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U.S. warns China, Japan, S Korea on currencies

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Sorry USA, but the Asian currency wars have already begun...

3 ( +5 / -2 )

Could the US be a larger hypocrite with this warning?

21 ( +24 / -3 )

****The United States should be careful in its criticism of the actions undertaken by its trading partners. It makes sense that each country will do what is in that particular countries best interest first, and then undertake actions which strengthen the Economic Alliance. The United States cannot really expect its trading partners to always do what the United States feels is in the best interest of the Economic Alliance.

6 ( +6 / -0 )

US warning comes after Yen has depreciated by 30% (?) Japan indeed enjoys cornerstone relationship with US (!) Perhaps, the picture will be more clear at G20 meeting on Friday. !

2 ( +6 / -4 )

USA seems to be increasingly irrelevant where finance is concerned

0 ( +5 / -5 )

Oh what will you do World Police? Oh sorry I mean America....

Our country and we can do what we want to improve our economy. So keep out of our national interests!

-10 ( +6 / -16 )

Funny this came on the heels of the 100th anniversary of the FED. The biggest money printing cartel EVER.

Thanks to a 100 years of Fed money printing, a dollar is worth about what 2 cents was when the fed was created.

Fed to Asian Banks: You're doing it wrong!

10 ( +16 / -6 )

We will continue to press...we will continue to press...USA, stop acting like the world's master. Thanks.

1 ( +5 / -4 )

Four years of massive Fed intervention in the markets, but all in a noble cause of rescuing the global banking system and incidentally promoting American interests. Japan does the same kind of thing and they say. Wait a minute you haven't collapsed yet. You can't do that until after it's too late. It's not fair.

7 ( +9 / -2 )

Look folks, whether you like the Japanese moves with currency or not, there is an important reality here that you need to pay close attention to.

Abe's plan has two key components that he cannot deliver on. a. Rising wages and income for working people. b. More consumer spending.

Because taxes and inflation will put working families under pressure, they will stop spending. Because industry has already been very clear that they will not raise salaries then there will be no relief for families coming from their employers. A decline in spending is then inevitable.

The US has pointed this out, as have some more honest Japanese economists. Without spending there is no growth in demand, no new jobs and the core of the economy remains depressed. Period.

While the rising yen is good for exporters, it is very hard on consumers buying imported goods, and very hard on the other half of industry that import. It is important to remember that Japan only produces 40% of her food supply. Guess what? The rest is imported and now with less valuable yen to pay for it. Net result, more expensive food. See point one for why this hurts the economy and working people.

This plan is built entirely upon optimism and not upon economic reality. We will see a brief period when everyone sees short term benefits from recent changes. I work in a bank and you can already see heightened trade and optimism. But it is not sustainable. The underlying problems with the Japanese economy are not being addressed by Abe's plan. And with the addition of inflation, rising taxes and declining value of the household funds, it is introducing new problems that may actually harm the economy more over time.

So even if you don't like what the US has had to say here, the support for Abe's plan does not make sense for working people. Mark my words friends, this is going to blow up in Japan's face and that means hurting you and I who work here. From the albaito to the salaryman, heavy times are on the horizon when the optimism gives out and reality sets in.

9 ( +14 / -5 )

Was the Yen rightly evaluated until recently? I wondered why the Japanese yen was evaluated so high while the country's economy was dwindling.

3 ( +5 / -2 )

@tkoind2: I don't support Abenomics. The point here, is another one. Printing money is FED's hobby. But if other countries use the same - useless - strategy, USA complains.

4 ( +5 / -1 )

@tkoind2

The underlying problems with the Japanese economy are not being addressed by Abe's plan.

What then, should Abe do?

1 ( +2 / -1 )

Poor japan. TPP has not even started yet and the United States showing her claws.

3 ( +5 / -2 )

The US government started this with quantitative easing years ago. Buch of hypocrites...

4 ( +4 / -0 )

Good post tkoind2 and says all that needs to be said about Abe snake oil economics.

SabrageApr. 14, 2013 - 09:26AM JST

What then, should Abe do?

He can start by legislating compulsory yearly pay rises, if he wants to see real inflation.

He can reduce government expenditure, rather than doing the opposite, and reduce taxes accordingly, if wants to increase Japanese consumer spending.

He can do away with the Koizumi employment legislation concering part-time workers, if he wants to see a more enriched and stable Japanese workforce.

He can start by restructuring of the Japanese economy, moving it away from its dependence on manufacturing, to building a genuine service information based economy with a highly skilled innovative workforce, which China is 50 years away from competing with.

He can stop cotton balling Japanese agriculture (I read the other day that a Japanese cow produces 1/5th of the milk an American cow produces in a year) and the arcane highly regulated inflated domestic distribution networks, if he wants to serve the Japanese public in both quality and expense of life.

He can - but I think this horse has long bolted before the barn door was closed and Japan is no longer an attractive place for people to migrate to, as it was in the 80s - start a public debate on immigration, if he wants to remedy the very important issue of population decline.

The list can go on and on about what the political elite should be doing to ensure that they pass on a healthy stable Japan to their grandchildren, but in all my travels around the world, I don't think I have ever seen such a selfish generation as the dankai generation and their political cohorts in the Diet.

0 ( +6 / -6 )

SchopenhauerApr. 14, 2013 - 09:12AM JST

Was the Yen rightly evaluated until recently? I wondered why the Japanese yen was evaluated so high while the country's economy was dwindling.

It's not rocket science. Japan consistently produces yearly current account surpluses.

Of course Kuroda wants to limit this fundamentals of economics by printing large amounts of Yen to debase the currency. However this will only work, if someone takes up the offer of BOJ soft loans and apart from the Japanese government, nobody seems interested.

For those who keep bitching that US QED is the same as Abenomics QED, if you can't see the difference of what American QED hopes to do (stimulate the domestic economy by adding liquidity) and Abenomic QED (the Japanese economy is awash with liquidity and has been for 10 years. The purpose is solely to weaken the Yen), then pick up a teach yourself basic economy text, next time your in a bookshop.

Word from New York is that the BOJ, via proxy institutions, is already doing stealth buying of foreign assets, which is nothing but currency manipulation and totally not allowed.

0 ( +5 / -5 )

The best way the US politician can tell american why it's economic keeping flat : because those foreign countries undervalued their currencies! Unbelievably many american accepted this reason! So one more thing is that the US should invest more money in education!

-1 ( +1 / -2 )

Two points:

1-Currency manipulation is a domestic policy employed by all developed and developing nations. In fact, any government that does not engage in the practice for the benifit of its citizens is not fulfilling its elected duty.

2-None of the arm-chair critics here really know what impact this policy will have, including myself.

-1 ( +0 / -1 )

dog

but I think this horse has long bolted before the barn door was closed and Japan is no longer an attractive place for people to migrate to, as it was in the 80s - start a public debate on immigration, if he wants to remedy the very important issue of population decline.

Can You Explain why, new zealand, norway, sweden maintains have negative population growth and still has high standards of living, why?

0 ( +2 / -2 )

Why are people so afraid of talking about China, Korea, and Japam?

0 ( +0 / -0 )

issa1Apr. 14, 2013 - 10:42AM JST

dog

Can You Explain why, new zealand, norway, sweden maintains have negative population growth and still has high standards of living, why?

Sorry, but you're just 100% incorrect on your statement.

All 3 countries have population growth.

http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=sp_pop_totl&idim=country:NOR&dl=en&hl=en&q=norway%20population

http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=sp_pop_totl&idim=country:NZL&dl=en&hl=en&q=new%20zealand%20population

http://www.google.com/webhp?hl=en#hl=en&gs_rn=9&gs_ri=psy-ab&pq=new%20zealand%20population&cp=3&gs_id=d&xhr=t&q=sweden+population&es_nrs=true&pf=p&sclient=psy-ab&oq=Swe+population&gs_l=&pbx=1&bav=on.2,or.r_qf.&fp=3725dc11c8616922&biw=941&bih=649

0 ( +3 / -3 )

dog

0.3 average birth rate is weak. Anyway,immigration is not the solution to problem.

0 ( +1 / -1 )

During the 1970s. a dollar was trading to a ¥365 and went down to almost ¥77. Now it's almost ¥100 to a dollar and United States of A is complaining. In the first first place, the strong yen was USA own making... hehehehe. Why tackle Japan and SK. Tackle China who doesn't even listen to you a bit.

-1 ( +0 / -1 )

Some of you seem to be hyperventilating about this but remember: There are public statements for domestic U.S. consumption (politicians) and private assurances behind the scene.

0 ( +0 / -0 )

issa1Apr. 14, 2013 - 11:16AM JST

dog 0.3 average birth rate is weak. Anyway,immigration is not the solution to problem.

I really don't understand your point, like your last statement of choosing 3 countries which all have had population growth.

All 3 countries that you chose, have a net increase in population because of immigration into their respective countries and the variable of average birth rate within the country is neither here nor there.

You might not think immigration is the solution, but unless you can magic up another 25,000,000 Japanese in the next 10 years, it's the only solution.

0 ( +4 / -4 )

It's all comes to this: Pot calling the kettle black!

1 ( +3 / -2 )

The yen was 112 to $1.00 in 2005. There were no complaints then, except by the ALTs heading home in August. "It all depends on whose ox is being gored." If Japan wants dollars from tourists from the USA, the exchange needs to be 100 yen to $1.00. The USA tourist is already getting gored by the airlines taking them to Japan.

2 ( +3 / -1 )

LOL nearly choked on my coffee when I read this haha, the US is the biggest currency manipulator out there, if it wasnt for all there quantitive easing since 2008 the rest of the world wouldnt have to do there own forms of money printing to bring back some balance. look up the word hypocrite in the dictionary im sure the meaning reads: U.S. Treasury / Government

5 ( +6 / -1 )

As an American, America's government and the federal reserve are hypocrites of the worse kind. Being the ultimate currency manipulator they dare tell other nations not to do likewise.... Shameful really....

8 ( +9 / -1 )

@hobart_mark...spot on!

1 ( +1 / -0 )

Dog, thanks for the list of fixes.

But...

He can start by legislating compulsory yearly pay rises.

Wow, let's drive what's left of Japanese investment offshore.

He can start by restructuring of the Japanese economy.

Yes, yes, but how?

1 ( +1 / -0 )

US should not complained. They were the first to start the currency war by Quantity Easing ( money printing) in ernest.

1 ( +2 / -1 )

SabrageApr. 14, 2013 - 02:00PM JST

Yes, yes, but how?

http://www.economist.com/news/leaders/21576108-after-central-banks-radical-moves-now-time-prime-minister-show-his

-2 ( +1 / -3 )

I am afraid that current policy trends within the Central Banks of the World are going to rob purchasing power from those of us in Japan, the U.S., Britain, The E.U. etc., through runaway inflation. If, you think Tokyo is expensive now, I can see by 2020 that it will be nearly impossible for a middle class husband and wife to afford essential items, housing, clothing, transportation, and food forget about trying to begin a family.. The same may also be said of NYC, in the States.. ~Fort Worth, Texas USA

2 ( +2 / -0 )

If the Americans government printed their own money and not the private federal reserve bank then they would be in better position and would not need to dictate to the rest of the world how to get out of their mess. The fact of the matter is the dollar is not worth the paper it's printed on!!

0 ( +0 / -0 )

First, I must say that there were many great posts here. It has made me think about all. Personally, I think that Abe is following America and should not do that. The Fed's have messed everything up and the one in control of the Fed has no real economics education. The first thing is if America, under the administration in office now does something, do the opposite and you will prosper. tkoind2 had many good points as well as dog. The truth of the matter is that Abe-econics will produce a sudden upswing, enough to keep him in office for the next election. (elections in Japan are hell, all of the noise and screaming from the vans rolling past stop businesses from operating until the political speeches are over). That being said and the last election making our business hell, Abe-economics will have a negative effect reaching past your children's lives and will make your children pay for the short lived success of a politician. The Federal reserve has cause enough chaos and should not tell other sovereign countries what to do. I am an American but can not support the idiotic federal reserve which is a private bank, it is not part of America.

-1 ( +3 / -4 )

@Kent +1 for your post, thanks.

-2 ( +0 / -2 )

The politicians all around the world are ruining our lives, for their interests and lobbies' interests. Don't you think it's absurd that IMF praised Abenomics, despite Japan's huge debt, while everyone thinks that the best way to fix European economy is austerity? Wow, such a coherence.

2 ( +2 / -0 )

The United States should be grateful to the countries in Asia. By holding dollars they are supporting the U.S currency and thereby supporting the U.S. If they sold the dollars they are holding, the U.S. would in serous trouble.

Is there a country in the world that has an underpriced? No, they are all overpriced. A note or bill is nothing more than a promise to pay, an IOU. This makes me believe every countries currency is overpriced, but some are more overpriced than others. In particular, I believe the dollar is overpriced.

2 ( +2 / -0 )

America is the Top Dog in currency manipulaiton via the back door. Japan is doing catchup after the front door currency manipulation selling yen fails to weaken it.

It is good to put Japan on notice she is also a massive currency manipulator to set the record straight so nobody is misled by Abe since his monetary policies is damaging to other countries caused by massive yen printing!

The simplest proof in both cases is loss of purchasing power to the citizens, esp retirees, salarymen stucked with fixed income due to higher cost of imported goods. Only the exporting companies benefit from this massive money printing scheme. The benefits of more jobs and sales will only be temporary as other countries like Korea, Taiwan will join the bandwagon soon!

So nobody have clean hands here. Not China, not US, not Japan, not Korea, not UK. All are currency manipulators but right now Japan sticks out like a sore thumb as a Big Time currency manipulator. How else to explain such a big spike in yen depreciation to almost 100 vs the dollar?

I hope US make Japan TPP a trading partnership conditional on Japan not manipulating the yen. Bring back the Plaza Accord!

0 ( +1 / -1 )

There is a larger difference between the US Dollar and Japanese Yen in which the US dollar is utilized as global transaction currency. If the US Federal Bank did not print a large amount, the global economy would have gone back before the Nixon shock in which the dollar would have been traded like gold forcing the world economy into another large stagnation.

Having said that the US economy had gained greatly and have even abused their position as the issuer of sole global transaction currency to their own gain namely the high roller money game that constantly pushing the cost of various commodities around the world beyond actual market value.

1 ( +1 / -0 )

japan is in trouble

0 ( +1 / -1 )

I agree with LH10, but he should also include the rest of the Industialized part of the World. The way I see it is everyone is living way beyond their means.

1 ( +1 / -0 )

U.S. in economic desperation, but still refuses to tighten its own corporate and military belts, stop the Feds money printing, move from Oil to Solar, Wind, Wave, Hydro, Tidal, Geothermal, Biological, and Thorium energy sources for a more peaceful, cleaner, electric world, as China has done, Japan is prepared to do?

-1 ( +0 / -1 )

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