politics

Vice finance minister describes yen's recent moves as 'violent'

31 Comments

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31 Comments
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Print billions of yen pay for reconstruction in the north, reduce the value of the yen, make exporters profitable again, rescue your economy, get people back into jobs - it then becomes win win win win win win.

4 ( +5 / -1 )

For exporters, it's violent. For importers, it's "cool," "far out," or "wonderful!"

-2 ( +0 / -2 )

Stop announcing before you pump billions into the markets to try and weaken the Yen. Currency traders love it when you pre-warn them. Why do that? It just doesn't make any sense.

0 ( +1 / -1 )

@tokyokawasaki

But if you don't announce it, who'll know it's happening?

-1 ( +0 / -1 )

Because it's expensive to intervene. If currency traders perceive that there is a floor at which the gov will always step in, they will start buying at the floor, anticipating a bounce. If that happens, then the gov doesn't have to intervene so often. The gov is trying to talk up the currency, which is a lot cheaper than actually supporting it.

0 ( +0 / -0 )

PS Trying to talk down the yen, and talk up the dollar, just to be clear.

0 ( +0 / -0 )

A surging yen, which has recently tested record highs against the dollar, is painful for Japan’s exporters. It reduces the value of their foreign earnings and makes Japanese goods more expensive in overseas markets.

Buy your supplies over seas using ¥/ sell the goods cheaper overseas, and do not repatriate the money

-1 ( +0 / -1 )

Nice export/import

-1 ( +0 / -1 )

"blamed speculators for the yen's sharp gains"

Why do countries allow a few people to cause misery for millions of their citizens?

I can see why the Chinese don't allow speculators to mess with their currency.

2 ( +2 / -0 )

The Yen is strong against the dollar because of doubts about the US economy, this has nothing to do with speculators. If we look at the exchange rates over the past year there has been a gradual decline of the dollar versus the Yen; the "violent" changes in exchange rates are due to BOJ intervention.

If Japan's "top financial diplomat" can't understand simple things like this what hope is there for this country?

0 ( +1 / -1 )

"Print billions of yen pay for reconstruction in the north, reduce the value of the yen, make exporters profitable again, rescue your economy, get people back into jobs - it then becomes win win win win win win."

You have my vote for Prime Minister!

-1 ( +0 / -1 )

The best way for Japan to weaken the yen, encourage exports and at the same time lessen the Debt of the Government is the pass a law in which all JGB held by the BOJ are null and void and do not need to be repaid.

This reduces the debt, slightly debases th currency, lowers the Yen.

0 ( +0 / -0 )

The only way forward is more QE for Japan.Taxes have to rise in Japan to pay for the legions of old folks that increase year on year.Inflation has to return to Japan.

-1 ( +0 / -1 )

The present phenomena is due to the 0% interest rate by FRB in which major banks borrows money from FRB and are buying yen in exchange for dollar. Since interest rates are 0% any profit earned is profit gained for the banks. This is what people refer to as "Printing money" in the currency market, a large flow of money in an already saturated market.

0 ( +0 / -0 )

Print billions of yen pay for reconstruction in the north, reduce the value of the yen, make exporters profitable again, rescue your economy, get people back into jobs - it then becomes win win win win win win.

And destroy the value of the hard-earned savings of millions of people? That's a big LOSS right there.

How are younger people saving for their first homes and trying to raise kids supposed to cope with inflation eating away at their savings? Pensioners on fixed incomes?

Your policy is only a "win" for the government (who can pay its debts in inflated currency) and for exporters (who can sell more stuff abroad). It's a nightmare for the average person, who, despite the stagnant economy of the last 20 years, has at least been able to save money without its value being taken away.

What Japan should be doing in this situation is using the high yen to attract top-quality talent to come work for Japanese companies with world-class salaries. This is a golden opportunity for innovation, and the justice ministry, to its credit, is making things easier for immigrants with the new 5-year visa system.

Corporations, hire the best talent you can find and pay them commensurately -- shouldn't be hard at 76 yen to the dollar. Now let this influx of talent, paid in sound money, work its magic.

1 ( +1 / -0 )

I sell anime and bento boxes. I am hating this, let me tell you.

0 ( +0 / -0 )

Should Japan just abandon the yen?? Just adopt the USD??

0 ( +0 / -0 )

Should Japan just abandon the yen?? Just adopt the USD??

The USD is a dead currency that would be the worst possible move.

0 ( +0 / -0 )

"The USD is a dead currency"

Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha!

0 ( +0 / -0 )

Seems like Japanese politicians have no idea how the foreign exchange market actually works. ...because if they actually knew how it worked, they'd brown their undies.

0 ( +0 / -0 )

Print billions of yen pay for reconstruction in the north, reduce the value of the yen, make exporters profitable again, rescue your economy, get people back into jobs

The only way forward is more QE for Japan.

As of today, a sovereign debt ratio (debt/gdp) of Japan is over 200% that is the world highest, and it is just about ready to jump off the cliff (default).

Do you still think printing more Yen is a good idea?

0 ( +0 / -0 )

How come the U.S. survived, actually floursihed, for decades with a strong dollar policy, but Japan panics because the yen has gained strength? Oh, that's right, its because Japan has ignored its structural issues for over 20 years, especially as it comes to domestic demand/efficiency, and is forced to continue to rely on exports to prosper. The politicians need to recognize once and for all that the Japan Inc. model is dead, and only an accelerated economic decline for Japan can result from them not taking drastic action. Koizumi saw that. Why can't these guys?

0 ( +1 / -1 )

@hereforenow, let me add more to your comment.

Japanese politicians and bureaucrats have been in a spending spree and eating your tax money without a check-balance in the past 56 years.

How many airports, "hakomono" did you need? Are they currently used? Nope, some of them are useless and empty. These politicians, bureaucrats and construction contractors were laughing and running with your tax money to the banks.

0 ( +0 / -0 )

"The USD is a dead currency"

Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha!

@Serrano, When I am traveling, I am carrying USD and Japanese Yen, not a Chinese YUAN. Merchants in all over the world love to accept these currencies because they can take it to the bank.

Chinese Yuan is not recognized as a currency, no value at all. Yuan is treated as a toilet paper. Ha,ha,ha,ha,ha.

0 ( +0 / -0 )

SOLUTION TO THIS TOPIC:

World leaders need to bring an "UPTICK RULE" bacl to the market. The most profitable day was 8/8/11 when all global speculators (day traders) went to SHORT in the market.

0 ( +0 / -0 )

These politicians, bureaucrats and construction contractors were laughing and running with your tax money to the banks

globalwatcher -- agreed. That is why I got the heck out of Japan several months back. And it is only going to get worse, because taxes are going to go up significantly to pay the enormous reconstruction bills. But much, if not most, of that money will also be spent on pork-barrel projects. Japan is in dire financial straights.

-1 ( +0 / -1 )

Best way for Japan to weaken the yen is to stop selling bonds to China. U.S. actually has less influence on the strong yen. The main cause is China buying record amount of Japanese Bonds making Yen even stronger. However, Japanese cannot buy Chinese bonds. This is a one way street rule set by China. The Japanese goverment has to restrict Chinese purchase to a manageable level.

1 ( +1 / -0 )

Another blood shed day in all over the world. Unless we bring an UPSTICK rule back to the world financial market, I am not too surprised if the Dow hit 7200 level.

0 ( +0 / -0 )

Best way for Japan to weaken the yen is to stop selling bonds to China. U.S. actually has less influence on the strong yen. The main cause is China buying record amount of Japanese Bonds making Yen even stronger. However, Japanese cannot buy Chinese bonds. This is a one way street rule set by China

sfjp330, agreed. China not playing a fair game in global market is causing a global recession. VP Baiden is heading to China on 8/23 for the talk.

0 ( +0 / -0 )

How many airports, "hakomono" did you need?

I need to clearify.

I belive in the Keynesian economic theory; (C spending + I spending + G spending) to shift output growth. I guess J. politicians did not understand that G spending has to be focused on a long term JOB GROWTH, not a short term.

0 ( +0 / -0 )

"Print billions of yen pay for reconstruction in the north, reduce the value of the yen, make exporters profitable again, rescue your economy, get people back into jobs - it then becomes win win win win win win."

It's not that simple. Quantitative easing and yen intervention by the BOJ might work in the short term, but if JGB long rates were to suddenly rise because of that, then the Japanese economy would go from persistent deflation to skyrocketing inflation which would create a very, very dire situation. Pray for Japan.

0 ( +1 / -1 )

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