Japan’s currency bursts its post-bubble economy

[Beast]

Japan's success or failure depends on whether they can find a way to survive for the Japanese automobile industry.

If the price of gasoline cars in Japan can fall like the exchange rate of the yen, it will still be able to compete with new energy cars.

Price is one thing. Decarbonize is a must for all developed nations.

 

[REhorror]

Price is one thing. Decarbonize is a must for all developed nations.

That's just hype, due to the Ukraine war, most developed nations are back to using gas, coal and nuclear.
EVs will win because it's simply easier to make than ICE cars which are now overly complex compared to electric motors.

 

[Beast]

That's just hype, due to the Ukraine war, most developed nations are back to using gas, coal and nuclear.
EVs will win because it's simply easier to make than ICE cars which are now overly complex compared to electric motors.

Maybe Europe but not China. More nuclear plant will open soon and China has experiement new ways to store the extra energy harvest by renewable method.

 

[MH.Yang]

Price is one thing. Decarbonize is a must for all developed nations.

Don't forget Africa and India. New energy vehicles are not suitable for these places.

If the price of gasoline cars in Japan can be reduced by 50%. Then it is invincible in these areas.

 

[Beast]

Don't forget Africa and India. New energy vehicles are not suitable for these places.

If the price of gasoline cars in Japan can be reduced by 50%. Then it is invincible in these areas.

Their automobile carbon emissions are just fraction of a develop nation like France. Germany industries can't survive on them for sales. Their infrastructure and purchase are too insignificant.

 

[Menthol]

Talk about lowering Yen to boast export...

Will Sony Playstation 5 price fall?

I don't think so.


Japan product is priced using USD in the international market.

With the fall of the Yen, basically, Japanese people are getting poorer.

End of the story, the Japanese are getting poorer.

 

[REhorror]

Talk about lowering Yen to boast export...

Will Sony Playstation 5 price fall?

I don't think so.


Japan product is priced using USD in the international market.

With the fall of the Yen, basically, Japanese people are getting poorer.

End of the story, the Japanese are getting poorer.

Exactly, with the lowering of the yen against the USD, it means Japanese goods selling in USD will yield more yen, which means the company will get more yen.

This is the "lower currency to improve export" strategy used by Japan, Korea, China and Vietnam.

 

[mike2000 is back]

I doubt it. Japan's fundamental problem is their aging and shrinking population.

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Japan has actually been growing faster than the US over the past few decades in terms of GDP per worker, but their total GDP has been stagnant because their working age population has been shrinking and will continue to shrink.

If productivity grows 1.5% and labor force shrinks 1%, you only grow ~0.5%. If Japan's labor force can grow 1% like the US/Canada, their economy would be growing ~2.5% instead.

As long as we keep measuring economic performance using total GDP growth, Japan's economy will always look stagnant.

Seems most East Asian country will also be facing a similar Japan like situation with falling birth rates, aging population , low immigration and economic slowdown. China and South Korea included.

 

[beijingwalker]

For the umpteenth time, Japan has >$3 trillion in NET external assets which is the world's largest, and you think they can't pay for their imports because they don't hike interest rates lol.

Hong kong is part of China, so China+Hong kong is the world biggest creditor.

 

[MH.Yang]

The yen has fallen to 149. The per capita GDP has dropped to 28000 US dollars.

The world has changed too fast. Thirty years ago, Japan's per capita GDP was 80 times that of China, but now it is only one time. According to the current trend, I'm afraid that China's per capita GDP will surpass Japan's by 2030.

 

[Mista]

Hong kong is part of China, so China+Hong kong is the world biggest creditor.

Way to miss my point.

 

[casual]

Economic status, well, they are still the third largest economy in the world after the US and China.

The devaluation of the Yen is not a deliberate strategy, in fact they are defending the Yen through forex intervention. It's just that defending the currency is the least of their economic worries. They are more concerned about boosting consumer demand and getting out of the deflationary spiral which have plagued them for decades.


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Household consumption makes up >50% of Japan's GDP. From demand-side economics, boosting exports and tourism is good to have but not a game-changer to their economy. If consumer spending tanks, the economy will like also tank and a boost to exports can hardly compensate,

Japan should be very concerned with inflation. Once that inflation engine gets started it'll be impossible to stop for Japan because Japan do not have the capacity to increase interest rates much due to massive government debt. Shorting Yen is becoming a trend now.