politics

Japan says it got G20 understanding for its yen concerns

12 Comments

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Japan MUST reduce it's currency in order to have any kind of 'come back.' ...................... It needs to practice more self interest,.......... and learn a little from the ruthlessness of China , which doesn't give sneeze how the world protests it consistently forcing the YUAN down.

-3 ( +2 / -5 )

Relative safety won't last long if Japan keeps running a deficit due to energy imports and drop in exports. Then we will see the yen back at 250 to the dollar.

0 ( +1 / -1 )

Its not that easy semperfi- if you devalue the yen for one the energy & fuel costs in Japan will go through the roof and that will be reflected in prices of most other products. With the economy the way it is , the consumers will only tighten their spending further and domestic demand will go down even more. With the overseas economies in dolldrums weakening the domestic economy spending by driving up the inflation in the current climate will not end well. Japan is caught between a rock and a hard place buddy.

3 ( +3 / -0 )

The U.S.A. just churns out more and more dollar bills, driving the value of the dollar downward and Japan doesn't do this - or does it less - and all it gets is "understanding."

Can you eat understanding?

Can you build houses with it or heat fires?

2 ( +3 / -1 )

The U.S.A. just churns out more and more dollar bills, driving the value of the dollar downward and Japan doesn't do this - or does it less -

Erm, Japan actually invented quantitative easing, back in 2000, and is a pioneer of super-loose monetary policy, ie, flooding its financial system with cash after dropping its interest rates to near zero. The BOJ did this for many years.

The problem for Japan now is that the US and others have been following in its footsteps since 2009, making its own loose monetary policy a lot less effective.

-3 ( +0 / -3 )

JeffLee-san,

It all seemed to collapse after Nixon got rid of the gold standard.

Exchange rates were pretty constant before this.

1 ( +3 / -2 )

tacit support = do nothing

2 ( +2 / -0 )

Everything happens for a reason. Even the appreciation of the yen. And there is nothing japan can do about it. Sorry for those who want to hear more favorable news. There will be none.

-2 ( +1 / -3 )

If the Japanese government is serious about the future of it economy it should and must devalue its currency to about the 120~130 mark there would be more benefits then damage, it also should not attach the yen to the US dollar since the USA is bankrupt and the dollar is falsely valued!!

3 ( +3 / -0 )

Japan says it got G20 understanding for its yen concerns

Show "concerns"- that's about it. They have their own problems at home, so that's all they can do.

2 ( +2 / -0 )

It's not as simple as the government suggest. Companies like Toyota are expecting profits of Y1 trillion, whilst Panasonic are expecting losses of a similar amount. Both are exporters, both also produce in overseas factories, mitigating the effect of exchange rates.

Demand is down in the domestic market due to endless rounds of salary cuts and tax increases. This lack of demand will not be solved by meddling with the exchange rate. Panasonic and the like are being crushed by competitors in overseas markets; this is not due to the exchange rate but due to lack of innovation in their products.

0 ( +0 / -0 )

Charles Dickens was a popular 19th century writer. In a novel titled David Copperfield, there is a character called Mr Micawber.

Mr Micawber's philosophy of economics is very simple:

"Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

The same holds true for a country.

If the country as a whole makes more than it spends, it is solvent and therefore happy.

If it spends more than it makes, it is not solvent and therefore unhappy.

Companies like Panasonic and Sharp which are incurring huge losses yearly are not going to be around much longer.

Time for Japan to tighten the belt and cut down on things it doesn't need.

0 ( +0 / -0 )

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