Currency crisis, Why is the Japanese yen so weak? How do Japanese people feel?

Currency crisis, Why is the Japanese yen so weak? How do Japanese people feel?

[speedygonzalez]

The reason why it’s weak is due to huge interest rate gap between USD and Japanese yen. When USA raised their interest from 0% to 5.35%, Japanese central banks kept their rate at 0%. Hence all the capital flowing from Japan to USA to earn that arbitrage.

[reddsun]

Im in us and inflation is high, especially at the grocery store prices are crazy

[matt_px]

I'm 27 years old. At this moment, I'm cooking and prepping for next week. While listening to your videos, I can't stop thinking how will be my next 27 years. I'm very excited for it, but I fear a little of not having a family. Love your videos and the tone of your voice.

[RealRuralJapan]

I live in Japan and the unwillingness to raise prices by companies has led to workers not receiving wage increases and the potential extra profits not being reinvested back into companies to become more productive and further expand profit potential. Most Japanese people on boards of companies care more about staying afloat so they can get their retirement pensions than actually about changing the situation. This leads to workers to not care because they never see any benefit because the whole mentality is not geared to rewarding people for good work. They only give people meagre raises for how long they stay at a company not how much value they bring to the company through their work. You could be the best worker at a company but you will be paid less the lazy guy who has done nothing just because he has been there longer. This is the problem as the work culture and the pay structure is the opposite of capitalism.

[naimishsoni]

Probably the reason is Plaza accord signed in the late 90s when Jp was booming financially and real estate crisis correct me if it's inaccurate, btw i saw first japanese who raised this concern alarming post consequences of Economic slowdown but Japan is still doing better than S Koera and countries where hyperinflation striked. Sir can you please make a similar video on Vegetarian food restaurant's business performing in Japan. Great Analysis 👍

[dennischen]

It’s 158 to the dollar now. This volatility is like the stock market.

[gordonwong]

You have nothing to be worried about. Her strength is her super power 😊

[kesayo]

Back in the early 90s, I was recruited right out of a US college to work as an ex-pat engineer in Japan for a large Japanese corporation. At that time, Japan was still in the midst of the "bubble economy". All I heard about in the US was that Japan was going to overtake the US as the number 1 economy in the world. Japanese companies were buying up everything. And one of the largest Japanese zaibatsu was paying me double my market value to live and work in Japan. I was expecting to be part of the economic and technologic miracle that was Japan. But within one year, even at the age of 22, I saw a country that was at least 10 years behind the US in computers and software. Tech entrepreneurs were non existent. And their engineers were getting paid only slightly more than factory workers. My boss was 30 years old and living in a dorm room that was smaller than my room in college and sharing it with another employee. My boss's boss was married with 2 children and living in a 2 bedroom apartment that was smaller than the studio apartment I lived in when I was an intern. And yet they were so proud of themselves and what their company and country had accomplished. All I could think was, you guys have no idea how far behind you really are and how exploited and undervalued you are. After a few years I met my future wife and we got married. And as my contract with the company was coming to an end, I had a hell of time convincing my in-laws that the best opportunity for us to live well was in the US. My wife believed me, but nobody else did. They were going down like the Titanic and I didn't want to be on it when it happened. I hightailed it back to Silicon Valley where the internet boom was just starting and the tax policy favors start-ups. The US was and still is the best place in the world to innovate and start a company and make billions from nothing. Japan is still just a country of workaholics who are content to be exploited by the government and the wealthy.

[bigbadwulf]

Your central bank gives out yen basically for free, so anything that is free is basically valueless.

[adminomhfoz]

life in uk very expensive - beyond belief

[terriblewrm]

hello my friend. I find your videos very relaxing! I like to listen to you speak

[aninfo]

Currency now is FIAT money, just government bond and trade make there is value on that.
Not same like in the old day (before USD force to be oil trade currency) currency is backup by gold, make the price is same as gold.
Japan weak economy because many Japan industries now is outside Japan, use foreign currency and need no Japan yen to get transaction. Not just that.. Japan Debt to GDP is the highest in the world 263% and all debt must pay in US dollar.. So Japan must buy dollar to pay their debt or just the interest..
This economy not just 5-10 years but very long history.

[mentalstatement]

Japan population is aging fast.. you need young people to come up with new products and create new businesses, with less young people to drive Japanese economy it’s value will shrink

[Aceks]

The Yen is getting weaker, because of interest rates going up in the US. This is causing Japanese investors to sell Japanese debt(bonds), and buy US debt(Treasury bonds) at 5%. The Japanese government is paying 0.01%, so the US government is paying 500 times more. This is causing capital flight out of Japan to the US.

[RickG]

When you adjust for inflation, all the major currencies seem to have gone back to a Bretton Woods exchange rate. So Japan not just going back to 1990, but 1970. It takes about eight dollars to buy what one dollar bought in 1970. Japan's prices have only gone up maybe three times. So 158 yen is more like 360 yen (because you need a lot more yen to buy the same thing in dollars.) No one asks this, but maybe the yen (or the pound or other currencies) should never have been as high as they traded in the 1990s? At some point, there is a bottom. This is because everyone will be online buying things using yen. They will buy all their clothes, groceries, appliances on Amazon using yen.

[limsiewyew]

I am surprised too to be honest. Never imagine sgd will be stronger then yen. 1 sgd dollar have alway be to 70 plus or 80 plus yen since from the start.

[Giminy]

The reason why Uniqlo's products are cheaper in Japan that in USA is because their company origins is from Yamaguchi, Japan. If they were an international company selling products from overseas, the price would be much higher.

[onlytm]

Prices will have to rise faster and faster until both the Japanese yen and the US dollar reach their ultimate true value which is zero. This decline in value of currencies can be measured by watching the price of gold rather than the exchange rate between the JPY and USD.

[hamsterjohn]

Bitcoin; also BoJ has to raise rates or else sadly this will get worse.

[stevendaniel]

You leave out the percentage of income is spent on essential items. It may cost more in US but the percentage of cost in Japan is much higher.