Japan and the Worst YEN CRISIS in 20 years - VisualPolitik EN
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- čas přidán 6. 06. 2022
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Since the yen reached a record high against the dollar in mid-2012, the Japanese currency has lost 40% of its value in the intervening years. In the last few months alone, the Japanese currency has plummeted 20%. And forecasts suggest that we may only be at the beginning of a sharp correction.
What is happening with the Japanese yen and what are the consequences of the collapse of Asia's most important currency? In this video we answer this and other questions.
Is it just me or is pretty much every country in the world having an economic recession or collapse of some kind?
as a saudi no we ballin
@@user-cs3cz5ms8p we'll see for how long after the US takes control of there banks
@@user-cs3cz5ms8p Saudis have other problems coming. almost no one is safe. for Saudi Arabia it's not a money problem just yet.
but give it time, the problem about oil money is that if you don't diversify it will eat up all other potential in a country like what happened in Venezuela. only countries that benefitted from oil are Norway and the Gulf states and I feel like the bell will ring for the Gulf states soon.
It’s not just you, and it’s about to get worse
Kinda tends to happen when there is a global crisis such as a pandemic. It exacerbates underlying issues and triggers other events
Korea has been actually selling USD from its reserves to appreciate the KRW because more than export competitiveness the biggest concern is the rising cost of imports. Basically, ever since the USDKRW went above 1,200 last December, Korea has been registering negative trade balance due to higher import cost, meaning that we are making losses for every export sold.
its called dumping and its illegal.....
I export to Japan. I've had to increase my prices gradually against much protest from my Japanese customers. They don't understand why the price of the same thing has to go up because inflation used to be an alien concept to them. It is not a great time to be exporting to Japan now though due to dropping sales volume. They've been buying less because now they think everything is expensive.
Yeah in Japan business make public apologies when they raise the price of something by 5%
@@lorenzofalorni3961 yeah I remember when the price of Asahi Dry went up 20 yen, it was on the front page of every paper and on TV.
Heh so they still need to realise that things are not expensive, they're just poorer than they thought,?
When I import from Japan my pricing is in Yen but when I am selling to Japan (exporting) my prices are in Canadian dollars so I don't have to explain why my prices have increased... that much.
I get it that you want to sell in Yen but having lived in Japan and dealing with Japanese for over 27 years, I have learned to be blunt to their vagueness and shoganai. If you don't, it will just take you much longer to realise that you aren't doing business with them. They will never change until it's way past too late and then it will be shoganai anyways. Just remember, you can lead a horse to water...
@@lorenzofalorni3961 Japanese companies also don't tend to increase the wages that often and even when they do it's usually every other year or every few years of ¥500-¥2000 yen in their monthly wages which is nothing. So I can see people enraging when a japanese company increases the price of the products. The things are so expensive compared to 2015 but the monthly wages are roughly the same.
The 1997 Asia crisis was not the result of competitive currency devaluations, it was use of foreign capital to fuel debt lead consumer boom on imports, domestic construction and massive expansion by the industrial conglomerates like Daewoo, Samsung and Hyundai. None of that would have been possible in a weak currency environment, it was the opposite with the strong Asian tiger economic growth boom attracting capital from Europe/America for higher returns, which when withdrawn caused the implosion of the Korean economy.
Yep and lack of capital controls and currency reserves left them stranded, but they have largely learned the lesson.
Japan was d0ne when they signed plaza accord
@@Superpooper-2020 They could have mitigated the worst effects of that with a land value tax to prevent the RE bubble and crash.
In some respects Abe has stimulated the economy, but sadly this has brought back land speculation, whilst land/house prices look cheap averaged across the country that is primarily due to slow demographics leading to abandonment of rural areas towards major cities, condo prices in Tokyo recently exceeded the 1990 peak despite high levels of construction. By inviting inflation, they should be careful what they wish for.
george soros did 1997 after he dump thai bath and kickstart all our suffering
Actually this is a spot on analysis of what happened.
I’m a Japanese living in the Philippines. I work for a Japanese company but I ask my employers to send my salary in USD. Despite me losing hundreds of dollars due to the crash, the fact that I receive my money is dollars is a saving grace. I can at least wait for the dollar to go up before I exchange it to the local currency. The crash has been really hard for me and other Japanese abroad.
You are a sell out
what are you doing the philippines? lol
@@theburden9920 The cost of living is much cheaper here than in Japan so it's not a bad place to live in.
@@Shanaoh where in philippines tho? I thought philippines is a dangerous country.
@@theburden9920 It depends. Some areas are more dangerous than others. I live in Davao city with a population of 1.7 million and it's relatively safe although corruption still seems to be a problem here. I just avoid trying to get into trouble. I was actually really scared of coming here at first because of a terrorist attack back in 2016, but that was more of an outlier than the norm.
Thanks for the head’s up on this kind of international subject
If Japan opens up for tourism now, foreigners are gonna flock to Japan and spend a LOT of money there, because of how cheap the Yen is now.
And covid will rise again
@@benchoflemons398 yeah they worship the devil that’s why they hate bitcoin.
Heck i already bought some
Foreigners have no money to spend as inflation has destroyed their disposable income. Flying to other countries now is more expensive so don't expect a lasting tourism boom.
But thing is… They will never open their border
Although the Japanese government may have said publicly it is aiming for low inflation, the real goal is to catalyze long-term growth. This may be semantics but it shows there is logic behind the plan.
i find this comment interesting and more in depth than the video.
They neither achieved both of it.
Money and Macro Made a video about Japan a while ago.
Yep, that long-term growth coming any day now. It's just only been 30 years. Yep aaaaany day now.
What would happen if no central bank? I think it would be a most traumatic experience but that increases of productivity would be quicker and from there a regeneration of the system.
With central bank? Probably just change in a moderate way, hoping everything get solved by creating more and more money, just to avoid deflation.
I think that: 1) the high cost on Japan (including high price from property (bubble?)) , 2) sourcing raw materials, 3) high competition with China and others, 4) gigantic companies with not real competition (keiretsu), 5) no a very open country for human capital (like 2.3% population are foreigners), 6) reduction of population polices and so on . 6) Reduction of population has massive consequences, like people saving for retirement. I could continue.
So from all the above, I am not sure the real issue (ie long term growth) are going to be really solved by a central bank (by printing money or taking care of prices alone), it should be done by real policies, as the governments should do, rather than alone debt and monetary policy (government should leave that to the Central Bank).
@@paxundpeace9970 You have no clue how the Japanese System works, actually you don’t even know how strong and powerful Japanese system is. ✨
Not to mention that their tourism industry which by some estimates is normally worth around 3% of their GDP has been closed for 2 years and continues to remain closed.
Exactly
Is it still closed? I know a few people that are planning trips to Japan later this year
There is nothing interesting to see in Japan.
@@graham1034 At their own risk.
@@robertschrader from what I hear you have to go with a tour group and can't travel on your own at all. Which isn't exactly the way most people would visit Japan.
Both people I know that were going have changed their plans. One going to France and the other probably Vietnam instead.
Holy cow, this completely flew under my radar.
This was a fantastic video - especially for someone considering doing business in Japan. Very informative, brief, and well presented. Keep up the great work.
Most times it amazes me greatly the way I move from an average lifestyle to earning over 63k per month, utter shock is the word. have understood a lot in the past few years to doubt that opportunities abound in the financial markets, The only thing is to know where to focus.
Wow buddy, that's more than a mouthful of profits you're making. How do you achieve this feat consistently? You must be a genius in trading.
@@johnnycharles4163 Anyways not actually, what I know about trading almost borders on zilch lol. I make huge profits on my investment since I started trading with Mrs Debbie Ramirez, her trading strategies are top notch coupled with the little commission she charges on her trade.
@@williamadams2361 really are you giving her your money or your coin?
@@alanfuller7176 My coin stays right in my trading account, my account just mirrors her trades in real-time that's the idea behind copy trading.
@@williamadams2361 What a coincidence you invested with Mrs Debbie Ramirez also? My bi-weekly trading Return is $28,600.
Inflation has finally arrived in Japan, this is what they have been asking for decades and now they don't know what to do with it :-) As to the Asian crisis, it wasn't caused by lowering the value of the Asian currencies, but the other way around. Several Asian currencies were rather high, there was a lot of unsound borrowing in USD cause their economies were growing/overheating, speculators got smell of these and betted against the Asian currencies, central banks tried to defend but they couldn't and were forced to devalue. This video is like let's throw loads of pasta on the wall and see whatever sticks. Unsure what's the point of this video. Generally speaking the last 5 years Japan has been having a trade deficit that got worst since June 2021. Global demand for its export products and services is down would be my main explanation. Imports have been ever increasing for 50plus years, whereas exports took a nose dive after the 2007-08 crisis and are only recently catching up to the pre-2007 trajectory (also having set back by COVID). A weak yen may help a bit, but unless of the rest of the world is able to resume buying Japanese goods and service (e.g. at pre-COVID levels) not much to write home about.
this
The problem is that japannese high tech is no longer that attractive and seen as the pinnacle of technology... yeah Sony is still good and there is the playstation but there are millions of other alternatives from other countries mainly from south korea and china...
I dont see japannese exports raising to stellar levels anytime soon
inflation now is better than the 40 years of deflationary spiral that japan has been experiencing compounded by their demographics, technology advances, and lack of proper investment
Puppet states cannot outgrow their master
Inflation is not inflation.
This is a pure devaluation of the Yen. That makes imports more expensive. This causes prices to rise.
While exports are sluggish.
The strategic problem with devaluing one's currency is that you take all the risks while your competitors get to choose your rewards. It's like changing the rules of a foot race so that the last person to cross the finish line wins. The resulting standoff becomes a clash of wills and a test of endurance. Whoever can endure the worst wins the prize. In that sense it's like a game of chicken.
The best way to make one's economy more competitive is to help it succeed better at what it does. Trying to cheat the system is dangerous. Any gamer can tell you what happens when people start using cheat codes in the game. It might be fun for awhile, but it's never worth it.
Exactly. Its surprising who know currency so well. But If Yen plunges and Japanese suffer its gonna hit back USA, cuz their heavily relied on cheap services, tools and goods from Japan
@@RakibHasan-hs1me maybe. It will probably hurt Japan worse. Cheaper Japanese goods and services would be a godsend for the US experiencing high inflation right now.
@@RakibHasan-hs1me Japanese services aren't really that cheap, but they are of dependable quality. But in today's world, price often beats quality, as I have unfortunately found out as I saw a lot of my once-profitable work being outsourced to India, for pennies on the dollar.
Excellent report!👍
Devaluing one's currency works if other economic indicators are strong. Otherwise it's pointless.
Israel has been devaluing its currency for a decade, and because the economy is strong, it has actually not caused any inflation. What it did cause was to make Israel one of the top foreign currency reserve holders - about 45% of its GDP, which is more than anyone except Switzerland and Singapore (two countries which have many similar parameters, like being small, wealthy, having a similar population, and not being part of trade blocs). This means that the country can invest in its own economy more and people are getting richer, while exports are staying at the same levels of competitiveness.
However, if the economy had been weak, there could have been strong inflation. This makes exports more competitive sure, but it also makes everyone poorer, reduces consumption, and increases debt costs.
It seems like this is the case in Japan. Hope they slow down at this point, and not expand this policy.
Interest rates in the US, UK, EU might hit 5% (I can't see it going higher even w/ increased inflation because housing and stocks have been a clown show and blowing up the bubbles will be even worse than inflation). So it'll be interesting if japan can sell bonds at pretty much zero when other stable economies are offering so much more.
They might be able to pull it off tho, other countries usually step in and buy debt to prevent a crisis to keep it from having negative effects on their own economy. Plus its generally considered a safe currency so you can buy bonds in the expectation that the yen will get stronger.
The shekel has been stable at around 3.5 to the dollar for years now. What are talking about?
@@normangoldstuck8107 This exactly. Israel has been devaluing its currency against the dollar, yet the result is that the exchange rate is stable. This is a healthy "devaluing" - it stabilizes the economy and creates a huge surplus of US dollars. If Israel hadn't done this, the dollar might have been worth ILS 2.5 or less today, and Israel's exports would have been hurt. In other words, you devalue when your currency is naturally going up and the economy is strong, not the other way around.
in 2014 ruble to usd conversion dropped by half
yet we came out relatively unscaved from that
The new music is less ear-cancer-inducing when watching on mobile, thanks
Great synopsis of Japan's structural economic challenges as reflected in yen's marked devaluation!
Two words are all that is needed to explain what is going on: carry trade.
The bigger the gap between American and Japanese monetary policy, the further the JPY will fall because the bigger the carry trade will get.
"capital flows" is another way of saying the same thing for the same reasons
on a side note my US dollars can buy insane amounts of cheap japanese stocks now.
@@anonymousAJ Yes and no. The carry trade is a specific thing that generally includes excessive leverage.
@@IanHobday Isn't short/long effectively moving capital from the thing you're shorting to whatever you're long? Or did I misunderstand carry? Borrow cheap and lend dear, yeah?
@@anonymousAJ Leverage in the FX market greatly amplifies everything.
This guy is such a good reversal indicator. I am going to buy more Japanese stocks now.
now the yen is weak and stock prices have fallen compared to last year.
it is an excellent opportunity to buy Japanese stocks
It's more of a dollar crisis than a Yen crisis, typical of uncontrolled deleveraging of USD debt. The USD is appreciating against every currency, except the Russian ruble, and yet every dollar denominated financial asset has lost value this year. Stocks, bonds, real estate.
Great video, just wondering if one point has been missed: in country Japan it is surprising how strong the house building market it here, virtually everyone just builds new house (on new land) and let the old houses fade away. While this is terrible for the environment, it is fantastic for the economy. However, I suspect this is partly fueled by the super low home loan interest rates. If the BoJ raises rates, will this important part of the economy falter? Could this be another reason the BoJ resists to raise rates?
One major reason that older houses are often shunned is due to the many earthquakes which tend to weaken older houses over time, while newer houses are built with stricter earthquake codes and are often more spacious.
@@mikenekosama4426 I used to think something similar, for example a solid brick house in Europe might fall over here in an earthquake. But having just built a house here in Japan I can see it's not made to last. The house frame is solid, but the materials for most of everything else is designed to look great when built but degrade in less than 10 years. After 30 years a typical house here is livable for the owner but not something you could sell.
It is the wrong kind of inflation, though. The inflation is on discretionary items like food.
i love you bro, but something is wrong with the saturation of the video image, or you are drinking more than me these days
@MLE If you go to Tokyo Station from the Nihonbashi entrance (intercity bus unloading area), go to the first downward stairwell, then go down and turn left when you get to the bottom. You'll see LOTS of anime stores.
Japan had to open borders in last week for tourism after 2 years . They have increased the tax , insurance , electricity and increased value in all sort of products & services to avoid inflation and its just a band-Aid for global recession
So what have been the RECENT increases in tax, insurance, electricity, and goods and services? Where I am (Northern Kanto), I haven't seen any major increases, although I haven't seen what my 国民健康保険 premiums will be for 令和４年度
@jernejj5 That's pretty much how it's been in South Korea and Taiwan as well.
Whoops-- spoke too soon! I just got my bill for prefectural/city taxes, and it's almost exactly equal to what I received back from my national taxes! So much for my tax refund!
As someone who has lived and worked in Japan a long time, all I can say is, it's much worse than you think.
why? it seems fine right now
@@kenskens3815 stagflation, drastic population decline, increasing taxes, totally debt driven economy etc
It does not looks prety czcams.com/video/tgGvUNiykyU/video.html
Devaluation seemingly works for Canada. The Canadian $ v US $ fluctuates widely, but resists par or anything close at all times.
"How I used this 1 simple cocaine trick to rattle through a 15min script in only 8mins"
feww, good video but man your movements make me nervous haha
This is gonna hurt like hell when the crash happens in Japan.
🥺
If it happens
didnt many so-called experts predict japan to collapse for decades now? Why hasn't that happened yet?
Pro tip: put down the coffee mug at least an hour before narrating a segment on camera.
Seriously thought this man's head would explode before the end. Made me a nervous wreck just watching this presentation!
He doesn't blink. Pretty sure that's an avatar. But, why?
Great for Japan's export industry. Back during the 80's during the Boom Period... when Japan was expected to "take over the world", the FX was like 200+ yen per USD.
Now if they can re-activate more of their nuclear powerplants to rely less on foreign energy.
@@GeorgeWashingtonLaserMusket Of course new plants are better, but those take decades to build, thus re-activate some now and commit to building newer ones.
Considering a lot of Japan's import post-3/11 is related to just fuel, it's best to limit fuel import if they can alleviated by domestic nuclear power production to mitigate currency exposure.
@@GeorgeWashingtonLaserMusket Yes, according to reliable sources there isn't enough uranium ore to power the world for very long using the 60's style reactor.
@@GeorgeWashingtonLaserMusket It isn't "xenophobia" to think it's a big single point of failure with how Japan requires so much fossil fuels from the middle east to keep the power on. The more on-shore energy they can muster the better. Else they're gonna need to amp up their military capability and constitutional range cause a few ships in the south east asian straits can starve the big power hungry and resource deficient east asia countries. Animosity and adversarial spirit already exists after all and the US is only becoming more isolationist.
Yes, now they could compete better with China and India
There’s a reason happy meal toys from
McDonald’s in the 80s and 90s were made in places like Japan and Italy; back when we had the lira, it wasn’t Belgium that controlled our labor markets
Could be a turning point for Japan's export. I hope Japan could utilize this inflation and win its place back like in the 80s.
Yen has been going down but Japan is recording trade deficit 9 straight months upto April. I think Japan's technology is falling behind China, Taiwan, Korea.
Japan will never reach its peak, it is only gradually returning to its position before the Meiji Restoration.
Nope
With weakening yen, can Japan make a comeback as a major exporter of affordable electronics and cars like it used to be back in the 1980s and 1990s?
Cheaper electric cars for the American and European markets
Without “rare earth” imported from China , it would be difficult for Japan to manufacture any electrical or electronic stuff. Rare earth is needed to manufacture any electronic goods like cars, planes, computers, phones. China produces 90% of the world’s rare earth.
@@bell-xk5dd i can imagine, that this is one reason why japan is investing massive in hydrogen-technology
No
Eh, it’s strange how the audio is speed up, good info though
imagine my shock when I bought something for ¥7000 in November last year and then something for ¥12000 a couple days ago and realized I only paid a difference of about 15 USD. that shock is what led me to this video trying to figure out what the hell was happening
Please slow it down to normal, it is indigestible for the demographic that wants to listen - if it gets more views - do a separate "no-time-to-stop" version please, but the video has been sped-up. There's an option to speedup playback anyways - the content is interesting and valuable so no need to speed up because some people want time for themselves to read between the lines 😀
Relax grampa. Go into the settings and slow it down yourself.
It's just QE. BoJ has been doing it for almost a decade. Before inflation has become global issue, BoJ was running out of bonds to buy. Interest rate was already negative. They were even buying ETFs. But inflation didn't seem to come. Japan was already developed and there wasn't much to invest in. And those who had money were mostly elderly who are unlikely to go out and spend it.
As inflation heats up outside world, foreign central banks are forced to raise their interest rates. Investors now can borrow cheap JPY to buy whatever currencies to buy foreign bonds and pocket the difference. This trend is likely to continue until Japanese inflation rate rises to whatever rate BoJ wants to see.
The interesting thing is that recent Japan inflation numbers showed some lowering of inflation. Despite the currency pressures, they still don’t have high inflation like the US or UK!
3 decades actually!
I feel like I'm watching a boiling tomato about to burst. Cant tell if this is an auditive torture or a visual pain.
Do you guys speed up this blokes recordings to compress the video's duration or something?
His speaking sounds like it's been speed up and watching his movements onscreen also looks as though a frame or two are missing.
I live in japan for about 11years now and this is the highest hike of the product`s prices. this is so messed up that i cant afford to feed my family any longer due to the price-hike.
The editing of this video was so funny, why all the beats?
Will this man ever find his shirt buttons?
I increased my purchases from Japan. It was glorious with such a favorable usd to yen rate.
Mind sharing what type of products? I’m like to import a late 90s sports car. This might be the best time to buy.
@@Uga-booga GT-R? (R-32 or R-33)? They are getting rarer and expensive.
The interesting situation is this, the US Dollar is going up but yields are going down, which means bond prices are going down too. The fall in bond ETFs proves this point BND and GOVT are down. Therefore, people are buying US dollars but they are NOT buying bonds because maybe they are afraid bonds will go further down just like the stock market.
In every other day videos are being uploaded on the fact that some or the other currency has plummeted over the last 12 months. Too much debt 😪 burden, fiat currencies seem to have a short lifetime ahead!
Devaluation is like peeing in your pants - at first you feel relief and warmth - but then it becomes cold and sticky.
Dilution of currency gives the appearance of prosperity at real costs, only one of which is depreciation of currency. Another is impoverishment of currency holders. Another consequence is distorting (reducing artificially) interest rates and thereby inviting larger debts.
To achieve real prosperity hold the currency constant (relative to some commodity, ideally gold) and allow technological advances to gradually decrease prices and appreciate the currency.
I’m here now living it up. I am spending money like no tomorrow lol services are all at crazy discount when paying in dollars
Cries in earning salary locally in yen
I wish they would open up to tourists (not in tour groups). Seems like a great time to take a Japanese vacation!
WOW!!! If you watch this at .75 speed, your head won't want to suddenly explode!
at 1:58 that Jakarta's MRT, what is the connection with the topic? hahahahah
Need to surge inflation and print more money … I really wanna get into their room get their perspective on this because I’m all out.
Now I feel their strategy is to seem weak, but at the end of the devaluation to pull other money with them and change the power of money!
My family and I want to move there in the near future. 😊
Japan does not welcome immigrants, except short-term tourists
Oh my, time to take that vacation to Japan.
Why would it be a Yen crisis. Japan central bank said it supports depreciation of its currency due to increasing export pressure. The do not want depreciation to be done too fast
Dude, smoke a joint, you are stressing me out
great content
I would watch a video of this guy using a teeth whitener...
Sterling and Euro are also depreciating. It's not the problem that only Japan is facing.
If Japan loosens the traveling restriction (except China, don't open it for them), load of money will flow in and Yen will be up a bit.
Agree on opening, and agree on keeping the Chinese out. They're not the best tourists, and once Chinese tourism becomes a thing in a country, it is used as a tool of influence for China.
Yeah idk man that just makes no economic sense… you got a large population next door that hasn’t traveled for a long while, with money to spend, and can easily to travel to Japan… why would you say no to that? Money is money, doesn’t matter where it’s from. Plus if I remember correctly… Chinese tourists are big spenders and they make up a significant chunk of the tourism revenue. Btw… tourism to prop up currency also doesn’t work for an economy the size of Japan, too slow.
@@dhuang81514 Chinese tourists have the worst reputation of ANY foreign tourists in Japan. They tend to throw litter anywhere they want to, smoke and throw away their butts wherever they want to, talk during important announcements, take whatever they want from public parks, cut in line for taxis, etc. Sure, they might be big spenders, but they can be a real pain at the same time.
@@qrsx66 They are buyimg our Land. Dont open to them. From Japan.
Is 0.25% worth it if it gives something other than money value 🤔 also ?
...
This is all literally the fault of a single doting old man, Mr. Haruhiko Kuroda, the head of the Bank of Japan. He has been blindly pursuing a 2% interest rate since Abe was in power and even with food prices set to increase in Japan upwards of 10-12% this year alone he shrugs it off as "temporary" and continues with his quantitative easing. Because the BOJ is separate from the Japanese government, they can't really do much, other than hope the 80+ year old stubborn fool will come to his senses.
So much for countering China
Consider how much printing of digital yen that bank of Japan has done in the last 25 years, huuugggeeee
Oh crap. 😳
For the survival of US Yen has to survive, needs to survive. It's a very wierd relationship
But they may bring a new currently and be powerful ! They got a ton of resources .
0.25% I thought banks offering 1% on savings account was weak, but Japan said hold my sake’
I went to Japan on R&R when I was stationed in Vietnam the exchange rate at the time was 360yen to one US dollar.
Not too long ago the rate was 300 Yen 💴 per US dollar 💸. I was stationed in Japan and felt at 300 Yen per Dollar was equal in value. Then it dropped making it expensive to buy Japanese goods.
a weak currency is like opioid painkiller. simple and addictive but not a remedy.
it will numb you in the short term but
the issues remain unsolved.
What's a fith?
Purge the Zaibatsu
sounds like canada needs to step in and become a buyer.
It's not necessarily all about devaluation of the currency for export reasons, but as in most of the developed world, the population of japan is rapidly aging. And those old people own a lot of the countries money. And old people thend to "invest", if you want to call this "investing", in "secure" investement, which in turn are mostly not benificial to the broader economy. Devaluating those old peoples money and handing out relativiley more money to younger people, means more relative consumtion AND better investement. Generally, this is in my eyes the reason why the blobal-west inflastion is allowed to become so devastating: Devaluation of old peoples useless money.
That's a terrible idea.
japan is suffering from deflation for 30years. most companies lost global competitiveness, consumer market is shrinking year by year.
more worst, many companies does not have enough cash flow to pay a decent amount of salaries. japan's GDP has drop to 30th place during this historical deflation. no wonder YEN is declining the value.
drama baby and yet Japans GDP is stronger then whole nations. Japans skylines is growing everywhere everything is changing this video is stupid and clickbait. Reality is different! 🎌
Japan may need to sell some of their US treasury bonds to help to prop up its economy as its imports exceeding its exports.
This may impact the US too because Japan is one of the major buyer and holder of US treasury bonds.
They are already dumping the treasury bonds in tens of billions now!
@@wangjim5839 That's just a drop in the bucket compared to the $1.6 trillion in US Treasury bonds that Japan still owns.
2:00 That transition music is little mehhh...
By keeping its borders closed, Japan is making the yen crisis much worse than it needs to be.
I love this policy. Have been buying many toys and collectors items from Amazon Japan the last few weeks. Buying some yen now for my next trip to Japan too.
When is your trip?
how do you buy yen?
Devaluing just isn’t an effective strategy for a developed nation.
Did somebody spike his drink before he recorded this?
No all countries' currency should drop their fiat system and go back to the days where its backed by gold.
Vid: Yen is cheap
Anime fans: Boys we’re going to Japan!
Not so fast; the government made a very complicated rule for tourists coming to Japan that even make travel agents having difficult times.
Just when the timing is right to let people into the country...
Yo did you guys get hacked?
In answer to your question about the merits of devaluation: I hope so given the pound is steadily devaluing - at least against USD. Not much is said about it, perhaps for the reasons you review wrt the land of the rising sun, but people in the UK like me that buy US services feel it right now. That and the price of petrol.
7:14 "The Great Asian Crisis of 1997", which was what exactly?
The fact is the Chinese government also doesn't want the yuan to devalue and has already taken measures to ameliorate the situation.
The reason why the US dollar to the yuan exchange rate is higher maybe is just that the dollar is too strong.
In the 80’s Japan as number one.
Dollar = around 230 yen
2022 = 135.
Someone has taken a rest in a sunny place!
correct me if i'm wrong, pls... by devaluing the currency, they "turn" their products cheaper. But doesn't the price in yen update to the current value according to international standards? like: today random product "X" costs 20, but next week they'll ajust its price to 35 because 20 can no longer even pay for the raw materials to make it in first place. am i wrong?
you are correct this video got it totally wrong. Which is crazy because they literally discussed it in the video and then still got it wrong.
@@bryanshealy1260 there are labour costs involved in making a product just like every apple and Tesla manufactures their product in China,so the labour costs will remain the same i think
I think would be like a Japanese computer cost X yens and the exchange rate is e(t) (exchange time t, this is $/Yens). So at moment t the cost in dollars is X * e(t). Now asume we are in t +1 (a year later), assume the internal price of the computer is still X. Then the cons in dollar for an American will be X * e(t+1) dollars. Since the yen has been depreciates then e(t+1)
literally nowhere on this earth is safe
Can Japan central bank hike the 10 year yield to stop the devaluation of the YEN, is it similiar to what is happening in Turkey- when Erdogan refuses to raise the interest rates aggressively and it's been always negative for the Turkish Lira.. Just thinking loudly and trying to understand what is happening out there
I can’t help but feel like Japan has been conquered from within.
😀 it looks they may need to start open more to people, foreign capital, ideas and so on.
Excellent video. Japan has a population that is the oldest country of pensionable age on the planet right now. My point is that even after Brexit, the UK exported more than Japan in 2021 despite it having double its population! However, the UK is a post-industrial knowledge economy with the second-largest export of services. It has been affected by the vicissitudes of the global economy, but its competitors are even more so! My final point, Japan has a very big debt load and no wonder they're having the worst crisis in 20 years!
@@mikenekosama4426 I try to understand. Toyota has one of the largest car manufacturing plants in the world in the UK. Japan makes excellent hydrogen vehicles and the UK is trying to set up hydrogen to replace hydrocarbons. The Japanese prime minister was welcomed recently and the Toyota CEO says that lithium will not work and I absolutely agree.
Japan monthly goods exports hovered around 60-80 billions usd, meanwhile UK goods exports hovered around 25-35 billions usd (see ONS). Not to mention about precious metals effect on UK trade figures.
UK services exports are big, notably in financial service and tourism but UK manufacturing output are even smaller than Italy and South Korea. Japan manufacturing output are still 3rd largest and nearly 40% compared with US manufacturing output.
camera focus is always off
Time to invest in Yen!
5:05 wait, this isn’t Japan. this is from Thailand