MH.Yang
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Because the yen depreciated from 109 to 120, Japan is no longer the richest country and region in the East Asian cultural circle. South Korea and Taiwan have surpassed it. And now Japan per capita GDP is only 250% of that of China. At China's growth rate, it doesn't take much time for per capita GDP to grow by 150%. Even during the period of your life, even you can see that Vietnam's per capita GDP exceeds that of Japan.The yen is lower because money goes to the US. The US lending rate is higher, the yield is higher. People look where more money can be made from money. That’s expected. Same with the euro. The euro is weakening. Nothing with the health of economy per se.
The key problem is the central banks in Europe and Japan can’t afford to raise interest rates, at least not now.
Yen, euro or dollar is much like bananas. When people buy more bananas the price of bananas starts rising.
As for the causes of Japan's economic collapse. Very simply, China has taken away Japan's once economic pillar, such as household appliances, toys, chemicals, furniture and so on. This year, the automobile manufacturing industry, the last pillar of Japan's economy, has also collapsed. Now Japan has a trade deficit for 10 consecutive months. For a country like Japan, which is lack of resources, losing its trade surplus is tantamount to losing its living space.
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