Yen gives up post-Brexit gains

Japanese Prime Minister Shinzo Abe said on Monday that he will instruct Economy Minister Nobuteru Ishihara on Tuesday to start work on compiling a fiscal stimulus package, but did not mention how much the size of spending will be

I'll bet if Abe tried the same thing at home his wife would slap him upside the head!

Get your savings out of yen and into something else, people !

bruinfanJul. 12, 2016 - 01:09PM JST

Get your savings out of yen and into something else, people !

Already have.

The Yen is about to be tanked...use this knowledge to your advantage.

I'll wait for Mr Yen's comment (Eisuke Sakakibara) :)

I could be wrong, and I will admit it later if I am...but for now I'm not taking any chances...JPY ---> USD, AUD, GRB...

The Yen is about to be tanked

That can only happen if other countries stop their own "stimulus" programs, which is unlikely. The yen cannot fall more quickly than other currencies, when the issuers of other currencies are printing money hand-over-fist to pay their bills, and keep their stock market pumped up with hot air.

The yen is about to tank?

Yeah! I need to change bushel baskets of dollars into yen, so give me those 120:$1 days!

"stimulus hopes bolster risk sentiment"

What does that even mean?

"sags" to a 1 week low?? Yes more money printing and road to nowhere building on the way. Yen may weaken a little bit but good chance it goes back to strengthening once the effect wears off. Gone from 120+ to 100 in the last 3 moths alone.....

For the last 5 years all my yen savings and unneeded ready cash has been converted into Swiss Francs. Who the hell would want to keep anything in yen?? Got to be crazy!

Yen may weaken a little bit but good chance it goes back to strengthening once the effect wears off. Gone from 120+ to 100 in the last 3 moths alone..... that was due to all the instability in the markets, the US economy is doing better than expected and much better than others, good chance there will be an US interest rate rise within next 2 or 3 quarters and long before anybody else will . I wouldnt bet a weaker $ to other currencies when this happens.

The yen is going to climb more, it's going to crash, it's going to climb and then crash, it's going to do the boogie-woogie.

Fact check: nobody knows what the yen is going to do. We are in uncharted waters so far as the global economy is concerned. Even if one is certain the yen is going to fall hard, there is no way to tell when, and there is no way to predict whether it will fall harder than currencies in other developed countries.

It's going to be a wild ride, and nobody has it figured out. Diversify, buy real assets with real value, have a marketable skill or product, and hang on.

commanteerJul. 12, 2016 - 08:35PM JST

Fact check: nobody knows what the yen is going to do.

Been saying it for the last 5 years on here and haven't changed the date.

The Yen will crash heavy, circa February 2017. I just hope the Japanese are man-up enough to take the hit and not blame it on the Americans, the Chinese, the West or any other bogey man that the Japanese elites conjure up to avoid the fault that squarely rests on their and the Japanese populace, for electing such idiots, shoulders.

how can the yen crash when they hold trillions in us government bonds??? yeah, all these doomsayers thinking the imminent downfall of the Yen will be isolated, it'll make Brexit look like a picnic and bring down much of the worlds economy with it. what I find pathetic is all these people that remove their assets and money from Japan all the while still living in the country, just a bunch of leeches. and just like many of the high yen lovers contribute very little to Japans economy/prosperity.

@wtfjapan, right on, he who lives by the yen dies by the yen,,,

that is 'en' destiny (!)

I do t know about Swiss Francs but......all my money goes into rare Japanese whisky!!!!

Can't make more of that!

how can the yen crash when they hold trillions in us government bonds??? sell $ bonds and buy yens, yen appreciates,,,

That will certainly help. Until Japan's currency reserves run out, and then it won't.

what I find pathetic is all these people that remove their assets and money from Japan all the while still living in the country, just a bunch of leeches.

I guess I am somewhat of a leech. I could leave and pay no taxes and no longer contribute anything to this country. I think it's better off with me, to be honest.

I guess I am somewhat of a leech. I could leave and pay no taxes and no longer contribute anything to this country. I think it's better off with me, to be honest. well you wouldn't be a leech then because you'd be living someplace else, all the free riders that want to live here, work here and send money assets back home any chance they get or when the yens high, how are they contributing to Japans future? what im trying to say if people are just here to enrich themselves and to spend that wealth in another country in the future, just to fall off when you've gorged yourself to the fullest. all these people are is financial parasites. to be fair they shouldn't be complaining should they!?

If one is working here and therefore paying taxes, I think by definition that they are not free riders.

And for me at least, the purpose of having assets outside of Japan and the yen is to have some insurance in case Japan crashes (which wouldn't surprise me). If it crashes and I didn't have my insurance, I would be just another free rider. But by having my insurance in the form of foreign assets, I will be able to look after myself, even if the economic conditions of the country in which I live turn sharply worse.

Living in Japan AND putting all one's assets in this same basket strikes me as being very risky indeed.

If one is working here and therefore paying taxes, I think by definition that they are not free riders. paying taxes yes but if you plan to take your savings and assets and move them to another country when you retire Id say that amount would far exceed the taxes that the J gov makes from these type of people. If you extradite more funds outside of the country than you generate within it then Id say thats a parasite, takes more than they give to society. I pay plenty of tax in Japan, I employ Japanese staff as well who pay tax, my company sells almost everything thats produced in Japan, the vast majority of my companies funds stays within the country, unlike importers where the majority of their money leaves the country paying overseas workers and manufacturers.

all the free riders that want to live here, work here and send money assets back home any chance they get or when the yens high, how are they contributing to Japans future?

Through taxes.

what im trying to say if people are just here to enrich themselves and to spend that wealth in another country in the future, just to fall off when you've gorged yourself to the fullest. all these people are is financial parasites.

No, because they will have paid taxes while 'enriching' themselves. So they aren't parasites, they are putting back in their fair share.

paying taxes yes but if you plan to take your savings and assets and move them to another country when you retire Id say that amount would far exceed the taxes that the J gov makes from these type of people.

So? The government has a price for living here - taxes. Anyone who pays their taxes has paid the cost of living here. There is nothing parasitic about not paying more than a person is taxed. The idea that there is is ridiculous.

if you plan to take your savings and assets and move them to another country when you retire

No, my plan is to possess valuable foreign based assets that will offset loses in the purchasing power of the yen, should Japan go under. That way, I'll have the financial means at least to continue to get by until Japan sorts itself out, and indeed use those financial means to help pick the place up again.

The worst thing I could do is go down with the rest of the ship, that won't help anyone.

If you extradite more funds outside of the country than you generate within it then Id say thats a parasite

Japan is the world's largest creditor nation (one of it's few strong points), so that would imply that there are lots of such parasites here.

I have $260,000 I want to bring to Japan and buy Yen. ¥150 = $1.00 is what I want.

No, because they will have paid taxes while 'enriching' themselves. So they aren't parasites, they are putting back in their fair share. how are they putting back their fare share if there end game is to take the money earned in Japan and using it to retire in another country most people would or at least need a few 10s million of yen to retire. most sensible people will have saved more money than they paid taxes. point is its fine if you plan to spend your money in Japan when you retire but to take it and leave just makes those people a debitor to the economy. Imagine if all the old Japanese just packed up and left Japan for a better life elsewhere and they took the 100s trillions of Yen in savings with them, the economy would tank very quickly. Everyone has a right to spend their savings as they see fit, but for gaijin or Japanese planning to pack up and leave taking their money to spend elsewhere is not what any healthy economy needs, and are certainly not a net contributor to that economy

how are they putting back their fare share if there end game is to take the money earned in Japan and using it to retire in another country

Because their fair share is the taxes they pay. So as long as they have paid their taxes, they have paid their fair share.

point is its fine if you plan to spend your money in Japan when you retire but to take it and leave just makes those people a debitor to the economy.

No, because the person will have paid taxes while living in Japan, and lived their life while in Japan, spending money while living here, thereby putting money back into the economy.

or gaijin or Japanese planning to pack up and leave taking their money to spend elsewhere is not what any healthy economy needs, and are certainly not a net contributor to that economy

As long as they are paying their taxes, they are.

You're talking rubbish.

for gaijin or Japanese planning to pack up and leave taking their money to spend elsewhere is not what any healthy economy needs, and are certainly not a net contributor to that economy

Those retirees are more likely to need, at some point, long-term expensive medical care. if they've been paying into the national health insurance scheme, they'll get that in Japan paid for out of the premiums of young, healthy workers. So, pay your taxes while you're working, move away when you become a liability - sounds like a net contribution to me.

Excellent observation, cleo. And with the pay-as-you-go pension system here looking unsustainable under the aging shrinking population, it is indeed ironically doing a service to leave and retire elsewhere (although you'll have to pay for yourself and medical expenses in many cases I would imagine).

Also the other point I'd add is that income is earned in return for something, be that labour or taking risk through some kind of investment activity. Sure tax is one contribution, but to actually do economic activity to earn income in the first place typically represents a major contribution, not to be dismissed.

So, pay your taxes while you're working, move away when you become a liability - sounds like a net contribution to me. that all depends on how much money you intend to take with you, most people that will move away from Japan when they retire will most likely be financially well off meaning considerable amount of money taken with them, those that arnt will be stuck in Japan. Financially well off/rich people tend to op for private hospitals best doctors and depending which country you live isnt subsidised by their governments, only the poor and lower class get free health care. So once again the rich taking their money out of Japan will more than likely be net liability, and then if they have children taken with them will mean less future taxpayers something Japan most definitely needs. Hey I may also be one of these people if Japan becomes too unbearable to live in. My point being my business is presently net contributor to Japan, both in taxes being paid , J staff employed and selling made in Japan products. Many high yen lovers here on JT see it as a way to maximise the return on their assets when transferred to a different currency or importing those foreign-made goods more cheaply, supporting foreign jobs. All are a drain on Japan and its wealth. Its the same in almost every country, support your country and its workers by purchasing goods made in that country.

If your company is in Japan, the staff is Japanese, the manufacturing is in Japan, and you pay taxes, your company is not a burden upon Japan whatsoever, whether you take the end profits out of the country or not.

most people that will move away from Japan when they retire will most likely be financially well off

Meaning they will have paid more than average in taxes and welfare insurance.

Financially well off/rich people tend to op for private hospitals best doctors and depending which country you live isnt subsidised by their governments, only the poor and lower class get free health care.

We're talking about Japan, not 'depending which country'. In Japan all residents are enrolled in one form or other of the national health insurance and are entitled to subsidised - not free - health care. Let me also add that the population of a country is not made up of rich people on the one hand and the poor and lower class on the other; most people are in the middle.

if they have children taken with them will mean less future taxpayers

By the time they're retiring overseas, it's likely the children will be adults and able to make up their own minds about where they want to live.

support your country and its workers by purchasing goods made in that country

I make a point of enjoying both Scotch whisky and quality Japanese whisky as often as I can. It's hard, but I do my bit.

whether you take the end profits out of the country or not. so if all J companies and individuals take their end profits out of Japan that's not a burden!? what about spending or investing those end profits back in the country that helped produce your wealth? wouldnt that be more beneficial for Japan? Or does everybody have to be an opportunist and do what best suits them and screw everybody else? seems many on here think Japan owes them everything and they don't owe Japan a thing. Financially sound, morally bankrupt

If anything Japan owes my country of birth, it educated me and now Japan collects the taxes.

As an individual my responsibility is to myself and my family. If Japanese policy makers made changes that would align my interests with the country's then I'd invest here too. But there are better opportunities elsewhere. I would do no flavours to myself or a country in need of change by making investment decisions that don't make sense to me. That people invest overseas is a signal to the politicians to make changes. Let's have those reforms!

what about spending or investing those end profits back in the country that helped produce your wealth? wouldnt that be more beneficial for Japan?

Anyone who owns a business here does invest profits back into Japan. Building a business costs money over time. That money is invested into the business. The money spent is in Japan. The money invested goes into Japan.

Or does everybody have to be an opportunist and do what best suits them and screw everybody else?

A little bit of both innit. If you aren't an opportunist, your company will never succeed. But if you don't work with the country in which your business exists, it won't succeed.

seems many on here think Japan owes them everything and they don't owe Japan a thing.

We owe Japan taxes.

umbrella, didn't you say the yen would crash last year? You were saying something like 140 yen to the dollar? And didn't you say you made "millions" as an FX trader? How's all that going for you?

" wtfjapan at Jul. 14, 2016 - 03:52AM JST whether you take the end profits out of the country or not. so if all J companies and individuals take their end profits out of Japan that's not a burden!? what about spending or investing those end profits back in the country that helped produce your wealth? wouldnt that be more beneficial for Japan? Or does everybody have to be an opportunist and do what best suits them and screw everybody else? seems many on here think Japan owes them everything and they don't owe Japan a thing. Financially sound, morally bankrupt"

Sadly Japan isn't a place where you can invest in well. A lot of Japanese agree with that assessment. That's why they invest money in US, Australian, European currency accounts. Such things I rarely used in the UK. Correct me if I am wrong, but current interest rates are about 0.01%. Also a lot of people invest time and energy trying to improve the level of English amongst the Japanese population. Some people send money getting qualifications. Please note not the private companies. When companies are trying to cut wages, should you be surprised that people want to maximise their savings.

We owe Japan taxes. everybody owes Japan taxes and pay them, from the poor to the mega rich, but if you make a large amount of wealth in Japan it would seem right that you'd invest some of the money back in the economy, supporting J workers in the process. Many on here intend to take their money and run seems a very selfish mindset. I take pride in the fact that I do support Japan and Japanese, from the staff i employ to the factory workers that make my products. Selling those products to gaijin bringing net gain for Japan, however, large or small it may be. And people question why Abe and foreign governments support their exporters shamelessly

if you make a large amount of wealth in Japan it would seem right that you'd invest some of the money back in the economy, supporting J workers in the process.

To invest is to take risks with your wealth, and there is no guarantee of success.

More investment would be nice, but just wishing people would go crazy and risk their money when there are better options elsewhere is fanciful. The government actually has to stump up with reforms that will make investing in Japan seem like a worthwhile risk to take.

But Abe's best idea is to give 30,000 yen to pensioners and revise the constitution and have more wars. How the heck I am supposed to be inspired to invest in Japan when I see that? He says the economy is the priority but his actions have shown time and time again that it isn't.

I take pride in the fact that I do support Japan and Japanese

I like Japan, but I don't think that Japanese people are any more inherently deserving than people of other potential investment locations around the world.