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Aso says Japan will take necessary steps to deal with FX volatility

18 Comments
By Stanley White

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18 Comments
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Message to Mr Aso; You can't fix the problem until you realize that you are it!

7 ( +7 / -0 )

"In response to the question of whether Japan intervened on Thursday, Aso said that is not something that a finance minister comments on."

So, the finance minister can't comment on... finances. I know he literally can't himself, but that doesn't mean that he shouldn't -- it's his job. We all know he just has nothing to say or can't say what they will do, because he's an idiot and a HUGE part of the problem.

6 ( +6 / -0 )

And we've seen how expert Aso is at taking necessary steps, both in his risible tenure as Prime Minister, and his more current omnishambles "managing" the Japanese economy.

Whose idea was it, Mr Aso, to gamble in the stock market with pension funds? And who is going to take responsibility for the massive loss of pension money - i.e. OUR money - this week?

Oh, never mind, look over there! North Korea, hostages...etc, etc.

6 ( +8 / -2 )

Abewrongics isn't going to work anymore than America's version, called quantitative easing. This magical "inflation" the Keynesians keep pushing as the elixir for economic recessions, is now pushing over $200 trillion in worldwide sovereign debt. When you force interest rates negative, print more money, and devalue the currency, the income disparity between citizens grows exponentially because the groups like government and banking get the money first and the 90% of the people at the bottom don't see much of it if anything because their not getting better jobs, raises, and don't have their life savings in the stock market. The problem comes when defaults, cause defaults, which cause further defaults. A house of cards. Just like 2008, but bigger. Much, much bigger, because by printing more debt and spending more to solve the collapse of 2008, these central banks not only didn't solve the problem of too much debt and too much spending: they made it exponentially worse. Interest rates, the most important factor of an economy, which sets the price of capital and checks mal investment, needs to be set by the free market. Not a group of central bankers who think they are dialing a thermostat up or down. What they're playing with is a nuclear reactor.

5 ( +5 / -0 )

Central bank intervention with trillions of yen has not changed a thing! The reason for the massive fall in equities is precisely due to QE! Nothing is being valued correctly......

4 ( +4 / -0 )

Bruce Wilds: "It seems bad news flowing out of China is about to further undermine Japan's hopes for growth. A matter that might not be garnering enough attention or has been largely discounted is how the economic problems that continue to develop in China will spill over and affect Japan"

That's probably because people are sick and tired of Japan blaming everyone else for the problems they have created. Did China ask Kuroda to put the minus interest into effect? Did China ask him and Abe to intentionally deflate the yen in 2014? NO! Japan did it, and they had the gall later to demand China not do the same.

Now they, and you, are blaming China once again.

3 ( +3 / -0 )

That didn't end well.

2 ( +2 / -0 )

The G7 is not going to tolerate Japanese currency intervention. Everyone's hurting this time around and they're not going to allow Japan to take their jobs through weakening their currency by direct manipulation.

2 ( +4 / -2 )

“Recent foreign exchange moves have been very rough. I am very nervously watching these moves and will take appropriate steps as necessary.”

In other words he will do nothing or something that's been tried and failed countless times before.

2 ( +2 / -0 )

Many of the big exporters (Sharp, Sony, Hitachi, Toshiba, etc.) had received a big gift from the government at most people's expense and still haven't innovated or improved the way they do business over this time... Sad!

2 ( +2 / -0 )

Group of 20 finance ministers will meet at the end of February in Shanghai, China,

that's too far....meantime, just pass on benefits of strong Yen and reduce the prices of imported items, especially food/drink products !

1 ( +1 / -0 )

Aso said"its not something finance minister can comment on".He is right,because Mafia of speculators,are waiting to build their moves based on his comment.Neither Abe Shinzo,nor Aso has something to do with whats going on in Stock markets around the world,Japan is not an exception.To blame Abe Shinzo for whats going on with yen is absolutely illogic and nonsense,its SPECULATIONS AND SPECULATORS MAFIA.We all remember what happens in Asia markets in 1997,when SOROS GEORGE one of the pioneers of Speculations Mafia,destroy most of Asian currencies by big well organized speculations,Thai currency lost 40% over night,Malaysia prime minister at that time,MAHATIR MOHAMED commented on what happened"what we built in 40years,SOROS GEORGE destroyed in a week".!! Some say,its because of QE,but i cant understand,if Japanese government is printing money,yen should be down in hell.not strengthen against dollare,more over if its because of QE,I guess states is the exclusive pioneer of this invention,but no one is mentioning a clue about it,Japan is not an exception again.Even though QE is a must sometimes when there is no other solution.I believe speculators will take yen to 114 or 115 against dollar(resistance level)then big selling attack will take yen to 106(fibonaci level)maybe little more,this time there can be Governmental intervene,this supposed to happen before G20 meeting in Shanghai,before there can be an action against violent Speculations.This is just a possible option according to my expectations.

1 ( +2 / -1 )

Central bank intervention with trillions of yen has not changed a thing! The reason for the massive fall in equities is precisely >>due to QE! Nothing is being valued correctly......

Exactly and time to time there is a tsunami of correction...it is unavoidable, it could be avoided only if they will stop to mess with the currency and stop with artificial value of things.

1 ( +2 / -1 )

They've got top people working on this... Top People

1 ( +1 / -0 )

Salaries in wheelbarrows?

0 ( +0 / -0 )

It seems bad news flowing out of China is about to further undermine Japan's hopes for growth. A matter that might not be garnering enough attention or has been largely discounted is how the economic problems that continue to develop in China will spill over and affect Japan. The Japanese economy is very vulnerable to a negative feedback loop that could have strong ramifications on its economy.

The tight relationship between the two is apparent each time trouble surfaces in China the yen jumps in value as wealth in a stealth move flees China often through business back-channels. This should not be misinterpreted as the yen strengthening, it is just a temporary bump before the wealth moves on to an even safer place. More about this subject in the article below.

http://brucewilds.blogspot.com/2016/01/japans-strong-economic-link-to-china.html

0 ( +2 / -2 )

Japanese Prime Minister Shinzo Abe’s policies, known as Abenomics, rely on a weak yen

Depending on something out of your control will never work

0 ( +0 / -0 )

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