kowenicki said:
Kynes said:
kowenicki said:
ManusJustus said:
It just means their economy is doing better.
Yeah, it hurts exports, but its still a situation I would rather be in.
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thats so wrong its tragic.
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I don't know why people believe that for an exporting nation, as is Japan, it's good to have a strong yen. It's the worst thing that could happen to exporting companies as Sony or Nintendo are.
What happened to Rover and Jaguar? Strong pound and very high labor cost in comparison with other countries made their cars uncompetitive. The same happens to Japanese companies when you compare them with Korean, Chinese or American companies if you have a strong yen.
Why don't their government do something to the yen to be a weaker currency? They already have near to zero interest rates, which weakens the exchange rates. The only thing they can do is print money, dilute its value, so it weakens, but this policies have a problem, and it's inflation. Japan has a very long crisis with low or negative growth, the last thing they need is inflation, so it's a lose/lose situation for Japan's economy.
(It's not that they are in the worst situation, my country, Spain, is in a much worse one)
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see my post just above yours... they are trying but their level of debt is astronomical... (much worse than Spain actually), and they have persistent deflation and little room for manoeuver
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I didn't saw your post when I wrote my answer. There is a difference in the Japanese debt and American or Spanish debt, and it's the nationality of the bond holders. Most of the Japanese debt it's at the hands of Japanese people, but most of the American debt is in Chinese hands, and most of Spanish debt is in German, British and French hands. You can beg sacrifices to your own people, but I'm sure that the Chinese bond holders won't make too much sacrifices for the good of America's economy.
*There is something people don't see in Spanish situation. It's true that we don't have a huge government debt, in absolute terms. The real problem is that every Euro our government gets in taxes, they spend two, the other one borrowed. We have a huge public sector, with duplicated administrations, and too much public workers. And over that, we have an enormous private debt, so the situation is much worse than most people believe, even here.
