kowenicki said:
ManusJustus said:
drkohler 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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Well, let me guess.. you have no clue about basic economic facts?
What it basically means that Sony again loses money in Europe selling PS3s. I doubt this can be described as "It just means their economy is doing better"...
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A lot of ignorant people responded, so this goes for all of you.
The Yen is at a 15 year high because their economy is doing better than ours. The value of currency is dependent on the the perceived value of a country's economy, or more specificaly the perceived ability for a country to pay back its debt.
It should be obvious that increased value in currency decreases exports and increases imports. When a country's currency value increases, domestic goods increase in cost in other markets, decreasing the demand for that good. Simultaneously, foreign goods decrease in cost, increasing demand.
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lol...
Yeah a debt of 225% of GDP (expected to rise to 250% by 2014) and persistent deflation... thats really great.
Japan is essentially bankrupt.
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First of all, Japan's currency is increasing in value with respect to the American dollar, so their economy can still be doing badly, it just has to be doing better than America's economy. The increase in Japanese currency means that the market is valuing Japan's economy higher than America's economy.
Do you have any idea what causes currency to fluctuate? Why would the market increase the value of Japanese currency if they were doing poorly? Your argument makes about as much sense as saying that the value of stock in Enron should have increased before the company declared bankruptcy and closed.
"Enron is closing its doors tomorrow, buy stock while you still can!"
LOL@U
