Quote:
Originally Posted by AlienQ
Thats fine and well but that does not explaine the strong yen against the dollar very well does it.  |
Not only does Japan have one of the slowest growing economies of the past 20 years of the major industrial economies they by far have the highest national debt to GDP ratio of the major economies. In fact, of all the countries in the world only
Zimbabwe's debt is greater relative to its GDP. Zimbabwe! The Japanese stock market index (Nikkei 225) is 70% lower than it was in 1989. No shit. Can you imagine being a Tokyo citizen in 1989 with $1 million in the market for retirement? 20 years later it is worth $300,000?
The Japanese economy has been a mess for 20 years. So what of the Yen. By nearly every measure Japan's economy has been anemic for two decades and there are handfuls of reasons why that is so - some of them demographic, some systemic. You think tariffs are actually helping the Japanese economy? Hmmmm. Smoot-Hawley Tariff Act anyone?
Even with a strong Yen/Dollar cross what would you do with it? Buy something from America? Nope. Import taxes go right into the cost of the good.