Post by jeffolie on Mar 4, 2012 11:04:30 GMT -6
Another post on Japan Is Dying
I made many posts arguing that Japan has cultural, economic and political problems that make it a dying society. This eventually will pass after their society hits bottom, drags along the bottom longer and then changes from the ending of engrained, stagnant, dysfunction lifestyles, politics and new economics. The longer bottoming process has made Japan into a collapsed power unable to adapt.
One portion of their dysfunction remains the value of their currency, the Yen. As an exporting powerhouse of high end products and services, the higher the Yen then the less marketable in overseas markets are their products and services plus less costly competitors from overseas attempt to penetrate Japan's importing barriers.
The increasing Yen values supported a 'carry trade' that took advantage of loans in Yen at low rates to buy higher interest rate investments in non Yen denominations as an arbitrage trade that went on for more than a decade as a stalward of many financial decisions.
Just as a declining currency changes the market for jobs, so does an increasing currency change the market for jobs. Some industries prosper or die depending on the trend of the currency.
The below piece highlights the significance on exporting countries when their currencies rise resulting in severe problems for exporters. Japan has long suffered and continues to suffer exporting issues from its Yen while now Brazil faces the same issue:
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In hope-against-hope scenario, countries with balance-of-trade surpluses struggle to maintain it. Put Japan, Germany, Brazil, and China in that group.
In that group, Japan is losing the Balance of Trade Battle.
Japan’s trade deficit widened to a record level in January, as falling exports combined with surging imports of energy.
Imports rose 9.8 per cent from a year earlier, while exports were down 9.3 per cent, resulting in a record monthly deficit of Y1.48tn ($19bn).
Last year Japan’s trade balance fell into an annual deficit for the first time since 1980, driven by subdued global demand and soaring fossil fuel imports in the wake of the Fukushima nuclear power crisis.
Japan reported a trade deficit equivalent to 1475 Million JPY in January of 2012. Exports have been the main engine of Japan's economic growth in the past six years. Japan imports raw materials and processes them into high technology products. Japan’s major exports are: consumer electronics, automobiles, semiconductors, optical fibers, optoelectronics, optical media, facsimile and copy machines. Its main trading partners are The United States, China and European Union.
www.businessweek.com/articles/2012-03-01/foreign-buyers-heat-up-miamis-condo-market
I made many posts arguing that Japan has cultural, economic and political problems that make it a dying society. This eventually will pass after their society hits bottom, drags along the bottom longer and then changes from the ending of engrained, stagnant, dysfunction lifestyles, politics and new economics. The longer bottoming process has made Japan into a collapsed power unable to adapt.
One portion of their dysfunction remains the value of their currency, the Yen. As an exporting powerhouse of high end products and services, the higher the Yen then the less marketable in overseas markets are their products and services plus less costly competitors from overseas attempt to penetrate Japan's importing barriers.
The increasing Yen values supported a 'carry trade' that took advantage of loans in Yen at low rates to buy higher interest rate investments in non Yen denominations as an arbitrage trade that went on for more than a decade as a stalward of many financial decisions.
Just as a declining currency changes the market for jobs, so does an increasing currency change the market for jobs. Some industries prosper or die depending on the trend of the currency.
The below piece highlights the significance on exporting countries when their currencies rise resulting in severe problems for exporters. Japan has long suffered and continues to suffer exporting issues from its Yen while now Brazil faces the same issue:
===============================
In hope-against-hope scenario, countries with balance-of-trade surpluses struggle to maintain it. Put Japan, Germany, Brazil, and China in that group.
In that group, Japan is losing the Balance of Trade Battle.
Japan’s trade deficit widened to a record level in January, as falling exports combined with surging imports of energy.
Imports rose 9.8 per cent from a year earlier, while exports were down 9.3 per cent, resulting in a record monthly deficit of Y1.48tn ($19bn).
Last year Japan’s trade balance fell into an annual deficit for the first time since 1980, driven by subdued global demand and soaring fossil fuel imports in the wake of the Fukushima nuclear power crisis.
Japan reported a trade deficit equivalent to 1475 Million JPY in January of 2012. Exports have been the main engine of Japan's economic growth in the past six years. Japan imports raw materials and processes them into high technology products. Japan’s major exports are: consumer electronics, automobiles, semiconductors, optical fibers, optoelectronics, optical media, facsimile and copy machines. Its main trading partners are The United States, China and European Union.
www.businessweek.com/articles/2012-03-01/foreign-buyers-heat-up-miamis-condo-market