[theold]

The market is still watching for any signs of intervention from the Japanese government to prevent the decline of this local currency.

The currencies of G20 countries are almost all depreciating compared to the USD. The decrease since the beginning of this year has reached 8% for the Japanese Yen, 5.5% for the Korean Won, and the highest is 8.8% for the Turkish Lira. Both emerging and developed economies are seeing their currencies decline, with the Australian AUD, Canadian CAD and Euro falling 4.4% and 3.3% respectively. , and 2.8%.

https://trithucvn.co/the-gioi/nhat-ban-d...-1990.html

[Sticw]

Japan has just one shot at turning the tables with this carry trade that lasted over 3 decades. All they have to do is to bite the bullet and reverse the trend by upping interest rates from current level to 4% over the next 12mths...

[cityhantam]

Japan has just one shot at turning the tables with this carry trade that lasted over 3 decades. All they have to do is to bite the bullet and reverse the trend by upping interest rates from current level to 4% over the next 12mths...

If they increase interest rate that much, the central bank will go bankrupt servicing debt! 

Japan's total debt swells to record 1,286.45 trillion yen in 2023, debt is 263% of GDP

[red3]

Change to positive like trigger tsunamis

[Sticw]

If they increase interest rate that much, the central bank will go bankrupt servicing debt! 

Japan's total debt swells to record 1,286.45 trillion yen in 2023

The yen carry trade will have to unwind and the net gains likely more than cover for it... Lol

[teaserteam]

Two ways to reduce burden of private debts 

1.  cut interest rates
2.  Lower currency rates

Since Japan has just increased its interest rates. Lower the currency rate will reduce the burden of private debts. Good for attracting foreign investments as they will earn more interest payment and pay less for Japanese Yen.

[cityhantam]

Two ways to reduce burden of private debts 

1.  cut interest rates
2.  Lower currency rates

Since Japan has just increased its interest rates. Lower the currency rate will reduce the burden of private debts.  Good for attracting foreign investments as they will earn more interest payment and pay less for Japanese Yen.

So weak currency is good for Japan but bad for China? 

[teaserteam]

So weak currency is good for Japan but bad for China? 

Weaker RMB should also benefit China in terms of more exports and FDI.  It is not good if such a policy does not improve the economy.  They will have to try other means.

[theold]

Japan needs to cancel the Plaza Accord.

The US assumed administrative authority in Japan as part of the peace treaties that ended the war. This allowed the US government to not only run the day-to-day operations of the country as they saw fit, but to also install American military bases across the entire country.

The Japanese economy was growing much faster than that of the US and it’s homegrown industries were dominating international exports. They needed to be stopped.

Along with it’s closest allies, the US signed the Plaza Accord in 1985 with the primary purpose of strengthening the Japanese Yen such that Japanese exports would no longer be competitive in the global market.

In general, economies that are primary driven by exports want their currency to be weaker, not stronger so that the prices of the goods are more competitive in the global market.

What happened after is just history. The Japanese economy tanks. Here we are three decades later and much of these effects are still yet to have fully recovered.

https://kendawg.medium.com/how-the-plaza...b24c20a9af


https://kendawg.medium.com/how-the-plaza...b24c20a9af

[cityhantam]

美国通胀打断日元脊梁，国际炒家痛下毒手！
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[watchfirst9]

For start they need to produce own hardware, own software that can sell at higher value
, depreciate currency serve no purpose if selling low end cut throat business.
Furthermore energy cost has erode depreciate advantage.

[cityhantam]

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[cityhantam]

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[WhatDoYouThink!]

哎哟，做奴才们的有时被主子痛打出气也是常有的事

[cityhantam]

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[cityhantam]

[天天硬事4655期]——01 王志安吐槽日本汇率大跌带去的钱都贬值了，日本未来的失落是必然结果 02 日媒称美国人开始大量投资黄金，老乡绅买土地，富人买黄金，普通人等着食品券

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[cityhantam]

https://twitter.com/Alexjandro990/status...5154124857
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[cityhantam]

https://twitter.com/Snofy8/status/1780886135172129080
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[cityhantam]

【頭條開講】美消滅日拉麵文化!美元是主要禍源!@HeadlinesTalk 20240418

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[WhatDoYouThink!]

https://twitter.com/Snofy8/status/1780886135172129080
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Two pet dogs kimchi and sushi, 哼哈二狗

[cityhantam]

當收割鐮刀揮向日本 中美最後的爭戰! 2024 0419
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[cityhantam]

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[cityhantam]

日圓貶勢洶洶摜破155大關 日本網友炸了 | 美聯儲綁架 日圓大崩壞 |【盧秀芳辣晚報】精華版@CtiNews

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[cityhantam]

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[watchfirst9]

安倍三箭，二零二六 巴拉特 老四 己不是做梦。

[Alice Alicia]

From 2nd to 4th in one generation.

[RiseofAsia]

https://twitter.com/Snofy8/status/1780886135172129080
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包衣奴才lah.

[RiseofAsia]

安倍三箭，二零二六 巴拉特 老四 己不是做梦。

安倍三箭全部脱靶，安倍末日迟早到来lah.

[cityhantam]

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[cityhantam]

日本经济薅无可薅，美国养儿难防老！

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