Why the Japanese Yen is Collapsing

In this video, we look at Japan’s funky economy; why the yen is declining; and what might happen next.

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[CliveBirse]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[KarinaMilan]

Tesla stock dipped severally, resulting to about 23% drop in the shares value this month. I seriously need suggestions on how to diversify my $400k portfolio made up of volatile TSLA.

[Shibbymatt]

Japan has been living in the year 2000 since the 1980s

[noname-dkri]

A Japanese living in Japan here. Around March, I was checking Amazon for various products to put down a lawn in my yard, and where the Gardena sand rolling tool was in the 6000 yen range, I see now that it is in the 8000 yen range. The price of other tools must have gone up as well, so I have given up on putting up the lawn this year for now. I'll see how it goes and do it next year, but there is no guarantee that it will be in better condition by then.

[sbam]

Japan's lost decades were largely triggered by the USA who were in the late 80s downright paranoid about that country's ascendance in manufacturing. Those old enough to be an adult then will remember it well. In the 1980s the yen was 220 to the USD and it was an export led economy that had eye-watering trade surpluses with every developed country in the world. Through a combination of political pressure and currency manipulation (which the USA was uniquely able to do due to the power of the petrodollar, especially in those days), they forced the YEN to appreciate to 110 to the dollar making Japanese goods twice as expensive to crater its exports, and crater it did. With corporate profits tanked, companies stopped investing. Whereas this would normally result in a deep recession and high unemployment for a few years before growth returned again, _as Japanese culture view lay-offs as anathema, _ they retained their employees and depressed wages instead. So we have this unique scenario of consistent near full employment with deflationary pressure instead. Lower energy prices (stronger currency buys more barrels for the same amount) also put deflationary pressure on goods manufactured for the domestic market. Stagnant wages + deflation, of course people are gonna tighten belts. With C & I & X gone for ye old C+I+G+(X-M) formula, of course doemstic asset prices and financial markets also crash and a vicious circle occurs.

As a side note, Japan's lost decades helped open the door for Korea and China rise. Once upon a time, you can't go to the electrical section and find it filled 90% with Japanese products, now it's filled with Korean and Chinese TVs and refrigerators. In the case of the latter, perhaps the tale will have an ironic twist whereby America's fear of Japan helped a create a bigger dragon to rise and this was one is nowhere near as friendly to the US as Japan was/is.

[bababababababa]

If Japan’s economy is considered “collapsing” then what does that make my country 😭🇳🇬 we must have collapsed to the depths of hell at this point

[crush]

pacing is SO important
there are a lot of videos that I can't watch because all of the information is disorganized and spewed out at once
this video has a VERY steady pace, easy to metabolize, really appreciate that!

[intractablemaskvpmGy]

Standard of living is extremely high in Japan. Food and drink are fairly inexpensive. Low growth is still progress, and people like stability and predictability. Japan reached its "mature economy" status quickly.

[MichaelAD]

The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400, 000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.

[__--__]

2:38 "The bubble burst, and continued to burst for a while"
I don't know why that caught me off guard

[kyoxxxxxx]

The central bank holds more than half of the Japanese government's debt, and it is a lie that interest rates cannot be raised because interest payments will increase. Looking at the Japanese government's consolidated balance sheet, its finances are extremely sound. There are other reasons not to raise interest rates.

[vgstb]

The lost decade of Japan was due to the Plaza Accord between the US, France, Germany and the UK, and more importantly by the forced ending (demanded by the US) of the Window Guidance state credit system in Japan. Window guidance (credit lending by the state via the Bank of Japan and not by private lenders via private stock exchange) is seen as the most important financial and monetary policiy that made the Japanese economic miracle possible.

[dyvcrbg]

I’m Japanese living in UK and recently went back to my country, I was shocked people have a good life in Japan there is lots of cheap and delicious food all over the places so they can eat out almost every day( in fact cheaper eating out than cooking it yourself) health care service in Japan. ❤

[MJ-YT-USR]

The UK is very dependent on imports too, particularly for energy, and has done a lot of QE recently followed by a period of stubbornly high inflation. People in the UK have also been more focused on paying off debt than taking on more over the last year or so and house prices are falling - all sounds familiar then!

[vonigner]

As a manga/doujin collector, the yen being 168yen for one euro has been a blessing. I've been buying SO MUCH STUFF.
(I'm also keeping an account in yen just for this, so if the yen bounces back up i'll still have some cushion)
I hope hope they'll get better though, because i know locally it's awful.

[zshrubsole]

I love this Woman's delivery vs the previous host. Tone, Cadence, Pitch, Pronunciation etc. all improved for the channel with this woman

[stevenelson]

They make the best kitchen knives in the world though I have to say.

[DavidHernandez-hyni]

I was there during the peak, first weekend of May. It was cheaper to stay in Tokyo than it was in Mexico City. Amzing.

[CUMBICA]

But then I pretty well remember around 1996 I just arrived in Japan from Brazil as a manual laborer. And there was this Brazilian in my workplace who was going back to Brazil with like 70, 000 US dollars saved. He already exchanged at 152 yen because, as everybody at that time thought, the tendency is to ONLY devalue and the sooner the better to dollarize it. And then in a matter of weeks it went below 130... Bottom line is you never ever know.

[alexgauthier]

The quest for infinite growth on a planet with finite ressources. What could go wrong?