What is Japan going to do with a plunging Yen? The USA,
the main culprit of Japan's economic and evolving problems is not going
to help by reducing interest rates. Japan can forget about it as the USA
is facing real problems itself, with another bank failure, the first
this year, vis a vis Republic Bank Bancorp.
According to
reports, Japanese have been living with negative 'real wage' increases
for years. Japan just recently announced a big wage increase for
workers, but it failed to make the Japanese go out to spend to stimulate
the economy. This is probably a trait of Asians like the Chinese as
well. The falling Yen is forcing Japanese to save even more, knowing the
global economic problems and the geopolitical shift coming.
More
wage increases are going to make Japanese products even less
competitive globally despite the falling Yen, not to talk about their
competing in the Chinese market, which is Japan's second biggest export
market after the USA. A falling yen may help Japan, but that is still
way beyond competing with products made by Chinese companies and selling
in China. So, what is going to happen to Japanese cars, possibly the
only Japanese export of great relevance.
If the falling Yen is a
blessing in disguise for Japan, why is Kishida talking about action
needed to stabilize the Yen falling further? There are obviously serious
consequences befalling Japan going forward. First and foremost is the
effect on its citizen's cost of living with the falling Yen. Of course,
do not expect Japanese citizens to protest or mount a revolution against
that, just as in Red Dot. The Japanese will just bear with it and just
tolerate Japan becoming the 'Sick Man of Asia'. Does that ring a bell?
Anonymous
1 comment:
Let the USA kill Japan, saving China the trouble. When that happens, the Japanese in Taiwan may have to run road, probably to the USA vis a vis Hawaii. Already Hawaiians have been left in the lurch to fend for themselves, just looking at the response from Washington over the Lahaina fire recently.
Japan brought all this upon themselves by being dictated to and following the wishes of the USA to confront China. The death of Japan is no great loss for the world, especially Asia, where their atrocious behavior has not been forgotten. And they are still talking about recession befalling Japan. Isn't Japan in recession yet, falling behind Germany already? Maybe because Germany also falling into recession, so two negatives make a positive.
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