say so

-1 ( +0 / -1 )

If they get their wish for higher inflation, they had better control that, with either increased interest rates or increased taxation. But to control inflation with interest rates will make it difficult to service that national debt. Unless you keep issuing more bonds in the future. Or they will increase taxation to pay the debt which is already 300% of GDP putting more pressure of consumers. So I kinda see a hard and rock. A weak yen pushes up imports which in turn push up prices. But we don’t want a strong yen because that reduces the yen value when we change those dollars to yen. Since the boom in population is well over, the need for new housing will also decrease resulting in lower expenditures typically boosted on home purchases. And this is before we even talk about the health care costs of an aging population, immigration, etc etc.

リッチToday  03:23 pm JST

Someone also mentioned gas prices. Let this sink in. 

wake up. Companies are just price gouging.

It’s all relevant. 1 litre of gas in the UK is over 200 yen almost 250. The UK has its own oil fields, whereas Japan has to import. Maybe Indonesia subsidies gasoline below its true value.

1 ( +1 / -0 )

The greed of governments are a bane on the tax-payers. Just had a raft of letters come in demanding tax.Those taxes are increasing whilst wages are not.

In Japan wages are not rising and inflation has been rising for well over a year now.

All we need now is some flooding on farmland. It is coming into the rainy season and heavy rains will push up food prices.

The Japanese government is failing miserably!

0 ( +1 / -1 )

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