Japan warns currency moves 'one-sided' as yen rise gathers pace

obviously aso et al have made some big investment, then they will drop the yen down and sell. that is how it works.

Love a strong yen! Easier to pay off student loans and travel abroad. so basically spending your Japanese earned money overseas, yep thatll help the J economy. Nearly all 1st world economies were built on the back of strong exports, eg bringing in more money than you spend on foreign products.

Yeah the Venezuelans don’t like their currency cheaper, they are fleeing their country.

Strong economies are built on innovation, savings and consequent investment, and the wealth that they generate, not selling your labour cheap to the rest of the world, and paying more to buy foreign products.

If your currency is strong and you need not put your scarce labour to work competing against foreign paupers, that is wonderful - you can create more advanced businesses, and put your labour to higher value uses.

Japan alas is always against change, even when that change may stem from Japan’s relative successes. If you can move up the ladder you should!!

The only group that likes a cheap yen and megacorporations that export and keep Japanese poorer.

same corporations that employ millions of Japanese, if your not competitive then these jobs will move offshore taking all the income / company taxes that goes with them. japan has lost an estimates 8million manufacturing jobs overseas in the last 25+yrs, America probably far more.

Strong economies are built on innovation, savings and consequent investment, and the wealth that they generate, not selling your labour cheap to the rest of the world, and paying more to buy foreign products.

yet Americans still like their cheap made in China/ Mexico products with all the innovation/investments in the US they still manufacture the majority of these products in these countries, running huge $100s billions deficits. Add to that the $Trillions that Japan and China fund Americas debt, this same debt that AMerica struggles just to pay the interest on, vast majority of America auto and home loans are financed (borrowed money) as the average American doesnt save much. All that investment can disappear in a blink of an eye as we saw in the GFC. Sadly Japan seems to be heading down the same sinkhole that AMerica cant seem to dig itself out of.

yet Americans still like their cheap made in China/ Mexico products with all the innovation/investments in the US they still manufacture the majority of these products in these countries

So Americans can have the higher value design jobs and the foreigners can have the lower value jobs that will soon be done by robots.

Your Americans have the long straw! Look at the US unemployment rate!

running huge $100s billions deficits.

Japan runs a trade surplus. Then it builds up private savings and ends up investing that all back overseas.

Add to that the $Trillions that Japan and China fund Americas debt

Government spending problems are a different issue, and Japan has that issue worse than the US.

vast majority of America auto and home loans are financed (borrowed money) as the average American doesnt save much.

They won’t save more by doing low value manufacturing jobs for foreign masters though will they. Americans can incomes are high, your complaint is perhaps that they spend too much.

Sadly Japan seems to be heading down the same sinkhole that AMerica cant seem to dig itself out of.

The US has its problems but it is growing waaay faster than Japan, and average wages are higher there.

Both have problems with out of control government spending, but at least the US economy might expand fast enough to be able to pay for theirs!

Japan has more of a domestic economy than the US. Japan GDP is less than 15% exports, while the US is 17% or so. Especially given that Japan imports 60% of its food and almost 100% of its fossil fuels, a strong yen is helpful.

Japan’s need for a weak yen is a myth perpetuated in order to line the pockets of the few in power of the shosa who pull the string in the Diet.

Ahhh the US debt load that's never discussed in context. So the absolute number of around $19-20 trillion is a guarantee to conjure fear in people—fear that foreigners may dump our bonds, fear that we may have runaway inflation, fear that the economy is a house of cards. So that fear is used to gain negotiating leverage by politicians.

Now, the federal debt is a big number. But so is the size of our economy—both about $19 trillion (and still growing). And while our debt/GDP has grown over the past decade, the increase in government debt relative-to-GDP has been a global phenomenon following the financial crisis.

Much of it has to do with the contraction in growth and the subsequent sluggish growth throughout the recovery (i.e. the GDP side of the ratio hasn't been carrying its weight). But the increasing debt situation isn't just specific to the U.S. alone. It's also happening other developing countries.

Now, we could choose to cut spending, suck it up, and pay down the debt. That's called austerity. The choice of austerity in this environment, where the economy is (still) fragile and growth has been sluggish for the better part of ten years, would send the U.S. economy back into recession. Just ask Europe. After the depths of the financial crisis, they went the path of tax hikes and spending cuts, and by 2012 found themselves back in recession and a near deflationary spiral—they crushed the weak recovery that the European Central Banks (and global central banks) had spent, backstopped and/or guaranteed trillions of dollars to create.

The problem in this post-financial crisis environment: if the major economies in the world sink back into recession (especially the U.S.), it would draw emerging markets (and the global economy, in general) back into recession. And following a long period of unprecedented emergency monetary policies, the global central banks would have limited-to-no ammunition to fight a deflationary spiral this time around.

Now, all of this is precisely why the outlook for the U.S. and global economy changed on election night in 2016. The U.S. now has an administration that is focused on growth, and an aligned Congress to overwhelm the political blocking. That means we truly have the opportunity to improve our 'relative debt-load' through growth.

In the mean time, despite all of the talk, America's ability to service the debt load is as strong as it's been in 40 years. In the span of 80 years of history, showing the interest we pay, relative to GDP. Again, debt is as cheap to service as it has been in 40 years. And US ability to refinance debt is as strong as it's been in 60 years, given the ultra-low levels of government bond yields."

And in a globally synchronized recovery, coming out of a globally synchronized crisis, no one wins by dumping US Treasuries and driving interest rates higher (everyone loses, globally). China and Japan, the 2 largest debt holders as well as other countries hopefully or at least aware of the implications.